Akums Drugs and Pharma Reports Decline in Q2 Financial Performance

Akums Drugs & Pharma , India's largest Contract Development and Manufacturing Organization (CDMO), announced its financial results for the second quarter, revealing a decline in revenue and profitability.

Key Financial Highlights

Metric	Q2 (Current Year)	Q2 (Previous Year)	Change
Revenue	₹10.16 billion	₹10.33 billion	-1.65%
EBITDA	₹934.80 million	₹1.12 billion	-16.61%
EBITDA Margin	9.19%	11.73%	-254 bps
Net Profit	₹408.00 million	₹652.00 million	-37.42%

Segment Performance

The CDMO segment, which is the company's primary revenue driver, faced challenges in the quarter. Despite the overall decline, Akums Drugs & Pharma has managed to outpace industry volume growth in its CDMO vertical.

Margin Pressure

The company's profitability was impacted by various factors, including the overall market conditions and potentially falling API (Active Pharmaceutical Ingredient) prices.

Future Outlook

As Akums Drugs & Pharma navigates through this challenging period, investors may closely watch how the company manages to improve its margins and capitalize on its market position in the coming quarters. The company might need to focus on cost optimization, improving operational efficiency, and exploring new growth opportunities to address the current trend.

It's important to note that quarterly results can be influenced by various factors, and a longer-term view may be necessary to fully assess the company's performance and prospects.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.48%	-4.99%	-5.39%	-14.76%	-28.61%	-45.07%

Akums Drugs & Pharma , a leading Indian pharmaceutical company, has announced plans to invest $24 million in its newly incorporated subsidiary, Akums Healthcare (Zambia) Private Limited. This strategic move marks a significant step in the company's expansion into the African healthcare market.

Investment Details

The investment is planned to be made in phases over the next three years:

Year	Cash Investment	Investment in Dossiers
2026	$2 million	-
2027	$5 million	-
2028	$5 million	$12 million

Strategic Objectives

The primary objectives of this investment are:

To establish a manufacturing facility in Zambia
To expand Akums' business operations in the Zambian market
To meet the growing pharmaceutical demand in neighboring African countries

Market Potential

Zambia, a member of the Southern African Development Community (SADC), presents a promising market for pharmaceutical expansion:

The Zambian pharmaceutical market is currently valued at approximately $200 million
It is expected to grow to over $300 million by 2030
Nearly 85% of essential medicines in Zambia are currently imported

Subsidiary Details

Name: Akums Healthcare (Zambia) Private Limited
Incorporation Date: October 13, 2025
Industry: Manufacturing and trading of Pharmaceuticals, Medicinal Chemical and Botanical Products
Ownership: Akums holds a 51% stake in the Zambian subsidiary

Regulatory Compliance

The investment does not require any specific governmental or regulatory approvals, facilitating a smooth entry into the Zambian market.

Corporate Strategy

This move aligns with Akums' broader strategy to strengthen its global presence and expand its international operations. The company aims to leverage its expertise in pharmaceutical manufacturing to tap into the growing African healthcare sector.

By establishing a local manufacturing presence, Akums is positioning itself to better serve the Zambian market and potentially use it as a hub for exports to other SADC nations, which have a combined population of over 400 million.

This investment in Zambia represents a significant milestone in Akums Drugs & Pharma's international growth strategy. The move is expected to not only boost the company's presence in Africa but also contribute to the development of Zambia's pharmaceutical sector.