Aurobindo Pharma (ARBP IN) – Q3FY26 Result Update – PenG scale up remain key – BUY
Published on 11 Feb 2026
Aurobindo Pharma’s (ARBP) Q3FY26 EBITDA of Rs17.7bn (up 9% YoY), was in line with our estimate. The company has maintained its 20-21% OPM guidance for FY26E. ARBP unit 4 and 7 have got observations from USFDA. Around 33% of pending ANDAs are across from these facilities. Any adverse reactions could hurt US sales growth trajectory. In near term ramp up in PenG facility, Vizag pant commercialization will be key. We believe ARBP has multiple growth drivers in place with investments in vaccines, injectables, biosimilars and PLI which are expected to be reflected from FY27/FY28. Our FY27 and FY28E EPS broadly remain unchanged. The stock is currently trading at 7.5x EV/EBITDA and 13.6x P/E on FY28E. We maintain our “Buy” with TP of Rs1,300/share; valuing at 16x FY28E EPS.
