Akums Drugs & Pharma reported mixed financial results for the third quarter ended December 31, 2025, with revenue growth offset by declining profitability amid regulatory compliance costs and operational challenges.

Financial Performance Overview

The pharmaceutical company's standalone performance showed contrasting trends in the December quarter. While revenue demonstrated healthy growth, profitability came under pressure from exceptional charges and increased operational expenses.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company's financial metrics reflected similar trends with revenue growth but reduced profitability.

Exceptional Items Impact

The company reported exceptional charges of ₹38.08 million during Q3FY26, primarily attributed to compliance with India's new Labour Codes. On November 21, 2025, the Government of India notified four Labour Codes consolidating 29 existing labour laws. The incremental impact on gratuity and compensated absences was classified as exceptional items due to its material, regulatory-driven, and non-recurring nature.

Operational Expense Trends

Cost management remained challenging during the quarter, with several expense categories showing increases:

• Employee benefits expense rose to ₹547.99 million from ₹503.40 million in Q3FY25
• Other expenses increased significantly to ₹547.53 million from ₹385.63 million
• Cost of materials consumed grew to ₹2,226.69 million from ₹2,066.24 million

Regulatory Developments

The company continues to address ongoing Income Tax Department proceedings initiated during January 2025. During the current quarter, Akums received notices under Section 142(1)/143(2) of the Income Tax Act, 1961, requiring submission of accounts and documents for the block period from April 1, 2018, to March 12, 2025. The company is responding to these notices and maintains that no material adjustments are required to the financial results.

International Expansion

During Q3FY26, the company invested in its wholly-owned subsidiary, Akums Healthcare Malta Private Limited, subscribing to 240 equity shares of EURO 1 each. This subsidiary, incorporated on October 20, 2025, will undertake pharmaceutical marketing activities in the European region as part of the company's strategic international expansion.

IPO Proceeds Update

The company provided an update on IPO expense reconciliation. Actual IPO expenses amounted to ₹990.61 million against earlier estimates of ₹1,116.58 million, resulting in excess provision of ₹125.98 million. The company's share of ₹48.10 million from this excess will be reallocated toward IPO objects as decided by the Board. All planned IPO proceeds of ₹6,373.70 million have been fully utilized across designated purposes including debt repayment, working capital funding, and general corporate purposes.

Akums drugs & pharma has announced its quarterly earnings conference call to discuss the unaudited financial results for Q3FY26. The pharmaceutical company filed the requisite disclosure with stock exchanges on January 31, 2026, in compliance with regulation 30 of SEBI listing requirements.

Earnings Call Schedule

The earnings call is scheduled for February 16, 2026, at 12:00 PM IST. The conference will be hosted in collaboration with Ambit Capital, with Gaurav Tinani from Institutional Equities serving as the moderator for the session.

Company Representatives

The earnings call will feature senior leadership from Akums Drugs & Pharmaceuticals Limited to discuss the quarterly performance and address analyst queries:

• Mr. Sanjeev Jain - Managing Director
• Mr. Sandeep Jain - Managing Director
• Mr. Sumeet Sood - Chief Financial Officer
• Mr. Sahil Maheshwari - Head Strategy

Conference Access Details

The company has provided multiple access options for participants to join the earnings call. Domestic participants can use the primary access numbers, while international participants have dedicated toll-free numbers for various regions.

Regulatory Compliance

The earnings call announcement was made pursuant to regulation 30 read with Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary & Compliance Officer Dharamvir Malik signed the disclosure document, which has been updated on the company's website at www.akums.in for stakeholder reference.