Akums Drugs & Pharmaceuticals Ltd announced a joint venture with the Zambian government to establish a manufacturing plant in Lusaka, with Akums holding 51%. The plant, expected to begin production in CY 2028, involves a US$45 million investment. Q2 FY26 revenue remained flat, while EBITDA declined 22% year-on-year due to API price drops. The company anticipates improved performance in H2 FY26.
Zambian Joint Venture
Akums Drugs & Pharmaceuticals Ltd has partnered with the government of the Republic of Zambia to establish a pharmaceutical manufacturing plant in Lusaka. Akums will hold a 51% stake in the joint venture. Production is slated to begin in CY 2028. The facility will produce tablets, capsules, topicals, liquids, and injectables.
The total project cost is estimated at US$45 million. Akums will also supply US$50 million worth of medicines from its Indian facilities to Zambia over the next two years.
Q2 FY26 Financial Performance
Akums Drugs reported a revenue decline of 1.5% year-on-year for Q2 FY26, with revenue at INR 1,018 crores. EBITDA decreased by 22% to INR 94 crores, and margins fell to 9.3%. Profit After Tax (PAT) stood at INR 43 crores compared to INR 67 crores in the previous year.
Segmental Performance
CDMO (Contract Development and Manufacturing Organization) revenue reached INR 804 crores, showing a slight decrease of 1.1%. Domestic Branded Formulations revenue grew by 5.3% to INR 122 crores, while International Branded Formulations declined by 14.3% to INR 22 crores.
API Business
API (Active Pharmaceutical Ingredients) revenue was INR 44 crores, reflecting a year-on-year decrease. The company is focusing on higher-margin API molecules and cost optimization to improve profitability. The company expects to limit losses in the second half of the fiscal year and is working on further CEP (Certificate of Suitability to the monographs of the European Pharmacopoeia) filings in Europe.
H2 FY26 Outlook
The company expects improved performance in the second half of FY26. They anticipate benefits from strategic initiatives, new partnerships, and cost efficiencies. The newly formed Zambia JV, along with European market efforts, is expected to drive long-term growth.
Source: BSE