Fire temporarily halts production at Aurobindo Pharma's Andhra unit; shares down nearly 1%

Pharmaceutical manufacturing major Aurobindo Pharma on Friday, September 19, said Unit-IV of its wholly-owned arm APL Healthcare at Naidupeta in Andhra Pradesh caught fire on September 18, halting production temporarily.

At 8:50 am on Thursday, a small fire incident occurred in granulation area-10 of Unit IV of APL Healthcare, situated at Naidupeta, Andhra Pradesh (SEZ Unit), due to a short circuit, the company said in a regulatory filing.

The fire spread to a panel, affecting granulation area-10 and causing partial damage to granulation area-8. Out of the total 19 lines in the said Unit, 2 lines have been impacted for about two weeks, Aurobindo Pharma added.

The fire was immediately controlled through the in-house fire hydrant team, along with support from external fire tenders, and there were no casualties or injuries, the company said.

"The incident resulted in a temporary production impact estimated at about 3 per cent of the monthly capacity of the said unit. Necessary steps have been initiated for refurbishment and restoration, and we expect the impacted areas to be operational within the next few weeks," Aurobindo Pharma noted.

The company has taken all appropriate measures to ensure the safety of employees, protection of assets, and continuity of operations, and the event has no material financial or operational impact, it stated.

Aurobindo Pharma shares

On the day of the accident, September 18, shares of Aurobindo Pharma closed 3% up at ₹1,128.90 per share on the NSE.

At 3:30 pm on Friday, the stock closed 0.75% down at ₹1,120.40 per share, after opening at ₹1,130 apiece. During the day, the scrip touched an intraday high of ₹1,138 per share and a low of ₹1,116.90 apiece.

In the last five days, shares of the Hyderabad-based company have added 3.5%. Over the past month, the scrip has gained 2.6%.

However, the shares have fallen 3.8% in the last six months, and the year-to-date fall stands at 17.32%.

Aurobindo Pharma Q1 results

The company, for the first quarter of the current fiscal (Q1 FY26), reported a consolidated net profit of ₹824.2 crore, down 10.2% year-on-year (YoY) against ₹918.2 crore posted in Q1 FY25.

Its revenue from operations stood at ₹7,868 crore during the reporting quarter, up 4% as compared to ₹7,567 crore posted in the year-ago period.

Aurobindo Pharma's earnings before interest, tax, depreciation and amortisation (EBITDA) remained flat at ₹1,603 crore, down 1% YoY from ₹1,619.6 crore in Q1 FY25.