Akums Drugs and Pharmaceuticals (AKUMS) Q4 24/25 earnings summary

Executive summary

• FY25 marked the company's listing on NSE and BSE, with significant volatility in the domestic pharma sector, price erosion in APIs, and muted volumes impacting CDMO and API businesses.

• Despite headwinds, margins were maintained, healthy cash flows generated, R&D spend increased by 16% to ₹130 Cr, and 31 new DCGI products launched.

• A major EUR 200 million contract was signed with a global pharma company, with EUR 100 million received as advance; supplies to commence in 2027.

• A new injectable facility was operationalized, strengthening sterile drug leadership and supporting European market entry.

• Approved audited standalone and consolidated financial results for FY25, with unmodified audit opinions from statutory auditors.

Financial highlights

• FY25 consolidated revenue was ₹41,181.58 million (₹4,170 crore), nearly flat year-over-year; adjusted EBITDA was ₹2,340 million, margin at 12.3%.

• Q4 FY25 revenue grew 12.4% year-over-year to ₹10,730 million; adjusted EBITDA for Q4 was ₹1,110 million, up 13% year-over-year.

• Consolidated net profit for FY25 was ₹3,437.77 million, up from a net loss of ₹460.68 million in FY24.

• Operating cash flow remained strong at ₹4,650 million, with a cash conversion ratio above 90%.

• Cash and cash equivalents (consolidated) stood at ₹1,011.91 million as of 31 March 2025.

Outlook and guidance

• FY26 is expected to see high single-digit volume growth in CDMO, with revenue growth dependent on API price trends.

• Margins in CDMO are expected to remain stable at 18%-20%; losses in API and trade generics are targeted to reduce.

• International business is projected to grow at 20%+ annually, with the European contract expected to add ₹3,000-3,500 million annually from FY28.

• Focus remains on global expansion, R&D, and leveraging new growth levers, including regulated market sales for API segment.