India Pharma Outlook Team | Tuesday, 19 August 2025
Hyderabad-based Aurobindo Pharma has accelerated production at its China facility, which was launched in November last year. The company expects the site will achieve EBITDA goal by Q3 FY26, according to CFO Santhanam Subramanian.
"This facility, with an initial capacity of 2 billion units plus, is ramping up as expected and will begin contributing to revenue in the coming quarters. It is expected to break even at the EBITDA (earnings before interest, taxes, depreciation, and amortisation) level by Q3 FY26,” he said.
Aurobindo Pharma has spent approximately USD 145 million on the China unit, commencing production in Q4 FY25 and invoicing in Q1 FY26. In addition, the company has spent almost USD 30 million on its Biologics CMO business, of which, it expects to spend a further USD 100 million plus, by March 2027.
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In addition, the company has spent USD 70 million across two US facilities, which are due to start production within this fiscal year.
The drug-maker is also in the process of submitting filings for 20 new products in the US and Europe from the Eugia-V plant in Visakhapatnam. Subramanian noted that the growth momentum will be supported by new product launches, volumetric growths, and a stable pricing environment in key markets.
The expansion comes as the company reported a 10% year-on-year dip in consolidated net profit to ?824 crore for the June quarter, impacted by lower sales in the US and API vertical. However, revenues rose to ?7,868 crore from ?7,567 crore a year ago. Despite current headwinds, Aurobindo Pharma remains confident of achieving a 20–21% margin target in FY26.
