Akums Drugs and Pharmaceuticals (AKUMS) Q1 25/26 earnings summary

Executive summary

• Achieved revenue and profitability growth in Q1 FY26, maintaining leadership in the domestic CDMO industry despite industry headwinds and API price declines of 10-12% year-over-year.

• R&D milestones included 27 DCGI approvals in the quarter, reaching 1,000 total approvals, with one new patent and 24 new patent filings; first EU dossier approval for Rivaroxaban and first Swiss dossier filed.

• Entered new markets (Nigeria), expanded cephalosporin API and international branded formulations, and received 20 new dossier approvals.

• Strengthened leadership team and advanced digitalization across functions, with new senior management appointments in finance and IT.

• Approved unaudited standalone and consolidated financial results for Q1 FY26, with no qualifications from statutory auditors.

Financial highlights

• Total income was INR 1,051 crores, up 2.4% year-on-year, with consolidated revenue at ₹10,240.32 million and standalone at ₹3,324.43 million.

• Reported EBITDA was INR 156 crores, up 19% year-on-year; adjusted EBITDA margin improved by 208 bps YoY to 14.8%.

• Adjusted PAT was INR 65 crores, up 13% year-on-year; consolidated net profit for Q1 FY26 was ₹646.85 million.

• Cash surplus stood at INR 1,518 crores, with positive free cash flow of INR 935 crores, supported by a €100 million EU contract advance.

• Basic and diluted EPS for Q1 FY26 stood at ₹2.93 (standalone) and ₹4.15 (consolidated).

Outlook and guidance

• CDMO business expected to deliver mid single-digit revenue growth for FY26, revised from earlier guidance due to continued API price softness.

• Domestic branded formulations expected to track or exceed IPM growth, with margin guidance at 18% EBITDA.

• European CDMO contract to start commercial supplies in April 2027, targeting INR 300 crores annual revenue.

• Five-year export target set at $100 million, up from current $15 million.

• No deviation in the use of IPO funds; all proceeds have been utilized as per objectives.