Generic drugmaker Aurobindo Pharma reported a 25.2% year-on-year (YoY) increase in consolidated net profit to ₹1,032 crore in the June quarter FY27.

The higher net profitability came on a 16.3% YoY increase in revenue from operations to ₹9,150 crore on the back of growth across businesses.

Formulations revenue surged 16.5% YoY to ₹8,101 crore, including a 8.1% YoY increase in the U.S. revenue to ₹3,770 crore ($399 million) and 25.6% in Europe revenue to ₹2,937 crore (€267 million). Total API revenue rose 14.6% YoY to ₹1,049 crore in the review quarter.

On the U.S. formulations revenue, the company, in a release, said the increase was primarily driven by volume gains and new launches, partially offset by no transient product sales; while in Europe, the formulations revenue was driven by robust performance across all key markets.

Merger of three arms

In a filing, Aurobindo Pharma said its Board on Wednesday approved a proposal for merger of wholly owned step-down subsidiaries Eugia Steriles and Eugia SEZ with subsidiary Eugia Pharma Specialities. The three companies are engaged in the business of manufacturing injectable pharmaceutical products.

The proposed amalgamation will simplify the existing group structure by consolidating three companies carrying on substantially similar businesses into a single legal entity.

It will lead to elimination of corporate and administrative functions and overheads, cost reduction, better treasury management and synergy benefits, the parent company said.