<dhhead>Management Discussion and Analysis </dhhead>
ECONOMIC REVIEW Global Economy
The global economy demonstrated resilience in 2024, maintaining steady growth amid ongoing challenges. As per the International Monetary Fund (IMF) estimates, global Gross Domestic Product (GDP) grew by 3.3% in 2024, driven by stable consumer demand and strategic fiscal measures. Across regions, the growth exhibited some disparities with robust momentum in the United States (US) and slower growth in the Euro region. Inflationary pressures showed signs of easing, with global headline inflation projected to decline to 4.2% in 2025 and further to 3.5% in 2026. Advanced economies will likely meet their inflation targets before emerging and developing markets.
Region |
2023 |
2024(E) |
2025 (P) |
2026(P) |
Global economy |
3.3 |
3.3 |
2.8 |
3.0 |
Advanced economies |
1.7 |
1.8 |
1.4 |
1.5 |
Emerging markets and developing economies |
4.4 |
4.3 |
3.7 |
3.9 |
Growth in advanced economies is expected to slow down to 1.4% in 2025 and 1.5% in 2026, from the 1.8% growth recorded in 2024. The US economy is projected to grow at 1.8% in 2025 and 1.7% in 2026, lower than 2.8% in
2024 and 2.9% in 2023.The Euro area is expected to show gradual improvement in economic growth from 0.4% in 2023 to 0.9% in 2024, to 0.8% in 2025, and further to 1.2% in 2026. Emerging Markets and Developing Economies (EMDEs), led by China and India, grew at 4.3% in 2024 and are projected to witness slightly slower growth at 3.7% and 3.9%, respectively, in 2025 and 2026.
Global growth is projected at 2.8% in 2025 and 3% in 2026, led by trade tensions resulting due to impositions of tariff by the US and counter tariff by retaliating trade partners. However, ongoing conflicts, policy uncertainties, and supply chain disruptions pose challenges to global economic expansion.
(Source: IMF Economic Outlook, April 2025; World Bank Global Economic Prospects, January 2025)
India surpassed the UK to become the worlds fifth- largest economy, driven by robust domestic consumption, structural reforms and strong policy support. As per the Second Advance Estimates of GDP, Indias GDP growth is expected to be 6.5% in FY25, lower than the 9.2% growth in FY24. Manufacturing, services and infrastructure sectors witnessed strong traction during the year. Export growth remained robust, particularly in pharmaceuticals, textiles, and engineering goods. The government continues to support the pharmaceutical sector through initiatives aimed at strengthening medical infrastructure, expanding medical education, promoting medical tourism and the Heal in India campaign, and encouraging private sector- led R&D and innovation. In the Union Budget 2025-26, the allocation to the Ministry of Health and Family Welfare was increased by 9.8% to 99,859 Cr reflecting the governments strong focus on improving healthcare facilities in the country.
Inflationary pressures persisted in FY25, largely due to global supply chain disruptions and volatility in commodity prices. In response, the Reserve Bank of Indias Monetary Policy Committee (MPC) maintained a neutral stance. It implemented a 25 basis point cut in the repo rate, bringing it down to 6.25% on February 7, 2025 — the first rate cut since May 2020 and further 25 basis point cut to 6% in May 2025. Consumer Price Index (CPI) inflation for FY25 is projected at 4.9%, down from 5.4% in FY24.
The government is actively promoting digital transformation, financial inclusion, and ease of business to maintain the momentum of economic growth. The production-linked incentive (PLI) schemes have gained momentum, boosting domestic manufacturing. According to the RBI, the Indian economy is expected to clock 6.7% growth in FY26, led by healthy Rabi prospects and an anticipated recovery in industrial activity. Consumption is also expected to improve in FY26, aided by tax reliefs announced in the Union Budget 2025-26, providing strong support to economic growth.
