Aurobindo Pharma shares slip after opening higher; here is why

Shares of Aurobindo Pharma Ltd slipped in Friday's trade after the company disclosed that its US-based formulation manufacturing unit, Eugia Pharma Specialities Ltd, has received a warning letter from the US Food and Drug Administration (US FDA). The stock, which opened higher, fell 1.97 per cent to Rs 1,624 on BSE at last check.

Aurobindo Pharma said Unit-I, a formulation manufacturing facility of Eugia Pharma Specialities Ltd, its wholly-owned subsidiary, has received the warning letter after being classified as Official Action Indicated (OAI) by the US FDA.

"This is further to our communication dated May 24, 2026, about Unit-I, a Formulation manufacturing facility, of Eugia Pharma Specialities Ltd, a wholly owned subsidiary of the Company, receiving Official Action Indicated (OAI) status by the US FDA. Subsequent to OAI, the unit has received a Warning Letter," it stated.

The company said the development has no impact on its existing supplies to the US market.

"There is no impact on the existing supplies to the US markets. Unit I of Eugia Pharma Specialities Ltd, is contributing to ~2 per cent to Company's overall group revenue," Aurobindo Pharma added.

"The Company remains committed to working closely with the US FDA and continues to enhance its compliance on an ongoing basis. We will keep the stock exchanges informed about further developments," it further stated.

Aurobindo Pharma Q1 results

Separately, Aurobindo Pharma reported a 25 per cent year-on-year (YoY) rise in consolidated net profit to Rs 1,032 crore for the quarter ended June 30, 2026, compared with Rs 824 crore in the corresponding quarter of the previous year.

The Hyderabad-based pharmaceutical company reported its highest-ever quarterly revenue of Rs 9,150 crore in the first quarter of FY27, up 16 per cent from Rs 7,868 crore in the year-ago period.

"We have commenced FY27 on a strong note, delivering healthy growth across our businesses through disciplined execution, operational excellence, and the continued strength of our diversified product portfolio," K Nithyananda Reddy, Vice-Chairman and Managing Director at Aurobindo Pharma, said.