Aurobindo Pharma shares fell over 2% after Citi maintained a ‘Sell’ rating and lowered its target price to ₹1,100. Citi expressed concerns about flattening growth in the US market and rising margin pressures ahead. As of 10:06 AM, the shares were trading 2.12% lower at Rs 1,165.90.
In Q4FY25, Aurobindo reported a 10.6% year-on-year revenue increase to ₹8,382 crore, but net profit slightly dipped 0.5% to ₹902.8 crore. Citi highlighted that the company’s adjusted EBITDA was around 5% below expectations. Excluding the $40–60 million contribution from gRevlimid, the baseline EBITDA margin stood at 18.5%, down 100 basis points compared to last year, despite a one-time ₹1,000 crore cost benefit.
Management’s outlook was described as underwhelming, projecting only high single-digit revenue growth and no significant improvement in injectables for FY26. Citi pointed out that although the US business saw 10% volume growth in FY25, signs of flattening sales and the removal of gRevlimid from the product mix may pressure margins over the next few quarters.
Due to these factors, Citi cut its FY26–27 earnings per share estimates by 8%, indicating cautious sentiment around Aurobindo’s near-term prospects. Investors should watch the company’s US market performance closely as margin risks remain a key concern.
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