Global Pharmaceutical Industry
In 2024, the global pharmaceutical market grew to USD 1,737 billion.The growing prevalence of chronic conditions such as cancer, diabetes, and neurological disorders, rapid growth in the geriatric population, and higher healthcare spending, particularly in emerging markets, led to the market growth. While established developed markets continue to lead the growth in the pharmaceutical market, emerging regions present untapped opportunities due to their low access to medicines and technology. Rise in ageing population is leading to increasing incidences of age-related disorders, such as rheumatoid arthritis, cardiovascular disorders, among others. There is a rapid rise in complex treatments like biologics and oncology therapies.
Other drivers for growth include improving healthcare infrastructure, growing government support, technological advancements in biologics, personalised medicine, and RNAi-based therapeutics, which have revolutionised treatment results. Expedited regulatory pathways and increasing demand for patient-centric solutions further support market growth. Novel drug delivery systems and steadily rising healthcare access in emerging economies are driving market expansion.There has been a substantial rise in R&D investments in the pharmaceutical market, driving product development.
Targeted therapies, biologics, and personalised medicine are gaining traction as they provide more effective solutions, especially for complex conditions such as cancer, autoimmune diseases, and genetic disorders. Recent FDA approvals for gene therapies and RNA-based treatments, like those for inherited retinal diseases and certain types of cancers, are contributing to the industrys momentum. Boost in R&D spending fuels the discovery of breakthrough therapies across various business areas, including oncology, immunology, and rare diseases.
The global pharmaceutical market is projected to reach USD 2.4 trillion by 2029, growing at 5-8% CAGR (20252029) driven by new products and the impact of patent expiries, including the growing impact of biosimilars. New and existing brands will continue to fuel growth in leading developed countries with offset by USD 220 billion of brand losses of exclusivity over five years. The US is anticipated to remain the largest pharmaceutical market by revenue in 2030, driven by substantial R&D investments, expedited drug approvals, and a strong pipeline of innovative therapies.The impact of exclusivity losses will increase to USD 182 billion over five years, with nearly USD 150 billion from small molecules.
Source: IQVIA 2025 - The Global Use of Medicines
Growth in immunology treatments
Globally, there is a substantial growth in the awareness of immunological diseases in both developed and developing nations and an increase in the prevalence of immunological disorders due to environmental factors such as rheumatoid arthritis, psoriatic arthritis, type 1 diabetes, and others. The global immunology market size is estimated at nearly USD 180 billion in 2024 and is expected to grow slow at 4-7% CAGR to 2029, reaching USD 234 billion due to the launch of biosimilars. In many developed markets, more than half of current immunology spending is expected to face generic or biosimilar competition due to brand losses of exclusivity in the next five years. The most significant trend in the market is the increasing demand for biosimilars, owing to their similar efficiency at lower costs. The loss of patent exclusivity of top-selling biological drugs presents opportunities for key market players to invest in the R&D of biosimilars. Immunology treatment has been shifting to biologics over the last two decades, with developed countries leading the adoption, along with targeted small molecule therapies. Source: IQVIA 2025 - The Global Use of Medicines
Rapid Uptake of GLP-1 Agonists
GLP-1 receptor agonists have shown effectiveness in treating diabetes and obesity by mimicking the effects of the naturally occurring hormone GLP-1, which regulates appetite and blood sugar levels. Growth in prevalence of diabetes, clinical efficacy, patient awareness and acceptance, various global health initiatives, and growing patient preference for injectable therapies have led to increased uptake of GLP-1 agonists. In 2024, the GLP-1 receptor agonist market is estimated at USD 110 billion and is anticipated to grow to reach USD 200 billion by 2029. This growth is largely attributable to a growing focus on lifestyle management (obesity), increased use of personalised medicine approach, expanding indications, development of next-generation products, integration into combination therapies and other diseases including sleep apnoea and cardiovascular prevention.
