HSBC has maintained a ‘Buy’ rating on Aurobindo Pharma, setting a target price of ₹1,415. The company posted an in-line revenue performance in Q4FY25 but missed on EBITDA due to higher-than-expected operational costs, including ₹1,050 crore in one-offs. EBITDA for the quarter stood at ₹1,792 crore, up 7.1% YoY.
Despite the absence of gRevlimid revenues in the coming fiscal, the management expects steady YoY EBITDA margins in FY26. HSBC finds the company’s commentary on US and European operations encouraging, with planned volume expansion from Eugia 3 and other new plants expected to support future growth.
The brokerage believes the margin hit in Q4 is transitory and continues to back the company’s longer-term fundamentals, particularly its recovery roadmap in key markets.
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.
