Akums Drugs and Pharmaceuticals Limited reported a strong performance for FY26, achieving a total income of ₹4,488 crore, a 7.6% increase year-on-year. Despite a challenging first half, the company delivered strong operational growth in the second half, driven by its CDMO business. Notable highlights include a 200 million Euro CDMO contract, a strategic joint venture in Zambia, and significant advancements in its global export and innovation capabilities.
FY26 Financial Performance
Akums concluded FY26 on a strong note, reporting ₹4,488 crore in total income. The company’s adjusted EBITDA grew to ₹522 crore, representing a 13.3% year-on-year increase. While the broader market faced headwinds in the first half of the year, Akums effectively leveraged its robust manufacturing infrastructure and client relationships to navigate the period, ultimately achieving an adjusted PAT of ₹276 crore for the full year, a 27.3% rise compared to FY25.
Segment Breakdown
The CDMO business continues to be the primary engine of growth, contributing 80% to the company’s total revenue in FY26. Other segments, including Domestic Branded Formulations (10.2%) and International Branded Formulations (3.3%), also played key roles in the company’s diversified revenue mix. The company’s focus on cost-optimization and operating leverage resulted in margin improvements throughout the latter half of the fiscal year.
Strategic Growth Drivers
Looking ahead, Akums has outlined several critical pillars for future growth:
- European Expansion: A 200 million Euro multi-year CDMO contract is progressing on schedule, with supplies expected to commence from FY28.
- Global Footprint: A new joint venture with the Government of the Republic of Zambia is underway, involving a project cost of $45 million to boost supply commitments for FY27 and FY28.
- Innovation and R&D: The company continues to prioritize innovation, reaching a cumulative total of 1,056 DCGI approvals by the end of FY26, with R&D expenditure maintained at 3.2% of total revenue.
- Operational Efficiency: Digital transformation efforts, including the implementation of SAP S/4HANA and Darwinbox, are designed to drive automation and enhance real-time analytics across the organization.
Outlook for FY27
The company remains confident in its ability to scale operations through a mix of organic growth and potential inorganic opportunities, supported by a strong balance sheet. The strategy for the coming year includes expanding EU-GMP certification across more plants and increasing traction in South East Asia and African markets to sustain the current momentum.
Source: BSE
