Akums Drugs & Pharma reported a consolidated net profit of ₹1,009.78 million for the quarter ended June 30, 2026, marking a 56% year-on-year increase from ₹646.85 million in Q1FY26. Revenue from operations grew 14% to ₹11,666.29 million, supported by robust demand in its core Contract Development and Manufacturing Organization (CDMO) business and an improvement in API prices. The company's Board of Directors approved these unaudited standalone and consolidated financial results on August 08, 2026, following a limited review by statutory auditors Walker Chandiok & Co LLP. The results were filed pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Consolidated revenue from operations stood at ₹11,666.29 million, compared to ₹10,240.32 million in Q1FY26. Total income reached ₹11,970.09 million, including other income of ₹303.80 million. Profit before tax was ₹1,392.37 million, up from ₹956.46 million a year earlier. Tax expense totaled ₹382.59 million. Standalone net profit was ₹448.39 million, nearly flat against ₹448.67 million in Q1FY26, while standalone revenue rose 18% to ₹3,922.75 million.

Operating EBITDA for the quarter was ₹1,750 million (₹175 crore), an increase of 35.4% year-on-year from ₹1,290 million (₹129 crore). EBITDA margins expanded by 238 basis points to 15%, up from 12.6% in Q1FY26. The balance sheet remains strong with a cash surplus of ₹16,160 million (₹1,616 crore) and no debt.

Segment Highlights

The CDMO segment contributed ₹9,642.12 million in external revenue, up 18.6% year-on-year, with segment results before depreciation reaching ₹1,634.49 million. The revenue growth was driven by healthy volume growth, which management noted remained in the high teens for Q2 as well, and a rebound in API prices. Domestic branded formulations revenue grew 7% to ₹1,152.79 million, though EBITDA declined due to increased employee strength in the field force. The API segment saw a decline in external revenue to ₹316.46 million from ₹450.33 million, posting a segment loss of ₹81.46 million. However, management highlighted that losses were lower than previous quarters due to a higher share of non-cepha products like linezolid and montelukast, which improved gross margins.

Management Guidance and Concall Highlights

Following the quarterly results, management shared key forward-looking guidance across business segments. The API segment, which reported a loss in Q1FY27, is targeted to become monthly EBITDA positive by the end of February/March FY27 and is expected to contribute positively to the corporate from FY28. The CDMO segment is anticipated to maintain double-digit volume growth in coming quarters, with Q2 also looking strong in high teens, and management expects a robust operating performance for FY27 overall.

The following table summarises the key guidance points shared during the concall:

Key Developments

The company fully utilized its net IPO proceeds of ₹6,421.80 million towards stipulated objects, including debt repayment and working capital, leaving no unutilised funds as of June 30, 2026. Subsequent to the quarter end, subsidiary Pure and Cure Healthcare Private Limited approved the acquisition of Oriflame India Private Limited's manufacturing business for ₹560.00 million, expanding capacity in color cosmetics and skincare. This acquisition includes two manufacturing facilities at Roorkee and Noida, aligning with the company's strategy to tap into niche formulations.

Regulatory Matters

The Income Tax Department raised a consolidated tax demand of ₹1,560.18 million following search and seizure operations conducted in January 2025 for the block period April 2018 to March 2025. Akums has filed an appeal under Section 246A of the Income-Tax Act before the Commissioner of Income-tax (Appeals) and deposited ₹47.01 million as advance under protest post-quarter end. Management maintains that no material adjustments are required in the financial results based on legal opinions obtained.

What the Numbers Show

The divergence between standalone and consolidated profitability highlights the group structure's impact on earnings. While standalone profits remained flat, consolidated net profit surged 56%, indicating that subsidiaries—particularly those outside the direct manufacturing scope or involving higher-margin services—contributed disproportionately to growth. Additionally, finance costs included ₹200.54 million from unwinding significant financing components in customer advances, a non-cash item that inflated expenses but reflects long-term contract economics rather than operational debt burden. The shift in API mix towards non-cepha products has already begun to reduce segment losses, supporting management's confidence in achieving breakeven by early FY27.

Akums Drugs & Pharmaceuticals will host its quarterly earnings conference call on August 10, 2026, to discuss its un-audited financial results for the first quarter of fiscal year 2027 (Q1FY27). The event provides investors and analysts with an opportunity to review the company’s performance for the period ending June 30, 2026, directly with senior management. This disclosure ensures transparency regarding the company’s operational and financial standing in the initial quarter of the new fiscal year.

The conference call is scheduled to begin at 12:00 PM IST and will be conducted virtually. Pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company notified the National Stock Exchange of India Ltd and BSE Limited of the schedule. The management has clarified that no unpublished price-sensitive information (UPSI) will be shared during the meet. The schedule remains subject to change due to exigencies on the part of investors or the company.

Management Participation

The session will feature key executives from Akums Drugs and Pharmaceuticals Limited. The management team participating in the discussion includes:

• Sanjeev Jain, Managing Director
• Sandeep Jain, Managing Director
• Sumeet Sood, Chief Financial Officer
• Sahil Maheshwari, Head Strategy

The teleconference will be moderated by Umesh Laddha from Institutional Equities at Ambit Capital.

Dial-in Details

Investors and analysts can join the virtual meeting using the access numbers provided below. Participants are advised to dial in a few minutes prior to the scheduled start time to avoid delays. Registration via Diamond Pass is available to bypass wait times.

The disclosure was signed by Dharamvir Malik, Company Secretary & Compliance Officer, on August 05, 2026. A copy of this intimation has been updated on the company’s website at www.akums.in for public record.