Aurobindo Pharma Draws Scrutiny Following USFDA Classification of Telangana Facility as Official Action Indicated

Aurobindo Pharma Shares in Focus After USFDA Classification

Aurobindo Pharma, a leading pharmaceutical company, is likely to remain in the spotlight on May 25 following a classification by the United States Food and Drug Administration (USFDA). The regulator has classified the inspection outcome at one of the company's facilities as "Official Action Indicated" (OAI).

The inspection, conducted at Unit-I, a formulation manufacturing facility of Aurobindo Pharma's wholly owned subsidiary, Eugia Pharma Specialities, took place between February 16 and February 27, 2026. The USFDA issued four observations to the facility following the inspection.

Recent Financial Performance

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Aurobindo Pharma recently reported a modest 2% year-on-year increase in its Q4FY26 consolidated net profit to ₹921 crore. The company's revenue from operations rose 5.6% to ₹8,853 crore, while EBITDA increased marginally by 0.5% to ₹1,801 crore. However, EBITDA margins declined to 20.3% from 21.4% in the corresponding quarter last year.

Share Buyback

In addition to its recent financial performance, Aurobindo Pharma had announced a share buyback of up to ₹800 crore through the tender offer route. The buyback, which opened on April 23 and closes on April 29, was approved by the board on April 6. Under the proposal, the company plans to repurchase up to 54,23,728 fully paid-up equity shares with a face value of Re 1 each at a buyback price of ₹1,475 per share on a proportionate basis.

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