Source: IQVIA 2025 - The Global Use of Medicines
According to the World Health Organization (WHO), in 2022, around 20 million people globally were diagnosed with cancer and 9.7 million deaths were reported.The rising incidence of cancer, due to factors such as lifestyle changes, ageing population, and environmental factors, fostering the need for advanced diagnostic imaging and treatment, is driving the growth of the global oncology market. The global oncology market, not including additional medical costs or supportive care medicines, was valued at USD 252 billion in 2024 and is expected to grow steadily to USD 441 billion by 2029, at 11-14% CAGR as novel treatments continue to be launched for the treatment of cancer, and some key products face biosimilars or generics threat. Growth is expected to slow, beginning in 2027, as a number of backbone therapies begin to face generic and biosimilar competition, providing savings for both patients and payers. Small molecules palbociclib in breast cancer, enzalutamide in prostate cancer, and Olaparib in a range of solid tumours, will all lose exclusivity in 2027. The PD-1 inhibitors pembrolizumab and nivolumab, accounting for 10% of global oncology spending in 2024, are expected to face biosimilar competition starting 2028, with majority of impact on growth in 2029.This lower growth as a result of losses of exclusivity will be offset by continued uptake of novel modalities, including ADCs, bispecific antibodies, and cell and gene therapies, which are expected to account for nearly 20% of oncology spending in 2029, up from 9% in 2024 and 3% in 2019.
Technological innovations related to cancer diagnosis and treatment are highly influencing the markets growth.The adoption of personalised medicine, CAR-T cell therapy, as well as AI-based diagnostic solutions have revolutionised cancer care. Various initiatives undertaken by the government have accelerated the awareness of early detection and prevention of cancer among individuals, propelling the adoption of advanced cancer diagnostic kits and targeted therapy among healthcare professionals and patients, in turn fostering the market growth.
Source: IQVIA 2025 - The Global Use of Medicines
Emerging trends in neurology and mental health treatments
The global neurology market is growing, led by the rising incidences of neurological disorders, technological advancements in neurological devices, and increasing demand for minimally invasive procedures. Rising mental health awareness, workplace mental health programs, advancement in treatment modalities, growing incidences of mental disorders, and various government initiatives and policies are giving a boost to the mental health treatment market. There is a steep rise in the prevalence of neurological disorders such as Alzheimers disease, Parkinsons disease, and epilepsy among the global population. New approvals for these diseases, including adacanumab launched in 2021 and lecanemab launched in 2023, are expected to drive growth. A new wave of rare disease neurological treatments, including dozens with orphan designations, have been approved. Other diseases with larger populations such as migraine, depression and anxiety have also seen a range of new treatments approved and launched.
Source: IQVIA 2025 - The Global Use of Medicines; Fortune Business Insights
Antibacterial challenges and solutions
Globally, the demand for antibacterial products is on the rise, driven by rising customer awareness about personal hygiene, increasing prevalence of bacterial and viral diseases, such as cellulitis, impetigo, and leprosy, among others. Antibacterials act as crucial healthcare resources, but their usage must be carefully managed to mitigate the growing risk of antimicrobial resistance.
In 2024, North America was the leading pharmaceutical market, driven by high healthcare expenditure, strong regulatory frameworks, and advancements in biologics and personalised medicine. Increasing demand for specialty drugs and RNAi-based treatments supports market growth. Within North America, the US leads the region, benefiting from significant R&D investments, early drug approvals, and a robust pipeline of innovative therapies. North America medicine spending is expected to grow at an elevated rate of 6-9% through 2029, driven by continued growth of new brands and older brands, partly offset by losses of exclusivity.
Global and regional spending growth (across 9 regions), excluding COVID-19 vaccines and therapeutics, in const USD 2019-2029
Within the bigger European markets, the UK, Germany, and France, benefit from strong regulatory frameworks, government funding for biopharma research, and increased adoption of biosimilars and orphan drugs. Growing incidences of chronic diseases, ageing populations, and expanding access to healthcare are driving market growth. Western Europe has had four straight years of 8% spending growth through 2024 and is expected to slow to 4.5-7.5% through 2029 as a combination of expiry events and payer pressure partly offset by the wider use of novel medicines. Eastern Europe has the highest growth outlook with a range from 7 to 10%, although slowing through the forecast period.
