Shares of Aurobindo Pharma Ltd experienced a notable dip in Friday's trade, reacting to the company's disclosure of a warning letter from the US Food and Drug Administration (US FDA). The letter was issued to Unit-I, a formulation manufacturing facility of Eugia Pharma Specialities Ltd, a wholly-owned subsidiary of Aurobindo Pharma, following its classification as Official Action Indicated (OAI) by the US FDA.
The stock, which initially opened higher, reversed course to fall 1.97 percent, trading at Rs 1,624 on the BSE at last check. This development follows a previous communication dated May 24, 2026, regarding the OAI status for the same facility.
Company Assures No Impact on US Supplies
Despite the regulatory setback, Aurobindo Pharma has sought to reassure investors, stating that the warning letter has no impact on its existing supplies to the US market. The company highlighted that Unit-I of Eugia Pharma Specialities Ltd contributes approximately 2 percent to the company's overall group revenue.
Aurobindo Pharma reiterated its commitment to collaborating closely with the US FDA and continuously enhancing its compliance standards. The company affirmed it would keep stock exchanges informed of further developments regarding the matter.
Strong Q1 FY27 Results Reported Separately
In unrelated news, Aurobindo Pharma also announced robust financial results for the first quarter ended June 30, 2026. The Hyderabad-based pharmaceutical giant reported a 25 percent year-on-year (YoY) rise in consolidated net profit, reaching Rs 1,032 crore, compared to Rs 824 crore in the corresponding quarter of the previous fiscal year.
The company achieved its highest-ever quarterly revenue, totaling Rs 9,150 crore in Q1 FY27, marking a 16 percent increase from Rs 7,868 crore reported in the year-ago period.
K Nithyananda Reddy, Vice-Chairman and Managing Director at Aurobindo Pharma, commented on the performance: "We have commenced FY27 on a strong note, delivering healthy growth across our businesses through disciplined execution, operational excellence, and the continued strength of our diversified product portfolio."