Aurobindo Pharma Q2 profit rises 32% to Rs 1,123.84 crore

Aurobindo Pharma Limited reported consolidated profit after tax of Rs 1,123.84 crore for the quarter ended September 30, 2026, up 32.5% from Rs 848.13 crore a year earlier, as revenue from operations increased 23.9% to Rs 10,263.29 crore. Aurobindo Pharma consolidated Lannett Company LLC from June 29, 2026, making earlier-period comparisons less direct.

How did Aurobindo Pharma perform in the September 2026 quarter?

Aurobindo Pharma increased revenue from operations to Rs 10,263.29 crore in the quarter ended September 30, 2026, from Rs 8,285.70 crore in the quarter ended September 30, 2025. Net sales and income from operations contributed Rs 10,227.28 crore, while other operating income was Rs 36.01 crore. Other income of Rs 168.22 crore took total income to Rs 10,431.51 crore.

Profit after tax rose by Rs 275.71 crore year on year to Rs 1,123.84 crore. Profit before tax increased to Rs 1,687.67 crore from Rs 1,275.92 crore, while tax expense increased to Rs 563.83 crore from Rs 427.79 crore. Basic and diluted earnings per share were each Rs 19.57, compared with Rs 14.61 in the September 2025 quarter.

The sequential comparison also showed higher revenue and profit. Revenue from operations rose from Rs 9,150.35 crore in the quarter ended June 30, 2026, and profit after tax increased from Rs 1,032.03 crore. Other income, however, declined to Rs 168.22 crore from Rs 264.23 crore in the June quarter.

Which costs changed during Aurobindo Pharma’s quarter?

Aurobindo Pharma’s total expenses rose to Rs 8,740.90 crore in the September 2026 quarter from Rs 7,132.03 crore a year earlier. Materials consumed increased to Rs 2,980.28 crore from Rs 2,509.80 crore, employee-benefit expense rose to Rs 1,658.55 crore from Rs 1,277.33 crore, and other expenses increased to Rs 2,465.65 crore from Rs 1,991.41 crore.

Depreciation, amortisation and impairment expense reached Rs 531.15 crore, compared with Rs 429.19 crore in the year-earlier quarter. Purchases of stock-in-trade rose to Rs 913.76 crore from Rs 846.05 crore, while finance costs rose to Rs 102.21 crore from Rs 95.24 crore. Changes in inventories were an expense of Rs 89.30 crore, versus an expense of Rs 16.99 crore a year earlier.

Aurobindo Pharma recorded a Rs 2.94 crore share of loss from associates and joint ventures, net of tax, compared with a Rs 1.66 crore share of profit in the September 2025 quarter. There were no exceptional items in the September quarter, although the half year ended September 30, 2026 included Rs 40.18 crore of Lannett acquisition and related costs.

What did the Lannett acquisition change for Aurobindo Pharma?

Aurobindo Pharma completed the acquisition of 100% membership interest in Lannett Company LLC and its subsidiaries on June 29, 2026, for Rs 2,321.83 crore. The acquired operations were consolidated from that date, and Aurobindo Pharma said the September 2026 quarter and half-year figures are therefore not comparable with the earlier periods presented.

The provisional purchase accounting recognised Rs 1,861.57 crore as the fair value of net assets acquired and Rs 460.27 crore as goodwill. Goodwill on the consolidated balance sheet rose to Rs 1,268.62 crore at September 30, 2026 from Rs 800.15 crore at March 31, 2026, while other intangible assets increased to Rs 3,404.64 crore from Rs 2,276.50 crore.

During the September quarter, Apitoria Pharma Private Limited completed the acquisition of A1 Biochem Labs (India) Private Limited for Rs 2.85 crore. A1 Biochem Labs acquired the business of A1 Biochem Research (India) Private Limited for Rs 20 crore, while A1 Biochem USA Inc acquired membership interest in A1 Biochem Labs LLC, USA for Rs 145.21 crore on October 1, 2026.

How did cash flow and working capital move at Aurobindo Pharma?

Aurobindo Pharma generated net operating cash flow of Rs 3,283.14 crore in the half year ended September 30, 2026, compared with Rs 2,885.06 crore in the prior-year half. Profit before working-capital changes rose to Rs 4,108.14 crore from Rs 3,734.22 crore, while inventories increased by Rs 374.45 crore during the six months.

Investing cash outflow widened to Rs 3,702.21 crore from Rs 2,223.41 crore in the prior-year half. Aurobindo Pharma spent Rs 1,430.10 crore on property, plant and equipment, including capital work-in-progress, development advances and capital creditors, and reported a Rs 2,013.97 crore net outflow on current investments. Acquisition of subsidiaries, net of acquired cash and cash equivalents, was Rs 1,028.70 crore.

Financing activities used Rs 1,595.65 crore in the half year, including Rs 805.80 crore for the completed share buyback including transaction costs. Cash and cash equivalents considered for cash flows were Rs 6,221.45 crore at September 30, 2026, compared with Rs 7,191.40 crore at the beginning of the year.

What shareholder actions and approvals did Aurobindo Pharma disclose?

Aurobindo Pharma’s board declared an interim dividend of Rs 7 per equity share of face value Rs 1 on November 4, 2026. The company also completed a buyback of 5,423,728 shares, representing 0.93% of its equity shares, at a maximum buyback price of Rs 1,475 per share; the aggregate amount paid, including related expenses, was Rs 805.80 crore.

Aurobindo Pharma operates in one reportable segment, pharmaceuticals. Curateq Biologics Private Limited submitted a merger scheme involving Auro Vaccines Private Limited to the National Company Law Tribunal on July 27, 2026. Eugia Pharma Specialities Limited submitted its merger scheme involving Eugia SEZ Private Limited and Eugia Steriles Private Limited on September 18, 2026, and the company said no impact from these schemes had been included pending regulatory approvals.

The consolidated results were reviewed by the statutory auditors, who issued an unmodified conclusion for the quarter and half year ended September 30, 2026. The board approved the unaudited consolidated results at its meeting on November 4, 2026.

Conclusion

Aurobindo Pharma reported year-on-year growth in September-quarter revenue, profit before tax and profit after tax, alongside higher materials, employee, depreciation and other expenses. The Rs 2,321.83 crore Lannett acquisition expanded the consolidation perimeter from June 29, 2026, while cash generation increased in the first half even as investing outflows widened.

The next disclosed matters to watch are the provisional purchase accounting for Lannett and regulatory decisions on the proposed internal mergers. Aurobindo Pharma has also declared an interim dividend of Rs 7 per share, while the completed buyback used Rs 805.80 crore including transaction costs.