The Asia-Pacific pharmaceutical market is experiencing rapid growth, driven by increasing healthcare access, rising chronic disease prevalence, and government initiatives to improve healthcare infrastructure. China, India, and Japan lead the market, supported by local manufacturing capabilities and expanding clinical research.
The development of targeted therapies, biologics, and personalised medicine, strong government policies, high consumer spending, and extensive biopharma investments characterise the US pharmaceutical market. Estimated at USD 812 billion in 2024, the US pharmaceutical market is expected to witness 3-9% CAGR from 2025 to 2029, to reach an estimated value of USD 1,156 billion by 2029. This growth will be driven by adoption of newly launched innovative products, with an average of 50-55 new medicines launching per year over the next five years, including those in oncology or with specialty or orphan status, as well as some more traditional therapies in diabetes, obesity, and neurology. Growing prevalence of chronic diseases, an ageing population, strong government focus, huge investments in R&D and extensive efforts to improve the affordability & accessibility of pharmaceuticals propel the pharmaceutical markets growth in the US.
• Focus on novel therapy: The contribution from new brands is expected to be USD 117 billion over five years as more than 250 new active substances (NAS) are expected to launch in the U.S. in the period. The transformative clinical outcomes of GLP-1 receptor agonists and GLP-1/GIP dual agonists have transformed obesity treatment for both patients and providers, offering a viable medical solution to a condition long viewed as difficult to manage. Another example is the strong focus on precision medicine, approval of cutting-edge drugs such as CAR-T cell therapies for certain cancers, gene therapies and RNA-based treatments.
• Focus on R&D: Investing in the discovery and development of new therapies is a key focus area in the US market. Major players are investing huge amounts in R&D for developing innovative drugs to meet the demands of an ageing population and the increasing prevalence of chronic diseases.
• Growth in biosimilars: The rise of biosimilars presents competition for biologics, particularly in therapeutic areas like oncology and immunology. Branded pharmaceuticals can maintain their market position led by innovation, brand loyalty, and superior efficacy in many cases.
• Patent expiration: Patent expiration of key pharmaceutical drugs has emerged as a significant restraint for the growth of US branded drugs. Once patents expire, generic versions of these drugs enter the market, often leading to a sharp decline in sales for the original branded drugs. The impact of losses of exclusivity is expected to increase dramatically to USD 179 billion from USD 49 billion in the prior five years as both small molecule and biologic product exposure to LOE has increased substantially.
• Strict regulations: The FDA plays a critical role in ensuring the safety and efficacy of drugs, with expedited pathways such as Breakthrough Therapy Designation and Accelerated approval, supporting innovation for high-need conditions. Increasing scrutiny over drug pricing and reimbursement policies is an integral part of the market dynamics.
The European pharmaceutical market is witnessing steady growth, led by Germany, France, Italy, Spain and the UK. The European pharmaceutical market is characterised by major technological advancements, strong government focus on healthcare, growing prevalence of generics due to patent expirations, biologics, and unwavering focus on advancements in research and development. Biologics and biosimilars are the most lucrative and fastest- growing molecule categories. Cell and gene therapies, and immunotherapies are the fastest-growing areas in terms of R&D, with huge investments.The market focuses on oncology and central nervous system disorders, which typically receive the highest funding for developing novel therapies. In 2024, the medicine spending in the top five European markets was estimated at USD 242 billion and is expected to USD 327 billion by 2029.
• Losses of Exclusivity: The impact of LOEs in the five largest European markets (Germany, France, Italy, Spain, and the UK), are expected to increase 2.5 times over the next five years with a sequence of large selling brands facing expiry through 2029.
• Biopharma driving innovation: Biopharmaceuticals are transforming the healthcare sector, providing breakthroughs for complex diseases such as autoimmune disorders and rare conditions. These advanced therapies help address unmet medical needs through innovation. Over the next five years, more than 200 NAS are expected to launch in the leading European countries including one- third from cancer drugs and important clusters in neurology, including rare diseases. Other clusters of innovative drugs include next generation biotherapeutics, which include cell and gene therapies and RNA therapeutics, and which partly overlap with oncology treatments.
