Aurobindo Pharma Ltd is doubling down on high-value specialty medicines, biosimilars and complex formulations while strengthening its manufacturing footprint and supply chain resilience as it charts its next phase of global growth.
In his message to shareholders in the company’s Annual Report 2026, Vice Chairman & Managing Director K. Nithyananda Reddy said the company will continue to consolidate its leadership in generic pharmaceuticals while expanding its presence in differentiated and specialty segments to improve competitiveness and deliver more predictable earnings over the long term.
“The United States and Europe will continue to remain important pillars of our global portfolio, while India, China and other growth markets provide additional avenues for expansion,” Reddy said.
He added that investments in manufacturing excellence, innovation and operational capabilities are creating structural advantages that will support sustained growth.
Focus on differentiated portfolio
Aurobindo plans to strengthen its presence in specialty products, complex formulations, injectables, biosimilars and other differentiated therapies while continuing to deepen backward integration and expand its manufacturing network.
The company also aims to enhance supply chain resilience and widen its footprint across both regulated and emerging markets.
Research and development remains a key pillar of the strategy, with the company investing about 5% of its revenue in R&D during FY26. The spending was primarily directed towards complex generics, specialty medicines, respiratory therapies, injectables, biologics and advanced drug delivery platforms.
Reddy said Aurobindo also made steady progress in its biosimilars business through strategic partnerships and pipeline expansion, laying the foundation for a significant long-term growth opportunity.
India business gains momentum
The company said its domestic formulations business is emerging as an increasingly important growth engine, supported by recent acquisitions, portfolio expansion and deeper market penetration.
According to Reddy, the strengthening India franchise complements Aurobindo’s global operations while providing greater business diversification.
Europe crosses major milestone
Among the highlights of FY26 was the company’s European business crossing €1 billion in annual revenue for the first time.
Reddy attributed the milestone to consistent execution, strong customer relationships, reliable supply capabilities and an expanding product portfolio.
“Europe has now evolved into a major pillar of growth and value creation for the Company,” he said.
US business remains resilient
Despite pricing pressures and other industry headwinds, Aurobindo said its U.S. operations remained resilient during FY26.
The company continued to invest in differentiated products, specialty offerings, manufacturing capabilities and business development initiatives to strengthen its long-term position in the world’s largest pharmaceutical market.
Strengthening manufacturing ecosystem
Aurobindo also reported progress on key strategic initiatives aimed at enhancing manufacturing efficiency and supply security.
The stabilisation and ramp-up of its Pen-G operations marked an important milestone in the company’s backward integration strategy, improving cost competitiveness and long-term supply resilience.
Meanwhile, the company’s China operations continued to scale up, supporting manufacturing diversification, supply chain flexibility and global competitiveness.
“Our investments in manufacturing excellence, innovation and operational capabilities are creating structural advantages that enhance competitiveness and improve the quality and predictability of earnings over time,” Reddy said.