Akums Drugs and Pharmaceuticals Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Akums Drugs and Pharmaceuticals Ltd filed with BSE on 21 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Akums reported FY26 revenue of Rs 4,359 crore, up 5.8%, with adjusted EBITDA of Rs 522 crore, up 13.3%, and adjusted EBITDA margin at 12% versus 11.2% in FY25. CDMO delivered double-digit volume growth driven by existing customers, while the API and international branded formulation businesses remained weak through the year with trade generics turning EBITDA positive in Q4. Management discussed progress on European GMP accreditation, the Zambia partnership, an EU contract, and capacity expansion across injectables, Penem and Baddi facilities.
Numbers mentioned
Revenue: INR4,359 crores (FY26)
p. 5
“Revenue for the fiscal year 2026 stood at INR4,359 crores as compared to INR4,170 crores in FY 2025, an increase of 5.8%.”
Sumeet Sood, page 5 of the filed PDF · View the filing
Adjusted EBITDA: INR522 crores (FY26)
p. 5
“Adjusted EBITDA stood at INR522 crores.”
Sumeet Sood, page 5 of the filed PDF · View the filing
Adjusted EBITDA margin: 12% (FY26)
p. 5
“Adjusted EBITDA margin stood at 12% against 11.2% in FY 2025.”
Sumeet Sood, page 5 of the filed PDF · View the filing
PAT: INR256 crores (FY26)
p. 5
“PAT stood at INR256 crores as compared to INR344 crores in FY 2025.”
Sumeet Sood, page 5 of the filed PDF · View the filing
PBT: INR382 crores (FY26)
p. 5
“If we look at the PBT, we were at INR382 crores in FY 2026 compared to INR341 crores in FY 2025, an increase of 11.9%.”
Sumeet Sood, page 5 of the filed PDF · View the filing
Revenue: INR1,158 crores (Q4 FY26)
p. 5
“If we look at the quarterly performance, revenue stood at INR1,158 crores.”
Sumeet Sood, page 5 of the filed PDF · View the filing
Adjusted EBITDA: INR152 crores (Q4 FY26)
p. 5
“Adjusted EBITDA stood at INR152 crores.”
Sumeet Sood, page 5 of the filed PDF · View the filing
Adjusted EBITDA margin: 13.1% (Q4 FY26)
p. 5
“Adjusted EBITDA margins were 13.1% versus 8.9% in Q4 FY 2025 and 12.7% in Q3 of FY 2026.”
Sumeet Sood, page 5 of the filed PDF · View the filing
CDMO revenue: INR3,485 crores (FY26)
p. 5
“The revenue stood for the year at INR3,485 crores compared to INR3,208 crores in FY 2025, an increase of 8.6%.”
Sumeet Sood, page 5 of the filed PDF · View the filing
CDMO EBITDA: INR467 crores (FY26)
p. 5
“EBITDA for the full year stood at INR467 crores compared to INR454 crores last year, an increase of 2.9%.”
Sumeet Sood, page 5 of the filed PDF · View the filing
Domestic branded formulations revenue: INR446 crores (FY26)
p. 5
“FY 2026 revenue stood at INR446 crores compared to INR434 crores in FY 2025, an increase of 2.9%.”
Sumeet Sood, page 5 of the filed PDF · View the filing
International branded formulation revenue: INR143 crores (FY26)
p. 6
“For FY 2026, revenue stood at INR143 crores, similar to last year, which was also INR143 crores.”
Sumeet Sood, page 6 of the filed PDF · View the filing
Trade generic revenue: INR100 crores (FY26)
p. 6
“For the trade generic business, the revenue stood for FY 2026 at INR100 crores compared to INR115 crores FY 2025, a decline of 13.2%.”
Sumeet Sood, page 6 of the filed PDF · View the filing
API revenue: INR184 crores (FY26)
p. 6
“For the API business, in the current year, the revenue stood at INR184 crores compared to INR219 crores in FY 2025, a decline of 15.9%.”
Sumeet Sood, page 6 of the filed PDF · View the filing
Operating cash flow: INR1,181 crores (FY26)
p. 6
“The company's operating cash flow stood healthy at INR1,181 crores compared to INR465 crores last year.”
