Macquarie has retained an ‘Underperform’ rating on Aurobindo Pharma with a target price of ₹1,010, citing a weak Q1FY26 performance and rising concerns over growth in the US market. The stock currently trades at ₹1,092, implying a downside from current levels.
Q1 misses estimates across all fronts
According to the brokerage, Aurobindo Pharma’s revenue, EBITDA, and net profit missed estimates by 5%, 7%, and 12% respectively in the June quarter. The miss was attributed largely to muted growth in the US business, which remains a key revenue driver for the company.
US market challenges persist
The management attributed the Q1 softness in the US segment to temporary headwinds such as destocking and seasonal factors. However, Macquarie flagged this as a concern, noting that continued sluggishness in the US business could weigh on overall performance, especially given the high dependency on that geography.
Brokerage view summary:
| Brokerage | Rating | Target Price | Key Takeaways |
|---|---|---|---|
| Macquarie | Underperform | ₹1,010 | Q1 miss across metrics, US business growth remains a concern |
Disclaimer: This article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice. Investors should consult their financial advisors before making investment decisions.
