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

Executive summary

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

• Approved audited standalone and consolidated financial results for the year ended March 31, 2026, with unmodified audit opinions from statutory auditors.

• Recommended a final dividend of ₹1.00 and a special dividend of ₹2.00 per equity share for FY26, subject to shareholder approval.

• Operational performance in H2 was robust, driven by volume momentum in CDMO and improved gross margins from cost optimization.

• Appointed new cost and internal auditors and made changes in senior management.

Financial highlights

• Q4 FY26 total income rose 11.2% YoY to ₹1,193 cr; EBITDA up 67.8% YoY to ₹187 cr; PAT down 45.6% YoY to ₹81 cr.

• FY26 consolidated revenue from operations was ₹43,590.17 million, up from ₹41,181.58 million YoY; consolidated net profit was ₹2,563.97 million, down from ₹3,437.77 million in FY25.

• Adjusted EBITDA margin improved to 13.1% in Q4 FY26 and 12.0% for FY26.

• Gross margin rose to 43.0% in Q4 FY26 from 39.5% YoY.

• Operating cash flow for FY26 was ₹465 cr, with working capital days at 91.

Outlook and guidance

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

• Zambian JV to supply $25 million annually in FY27 and FY28; plant operations to start in FY29.

• Export growth expected from Europe, Southeast Asia, and Africa, with plans for five EU GMP-certified plants by FY28.

• Domestic growth to be led by CDMO and branded formulations, with new oncology and steroid lines launching in FY27.

• Margin expansion anticipated from higher export share, improved utilization, and trade generics consolidation.