Akums Drugs & Pharma

Akums Drugs and Pharmaceuticals Limited executed a Framework Agreement with the Government of the Republic of Zambia on August 22, 2025, to establish a local manufacturing facility in Zambia. The project will be implemented through a joint venture company where Akums will hold a 51% majority stake and a Zambian state instrumentality will own 49%. The facility is expected to commence manufacturing in 2028, producing general oral solids, liquids, injectables, and beta-lactam products. Until the facility becomes operational, the Government of Zambia will purchase medicines worth a minimum of USD 50 million over two years (2026-2027) at USD 25 million annually from Akums' facilities in India. The joint venture is expected to be established before year-end 2025. The facility aims to support Zambian national health programs, enhance local production capabilities, and potentially export to neighboring African countries including Zimbabwe, Namibia, Botswana, Malawi, Tanzania, and Mozambique. Akums will provide proprietary technology, know-how, and technical expertise through a separate Technology Transfer Agreement.

Akums Drugs & Pharmaceuticals reported total income of Rs. 1,051 crores, up 2.4% year-over-year for Q1 FY26. The company achieved stronger profitability with reported EBITDA of Rs. 156 crores, growing 19% year-over-year, and EBITDA margin expanding to 14.8%. The CDMO segment, which contributes the largest revenue share at Rs. 813 crores, grew 4% year-over-year despite a 2.5% impact from lower API prices. Domestic Branded Formulations revenue reached Rs. 107 crores with 3.4% growth, while API revenue declined 35% to Rs. 45 crores as the company focuses on select high-margin molecules. The company received 27 DCGI approvals in the quarter and achieved the milestone of 1,000 cumulative DCGI approvals. Management expects mid-single digit growth for the CDMO business in FY26 with margins remaining in the 14-15% range. The company is expanding internationally with its first European dossier approval for Rivaroxaban and targeting $100 million in formulation exports over the next five years.

Akums Drugs and Pharmaceuticals reported total income of ₹1,051 crore for Q1 FY26, with adjusted EBITDA of ₹156 crore reflecting 19.1% year-on-year growth. EBITDA margins improved to 14.8% from 12.7% in the previous year, representing a 208 basis points improvement. The company achieved a milestone of 1,000 DCGI approvals, adding 27 new approvals during the quarter. Akums received its first European dossier approval for Rivaroxaban and filed its first dossier for Dapagliflozin combination in Switzerland. The company received €100 million as advance payment for its European contract, bringing cash surplus to ₹1,518 crore. CDMO business contributed 79% to group turnover with 14.7% EBITDA margin. Domestic branded formulation grew 3% year-on-year while international branded formulation increased 2%. Trade generics and API segments remained in operational loss though losses are gradually reducing. Commercial supplies for the European contract are scheduled to commence from April 2027.