Why Did Aurobindo Pharma Shares Jump 6% Today?

Synopsis:-  Shares surged up to 6% after the government imposed minimum import prices on key antibiotic inputs. The move benefits the only domestic manufacturer with a 15,000-tonne capacity plant, operating at ~50% utilisation, expected to rise to 75%, improving pricing power and long-term competitiveness.

The shares of a prominent pharmaceutical company gained up to 6 percent in today’s trading session after the Directorate General of Foreign Trade (DGFT) announced the imposition of a Minimum Import Price (MIP) on Pen-G, 6-APA, and Amoxicillin.

With a market capitalisation of Rs 68,926.63 crore, the shares of Aurobindo Pharma Ltd were trading at Rs 1,186.75 per share, increasing around 3.15 percent as compared to the previous closing price of Rs 1,150.55 apiece.

DGFT announced

The shares of Aurobindo Pharma Ltd have seen bullish movement after the Directorate General of Foreign Trade (DGFT) announced the imposition of a Minimum Import Price (MIP) on Pen-G, 6-APA, and Amoxicillin.

As per the notification, a minimum import price of  Rs 2,216 per kg ($24) has been set for Pen-G, while Amoxicillin and 6-APA will attract MIPs of  Rs 2,733 per kg (~$30) and  Rs 3,405 per kg (~$37), respectively. The revised pricing comes into effect immediately and will remain applicable until January 2027.

Moreover, Pen-G is the base raw material used to produce 6-APA, which is further processed to manufacture Amoxicillin. At present, most companies import 6-APA for Amoxicillin production. Analysts note that Pen-G imports from China are currently priced much lower, at around $17–18 per kg.

Additionally, the decision holds significance for Aurobindo Pharma, as it is the only Indian company with an integrated Pen-G value chain and an operational Pen-G plant. The PLI-supported facility has a capacity of 15,000 tonnes, well above India’s annual requirement of 9,000 tonnes. With an investment of  Rs 2,700 crore, the plant currently operates at around 50% utilisation, which analysts expect to improve to nearly 75% over time.

Financial Performance

The company delivered steady financial performance, with revenue rising 6.2% year-on-year from  Rs 7,796 crore in Q2 FY25 to  Rs 8,286 crore in Q2 FY26. Net profit also grew modestly by 4%, increasing from  Rs 817 crore to  Rs 848 crore, reflecting stable operations and controlled costs despite a challenging environment.

Over the last one year, Aurobindo Pharma maintained stable operating margins. OPM stood at 20% in Sep 2024, improved to 21% in Mar 2025, and remained around 20% in Jun and Sep 2025. Operating profit stayed in the range of  Rs 1,578–1,678 crore, reflecting strong cost control and consistent operational efficiency despite revenue volatility.

Aurobindo Pharma Ltd is a leading Indian pharmaceutical company with a strong global presence across generics, APIs, and specialty medicines. The company operates an integrated manufacturing model and serves key markets such as the US, Europe, and emerging regions, focusing on affordable healthcare, operational efficiency, and long-term growth through capacity expansion and product diversification.

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