Aurobindo Pharma (ARBP IN) – Q4FY26 Result Update – Muted US sales – Downgrade to ‘HOLD’
Published on 25 May 2026
Aurobindo Pharma’s (ARBP) Q4FY26 EBITDA of INR 18bn (flat YoY) was in line with our estimate. The company has maintained its 21% OPM guidance for FY27E. Both Eugia facilities have got OAI status which has ~40% of pending ANDAs. 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 FY27E/FY28E. Our FY27E and FY28E EPS broadly remain unchanged. The stock is currently trading at 9.7x EV/EBITDA and 17.8x P/E on FY28E. Given recent up in stock price and expensive valuations; we downgrade stock to “Hold” from “Buy” with revised TP of INR 1,400/share; valuing at 17x FY28E EPS.
