Akums Drugs and Pharmaceuticals Q2 FY27 results: net profit up 168.3% to ₹114.56 crore, revenue up 31.9%

How did Akums Drugs and Pharmaceuticals perform in Q2 FY27?

Akums Drugs and Pharmaceuticals reported consolidated revenue of ₹1,342 crore for Q2 FY27, against ₹1,018 crore in Q2 FY26 and ₹1,167 crore in Q1 FY27. Revenue was up 31.9% year-on-year and 15.1% sequentially. EBITDA was ₹194.73 crore, compared with ₹94.48 crore a year earlier and ₹174.68 crore in the previous quarter, taking the EBITDA margin to 14.5% from 9.3% and 15.0%.

Profit before tax was ₹154.74 crore, up from ₹65.67 crore in Q2 FY26 and ₹139.24 crore in Q1 FY27. Net profit was ₹114.56 crore, against ₹42.70 crore and ₹100.98 crore respectively, while basic EPS rose to ₹7.37 from ₹2.66 a year earlier and ₹6.53 in the previous quarter. On a standalone basis, revenue was ₹395.05 crore, up 27.7%, and profit after tax was ₹32.64 crore against ₹23.46 crore.

What changed in Akums Drugs and Pharmaceuticals' costs and profit?

Total expenses rose 23.6% year-on-year to ₹1,217 crore, slower than the 31.9% rise in revenue. Cost of materials was ₹719.46 crore, up 30.2%, employee cost was ₹224.27 crore, up 18.5%, and other expenses were ₹156.68 crore, up 10.9%. Finance costs rose 10.2% to ₹25.68 crore and depreciation to ₹43.21 crore, up 14.1%.

Other income fell to ₹28.91 crore from ₹32.37 crore a year earlier, while tax rose 74.8% to ₹40.18 crore from ₹22.98 crore. There was no exceptional item in either quarter. The company said the growth was spearheaded by the CDMO segment with double-digit volume growth and improvement in API prices, and that API prices momentum was sustained in Q2 at a lower pace.

Employee cost increased ₹35 crore and cost of materials ₹166.83 crore from the year-ago quarter. Against Q1 FY27, employee cost rose ₹22.84 crore and other expenses ₹11.59 crore, while other income fell ₹1.47 crore. The EBITDA margin was 5.2 percentage points higher than a year earlier but 0.5 percentage points lower than the previous quarter.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹2,509.02 crore, up 22.9% from ₹2,041.56 crore in H1 FY26, and total income was ₹2,568.3 crore, up 22.3% from ₹2,100.66 crore. Profit before tax rose to ₹293.98 crore from ₹161.32 crore, an increase of 82.2%.

Net profit for the first half was ₹215.54 crore, up 100.7% from ₹107.38 crore in H1 FY26, and basic EPS was ₹13.90 compared with ₹6.81. Revenue rose ₹467.46 crore and net profit rose ₹108.16 crore from the year-earlier period.

What do the balance sheet and cash flow show?

Total assets stood at ₹5,831.57 crore on 30 September 2026, against ₹5,446.97 crore on 31 March 2026, and total equity was ₹3,523.29 crore compared with ₹3,331.12 crore. Borrowings fell to ₹36.15 crore from ₹72.95 crore, while cash and cash equivalents declined to ₹183.59 crore from ₹386.0 crore. Inventories rose to ₹903.48 crore from ₹755.71 crore and trade receivables to ₹859.46 crore from ₹796.56 crore.

Operating cash flow for H1 FY27 was ₹255.72 crore, against ₹1,152.21 crore in H1 FY26. Investing cash flow was negative ₹354.13 crore compared with negative ₹1,006.53 crore, financing cash flow was negative ₹104.01 crore against negative ₹17.77 crore, and capital expenditure was ₹154.21 crore compared with ₹112.05 crore. The auditor's review report noted a tax demand aggregating to ₹600.92 million for the block period from 01 April 2018 to 12 March 2025, which the company has appealed.

How has Akums Drugs and Pharmaceuticals done over the last 8 quarters?

