Akums Drugs rises 6% as ICICI Sec hikes target price; projects 39% upside

Akums Drugs and Pharmaceuticals share price rose 6 per cent to ₹505.90 in the intraday trade on the National Stock Exchange (NSE)

Akums Drugs and Pharmaceuticals share price today

Akums Drugs and Pharmaceutical share price gained 6 per cent intraday in Tuesday's session as ICICI Securities hiked share price target on the stock, following the release of its third-quarter (Q3FY26) results. The stock rose to ₹505.90 in the intraday trade on the National Stock Exchange (NSE). 

 

As of 1:43 PM, Akums Drugs and Pharmaceuticals share price was quoting at ₹491, up 2.3 per cent. In comparison, the Nifty 50 was trading 0.26 per cent higher. The counter has seen a trade of 0.1 million shares on NSE so far. 

 

In the last 12 months, Akums Drugs and Pharmaceuticals share price increased 10 per cent, as against a 12.13 per cent advance in the Nifty 50 index.  

 

 

Why did Akums Drugs and Pharmaceuticals share price rise today? 

Akums Drugs and Pharmaceuticals share price rose on Tuesday as ICICI Securities increased the target price on the stock to ₹680 from ₹600 while maintaining its 'Buy' rating. The current target price implies an upside potential of 38.5 per cent from the current level.

 

According to the brokerage, Akum Drugs saw a healthy performance in Q3FY26, led by strong volume traction in contract development manufacturing organisation (CDMO) segment and improved operating leverage. CDMO revenue growth, it said, was materially ahead of market volume growth (1 per cent), supported by better capacity utilisation and ramp-up of newer facilities. Further, the management expects double digit volume growth in Q4FY26 and sustained margin trajectory.   The company's CDMO business grew 16 per cent Y-o-Y and international business 18 per cent Y-o-Y. Volume for CDMO segment surged nearly 27.6 per cent Y-o-Y, though unfavourable pricing and mix partially offset these gains, the brokerage noted.  Going ahead, ICICI Securities expects 13.0 per cent CAGR in CDMO division over FY25–28 driven by new orders and stability in API prices. 

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The brokerage has also raised earnings-per-share (EPS) estimates by 1–6 per cent, each for financial years 2027 and 2028 to factor in the better margins of the CDMO division. 

 

ICICI Securities forecasted that Akums Drugs and Pharmaceuticals may post 11.2 revenue, 20.4 per cent Ebitda, and 16.7 per cent profit after tax (PAT) compound annual growth rates (CAGR) over the financial year 2025 and 2028. The Ebitda margin may jump 300 basis points to 14.2 per cent in the financial year 2028. 

 

One of the key risks for the company's growth is the location concentration of manufacturing plants and fluctuation in active pharmaceutical ingridients' (API) prices, ICICI Securities said.   

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Q3 results key highlights

Akums Drugs and Pharmaceuticals reported that its consolidated adjusted net profit increased 2.1 per cent on year to ₹68 crore in the third quarter (Q3FY26) from ₹66 crore in the same quarter a year ago. However, adjusting for one-time impact of ₹18.2 crore, pertaining to new labour code, profit grew 27.6 per cent Y-o-Y (up 93 per cent Q-o-Q) to ₹78.7 crore.

 

The revenue of the company increased 14.8 per cent on year to ₹1,160 crore in the December quarter from ₹1,010 crore.  Both revenue and adjusted profit beat the brokerage's estimate of ₹1,090 crore and ₹71.7 crore, respectively.  The adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased 21 per cent on year to ₹147 crore from ₹121 crore. This, too, was ahead of ICICI Securities' estimate of ₹130 crore. 

 

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