Akums Q2 PAT falls 35.8% on muted CDMO biz growth, declining API prices

Akums Drugs and Pharmaceuticals on Thursday reported a 35.8 per cent year-on-year (Y-o-Y) drop in consolidated net profit for the September quarter (Q2 FY26) to Rs 43 crore, down from Rs 67 crore in the same period last year.

 

India’s largest contract development and manufacturing organisation (CDMO) also reported a 1.5 per cent on-year fall in revenue from operations to Rs 1,018 crore in Q2 FY26, compared to Rs 1,013 crore recorded in Q2 FY25.

 

The company attributed this fall to slow growth in its CDMO business on account of declining prices for active pharmaceutical ingredients (API). “Trade generics and API sales also declined in line with focus on minimising losses,” the company added in its investor presentation for the quarter.

 

Despite this, the CDMO segment remained Akums’ key growth driver, contributing Rs 804 crore, or 79 per cent of its total revenue.

 

“Volumes for the CDMO vertical grew 7 per cent Y-o-Y, as against muted industry volume growth, reflecting Akums’ position as preferred CDMO partner in India,” the company added. 

 

Commenting on the results, Sandeep Jain, managing director at Akums, said that the CDMO business is navigating through a complex phase, with continued weakening of API prices and sustained flat volumes in the industry.

 

“We remain focused on delivering long-term shareholder value by further cementing our leadership position in the CDMO business, taking measures to grow our domestic and exports branded business, and curtailing losses in API and trade generics,” he added.

 

The company recently broke ground on its new facility in Zambia, which aims at supporting access to quality medicines across the Southern African Development Community (SADC) countries, with a product range across multiple therapeutic areas and dosage forms.

 

It has also started commercial supply of formulations in Europe with dapagliflozin tablets to Switzerland. Akums is now aiming to supply rivaroxaban tablets in the market by Q3 FY26.

 

“The developments in Zambia and Europe mark important milestones in our ongoing journey of becoming a global CDMO,” Sanjeev Jain, managing director at Akums, added.

 

On Thursday, Akums’ share price fell by 3.54 per cent, closing at Rs 437.10 on the Bombay Stock Exchange (BSE).