Hyderabad-based drug manufacturer Aurobindo Pharma expects its newly commissioned facility in China to break even at the EBITDA (earnings before interest, taxes, depreciation and amortisation) level by the third quarter of the current financial year, according to CFO Santhanam Subramanian.

The facility began operations in late November 2024 and is currently ramping up production. With an initial annual capacity exceeding two billion units, it has already started production and invoicing between Q4 FY25 and Q1 FY26. The company has invested approximately USD 145 million in setting up the plant.

Subramanian added that Aurobindo has also earmarked about USD 70 million for two manufacturing facilities in the United States, with production expected to begin in the current fiscal year. The company plans to file more than 20 products with regulators in the US and Europe from its Eugia-V plant in Visakhapatnam.

He further noted that investments in the Biologics CMO business amount to around USD 30 million so far, with total committed capital expected to exceed USD 100 million by March 2027.

Looking ahead, Aurobindo remains optimistic about sustaining growth, underpinned by volume expansion, new product launches and stable pricing in the US and European markets. The ramp-up of operations at its new manufacturing sites is expected to bolster revenue growth and improve margins in upcoming quarters, helping the company to meet its internal target EBITDA margin of 20–21 percent for FY26.

In the June quarter, Aurobindo reported a 10 percent year-on-year decline in consolidated net profit to INR 824 crore, owing to lower sales in the US and its API business. However, revenue from operations rose to INR 7,868 crore, up from INR 7,567 crore in the same period last year.