Akums Drugs and Pharmaceuticals and its subsidiaries have received assessment orders from the Income Tax Department. The orders were issued under Section 158BC of the Income Tax Act, 1961, covering the block period from April 1, 2018, to March 12, 2025. The total demand raised against the company and its subsidiaries amounts to ₹156.01 crore.

Details of the Assessment Orders

The Income Tax Department, Office of the Deputy Commissioner of Income Tax, Central Circle 1, New Delhi, passed the orders regarding the disallowance of various expenditures under Section 37(1) of the Income Tax Act. While the company and Akumentis Healthcare Ltd. received orders dated May 19 and May 20, 2026, respectively, four wholly-owned subsidiaries—Maxcure Nutravedics Limited, Pure and Cure Healthcare Private Limited, Malik Lifesciences Private Limited, and Nicholas Healthcare Limited—also received similar orders on May 21 and May 22, 2026.

Financial Impact and Response

The company stated that based on its internal assessment, it does not expect the orders to have a material financial impact. Management believes the demands are not sustainable in law and are defendable based on the facts of the case. Consequently, the entities plan to pursue appeals against the orders under applicable laws.

Akums Drugs and Pharmaceuticals , India's largest Contract Development and Manufacturing Organisation (CDMO), announced its financial results for the fourth quarter and the full year ended March 31, 2026. The Board of Directors, at its meeting held on May 14, 2026, approved the standalone and consolidated financial results. For the financial year ended March 31, 2026, the company reported a Profit After Tax (PAT) of ₹1,116.40 million on a total income of ₹14,617.01 million on a standalone basis. On a consolidated basis, the PAT for the year stood at ₹2,563.97 million with a total income of ₹44,877.42 million. The statutory auditor, Walker Chandiok & Co. LLP, has issued an unmodified opinion on both the standalone and consolidated annual financial results.

Q4 and Full Year Operational Highlights

Akums Drugs delivered a strong operational performance in Q4 FY26, with consolidated adjusted EBITDA rising to ₹152 crore — a 61.6% year-on-year increase from ₹94 crore in Q4 FY25. The adjusted EBITDA margin expanded to 13.1% from 8.9% year-on-year. Adjusted PAT for Q4 FY26 stood at ₹83 crore compared to ₹35 crore in Q4 FY25, reflecting a 135% year-on-year growth, with adjusted PAT margin improving to 7.0% from 3.3%. On a reported basis, consolidated Profit Before Tax for Q4 came in at ₹1.23 billion versus ₹669 million in the year-ago period, while Q4 consolidated net profit stood at ₹864 million compared to ₹1.5 billion in the corresponding quarter of the previous year — the year-ago period having benefited from a deferred tax credit of ₹949 million.

For the full year FY26, operating revenue stood at ₹4,359 crore, growing 5.9% year-on-year over ₹4,118 crore in FY25. Adjusted EBITDA increased 13.3% year-on-year to ₹522 crore, while adjusted PAT grew 27.3% year-on-year to ₹276 crore. The following table presents the consolidated adjusted financial performance:

Adj EBITDA: Profit before tax + fair value changes to financial instrument + finance cost + depreciation and amortisation + exceptional items – other income. Adj PAT: PAT + fair value changes to financial instrument + exceptional items – one-time impact of deferred tax in FY25 of ₹106 crore.

Segment-Wise Performance

The CDMO segment was the key growth driver during Q4 FY26, with revenue growing to ₹952 crore from ₹840 crore in Q4 FY25. CDMO EBITDA increased 54.9% year-on-year to ₹137 crore, with EBITDA margin improving to 14.4% from 10.6%, driven by continued customer engagement, better capacity utilisation, and focused execution. On an annual basis, the CDMO segment remained the dominant contributor to consolidated revenue, accounting for ₹34,851.99 million in external revenue for FY26.

The Domestic Branded Formulations business remained stable in Q4 FY26, with revenue at ₹102 crore compared to ₹104 crore in Q4 FY25, while EBITDA held steady at ₹22 crore. For the full year, the segment showed improved profitability, with revenue growing 2.9% year-on-year to ₹446 crore and EBITDA increasing 17.0% to ₹90 crore. The International Branded Formulations business reported Q4 FY26 revenue of ₹36 crore versus ₹40 crore in Q4 FY25, though full-year EBITDA increased 32.3% year-on-year to ₹36 crore on flat revenue of ₹143 crore. Trade Generics turned a corner with EBITDA becoming positive at ₹1.4 crore in Q4 FY26, while the full-year EBITDA loss narrowed sharply to ₹10 crore from ₹28 crore in FY25. The Group's segment-wise annual performance is summarised below:

Total consolidated segment assets stood at ₹35,753.23 million as at March 31, 2026, compared to ₹33,144.13 million as at March 31, 2025. The API business continued to face pricing pressure, with Q4 FY26 revenue at ₹41 crore compared to ₹50 crore in Q4 FY25 and an operating loss of ₹12 crore. On a full-year basis, the API EBITDA loss marginally reduced from ₹44 crore in FY25 to ₹40 crore in FY26.