Revenue rose in each of the last four quarters and profit rose year-on-year in each of the last two quarters. Revenue peaked at ₹1,342.39 crore in Q2 FY27 after ₹1,166.63 crore in Q1 FY27, while the earlier low was ₹1,010.41 crore in Q3 FY25. Net profit reached ₹114.56 crore in Q2 FY27, up from ₹42.70 crore in Q2 FY26.

The EBITDA margin peaked at 15.0% in Q1 FY27 and was 14.5% in Q2 FY27, after bottoming at 8.9% in Q4 FY25. Net profit margin was 8.5% in Q2 FY27, against 4.2% in Q2 FY26, with the earlier low at 4.1% in Q3 FY25.

Which businesses drove the quarter?

CDMO remained the main business, with revenue of ₹1,114.87 crore, up 38.6% from ₹804.33 crore in Q2 FY26, and EBIT of ₹129.43 crore against ₹50.59 crore, giving an EBIT margin of 11.6%. Domestic branded formulations reported revenue of ₹131.92 crore, up 8.2%, and EBIT of ₹23.0 crore at a 17.4% margin.

International branded formulations recorded revenue of ₹43.78 crore, up 95.2% from ₹22.43 crore, with EBIT of ₹9.16 crore compared with ₹4.98 crore and a 20.9% margin. API revenue fell 35.3% to ₹28.77 crore, with an EBIT loss of ₹10.14 crore against a loss of ₹18.41 crore, while trade generics revenue declined 5.4% to ₹23.05 crore and EBIT was ₹1.13 crore against a loss of ₹3.25 crore.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 2 November 2026, along with the limited review reports of Walker Chandiok & Co. LLP. The company also filed an investor presentation for the earnings call held on 3 November 2026.

On the recommendation of the Nomination and Remuneration Committee, the board approved the designation of Sanjay Kumar, President – Operations, as Senior Management Personnel. The board also noted that the company is not required to submit a statement of deviation or variation from the forthcoming quarter because 100% of the Initial Public Offer proceeds has been fully utilised.

What did Akums Drugs and Pharmaceuticals' management say?

Management said CDMO volume growth stayed above 20% year-on-year for a fourth quarter, with capacity utilisation above 50%. The company said Baddi Phase 1 will add over 6 billion oral-solid units annually and is targeted to be fully operational by Q1 FY28, with multiple phases expected to provide about 12 billion tablets in total. Management did not provide company-wide revenue guidance or quantify Baddi and forward annual capital expenditure.

The company said Zambia's USD 25 million order is intact, with dispatch expected in Q4 FY27 and ex-works revenue in Q1 FY28, and a further USD 25 million round committed without a specified timing. Management said the European dossier is filed, with approval expected in 1-2 quarters and supplies from FY28, and that domestic branded targets 8-10% growth and IPM-like growth by FY28. On the call, Sahil Maheshwari said: "So the business is, as you rightly said, $25 million fully intact with a margin profile which are slightly better than our CDMO margins."

Management identified input material availability and prices as remaining volatile, said Zambia revenue recognition depends on 100-120 day shipping, and noted API remains loss-making at roughly INR 5 crore per quarter with no share-improvement timeline. Domestic branded margins were temporarily diluted by a 200-member field-force expansion, and management said API breakeven is targeted over the next 3-4 quarters.

How did Akums Drugs and Pharmaceuticals shares react?

The results were filed after market hours on 2 November 2026, with the previous close at ₹734.45. From the price when the filing appeared, the stock fell 1.2% within 5 minutes, 0.8% after 15 minutes and 0.8% after 30 minutes. On the reaction day it closed 3.2% higher from the previous close, and by the next day's close the stock was up 2.1% from its pre-results close.

How did other Pharmaceuticals companies do?

Among 77 Pharmaceuticals companies compared for the quarter, the median revenue growth was 18.9%. Akums Drugs and Pharmaceuticals grew faster than 55 of the other companies and slower than 22, based on the peer set recorded as of 6 November 2026.

Of the peers for which profit was compared, 49 reported higher profit, across 73 companies.