Aurobindo Pharma shares fell over 4 percent to Rs 1,039 apiece on August 20 after reports suggested that the company has emerged as the front-runner to acquire Prague-based generic drugmaker Zentiva for $5-5.5 billion (Rs 43,500-47,900 crore) from Advent International.
If this deal goes through, it will be the largest-ever acquisition by an Indian pharmaceutical company, both domestically and internationally. It would surpass the $3.2 billion acquisition of Daiichi Sankyo’s stake in Ranbaxy in 2014, as well as Biocon Biologics’ $3.3 billion cash-and-stock deal to buy the global biosimilars business of US-based Viatris, the report said.
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According to the report, the deal is expected to strengthen Aurobindo’s footprint in Europe, particularly in Eastern European markets such as the Czech Republic, Romania, and Slovakia. These regions are seen as promising growth areas for biosimilars, especially as patents of major prescription drugs expire.
So far in 2025, Aurobindo Pharma’s stock has declined by 21 percent, compared with a 2 percent modest rise in the benchmark Nifty 50 index.
On the financial front, the company posted a consolidated net profit of Rs 824 crore in the June 2025 quarter (Q1 FY26), compared with Rs 918 crore in the same quarter of the previous year (Q1 FY25), reflecting a 10.2 percent year-on-year decline.
Revenue from operations stood at Rs 7,868 crore in Q1 FY26, up four percent from Rs 7,567 crore in Q1 FY25.
Operating EBITDA came in at Rs 1,603 crore in Q1 FY26 compared to Rs 1,619.6 crore in Q1 FY25. The EBITDA margin slipped to 20.4 percent year-on-year from 21.4 percent in the same quarter last year.
Aurobindo Pharma’s US formulations revenue fell 1.9 percent year-on-year to Rs 3,488 crore ($408 million). The decline was attributed to destocking and seasonal headwinds. However, the company’s European formulations business remained strong, recording an 18 percent year-on-year growth to Rs 2,338 crore.
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