Akums Drugs and Pharmaceuticals (AKUMS) Q4 25/26 earnings summary

Executive summary

• Achieved strong FY26 finish and Q4 results, overcoming a challenging H1 marked by API price erosion and low domestic volume growth.

• Maintained business momentum in Q4, with CDMO segment driving top-line growth via double-digit volume expansion and improved gross margins from cost optimization.

• International CDMO business accelerated, supported by EU GMP accreditation, new product filings in Europe, and execution of a major European contract.

• Zambia partnership on track, with $25 million in commercial supplies expected to start by Q2 FY27; plant operations to start in FY29.

• Continued investments in capacity, R&D, and digital transformation, including SAP S/4HANA and Darwinbox, to support future growth.

Financial highlights

• FY26 consolidated revenue rose 5.8% year-over-year to ₹43,590.17 million; Q4 revenue up 9.7% year-on-year to ₹1,158 crore.

• Adjusted EBITDA for FY26 was ₹6,510 million, up 26.9% year-over-year; margin improved to 12%.

• PAT for FY26 was ₹2,563.97 million, down from ₹3,437.77 million in FY25 due to prior year deferred tax asset; PBT up 11.9% to ₹382 crore.

• Q4 Adjusted EBITDA was ₹1,870 million, up 67.8% year-on-year; margin at 13.1%.

• Operating cash flow surged to ₹1,181 crore (from ₹465 crore), free cash flow at ₹958 crore.

Outlook and guidance

• Double-digit volume growth expected in CDMO for H1 FY27; margin profile to remain similar.

• Multi-year European CDMO contract to begin supplies in FY28, providing growth visibility for at least five years.

• Zambia contract to add INR 230 crore to top line in FY27 and FY28; plant operations to start in FY29.

• Domestic branded formulations targeted to grow in line with or above IPM, with double-digit top-line growth anticipated.

• CapEx planned at ₹3,000 million for FY27, focused on capacity expansion and modernization.