
Aurobindo Pharma share: HSBC, Motilal Oswal, Nuvama maintain ‘Buy'; Avendus retains ‘Reduce' as brokerages assess US outlook and margin risks
Motilal Oswal Financial Services has maintained its 'Buy' rating on Aurobindo Pharma but lowered the target price to ₹1,300 from ₹1,365. The brokerage noted strong growth in the EU and ARV segments but flagged continued margin pressure as a drag on profitability. EBITDA margin guidance remains unchanged at 20–21% for FY26.
Motilal is optimistic about the Lanett acquisition improving profitability and expects the company to file its first US biosimilar in FY26. Earnings estimates for FY26/FY27 were cut by 8%/7% due to pricing headwinds and startup costs at Pen-G and China units. Avendus on Aurobindo Pharma share: Maintains 'Reduce', TP cut to ₹1,145
Avendus has reiterated its 'Reduce' rating with a revised target price of ₹1,145, down from ₹1,220. The firm expects US sales (excluding gRevlimid) to grow at a 9% CAGR over FY25–27E, driven by recovery in injectables and oral solids. EU revenues are expected to grow at a 14% CAGR, aided by new launches and China/Vizag-based supplies.
However, the brokerage expressed concerns over delays in monetizing complex assets such as biosimilars and LA injectables, which are now expected to contribute meaningfully only post-FY28. Avendus projects a 15% EPS CAGR (ex-gRevlimid and Pen-G) through FY27 and sees the Lanett acquisition turning EPS-neutral by FY27. EPS estimates have been revised down by 9%/7% for FY26/FY27 due to lower sales and margin risks. HSBC on Aurobindo Pharma share: Maintains 'Buy', TP cut to ₹1,255
HSBC continues to maintain a 'Buy' call on Aurobindo Pharma, cutting its target price to ₹1,255. The brokerage flagged a Q1 miss driven by weaker-than-expected gRevlimid sales, US channel destocking, and pricing pressure in the API business. It highlighted Europe as a bright spot in the company's portfolio.
HSBC remains constructive on future margin support from new plant supplies (Pen-G, Vizag, China) and expects volume-led growth to sustain. The brokerage is also watching for closure on the Lanett portfolio acquisition, which could add to long-term growth momentum. Nuvama on Aurobindo Pharma share: Maintains 'Buy', TP reduced to ₹1,445
Nuvama Institutional Equities has also maintained its 'Buy' rating while trimming the target price slightly to ₹1,445 from ₹1,460. The firm highlighted that gross margins remained resilient despite a decline in gRevlimid contributions. Ex-gRevlimid EBITDA margins expanded ~100 bps YoY.
Key near-term triggers include the ramp-up of Pen-G and China units, MIP implementation, closure of the Lanett acquisition, and new injectable filings. Nuvama has trimmed its FY27E EPS forecast by around 2%, factoring in near-term execution risks.
With varying degrees of optimism, brokerages remain focused on Aurobindo's US trajectory, biosimilar launches, and integration of recent acquisitions as key determinants of its medium-term growth story.
Disclaimer: The views and investment recommendations expressed in this article are those of the respective brokerages. These do not represent the views of Business Upturn and do not constitute investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
Ahmedabad Plane Crash
Arunika Jain, a graduate in Mass Communication, brings a fresh perspective to the world of journalism. Arunika has a passion for writing finance and corporate news at BusinessUpturn.com. You can write to her at [email protected]

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