Sumeet Sood, page 6 of the filed PDF · View the filing
Free cash flow: INR958 crores (FY26)
p. 6
“The free cash flow for FY 2026 stood at INR958 crores versus INR201 crores for FY 2025.”
Sumeet Sood, page 6 of the filed PDF · View the filing
Cash and cash equivalents: INR1,682 crores
p. 6
“The company continues to maintain a strong liquidity position and cash and cash equivalents stood at INR1,682 crores and a healthy balance sheet of the company.”
Sumeet Sood, page 6 of the filed PDF · View the filing
Working capital days: 105 days (FY26)
p. 6
“We had a slight increase in the working capital days from 91 days to 105 days.”
Sumeet Sood, page 6 of the filed PDF · View the filing
FY26 capex: INR222 crores (FY26)
p. 14
“So FY26, we did a capex of INR222 crores.”
Sumeet Sood, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Zambia commercial supplies — approximately $25 million · end of Q2 FY27
stated firmly by Sandeep Jain
p. 4
“On the Zambia partnership, the project remains on track with commercial supplies of approximately $25 million from our Indian facilities to Zambia expected to commence by the end of Q2 FY27 along with the project planning and erection of the local manufacturing facility.”
Sandeep Jain, page 4 of the filed PDF · View the filing
European CDMO plant commercial supplies — FY28
stated firmly by Sandeep Jain
p. 4
“in line with our stated plan to commence commercial supplies from Plant 2 in FY28.”
Sandeep Jain, page 4 of the filed PDF · View the filing
Akumentis (domestic branded formulation) growth — above IPM rates · FY27
stated as an aspiration by Sandeep Jain
p. 4
“We expect this segment to grow at above IPM rates, driven by new launches, focus on brand building, and continued emphasis on field force productivity.”
Sandeep Jain, page 4 of the filed PDF · View the filing
International branded formulation growth
stated as an aspiration by Sandeep Jain
p. 4
“We expect this segment to return to growth as we are confident of the structural attractiveness of our chosen geographies.”
Sandeep Jain, page 4 of the filed PDF · View the filing
API business losses — coming year
stated as an aspiration by Sandeep Jain
p. 4
“Our continued focus on cost optimization, portfolio rationalization, yield improvements, and the gradual shift towards higher margin non-cephalosporin products and regulated markets are expected to curtail losses for the coming year.”
Sandeep Jain, page 4 of the filed PDF · View the filing
FY27 capex — INR300 crores · FY27
stated firmly by Sumeet Sood
p. 14
“And this year, we are targeting to keep our capex to INR300 crores.”
Sumeet Sood, page 14 of the filed PDF · View the filing
Effective tax rate — 29%
stated as an aspiration by Sumeet Sood
p. 9
“But going forward, we think 29% on an overall is something we can build into our business model.”
Sumeet Sood, page 9 of the filed PDF · View the filing
CDMO volume growth — double-digit · H1 FY27
stated conditionally by Sahil Maheshwari
p. 11
“So what we said is in Q1, Q2, as we can see, we expect a double-digit volume growth, right?”
Sahil Maheshwari, page 11 of the filed PDF · View the filing
Trade generics business outlook — similar levels of revenue with similar levels of EBITDA
stated as an aspiration by Sahil Maheshwari
p. 9
“This is expected to remain -- as we mentioned in the opening statement, this is expected to remain at similar levels of revenue with similar levels of EBITDA.”
Sahil Maheshwari, page 9 of the filed PDF · View the filing
API business EBITDA — FY27
stated as an aspiration by Sahil Maheshwari
p. 9
“So this year, we are hopeful we should do much better than what we delivered last year in API.”
Sahil Maheshwari, page 9 of the filed PDF · View the filing
Domestic formulation business growth — double-digit top line growth
stated as an aspiration by Sahil Maheshwari
p. 13
“we expect to be double-digit top line growth in the domestic formulation business.”
Sahil Maheshwari, page 13 of the filed PDF · View the filing
International branded formulation growth — double-digit growth
stated as an aspiration by Sahil Maheshwari
p. 16
“This year, we expect to do a double-digit growth in that segment as well, and the margins should sustain -- the margin profile should sustain.”
