Akums Drugs and Pharmaceuticals (AKUMS) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 delivered strong operating performance, with robust execution across key segments, notably CDMO, international, and domestic branded formulations, and over 16% topline growth in CDMO driven by volume expansion and improved capacity utilization.

• International branded formulations rebounded due to demand recovery and margin expansion in key markets.

• API segment remained under pricing pressure, but losses were contained through portfolio rationalization and cost controls.

• European CDMO project advanced with EUGMP certifications and initial supplies to Europe; Zambia project on track for H1 FY27.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, with no qualifications reported.

Financial highlights

• Q3 FY26 consolidated revenue from operations was ₹11,595.87 million, up from ₹10,104.11 million in Q3 FY25; consolidated profit for Q3 FY26 was ₹676.74 million.

• Operating EBITDA reached ₹1,470 million, up 21% year-over-year and 55.4% quarter-on-quarter; margins improved to 12.7%.

• EBITDA (including other income) was ₹1,810 million, up 33% year-over-year.

• EPS (consolidated) for Q3 FY26 was ₹4.33, up from ₹2.66 in Q3 FY25.

• One-time labor code impact of ₹182.28 million (exceptional item) included in results.

Outlook and guidance

• CDMO volume growth expected to sustain double digits in Q4, with near-term margin profile seen as stable.

• Zambia contract to contribute $25 million revenue each in 2026 and 2027; EU CDMO contract to ramp up from FY28 with EUR 35 million annual run rate.

• Strategic investment made in Akums Healthcare Malta Private Limited to expand European operations.

• Focus remains on innovation, operational efficiency, cost controls, and strategic partnerships to drive long-term growth.

• Group continues to monitor regulatory changes, especially new Labour Codes, and will adjust accounting as needed.