Akums Drugs and Pharmaceuticals (AKUMS) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 began with strong revenue growth of over 13% and EBITDA up more than 30% year-over-year, led by robust CDMO segment performance and improved API pricing.

• Domestic and export marketing segments had muted performance, but initiatives are underway to restore growth in coming quarters.

• Acquisition of Oriflame India's manufacturing business for Rs 56 crore expands manufacturing footprint in skincare, cosmetics, and wellness, aligning with strategic goals.

• API segment moved closer to EBITDA positivity due to a higher share of non-cephalosporin products, improving gross margins.

• Approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2026, with statutory auditors issuing unmodified review reports.

Financial highlights

• Consolidated revenue from operations for Q1 FY27 was INR 11,666.29 million, up from INR 10,240.32 million in Q1 FY26, a 13.9% year-on-year increase.

• Operating EBITDA was INR 175 crore, up 35.4% year-on-year and 15.1% quarter-on-quarter; margins improved to 15%.

• PAT stood at INR 101 crore, a 56.1% increase year-on-year and 24.1% quarter-on-quarter; PAT margin at 8.4%.

• Gross margin improved to 44.7% from 43.2% year-on-year.

• Cash surplus of INR 1,616 crore, with operating cash flow at INR 65 crore for the quarter.

Outlook and guidance

• CDMO segment expected to maintain high-teen volume growth in Q2 and double-digit growth for the year.

• Margins are guided to remain in the 14%-15% range, with Q1 at the upper end due to favorable API prices.

• Zambia order to contribute INR 240 crore revenue in H2 FY27, with similar contribution expected next year; European business to commence next year.

• API segment targeted to achieve monthly EBITDA break-even by end of FY27 and turn profitable in FY28.

• Expectation of improved performance in domestic branded formulations and recovery in international branded business in upcoming quarters.