Sahil Maheshwari, page 16 of the filed PDF · View the filing
European CDMO contract — EUR35 million on MAT basis · until 2032
stated firmly by Sahil Maheshwari
p. 12
“Broadly, this is how it is, EUR35 million for the next six years till 2032.”
Sahil Maheshwari, page 12 of the filed PDF · View the filing
CDMO global customer count — eight to 10 global customers · next two to three years
stated as an aspiration by Sahil Maheshwari
p. 17
“we expect that over the next two, three years, we will have eight to 10 global customers for whom we will serve, whether large or small, that has still to be played out, but we expect within CDMO, we should have eight to 10 customers, which could be Indian players or European global players as well for whom we'll do CDMO services.”
Sahil Maheshwari, page 17 of the filed PDF · View the filing
CDMO margin — 15%, 16% level
stated as an aspiration by Sahil Maheshwari
p. 19
“We can think through that the base margins for the business once both of these contracts are in full swing will improve.”
Sahil Maheshwari, page 19 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said Akums already serves large MNCs domestically and has held European GMP approval since 2022, and plans additional GMP approvals over the next 18 months.
Answered by Sahil Maheshwari
Asked by Sajal Kapoor: What internal capabilities are least scalable as the European and regulated markets business ramps up, and what investments are being made?
p. 7
“we have plans for some additional plants to get European GMP approved over the next 18 months.”
Sahil Maheshwari, page 7 of the filed PDF · View the filing
Management said the volume growth is coming from existing customers and API prices, though up from lows, remain below year-ago levels.
Answered by Sahil Maheshwari
Asked by Aditya Sarin: What is driving the recent strong volume variance and will price variance reverse with rising API prices?
p. 8
“So, honestly, what it is driving is still to be thought through and looked out, but because the overall IPM is still growing at 1%, 1.5%, but we think that this is a sustained growth because similar double-digit growth is also visible as we set in May for the Q1.”
Sahil Maheshwari, page 8 of the filed PDF · View the filing
Management clarified the model applies a percentage markup on input cost and that Q4 FY25 was an aberration due to low-margin products and provisions.
Answered by Sahil Maheshwari
Asked by Praveen Jayaraman: Why did CDMO margins expand in Q4 despite an adverse product mix, and is the margin model percentage-based or absolute?
p. 10
“This model is a percent margins on the input cost.”
Sahil Maheshwari, page 10 of the filed PDF · View the filing
Management said the new facility is still ramping up with utilization in early teens and expects significant ramp-up this year.
Answered by Sahil Maheshwari
Asked by Praveen Jayaraman: What is the utilization and expected contribution of the new injectables facility?
p. 11
“New facility, we are still ramping up. The utilization is in early teens.”
Sahil Maheshwari, page 11 of the filed PDF · View the filing
Management said losses will be sizably reduced but full-year losses may still occur, with monthly EBITDA positivity as a goal.
Answered by Sahil Maheshwari
Asked by Ankur Kumar: What is the outlook on API business losses and can they reduce to trade generic levels?
p. 11
“So we -- while the losses will be sizably reduced is what we expect, we'll have to wait for at least a couple of quarters to think through whether we can turn monthly EBITDA positive or not, that's the goal and aspiration.”
Sahil Maheshwari, page 11 of the filed PDF · View the filing
Management said cash will primarily be used for organic and inorganic growth opportunities, including oral solids facility expansion.
Answered by Sahil Maheshwari
Asked by Ankur Kumar: What is the plan for cash usage given strong cash flow and only 18% dividend payout?
p. 12
“So primarily, given – we are extensively a growth-focused organization, the primary usage of the cash still remains in assessing organic or inorganic opportunities for growth.”
Sahil Maheshwari, page 12 of the filed PDF · View the filing
Management said once launched, the contract will deliver approximately EUR35 million on a MAT basis.
Answered by Sahil Maheshwari
Asked by Rohit Bahirwani: How much of the EUR200 million European contract is expected in the first year?
p. 12
“So this is an established brand already marketed with predictable volumes being sold in the European market. So this is not a new launch to your question.”
