Aurobindo Pharma shares fall post Q4; Should you buy, sell or hold?

Aurobindo Pharma shares are down nearly 11 percent since the beginning of the year.

Shares of Aurobindo Pharma Ltd fell 2.5 percent to Rs 1,161 in morning trade on May 28 after the company reported an 11 percent increase in revenue and a marginal drop in net profit in the March quarter. Following the development, the stock has received mixed views from brokerages.

During Q4, the consolidated revenue rose to Rs 8,382.1 crore, lifted by robust demand in the US and European markets. Growth in international formulations remained a key driver, with US sales climbing 13.5 percent year-on-year and European revenue rising 17.2 percent. Together, these geographies continued to anchor Aurobindo’s global strategy and contributed significantly to the quarterly revenue mix.

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However, profitability saw some pressure. Net profit dipped marginally to Rs 902.8 crore from Rs 907.4 crore a year ago. EBITDA margin for the quarter came in at 21.38 percent—slightly lower year-on-year.

Should you buy, sell or hold the Aurobindo Pharma stock?

Goldman Sachs has maintained a 'Buy' rating on Aurobindo Pharma with a target price of Rs 1,275, implying a 7 percent upside from the current market price of Rs 1,191.20. The brokerage noted that the company delivered a decent quarter and is aiming for a resilient performance in FY26, despite the expected impact from the loss of Revlimid exclusivity. Aurobindo has guided for high single-digit topline growth, excluding Revlimid, and aims to maintain margins in FY26. While the PLI project has been delayed, the company now expects breakeven in FY26. Goldman highlighted that Aurobindo’s current valuation, trading at a 30–40 percent discount, largely factors in concerns around pricing pressure and plant status.

On the flipside, Citi has maintained a 'Sell' rating on Aurobindo Pharma with a reduced target price of Rs 1,100. The brokerage flagged that EBITDA was below estimates and noted that, adjusting for the Revlimid contribution, the baseline EBITDA margin stood at 18.5 percent. The quarter also benefited from a one-time Rs 100 crore impact across various cost lines. Citi found the management commentary underwhelming, particularly with US growth flattening. It warned of a potential negative margin surprise over the next one to three quarters and has cut its FY26–27 EPS estimates by 8 percent.

At about 9:20 am, shares of the company were trading at Rs 1,170, lower by 1.8 percent from the last close on the NSE. Aurobindo Pharma shares are down nearly 11 percent since the beginning of the year.

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