AUROPHARMA

Eyes FY26 Margin Targets Amid China Ramp-Up and Global Expansion

is navigating short-term losses at its China facility while laying the groundwork for multi-region growth. With strong momentum in Europe, a commercial transition in the US, and strategic investments in biosimilars, injectables, and Pen-G, the company remains confident of achieving its 20–21% margin target for FY26. - China Facility Nears Break-Even with Regulatory Tailwinds The oral-solid-dosage (OSD) plant in China is currently incurring ~$1 million in quarterly losses but is expected to break even by Q3–Q4 FY26. Backed by European approvals for 10 products and three local clearances, the facility is scaling toward a two-billion-unit capacity and will begin contributing to EBITDA growth. Domestic Pen-G output reached 1,050 MT in Q2FY26, operating at 40–50% capacity. Annualized production stands at ~6,000 MT, with potential to reach 15,000 MT pending government support for minimum import pricing. Yield improvements and policy alignment are expected to drive full utilization. Europe continues to show robust revenue growth, reinforcing its strategic importance. In the US, the Dayton facility has entered commercial phase, with packaging approvals secured and product launches slated for January. Significant revenue contribution is expected from FY27 onward. Aurobindo is accelerating its biosimilar portfolio and biologic contract manufacturing operations (CMO). The injectable segment is also improving, supported by supply ramp-ups and expanded distribution from China to Europe. The Lannett acquisition in the US is expected to enhance market position and portfolio depth. With multiple growth levers in play, Aurobindo remains confident of achieving its internal EBITDA margin target of 20–21% for FY26.