Akums has announced its Q2 and H1 FY26 results, marked by a flat revenue and margin dips amid falling API prices. A key development is the Zambia government JV to establish a pharmaceutical manufacturing plant with an investment of USD 45 million, aiming to supply medicines worth USD 50 million over two years and establish Zambia as a pharma export hub.
Financial Performance Overview
Akums reported its financial results for Q2 and H1 FY26. Despite flat revenue, margins experienced a downturn due to the continued decline in API prices. The company’s CDMO business demonstrated a volume growth of 7%. There’s an anticipation of improved margins in subsequent quarters through a refined product mix. While domestic formulations are expanding, exports faced seasonal challenges but are expected to rebound strongly in the second half.
Segmental Performance
In Q2 FY26, CDMO contributed 79.0% to the revenue, followed by domestic branded formulation at 12.0% and API at 4.4%. International branded formulation contributed 2.2%, while trade generics accounted for 2.4%. For H1 FY26, CDMO accounted for 79.2%, domestic branded formulation accounted for 11.2% and API accounted for 4.4%, followed by international branded formulation at 2.8% and trade generics at 2.3%.
Zambia Joint Venture
Akums has partnered with the Zambian government to establish a pharmaceutical manufacturing plant. The project is valued at approximately USD 45 million, with Akums holding a 51% stake. Akums will also supply medicines worth USD 25 million annually for FY27 and FY28. The facility, located in Lusaka, aims to boost local pharmaceutical output and exports to neighboring countries.
European Expansion
Akums achieved its first commercial supply of formulations in Europe, specifically with Dapagliflozin tablets to Switzerland, followed by Rivaroxaban in Q3. Contracts for oral liquid supply are progressing, with Plant 2 undergoing EU-GMP audit in October.
Source: BSE
