Aurobindo Pharma ramps up China facility production, eyes Q3 FY26 break even

Published On 2025-08-18 08:00 GMT   |   Update On 2025-08-18 08:01 GMT
Advertisement

New Delhi: Hyderabad-based drug maker Aurobindo Pharma expects its facility in China to break even by the third quarter of the current financial year (Q3 FY26), as per the Chief Financial Officer Santhanam Subramanian.

The facility, which began operations in the last week of November 2024, is currently in the ramp-up phase. “This facility, with an initial capacity of over 2 billion units, is ramping up as expected and will begin contributing to revenue in the coming quarters,” Subramanian said during a recent analyst call. “It is expected to break even at the EBITDA (earnings before interest, taxes, depreciation, and amortisation) level by Q3 FY26.”

He noted that around USD 145 million has been invested in the facility, which commenced production and invoicing in Q4 FY25 and Q1 FY26, respectively.
Elaborating on other investments, Subramanian said the company has invested about USD 70 million in two US facilities, with production expected to start in the current fiscal year.
Elaborating further, he noted that the company plans to file for more than 20 products in the US and Europe from its Eugia-V plant in Visakhapatnam.
Advertisement
As per PTI, he noted that the company has invested around USD 30 million in the Biologics CMO business so far, and the balance of USD 100 million plus capital is expected to be invested by March 2027.
On business outlook, Subramanian stated: "Looking ahead, we remain optimistic about sustaining our growth momentum. Our confidence is supported by expected volume expansion, continued product launches and a stable pricing environment, especially in the US and Europe".
Commercial operations ramping up at new manufacturing sites would further support the topline growth and margin improvement in the upcoming quarters, he added.
"We are confident of achieving our internal target margin of 20-21 per cent in FY26," Subramanian stated.
Aurobindo Pharma reported a 10 per cent year-on-year dip in its consolidated net profit to Rs 824 crore for the June quarter, due to a fall in sales in the US and API business vertical.
Its revenue from operations increased to Rs 7,868 crore for the June quarter against Rs 7,567 crore in the year-ago period.
Tags:    
Article Source : with inputs

Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.

NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.

Our comments section is governed by our Comments Policy . By posting comments at Medical Dialogues you automatically agree with our Comments Policy , Terms And Conditions and Privacy Policy .

Similar News