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

Executive summary

• Q3 FY26 delivered strong operating performance with robust execution across key segments, especially CDMO, and improved international and domestic branded formulation businesses.

• International branded formulation business rebounded due to demand recovery in key markets.

• API and trade generics segments continued to face pressure but showed sequential improvement through portfolio rationalization and cost controls.

• Strategic projects in Europe and Zambia are progressing, with regulatory milestones achieved and commercial supplies expected in coming years.

• 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-on-year and 55.4% quarter-on-quarter; EBITDA margin improved to 12.7%.

• Q3 FY26 consolidated total income rose 16.5% YoY to ₹11,940 million; PAT up 2.1% YoY to ₹680 million.

• One-time labor code impact of ₹182.28 million included as an exceptional item.

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

Outlook and guidance

• Double-digit volume growth in CDMO expected to sustain in Q4, with strong visibility for near-term performance.

• Zambia and EU projects to contribute significant revenues in coming years, with Zambia supplies starting H1 FY27 and EU commercial supplies expected in FY28.

• Management remains focused on long-term growth drivers: innovation, operational efficiency, cost control, and strategic partnerships.

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