Aurobindo Pharma reported a robust set of financial results for the first quarter of FY27, supported by broad-based growth across its key business segments. The company's revenue, profitability, and operating margins exceeded market expectations, driving positive investor sentiment and lifting the stock during Friday's trading session.

The company reported a net profit of ₹1,032 crore for the quarter, marking a 25.2 percent year-on-year increase from ₹824 crore in the corresponding period last year. Revenue from operations rose 16.3 percent year-on-year to ₹9,150.3 crore, compared with ₹7,868 crore a year earlier.

Operating performance also remained strong, with EBITDA increasing 17.3 percent year-on-year to ₹1,881 crore from ₹1,603 crore. EBITDA margin improved to 21.0 percent from 20.0 percent in the year-ago quarter, reflecting improved operational efficiency and a favourable business mix.

The company reiterated its FY27 guidance, expecting double-digit revenue growth, EBITDA exceeding ₹8,000 crore, and EBITDA margins of more than 21 percent.

Management highlighted that the US business maintained a quarterly revenue run rate of around US$400 million, supported by new product launches. The European formulations business continued to deliver strong growth, while growth markets also recorded healthy expansion. The company noted that growth in the Eugia injectable business is expected to remain in the muted single-digit range due to issues at the Eugia-3 manufacturing facility.

The ramp-up of the Penicillin G and 6-APA manufacturing plant has improved supply chain efficiencies, with Aurobindo Pharma targeting production of 10,000 metric tonnes during FY27 to support both captive consumption and external sales.

Following the results, HDFC Securities maintained its "Add" rating on the stock and increased its target price to ₹1,730 from the earlier ₹1,645, citing stronger-than-expected operating performance, sustained growth in the US and European businesses, improving manufacturing efficiencies, and long-term growth opportunities in biosimilars.

Axis Securities revised its recommendation to "Hold" from "Buy" while increasing its target price to ₹1,600 from ₹1,345. The brokerage acknowledged the company's strong quarterly performance and reaffirmed guidance but adopted a more balanced valuation stance following the recent rally in the stock.