• Digital health integration: Huge innovative solutions are emerging using digital health integration, such as telemedicine, remote patient monitoring, etc. Europe is also on track to adopt Industry 4.0 to increase precision and consistency in drug manufacturing.
• Technologically-driven R&D: Advanced technologies are extensively being used in novel drug development, including AI, big data, etc.This helps in improving the turnaround time and is in line with the governments aim to provide faster access to quality healthcare.
• Personalised medicines: Tailoring treatments to individual patient needs is gaining significant traction in Europe. Coupled with strong focus on cancer research, this approach is the most effective in improving survival rates among patients.
Pharmerging markets are a combination of countries with low positioning in the global pharmaceutical market, with a high growth rate. India, China, South Africa, Brazil, Russia, Indonesia and Turkey are some of the key pharmerging markets. In the past decade, pharmerging markets witnessed high growth due to the rising demand for cost-effective generics. AI is playing a key role in the transformation of the pharmerging markets by supporting the development and discovery process of new formulations of drugs, helping market players innovate in line with evolving market dynamics. The pharmerging market is estimated at USD 312 billion in 2024, is expected to grow at 3.5-6.5% CAGR to USD 375-405 billion by 2029.
The Asia Pacific market holds a dominant position in the pharmerging markets, due to rise in patent expiration, rapid urbanisation, and a spike in the medical research investments by various governments. Within the Asia Pacific market, China dominates with a strong potential to grow exponentially in the near future.
Typically, pharmerging markets witness volume-driven growth with lesser focus on specialised therapies. As compared to developed markets, low-cost generics or non-original branded products garner a greater share in these markets, with lower shares of originator products. The market scenario is undergoing a shift with an emerging middle-class population who are aspirational. With strong support from government, the pharmerging markets are expected to witness robust growth.
The Indian pharmaceutical industry is often referred to as the Pharmacy of the World. Globally, the IPM ranks third in production by volume and 14th by value. India is the worlds leading vaccine exporter, supplying 6570% of the World Health Organizations (WHO) vaccine requirements, particularly for DPT, BCG, and measles and plays a significant role in affordable HIV treatment. The growing popularity of China plus one strategy among large pharmaceutical markets, is paving way for India to further emerge as a key global pharmaceutical supplier. The industry currently valued at USD 58 billion, accounts for ~3.5% of total drugs and medicines exported globally, and exports pharmaceuticals to more than 200 countries and territories and is projected to reach USD 120-130 billion by 2030 owing to rising lifestyle diseases, ageing population, increased focus on holistic health, strong government push and the growing consumerisation of healthcare. The government is undertaking several measures to boost the overall growth of industry. In the Union Budget 2025-26, healthcare was given significant importance with a clear focus on improvement of medical infrastructure, expansion of medical education, promotion of medical tourism, Heal in India campaign and boost to R&D investments and innovation.
Source: Investing in Indias Pharmaceutical Industry: Key Growth Prospects
Founded in 1986, Aurobindo Pharma Limited (the Company) has emerged as a knowledge-driven company manufacturing active pharmaceutical ingredients (API) and formulation products. Headquartered in Hyderabad, India, the Company is an integrated global pharmaceutical major operating in over 150 countries. We are involved in developing, manufacturing, and commercialising a variety of generics, specialty products and injectables, API and complex offerings, including biosimilars, vaccines, peptides, and metered dose inhalers globally. We are renowned as one of the Indias leading contributors to the global pharmaceutical sector. Our extensive reach enables us to understand diverse consumer needs and strengthen our ability to bring agile solutions to millions of patients.
With a strong R&D focus and a multi-product portfolio, we have established 30+ state-of-the-art manufacturing and packaging facilities in several countries (28 in India, 1 each in Portugal, Brazil, and China) with a workforce of over 40,000. These manufacturing facilities are approved by leading regulatory agencies, including the US FDA, UK MHRA, EDQM, Japan PMDA, WHO, Health Canada, South Africa MCC, and Brazil ANVISA. Seamless business model allows us to follow tight production schedules, enabled by timely availability of raw materials and finished products.This reduces time-to-market and allows to encash market opportunities.
