Akums buys Oriflame India manufacturing business for Rs 56 crore

Akums Drugs & Pharmaceuticals Ltd. bought Oriflame India's manufacturing business for Rs 56 crore during Q2 FY27, entering colour cosmetics and adding two factories plus a leased Noida warehouse. The deal also expands Akums' stated manufacturing capabilities across skincare and wellness products beyond its pharmaceutical contract development and manufacturing organisation business.

What did Akums acquire from Oriflame India?

Akums acquired Oriflame India's manufacturing business for Rs 56 crore during Q2 FY27. The transaction includes two manufacturing facilities, in Roorkee, Uttarakhand, and Noida, Uttar Pradesh, as well as a leased warehouse in Noida. The announcement places the acquisition in the quarter ended September 30, 2026.

The purchase was made through Pure & Cure Healthcare Private Limited, which Akums describes as its wholly owned subsidiary. The release identifies the acquired assets as a manufacturing business and specifies the two plants and warehouse, but does not disclose their production capacity, utilisation, employee count, revenue contribution or the division of the Rs 56 crore consideration among the assets.

How does the acquisition change Akums' manufacturing mix?

The acquisition takes Akums into colour cosmetics manufacturing and broadens its capabilities across skincare and wellness products. Before this step, the company's reported operating discussion focused on its contract development and manufacturing organisation, or CDMO, business, which generated revenue of Rs 1,115 crore in Q2 FY27.

Akums said the facilities provide an opportunity to apply its existing manufacturing expertise to the requirements of the beauty and personal-care industry. Management also said it is pursuing a broader and more diversified manufacturing platform while strengthening core CDMO operations, but the November 2026 release provides no financial target, expected sales contribution or timetable for the acquired cosmetics, skincare and wellness operations.

The acquired business adds manufacturing locations in Uttarakhand and Uttar Pradesh. That footprint differs from the release's financial segmentation, which reports CDMO performance rather than a separate colour-cosmetics or beauty segment; consequently, the disclosed Q2 FY27 figures do not show what portion of revenue or profit, if any, came from the acquired business during the quarter.

How did Akums perform in Q2 FY27?

Akums reported Q2 FY27 revenue of Rs 1,342 crore, up 31.9% from Rs 1,018 crore in Q2 FY26, while profit after tax, or PAT, rose 168% to Rs 115 crore. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 106% year on year to Rs 195 crore, and the EBITDA margin reached 14.5% from 9.3% a year earlier.

Compared with Q1 FY27, revenue increased by Rs 175 crore and EBITDA by Rs 20 crore in Q2 FY27, while the EBITDA margin declined by 0.5 percentage points from 15.0%. PAT rose by Rs 14 crore quarter on quarter and the PAT margin remained 8.4%; against Q2 FY26, the PAT margin increased by 4.3 percentage points from 4.1%.

The CDMO business remained the principal disclosed operating driver, with Q2 FY27 revenue of Rs 1,115 crore compared with Rs 804 crore in Q2 FY26. Its EBITDA rose 99.6% to Rs 168 crore from Rs 84 crore, and Akums attributed the performance to healthy double-digit volume growth, sustained demand and greater penetration in the Indian pharmaceutical market.

What does the H1 FY27 comparison show?

Akums reported H1 FY27 revenue of Rs 2,509 crore, up 22.9% from Rs 2,042 crore in H1 FY26. EBITDA increased 65.3% to Rs 369 crore from Rs 223 crore, while PAT doubled to Rs 216 crore from Rs 107 crore during the corresponding six-month period.

H1 FY27 EBITDA margin was 14.7%, compared with 10.9% in H1 FY26, a rise of 3.8 percentage points. PAT margin increased to 8.4% from 5.1%, while Akums cited better operating performance and improved profitability as reasons for the higher EBITDA margin.

Costs also increased alongside revenue in the six months ended September 30, 2026. Cost of goods sold was Rs 1,412 crore in H1 FY27 versus Rs 1,174 crore in H1 FY26, employee cost rose to Rs 426 crore from Rs 365 crore, and other expenses increased to Rs 302 crore from Rs 278 crore.

The reported Q2 FY27 and H1 FY27 figures do not separately disclose a financial contribution from the Oriflame India manufacturing business. Akums' release therefore shows a CDMO-led revenue base of Rs 1,115 crore in Q2 FY27 alongside the Rs 56 crore acquisition, rather than a quantified beauty and personal-care segment.

Conclusion

The Rs 56 crore transaction expands Akums from its disclosed pharmaceutical CDMO base into colour cosmetics, skincare and wellness manufacturing through two factories and a leased warehouse. It coincided with Q2 FY27 revenue growth of 31.9%, EBITDA growth of 106% and PAT growth of 168%, while the CDMO operation remained the largest specifically reported business contributor.

The next disclosed item to watch is Akums' execution on its plan to expand manufacturing capabilities and global offerings. Management said it has a pipeline of more than 30 products for European markets, while the November 2026 announcement leaves unresolved the acquired business's capacity, integration milestones, revenue contribution and financial targets.