Aurobindo Pharma targets 21% margins as US revenue push continues
Management eyes $2 billion in US revenue and a 21% EBITDA margin for FY27, while the Lannett acquisition nears a Q2 close.
What's new
- Management targets EBITDA margins above 21% for FY27.
- The US business aims for $2 billion in revenue in the near term.
- TheraNym signed new contracts with Merck Sharp & Dohme for a greenfield facility.
Why this matters
Aurobindo is scaling its high-value segments, with the European business hitting the €1 billion mark and the biosimilars unit securing further partnerships. The shift toward a 21% margin profile shows management is prioritizing profitability alongside its aggressive US revenue targets.
What we're watching
- The closing of the Lannett acquisition in early Q2 FY27.
- Progress on Pen-G external sales.
- Regulatory timelines for upcoming biosimilar filings.
The full read
Aurobindo Pharma closed FY26 with record revenue of ₹33,653 crore and an EBITDA margin of 20.4%. Management now targets margins above 21% for FY27. The company's growth strategy relies on its US business, which targets $2 billion in revenue, and its European operations, which have already crossed the €1 billion threshold. The biosimilars unit, TheraNym, is expanding its footprint through new contracts with Merck Sharp & Dohme for a greenfield drug substance facility. The Lannett acquisition in the US remains on the horizon, with a closing date set for early Q2 FY27 following earlier regulatory delays. These details provide a clearer view of the company's path toward higher profitability and scale. The success of these initiatives is the primary test for the coming year.
Questions answered
- What were the key financial highlights for FY26?
- Aurobindo reported record annual revenue of ₹33,653 crore and an EBITDA margin of 20.4%.
- What is the status of the Lannett acquisition?
- The acquisition faced regulatory delays but is now expected to close in early Q2 FY27.
- How is the biosimilars business performing?
- The unit, TheraNym, has signed additional contracts with Merck Sharp & Dohme to support a greenfield drug substance facility.
- What are the company's growth targets for its regional businesses?
- The US business is targeting $2 billion in revenue in the near term, while the European business has surpassed the €1 billion milestone.