New Delhi, February 22 Aurobindo Pharma aims to increase its production of Penicillin-G to over 10,000 metric tonnes annually over the next 12 months, according to company CFO S Subramanian.
The Hyderabad-based drug manufacturer also expects its manufacturing plant in China to achieve EBITDA breakeven in Q4 and make a significant contribution to the bottom-line EBITDA in the next year.
"The expansion of the facility (Pen-G) is progressing as expected and is well-positioned to deliver a meaningful improvement in profitability over time. Based on our current production level, we expect to produce more than 10,000 metric tonnes annually over the next 12 months," Subramanian told analysts in a call.
The company's Pen-G facility, located in a SEZ in Kakinada, Andhra Pradesh, is expected to reach a production capacity of 15,000 metric tonnes per annum over time.
"It is important to note that the yield levels are stable and consistently improving," Subramanian said.
The drug manufacturer also praised the central government for granting a one-year relaxation on the minimum import price for Pen-G, 6 APA, and Amoxicillin.
"This policy change will be a very important and positive catalyst for the company… We consider this decision by the Government to be 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 for Pen-G and 6APA and Amoxicillin represents a structurally important initiative that will enhance cost competitiveness, reduce external dependencies, and strengthen margins over time, he added.
Regarding the China plant, Subramanian said: "Our OSD China facility continues to progress steadily, aiming for an annual capacity of 2 billion units, currently supported by EU approval for 10 products and 3 local product approvals."
The company remains confident of achieving EBITDA breakeven in the fourth quarter and making a significant contribution to the bottom-line EBITDA in the next year, he added.
In the US, the drugmaker is entering a phase of significant growth, Subramanian noted.
"The Dayton facility has successfully transitioned into a commercial phase with manufacturing underway and will begin generating significant revenues from FY27 onwards. In parallel, the Raleigh facility remains on track pending regulatory clearance, and we are fully prepared to scale up 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 an increasing focus on complex generics across dermal, transdermal, nasal, respiratory, and oncology areas, with positions for sustainable growth over the medium to long term," he stated.
With a 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 in the 20- to 21 per cent range for FY26," he stated.
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 year-ago period.
