indian-pharma-facility-in-china-may-break-even-at-ebitda-level

The Hyderabad-based drug-maker, Aurobindo Pharma, has ramped-up production at its China facility, which saw operations begin last November.

The company’s CFO, Santhanam Subramanian, said in an analyst call that they expect the facility to break even at the EBITDA (earnings before interest, taxes, depreciation, and amortisation) level by Q3 FY26.

"This facility, with an initial capacity of 2 billion units plus, is ramping up as expected and will begin contributing to revenue in the coming quarters. It is expected to break even at the EBITDA (earnings before interest, taxes, depreciation, and amortisation) level by Q3 FY26,” he said.

Subramanian said around USD 145 million had been invested in the facility, where production and invoicing began in Q4 FY25 and Q1 FY26, respectively.

 

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So far, the company has invested around USD 30 million in the Biologics CMO business, and the balance of USD 100 million plus capital is expected to be invested by March 2027.

Additionally, they have invested about USD 70 million in two US facilities, where production will start in the current fiscal year.

In the near future, they plan to file for 20 more products in the US and Europe from their Eugia-V plant in Visakhapatnam.

"Looking ahead, we remain optimistic about sustaining our growth momentum. Our confidence is supported by expected volume expansion, continued product launches and a stable pricing environment, especially in the US and Europe,” he said.

Supporting their topline growth and margin improvement by ramping up commercial operations at new manufacturing sites is important for the company since it reported a dip in its consolidated net profit to ₹824 crore for the June quarter due to a fall in sales in the US and API vertical.

Despite the 10 per cent year-on-year dip, Subramanian said they were confident of achieving their internal target margin of 20-21 per cent in FY26.

Aurobindo Pharma’s revenue from operations increased to ₹7,868 crore for the June quarter against ₹7,567 crore in the year-ago period.