Aurobindo Pharma's profit rises on steady domestic demand

Cipla

05/11/2025 15:22

Nov 5 (Reuters) - Indian drugmaker Aurobindo Pharma ARBN.NS reported a 3.8% rise in profit on Wednesday, helped by steady domestic demand, especially for its anti-retroviral drugs for HIV infections.

Consolidated net profit in the second quarter rose to 8.48 billion rupees ($96.48 million) from 8.17 billion rupees a year ago.

Revenue rose 8.37% to 82.86 billion rupees.

For further highlights on earnings, click here

KEY CONTEXT

India's generic drugmakers get a significant portion of their revenue from North America, where fierce competition has led to lower prices, weighing on their margins. The U.S. contributed 43.9% to Aurobindo's quarterly consolidated revenue, according to the company's presentation.

U.S. President Donald Trump had
levied tariffs
 on import of branded and patented drugs from October, unless the companies were building a plant in the country. However, the policy had then excluded generic drug imports, offering a reprieve to the sector.

Aurobindo Pharma has also gained from strong demand for its anti-retroviral drugs to treat HIV patients.

Still, intense competition in the North American generics market continues to pressure drugmakers' margins.

Larger rivals Cipla CIPL.NS and Dr Reddy's REDY.NS posted weak sales in the region this quarter.

PEER COMPARISON TABLE:

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth (%)
Profit growth (%)
Mean rating
# of analysts
Stock to price target
Div yield (%)
Aurobindo Pharma Ltd
16.21
9.02
1.83
8.30
11.68
BUY
26
0.87
0.35
Cipla Ltd
CIPL.NS
24.38
15.59
3.79
7.48
0.18
BUY
37
0.90
0.86
Zydus Lifesciences Ltd
ZYDU.NS
22.87
14.78
3.94
6.01
-6.98
HOLD
26
0.95
1.12
Alembic Pharmaceuticals Ltd
ALEM.NS
23.11
14.26
NULL
9.99
22.00
BUY
12
0.90
1.19

STOCK PERFORMANCE CHART:

($1 = 87.8950 Indian rupees)

Aurobindo Q2FY26 https://fingfx.thomsonreuters.com/gfx/mkt/znpnqeobxvl/Screenshot%202025-11-05%20110527.png

 (Reporting by Mridula Kumar in Benagluru; Editing by Leroy Leo)

 ((Mridula.Kumar@thomsonreuters.com;))