Management Commentary and Outlook

During the earnings conference call, management provided insights into the company's strategic direction. The CDMO segment is expected to maintain strong volume growth in H1 FY27, supported by existing customers and new capacities. The European CDMO contract, valued at approximately EUR 35 million on a MAT basis, is expected to commence commercial supplies from Plant 2 in FY28, while the Zambia partnership project remains on track with commercial supplies of approximately $25 million from Indian facilities expected by the end of Q2 FY27. The API business, which faced pricing pressure in FY26, is expected to see a reduction in losses in FY27 due to cost optimization and a shift towards higher-margin products. The company reported operating cash flow of ₹1,181 crore for FY26 and free cash flow of ₹958 crore. Capital expenditure for FY26 was ₹222 crore, with a target of ₹300 crore for FY27, primarily directed towards capacity expansion and modernization.

Standalone Financial Performance

The table below summarises the standalone financial performance for the quarter and year ended March 31, 2026:

On a standalone basis, total expenses for the year included cost of materials consumed of ₹8,303.42 million, employee benefits expense of ₹2,179.93 million, depreciation and amortisation of ₹455.03 million, finance costs of ₹100.38 million, and other expenses of ₹2,061.99 million. The company recognised exceptional items of ₹65.19 million for the year, comprising ₹52.32 million on account of the impact of changes in labour code and ₹12.87 million towards retrospective wage revision/Variable Dearness Allowance (VDA) arrears.

Consolidated Financial Performance

The following table presents the consolidated financial performance for the quarter and year ended March 31, 2026:

Consolidated finance costs for the year included ₹776.06 million recognised in respect of a long-term customer advance, representing the unwinding of a significant financing component under Ind AS 115. This notional interest expense resulted in the recognition of a deferred tax asset of ₹195.32 million for the year. Consolidated exceptional items for the year amounted to ₹200.24 million, comprising ₹162.12 million related to the impact of changes in labour code and ₹38.12 million towards retrospective VDA arrears.

International Milestones and Strategic Progress

During FY26, Akums achieved significant progress towards becoming a global pharmaceutical company. The company made its first commercial supply of formulations to Europe and strengthened its regulated market presence with EU GMP certifications for its Oral Solids and Oral Liquids facilities. The company also received its first UK MHRA approval for Rivaroxaban, while its injectable plant received Brazil ANVISA approval. The ground-breaking of the Zambia pharmaceutical plant marked an important milestone in the company's international journey.

Commenting on the performance, Mr. Sanjeev Jain, Managing Director, said: "FY26 has been a year of steady progress for Akums. We delivered healthy growth in revenue and profitability while continuing to build capabilities for the long term. Our regulatory milestones, international developments and strong domestic performance reflect our focus on building Akums as a global pharmaceutical company and a trusted partner for our clients."

Mr. Sandeep Jain, Managing Director, added: "The Q4 FY26 and full year performance showed improvement across key operational parameters. Our CDMO business continued to perform well as we remain focused on better capacity utilisation, cost discipline and future growth. We are working on multiple digitization and automation initiatives which will deliver long-term value for the organization."

IPO Fund Utilisation

The company completed its Initial Public Offer (IPO) of 27,368,143 equity shares at an issue price of ₹679 per share, raising ₹6,800.00 million through a fresh issue. IPO-related expenses were originally estimated at ₹1,116.58 million; actual expenses incurred amounted to ₹990.61 million, resulting in an excess provision of ₹125.98 million. Pursuant to a Board resolution dated February 13, 2026, ₹48.10 million of the excess amount attributable to the company was reallocated — ₹23.10 million towards inorganic growth initiatives and ₹25.00 million towards general corporate purposes. The table below summarises the utilisation of net IPO proceeds as at March 31, 2026:

Dividend Declaration

The Board has recommended a final dividend of ₹1.00 per equity share (at 50%) and a special dividend of ₹2.00 per equity share (at 100%) on equity shares having a face value of ₹2.00 each, for the financial year ended March 31, 2026. The total dividend payout amounts to ₹3.00 per share, subject to the approval of shareholders at the ensuing Annual General Meeting. The company has fixed Friday, July 03, 2026, as the record date to ascertain the eligibility of shareholders for the dividend payment. The dividend, if approved, will be paid within 30 days from the date of shareholder approval.

Income Tax Search and Seizure Proceedings

During the financial year ended March 31, 2025, the Income Tax Department conducted a search and seizure operation under Section 132 of the Income Tax Act, 1961, at certain offices and manufacturing units of the company and its subsidiaries, and the residences of selected key managerial personnel, from January 15, 2025 to January 21, 2025. Subsequent to the quarter and year ended March 31, 2026, the company and certain subsidiaries received show cause notices (SCN) dated May 5, 2026, under Section 158BC of the Income Tax Act, 1961, in relation to ongoing block assessment proceedings for the block period covering April 1, 2018 to March 12, 2025. The company is in the process of submitting its response to the Income Tax Department. No demands have been raised on the company or the group as of date, and the management is of the view that no material adjustments are required to the financial results for the quarter and year ended March 31, 2026.

Corporate Governance and AGM

The Board has re-appointed M/s. Balwinder & Associates, Cost Accountants, as Cost Auditors for F.Y. 2026-27 on a remuneration of ₹3,00,000, subject to ratification by shareholders at the ensuing AGM. Mahajan & Aibara LLP, Chartered Accountants, have been appointed as Internal Auditors for the same period. In senior management changes effective May 14, 2026, Mr. V Jagannathan has been appointed as President – HR, while Mr. Arvind Srivastava has ceased to hold the position of President – HR due to structural changes in the company. The 22nd Annual General Meeting (AGM) of the company is scheduled to be held on Friday, July 10, 2026, at 11:00 AM IST through Video Conferencing or Other Audio-Visual Means.