NEW DELHI, Feb 22:
Aurobindo Pharma is looking to ramp up the production of Penicillin-G to over 10,000 metric tonnes on an annual basis over the next 12 months, according to company CFO S Subramanian.
The Hyderabad-based drug maker also expects its China-based manufacturing plant to break even in EBITDA in Q4 and meaningfully contribute to the bottom-line EBITDA in the next year.
“The ramp-up of the facility (Pen-G) is progressing in line with expectations and is well-positioned to deliver a meaningful uplift in profitability over time. Based on our current production level, we expect to produce more than 10,000 metric tonnes on an annualised basis over the next 12 months,” Subramanian told analysts in a call.
The company’s Pen-G facility, located in a SEZ at Kakinada in Andhra Pradesh, is expected to touch production capacity of 15,000 metric tonnes per annum over a period of time.
“It is important to note that the yield levels are steady and improving consistently over time,” Subramanian said.
The drug maker also lauded the central government for giving one year relaxation on minimum import price for Pen-G, 6 APA and Amoxicillin.
“The policy change will act as a very important and positive catalyst event for the company … we consider this decision by the Government strategically important for creating India’s self-reliance in antibiotics and reducing supply disruption risks and will boost the domestic manufacturing of APIs and KSMs,” Subramanian stated.
The company’s strategy on PEN-G and 6APA and Amoxicillin represents a structurally important initiative that will enhance cost competitiveness, reduce external dependencies and strengthen margin over a period of time, he added.
On the China plant, Subramanian said: “Our OSD China facility continues to progress steadily, advancing towards an annual capacity of 2 billion units, currently supported by EU approval for 10 products and 3 local product approval.”
The company remains confident of achieving EBITDA break-even in the fourth quarter and meaningfully contributing to the bottom-line EBITDA in the next year, he added.
In the US, the drugmaker is entering into an important phase of growth, Subramanian noted.
“The Dayton facility has successfully transitioned into a commercial phase with manufacturing underway and will begin contributing revenues significantly from FY27 onwards. In parallel, Raleigh facility remains on track pending regulatory clearance and we are fully prepared to scale up the operations,” he added.
Looking ahead over the next two years, the company’s growth will be driven by several clearly defined and scalable initiatives, Subramanian stated.
“We continue to build differentiated product portfolios with increasing focus on complex generics across dermal, transdermal, nasal, respiratory and oncology with positions as well for sustainable growth over the medium to long term,” he stated.
With manufacturing capacity exceeding 60 billion units and further expansion underway, the company is well-positioned to support rising demand across various markets while improving operating leverage, he added.
“Taken together, these initiatives provide strong earnings growth visibility and reinforce our confidence in achieving our internal EBITDA margin target of mostly on the higher side of 20- to 21 per cent for FY26,” he stated.
For the third quarter ended December 31, 2025, Aurobindo Pharma reported a revenue from operations of Rs 8,646 crore as compared with Rs 7,979 crore in the year-ago period. (PTI)
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