Citi has maintained a ‘Sell’ rating on Aurobindo Pharma and cut its target price to ₹1,100, flagging concerns around flattening growth in the US market and rising margin risks in the coming quarters. While the company reported a 10.6% YoY revenue growth at ₹8,382 crore in Q4FY25 and a marginal net profit decline of 0.5% to ₹902.8 crore, Citi noted that adjusted EBITDA performance was about 5% below expectations.
Excluding the contribution from gRevlimid, estimated at $40–60 million, Citi calculated the baseline EBITDA margin at 18.5%, down 100bps YoY, even after accounting for a one-time ₹1,000 crore benefit across cost lines. The brokerage found the management’s guidance underwhelming, with high single-digit topline growth and no meaningful improvement in injectables for FY26.
Citi warned that with the US business showing signs of flattening despite a 10% volume growth in FY25, the absence of gRevlimid from the product mix could bring negative surprises on margin over the next 1–3 quarters. It has accordingly cut FY26–27 EPS estimates by 8%.
The views and target prices mentioned in this article are as stated by the respective brokerage firms. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