Sahil Maheshwari, page 12 of the filed PDF · View the filing
Management attributed margin expansion to a shift toward brand marketing (B2B2C) and forex gains.
Answered by Sahil Maheshwari
Asked by Aanchal Maheshwari: Why did international branded business margins improve to 28% despite a revenue decline?
p. 13
“Also, we got some benefits of the U.S. since it's USD, we got some benefits from the ForEx gain, which resulted in the gross margins to be up by over 3.5%, 4%.”
Sahil Maheshwari, page 13 of the filed PDF · View the filing
Management gave the FY26 capex figure and FY27 target but declined to provide a top-line target.
Answered by Sumeet Sood
Asked by Deeya: What was FY26 capex and the target for the current year, and is there a top-line target for FY27?
p. 14
“No ma'am, we do not want to answer this question. We don't want to state future numbers.”
Sumeet Sood, page 14 of the filed PDF · View the filing
Management explained the Zambia supply arrangement runs for two years at $25 million each, with a separate $45 million local facility investment held 51% by Akums.
Answered by Sahil Maheshwari
Asked by Saket Kapoor: How is the Zambia order structured and what is the total investment envisaged?
p. 17
“Across building, across products, tech transfer facilities, machine land, everything, tangible, intangible. This is a $45 million, which will be borne 51% by us.”
Sahil Maheshwari, page 17 of the filed PDF · View the filing
Management said inflationary patterns were built into contract costing and margins are expected to be similar or in high teens.
Answered by Sahil Maheshwari
Asked by Richa: How will margins play out on the fixed-price European contract given raw material inflation risk?
p. 17
“It should be similar or high teens. So this is what we expect.”
Sahil Maheshwari, page 17 of the filed PDF · View the filing
Management said they are still evaluating entry into GLP given volatile pricing and will update strategy in future calls.
Answered by Sahil Maheshwari
Asked by Abdul Puranwala: Is Akums supplying GLP drugs to customers given industry traction in the category?
p. 18
“So we'll enter the GLP market. We'll inform in our subsequent calls what is our strategy going forward.”
Sahil Maheshwari, page 18 of the filed PDF · View the filing
Management cited dosage forms like MDIs and oncology injectables, and branded acquisitions, that did not meet valuation or standards expectations.
Answered by Sahil Maheshwari
Asked by Sajal Kapoor: What growth opportunities did the company evaluate and decide not to pursue despite a strong cash position?
p. 19
“So, at times, it does not match up to our expected valuations or it does not match up to the plant standards or the product standards we wish for.”
Sahil Maheshwari, page 19 of the filed PDF · View the filing
Risks flagged
Sharp erosion in API prices during H1 FY26
p. 3
“The operating environment through the first half was adverse - characterized by sharp erosion in API prices and prolonged phase of low volume growth in the domestic market.”
Sandeep Jain, page 3 of the filed PDF · View the filing
Continued cephalosporin API pricing pressure causing losses
p. 4
“In the API business, pricing pressure in the cephalosporin persisted through most of the year, resulting in continued losses.”
Sandeep Jain, page 4 of the filed PDF · View the filing
Muted growth in international branded formulation due to market-specific disruption
p. 4
“Our international branded formulation business had a tough year with muted growth due to market-specific disruption in our focus geographies.”
Sandeep Jain, page 4 of the filed PDF · View the filing
Uncertainty in government rollout of Schedule M implementation
p. 10
“I will like to skip this question because honestly, we have no visibility on ground of how the government plans to roll this out.”
Sahil Maheshwari, page 10 of the filed PDF · View the filing
Volatile and declining GLP drug pricing in the industry
p. 18
“given if you also have read some news last week when we have been witnessing in the industry itself, the pricing still remains very volatile and going down south.”
Sahil Maheshwari, page 18 of the filed PDF · View the filing
API business remained loss-making for three consecutive years
p. 16
“On the API segment, while we had a minus INR40 crores consistently for the last three years every year on our P&L, this year, we expect the losses to come down sharply.”
Sahil Maheshwari, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.