Aurobindo Pharma (ARBP IN) – Q2FY27 Result Update – Multiple growth drivers – HOLD
Published on 06 Nov 2026
Aurobindo Pharma’s (ARBP) Q2FY27 EBITDA stood at INR 21.6bn (up 28% YoY); ~7% above our estimates; aided by currency tailwinds, Lannett acquisition and higher EU revenues. US revenues improved both QoQ and YoY on the back of integration of Lannett portfolio during the quarter. 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%. We retain our “Hold” rating with revised TP of INR 1,775/share; valuing at 18x Sept’28E EPS.
