Aurobindo Pharma Ltd (AUROPHARMA) Q2 FY27 Results Analysis: PAT Jumps 32.51%, Margin Holds at 21%

Cofacto Research Published November 04, 2026 3 min read

Positive

Aurobindo Pharma Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 10,263.29 Cr (+23.87% YoY) and PAT growth of +32.51% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 04, 2026
Revenue (Q2)	Rs. 10,263.29 Cr (+23.87% YoY)
PAT (Q2)	Rs. 1,123.84 Cr (+32.51% YoY)
EBITDA margin	21.00% (+75 bps YoY)
EPS (Q2)	Rs. 19.57 (+33.95% YoY)

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue	"in-line to ahead, with Lannett's first full quarters the step-up to watch"	+23.87% YoY, +12.16% QoQ	Played out
Gross margin	"gross-margin pressure to be visible this quarter"	61.19% vs 60.36% Q1 / 59.70% YoY — expanded	Contradicted this quarter
FX tailwind	"~Rs.100 Cr EBITDA per 1% INR depreciation" (pre-call note, web-sourced)	Margin at 21.00%; effect not separable from filing	Partially
Tax normalization	toward 28–29%	33.41%, up QoQ — year-end guidance	Contradicted in-quarter
Interim dividend	expected at Nov 4 board meeting	Rs.7/share declared	Played out
Fresh acquisition exceptionals	possible	Q2 exceptional nil	Played out
Lannett ≥$60 Mn/qtr; Eugia warning-letter impact; Europe season onset	watch items	Filing silent on all three — open for the call	Not observable

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
FY27 revenue: double-digit growth	Q1 FY27 earnings call (Aug 6, 2026)	H1 +20.18% YoY	On Track
FY27 EBITDA margin: "north of 21%"	Q1 FY27 earnings call (Aug 6, 2026)	Q2 21.00%; H1 21.00% — at threshold, not above	On Track
FY27 absolute EBITDA > Rs.8,000 Cr	Q1 FY27 earnings call (Aug 6, 2026)	H1 Rs.4,076.99 Cr; H2 needs Rs.3,923.01 Cr	On Track
Net ETR normalize to 28–29% by FY27 year-end	Q1 FY27 earnings call (Aug 6, 2026)	Q2 ETR 33.41% (up from 31.88% in Q1)	Too Early
Interim dividend consideration	Board intimation of the Nov 4, 2026 meeting	Rs.7/share declared	Met

Key Numbers, Quarter by Quarter

Metric	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27	Q2 FY27
US product launches	6	9	12	10	not disclosed in filing
ANDA approvals	7	7	9	10	not disclosed in filing
ANDAs filed	13	—	—	9	not disclosed in filing

Key Investment Insights

Key Positives

Consolidated revenue grew 23.87% YoY to Rs.10,263.29 Cr and 12.16% QoQ
PAT grew 32.51% YoY to Rs.1,123.84 Cr, faster than revenue
EBITDA margin expanded ~75 bps YoY to 21.00% (company basis)
Gross margin expanded to 61.19% from 60.36% in Q1 and 59.70% YoY despite flagged input/freight inflation
H1 CFO of Rs.3,283.14 Cr is 1.52x H1 PAT; FCF of Rs.1,627.96 Cr after capex
Inventory days improved to ~123.7 and receivable days to ~71.1 vs March 2026
Q2 is clean: nil exceptional items and none of the H1 one-offs bled into the quarter

Risk Factors

Effective tax rate rose to 33.41% from 31.88% in Q1, above the management target of normalizing to 28-29% by FY27 year-end
Employee costs grew 29.85% YoY, faster than revenue
EBITDA margin at 21.00% is at, not above, the 'north of 21%' FY27 guidance threshold
Standalone CFO of Rs.922.49 Cr is only 0.63x standalone PAT, dragged by a Rs.724.77 Cr trade-receivable build
Subsidiaries contribute 35.74% of consolidated earnings, reducing standalone earnings visibility