The Companys commitment to enhancing patient impact through continuous R&D in pharmaceuticals is reflected in our vast investments with 9 R&D centres (5 in India and 4 in US) spread across an area of 16,000 sq.m and a proficient team of over 1,500 experienced scientists. Leveraging our robust in-house R&D capabilities, we are developing niche oral, sterile, specialty injectables, biosimilars, and peptide- based products, involving clinical and end-point studies. We remain prompt in filing patents, Drug Master Files (DMFs), Abbreviated New Drug Applications (ANDAs), and formulation dossiers globally.
Our robust product portfolio is spread across 7 major therapeutic and product areas, namely, Central Nervous System (CNS), Anti-Retroviral, Cardiovascular System (CVS), Antibiotics, Gastroenterological, Anti-Diabetics and Anti-Allergic. With a view to improve the global healthcare sector, we strive to develop complex molecules, differentiated offerings, broad-spectrum products, and newer technologies to improve health outcomes globally. With steady work on backward integration into the key starting materials (KSMs) and intermediates, we are expanding our horizons. Established as one of the largest vertically integrated generic and API pharma players, we are steadily evolving while continuing to focus on the core capabilities.
During the year, the Company commissioned its manufacturing facility in China and received EU GMP approval for its biosimilars plant. We also have two manufacturing facilities one in the US and the other in India which will be commercialised in near term. Post commercialisation of the units mentioned above, we will have operational manufacturing capabilities in complex generic products, including injectables, inhalers, topical and transdermal products, biosimilars and biologics CMO.
Business-wise Performance Overview Formulations business
During FY25, our Formulations business (excluding Puerto Rico) clocked 27,388 Cr revenue, constituting 86% of the total revenue. The US and Europe accounted for 73% of the total revenue. Over 50 billion units of different dosage forms, such as tablets, capsules, injectables, etc., were successfully manufactured in our 18 state-of-the-art formulation manufacturing facilities spread across India, Portugal, the US, and Brazil.
During FY25, our US formulations business grew 7% Y-o-Y to 14,816 Cr In dollar terms, revenue grew 5%Y-o-Y to USD 1,752 million. We maintained our top position in terms of prescription volume share in the US as per IQVIA data for the year ended March 2025. We have a strong presence across generic orals, injectables, OTC, and branded oncology business areas. During the year, we launched 33 products within the US formulations business, including 7 specialty products.
Ranked among the top 10 generic pharmaceutical companies in eight of the ten countries where we operate - including four of the top five EU markets - we have established a strong presence across Europe and the UK. Our comprehensive commercial infrastructure spans across pharmacy, hospital, and tender sales channels. France and Portugal are our top two markets in Europe.
During FY25, our Europe formulations business revenue grew 17% Y-o-Y to 8,356 Cr contributing 26% of our total revenues led by higher volumes and new product launches. In Euro terms, revenue grew 15% Y-o-Y to EUR 921 million.The consistent efforts to improve profitability of the European business has resulted in improved margins driven by increased share of inhouse supplies and the Company is focusing on further enhancing the capacities to cater the increasing demand.
During FY25, our Growth Markets saw remarkable sales growth of 26% Y-o-Y to 3,180 Cr or USD 376 million, contributing 10% of our total revenue driven by successful geographical expansion and strong sales momentum. Indonesian market coupled with other key markets such as Canada, China, South Africa have witnessed good traction. The other key markets include Canada, the Domestic market (India), Mexico, and Brazil. Domestic formulation sales stood at 261 Cr during the year.
During the year, the ARV business grew 19% Y-o-Y to 1,037 Cr or USD 123 million driven by additional business opportunities.
During FY25, the API business grew 2% Y-o-Y to 4,323 Cr While pricing pressures continued, these were partly offset by the volume gains and improved asset utilisation. The business accounted for 14% of the total revenue.
