Aurobindo Pharma to Boost Penicillin G Output Beyond 10,000 MT Annually, Targets 20 to 21% EBITDA Margin in FY26

Penicillin G Expansion Gains Momentum in Kakinada SEZ​

Aurobindo Pharma is stepping up its Penicillin G production, with plans to manufacture more than 10,000 metric tonnes annually over the next 12 months, according to Chief Financial Officer S Subramanian.

The Hyderabad-based pharmaceutical major said the expansion of its Penicillin G facility in a Special Economic Zone in Kakinada, Andhra Pradesh, is progressing as planned. The plant is expected to gradually scale up to a production capacity of 15,000 metric tonnes per annum.

Subramanian noted that yield levels at the facility remain stable and are consistently improving, positioning the company for stronger profitability over time.

Policy Boost to Strengthen Domestic Antibiotic Manufacturing​

The company welcomed the central government’s decision to grant a one year relaxation on the minimum import price for Penicillin G, 6 APA, and Amoxicillin.

Subramanian described the move as a significant and positive catalyst. He said the decision is strategically important for enhancing India’s self-reliance in antibiotics, reducing supply disruption risks, and supporting domestic manufacturing of APIs and key starting materials.

The company’s integrated strategy for Penicillin G, 6 APA, and Amoxicillin is aimed at improving cost competitiveness, lowering external dependencies, and strengthening margins over the long term.

China Facility Nears EBITDA Breakeven​

Aurobindo Pharma’s oral solid dosage facility in China is also progressing steadily. The plant is targeting an annual capacity of 2 billion units and is supported by European Union approval for 10 products along with three local product approvals.

The company expects the China unit to achieve EBITDA breakeven in the fourth quarter and contribute meaningfully to bottom-line EBITDA in the next financial year.

US Facilities Transition to Commercial Phase​

In the United States, the company is entering what it describes as a phase of significant growth.

The Dayton facility has transitioned into the commercial phase and has commenced manufacturing. It is expected to begin generating significant revenues from FY27 onward. Meanwhile, the Raleigh facility remains on track, pending regulatory clearance, with the company prepared to scale up operations once approvals are received.

Focus on Complex Generics and Scalable Growth​

Looking ahead over the next two years, Aurobindo Pharma plans to drive growth through clearly defined and scalable initiatives. The company is building differentiated product portfolios with an increasing focus on complex generics in dermal, transdermal, nasal, respiratory, and oncology segments.

With a manufacturing capacity exceeding 60 billion units and further expansion underway, the company said it is well positioned to meet rising global demand while improving operating leverage.

EBITDA Margin Target for FY26​

Taken together, these initiatives provide strong earnings growth visibility, Subramanian said, reinforcing confidence in achieving an internal EBITDA margin target largely in the 20 to 21 percent range for FY26.

For the third quarter ended December 31, 2025, Aurobindo Pharma reported revenue from operations of Rs 8,646 crore, compared to Rs 7,979 crore in the corresponding period a year earlier.