Aurobindo Pharma (ARBP IN) – Q1FY27 Result Update – Multiple levers – HOLD
Published on 06 Aug 2026
Aurobindo Pharma’s (ARBP) Q1FY27 adjusted EBITDA stood at INR 19.2bn (up 20% YoY); 4% above our estimates; partly aided by currency tailwinds. The company has maintained its 21% OPM guidance for FY27E. 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 stands increased by 4-7% as we factor in Lannet acquisition. The stock is currently trading at 9.5x EV/EBITDA and 18x P/E on FY28E. We retain our “Hold” rating with revised TP of INR 1,600/share; valuing at 18x FY28E EPS.
