CLSA has reiterated its ‘Outperform’ rating on Aurobindo Pharma, with a target price of ₹1,400, following its highest-ever revenue and EBITDA performance in Q4FY25. Revenue rose to ₹8,382 crore, while EBITDA increased to ₹1,792 crore, in line with estimates.
However, the company has guided for flat YoY EBITDA margin in FY26 and high single-digit topline growth, excluding gRevlimid. CLSA flagged the temporary shutdown of Aurobindo’s Penicillin-G plant following a fire as a key downside, resulting in a delay in production scale-up.
In light of this, the brokerage has trimmed its FY26–27 revenue and PAT forecasts slightly but continues to view Aurobindo’s long-term earnings visibility positively, especially as new capacities and regulated market supplies stabilize.
Disclaimer: 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.