Beta Lactam comprises 73% of the API sales, with the remaining comprising non-Beta lactam APIs. We continue to strive to supply superior quality APIs meeting stringent requirements. We employ strict cost control and efficiency measures in R&D, supply chain, and manufacturing operations.
• Recorded revenue of 31,724 Cr, EBITDA of 6,605 Cr, with EBITDA margin at 20.8%
• US formulations revenue increased by 7% Y-o-Y to 14,816 Cr (USD 1,752 million)
• Europe formulations revenue increased by 17% Y-o-Y to 8,356 Cr (EUR 921 million)
• Growth Markets revenue increased by 26% Y-o-Y to 3,180 Cr (USD 376 million)
• ARV revenue increased by 19% Y-o-Y to 1,037 Cr (USD 123 million)
• API revenue increased by 2% Y-o-Y to 4,323 Cr (USD 511 million)
• Net Worth was at 32,647 Cr in FY25 as compared to 29,851 Cr in FY24
• Research & Development (R&D including depreciation) spend was 1,622 Cr, 5% of revenue
• Filed 31 ANDAs with the US FDA, of which 6 are specialty products
• Received final approval for 31 ANDAs from the US FDA of which 3 are specialty products
• Launched 33 products in USA, including 7 specialty products
Particulars |
FY25 |
FY24 |
Y-o-Y % growth |
Revenue from Operations |
31,724 |
29,002 |
9.4% |
Other Income |
622 |
519 |
19.9% |
Total Income |
32,346 |
29,520 |
9.6% |
EBITDA |
6,605 |
5,843 |
13.0% |
EBITDA margin |
20.8% |
20.1% |
67 bps |
PAT |
3,484 |
3,169 |
9.9% |
PAT margin |
11.0% |
10.9% |
5bps |
Net Worth |
32,647 |
29,851 |
9.4% |
Significant Financial Ratios
Ratios |
March 31, 2025 |
March 31, 2024 |
Debtors Turnover |
6.0 |
6.3 |
Inventory Turnover |
3.1 |
3.2 |
Interest Coverage Ratio |
12.2 |
16.7 |
Current Ratio |
1.9 |
1.9 |
Debt Equity Ratio |
0.08 |
0.11 |
Operating Profit Margin (%) (EBITDA margin %) |
20.8% |
20.1% |
Net Profit Margin (%) |
11.0% |
10.9% |
Return on Equity (ROE)% |
11.1% |
11.2% |
Cash Conversion Cycle (Days) |
201 |
183 |
Return on Capital Employed |
14.5% |
14.4% |
Fixed Asset Turnover |
2.1 |
2.0 |
We remain confident of our growth driven by a strong and diverse product portfolio, capacity expansion plans, multiple upcoming launches, and favourable market conditions. The growth momentum in the USA, Europe and other key markets is expected to sustain. Backward integration efforts are expected to drive enhanced operational efficiencies and deliver strong contribution to the financial performance from FY26 onwards.
Our proactive efforts to optimise the working capital cycle will strengthen our balance sheet and improve cash flows, reinforcing financial stability and long-term growth potential.
We have robust expansion plans for our manufacturing facilities, including the formulations manufacturing facility with a current capacity of 60+ billion units. We have commercialised our China plant with an annual Oral Solid Dosage (OSD) manufacturing capacity of around 2 billion units, which is expandable further over near to medium term. The plant is expected to contribute to revenues starting FY26. Also, the US-based OSD plant at Dayton is set to be commercialised in FY26.The manufacturing plant in Raleigh, which is currently manufacturing topicals is expected to be fully operational in near to medium term to include transdermal and respiratory products. We commenced civil work for our large-scale biologics CMO facility for mammalian cell culture products manufacturing.
We remain committed to ramping up our specialty and injectable business. We are working on multiple respiratory products and have partnered with a global pharma major for the development of respiratory products. We are advancing the second wave of oncology and immunology biosimilars. The strong portfolio of products positions us for long-term value creation and growth.
