Akums Drugs and Pharmaceuticals (AKUMS) Q2 25/26 earnings summary

Executive summary

• Entered a joint venture with the Zambian government for a manufacturing plant in Lusaka, with Akums holding 51% and a project cost of $45 million; investment in the Zambian subsidiary to be made in tranches through March 2028.

• Will supply $50 million worth of medicines from Indian facilities to Zambia over the next two years, targeting a pharma market expected to exceed $300 million by 2030.

• Achieved first commercial supply of Dapagliflozin tablets to Switzerland and Europe, with further European expansion and filings underway.

• Net cash position exceeded INR 1,600 crore, supporting both organic and inorganic growth.

• Two senior management appointments and incorporation of new subsidiaries in Zambia and Malta to strengthen global operations.

Financial highlights

• Consolidated Q2 FY26 revenue was INR 1,018 crore, down 1.5% year-on-year; H1 FY26 revenue at INR 2,042 crore, down 0.5% year-on-year.

• Q2 FY26 adjusted EBITDA at INR 94 crore (margin 9.3%), down 22% year-on-year; H1 FY26 adjusted EBITDA at INR 223 crore (margin 10.9%), down 8.9% year-on-year.

• Q2 FY26 adjusted PAT at INR 43 crore (margin 4.1%), down 35.9% year-on-year; H1 FY26 adjusted PAT at INR 107 crore (margin 5.1%), down 13.4% year-on-year.

• Net cash from operating activities (consolidated) for the six months was ₹11,522.07 million.

• Basic and diluted EPS (consolidated) for the six months was ₹6.81.

Outlook and guidance

• Exports expected to strengthen in H2 FY26, led by demand from multiple markets and strong order book.

• API segment losses expected to reduce by year-end due to cost optimization and higher-margin focus.

• CDMO margins anticipated to stabilize, with H2 margins likely to mimic H1; volume growth and product mix improvements underway.

• Zambia JV and European contracts to contribute significantly to revenue from FY 2026 onward.

• New facilities ramp-up is slower than planned but expected to contribute in 2026.