With these initiatives, the Company is well placed to improve profitability and sustain growth momentum, driven by robust execution of strategic initiatives and improved operational efficiencies.
Human capital is a key resource for the Company. We strive to foster a safe, productive, equal, and diverse work environment. We conduct various training and development programmes across business functions. We have established tie-ups with top institutions for leadership development through training, coaching, and mentorship programmes. We leverage technology for effective talent development, employee engagement, and performance management. We conduct various initiatives to create a vibrant, dynamic and resilient team, empowered to make decisions for effective business growth. We ensure inclusivity and provide equal opportunity to all employees irrespective of gender and/or religion. We remain commited to prioritise employee health and well-being and aligning individual goals with organisational goals. All employee efforts are duly encouraged, valued, and rewarded. With a view to keeping pace with the dynamic macro environment, we continue to realign our strategies as required. We promote a collaborative environment through various projects aimed at integrating our global workforce. As of March 31, 2025, the Company had a total of 27,000+ permanent employees and 13,000+ contractual employees.
Risk management is an essential pillar of business growth. The Enterprise Risk Management (ERM) framework enables us to address all major risks in a proactive manner, ensure adherence to laws and statutes, and safeguard our reputation and financial health. ERM is crucial to ensure business continuity and sustain organisational objectives. Developed by the Treadway Commission, the ERM practices are based on the COSO ERM Framework 2017. The ERM framework involves risk identification, assessment and devising appropriate strategies to minimise the impact of any foreseeable risks impacting actual business operations. Thus, ERM is important to assert competitive advantage by leveraging market opportunities and increasing enterprise value for all stakeholders. The Board of Directors regularly reviews the risk management policy with our quarterly financial results.
All critical aspects of the business are covered by the risk management process, ensuring proper designing and execution in line with organisational goals. Risks are addressed across all key business functions in a holistic manner.
• Risks are identified through discussion with Business Heads
• Update risk registers
• Risks are thoroughly evaluated to determine possibility of occurrence and impact to prioritise and mitigate within tolerance limit
• Risk reports are submitted to the Risk Management Committee periodically
• Periodic updates are provided to the Board highlighting key risks
• Business Heads ensure appropriate, adequate and timely actions are undertaken
• Progress of mitigation measures are periodically monitored and reviewed
We have an extensive internal control framework in accordance with the size and complexity of our business operations. Aimed at safeguarding assets, restricting unauthorised use or disposition, and ensuring strict adherence to all applicable rules and regulations, the internal control system guarantees complete and correct authorisation, recording and reporting of all business transactions. The internal control system has been designed to ensure that financial and other records are reliable for preparing financial and other statements, averting frauds and errors, securing sensitive data, aiding the audit process, maintaining proper accounting controls, monitoring operations, executing authorised transactions, and ensuring strict compliance with corporate policies.The internal control system enhances operational efficiency and productivity by ensuring optimum utilisation of resources.
Periodically, specialised third-party consultants and professionals audit and review business-specific compliances. We have constituted an Audit Committee to ensure effective monitoring of business operations and proper functioning of the internal audit functions. The
Committee reviews the findings of the internal audit and suggests appropriate actions, as deemed necessary on a periodic basis. The objective of the internal assessment is to assess the existence, adequacy and operation and to ensure compliance with Companies Act, 2013, SEBI Listing regulations and policies of the Company. The internal controls facilitate prompt detection and redressal of any deviations in business operations.
This document contains forward-looking statements regarding expected future events and financial and operating results of Aurobindo Pharma Limited. As these statements rely on assumptions, they are inherently subject to risks and uncertainties.There is a significant risk that these assumptions and predictions may not prove to be accurate. Readers are cautioned against placing undue reliance on forward-looking statements, as various factors could cause actual future results and events to differ materially from those expressed in these statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications, and risk factors outlined in the Managements Discussion and Analysis of the Annual Report for FY25.
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IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund & Specialized Investment Fund Distributor), PFRDA Reg. No. PoP 20092018
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
