Akums Q2 profit reaches Rs 114.565 crore on CDMO growth

Akums Drugs and Pharmaceuticals Limited reported consolidated profit of Rs 114.565 crore for the quarter ended 30 September 2026, compared with Rs 42.696 crore a year earlier, as external Contract Development and Manufacturing Operations revenue rose to Rs 1,114.866 crore from Rs 804.329 crore. Consolidated revenue from operations reached Rs 1,342.387 crore.

How did Akums perform in Q2 2026?

Akums recorded consolidated profit of Rs 114.565 crore for the September 2026 quarter, up Rs 71.869 crore from Rs 42.696 crore in the September 2025 quarter. Profit before tax increased to Rs 154.744 crore from Rs 65.673 crore, while total tax expense rose to Rs 40.179 crore from Rs 22.977 crore. Basic and diluted earnings per share were Rs 7.37, against Rs 2.66 a year earlier; Akums said quarterly earnings per share have not been annualised.

Consolidated revenue from operations rose to Rs 1,342.387 crore in the quarter ended 30 September 2026 from Rs 1,017.530 crore a year earlier and Rs 1,166.629 crore in the quarter ended 30 June 2026. Other income was Rs 28.906 crore, compared with Rs 32.365 crore in the September 2025 quarter, taking total income to Rs 1,371.293 crore. Total expenses increased to Rs 1,216.549 crore from Rs 984.222 crore.

For the six months ended 30 September 2026, Akums reported revenue from operations of Rs 2,509.016 crore, against Rs 2,041.562 crore in the corresponding six months of 2025. Six-month profit was Rs 215.543 crore, compared with Rs 107.381 crore. Profit before tax for the half year was Rs 293.981 crore, versus Rs 161.319 crore in the prior-year period, with no exceptional item reported in either six-month period.

Which business drove Akums revenue and profit growth?

Akums’ Contract Development and Manufacturing Operations, or CDMO, segment drove the quarterly increase, with external-customer revenue rising to Rs 1,114.866 crore in the quarter ended 30 September 2026 from Rs 804.329 crore a year earlier. Its segment result, after depreciation and segment finance costs, increased to Rs 129.426 crore from Rs 50.591 crore. The Rs 310.537 crore CDMO revenue increase represented most of the Rs 324.857 crore increase in consolidated revenue from operations.

CDMO revenue including inter-segment sales was Rs 1,168.709 crore in the September 2026 quarter, compared with Rs 852.666 crore a year earlier. Its segment result before depreciation was Rs 168.243 crore, up from Rs 84.310 crore. CDMO segment assets stood at Rs 3,464.588 crore on 30 September 2026, compared with Rs 2,811.825 crore a year earlier and Rs 3,054.404 crore at 31 March 2026.

Other businesses showed mixed movements. Domestic branded formulations generated Rs 131.920 crore of external revenue, up from Rs 121.940 crore in the September 2025 quarter, but its segment result declined to Rs 23.001 crore from Rs 25.882 crore. International branded formulations revenue rose to Rs 43.779 crore from Rs 22.431 crore, while its segment result increased to Rs 9.160 crore from Rs 4.978 crore.

The active pharmaceutical ingredient, or API, segment remained loss-making at the segment-result level, although its loss narrowed to Rs 10.144 crore from Rs 18.414 crore a year earlier. API external revenue declined to Rs 28.771 crore from Rs 44.460 crore. Trade generics external revenue decreased to Rs 23.051 crore from Rs 24.370 crore, while its segment result turned positive at Rs 1.130 crore from a loss of Rs 3.254 crore.

What costs and cash movements accompanied the higher profit?

Akums’ materials consumed increased to Rs 719.457 crore in the September 2026 quarter from Rs 552.626 crore in the September 2025 quarter, while employee-benefit expense rose to Rs 224.272 crore from Rs 189.270 crore. Other expenses were Rs 156.676 crore against Rs 141.221 crore, depreciation and amortisation increased to Rs 43.212 crore from Rs 37.864 crore, and finance costs rose to Rs 25.678 crore from Rs 23.304 crore.

Included in September-quarter finance costs was Rs 20.215 crore from unwinding the significant financing component of a long-term customer advance, accounted for under Indian Accounting Standard 115, Revenue from Contracts with Customers. The equivalent amount was Rs 19.900 crore in the September 2025 quarter. Akums also recognised a related deferred-tax charge of Rs 5.088 crore in the September 2026 quarter, compared with Rs 5.008 crore a year earlier.

Net cash flow generated from operating activities for the six months ended 30 September 2026 was Rs 255.725 crore, compared with Rs 1,152.207 crore in the prior-year half. The period included a Rs 133.475 crore increase in inventories, a Rs 62.802 crore increase in trade receivables and a Rs 63.799 crore increase in other assets. Trade payables increased by Rs 161.386 crore.

Akums used Rs 354.129 crore in investing activities in the six-month period, including Rs 154.207 crore for property, plant, equipment and intangible assets and Rs 56 crore for a business acquisition. Financing activities used Rs 104.008 crore, including Rs 45.924 crore in dividend payments. Cash and cash equivalents consequently fell to Rs 183.593 crore on 30 September 2026 from Rs 386.005 crore at the beginning of the period.

What acquisitions and unresolved matters did Akums disclose?

Akums completed, through wholly owned subsidiary Pure and Cure Healthcare Private Limited, the acquisition of Oriflame India Private Limited’s manufacturing business during the September 2026 quarter for cash consideration of Rs 56 crore. The transaction includes manufacturing facilities at Roorkee and Noida and a leased warehouse. Management said the acquisition is expected to strengthen manufacturing capacity and expand the group’s presence in colour cosmetics, skincare and wellness.

The purchase-price assessment found that acquired net identifiable assets exceeded the consideration transferred by Rs 23.169 crore, net of deferred-tax assets and liabilities. Akums recognised this amount as capital reserve within other equity under Indian Accounting Standard 103, Business Combinations. Consolidated property, plant and equipment stood at Rs 1,334.277 crore on 30 September 2026, up from Rs 1,279.408 crore at 31 March 2026, while capital work-in-progress rose to Rs 245.902 crore from Rs 176.664 crore.

Akums also disclosed an income-tax demand of Rs 156.018 crore for the block period from 1 April 2018 to 12 March 2025, arising from an assessment order received in the quarter ended 30 June 2026. Akums appealed to the Commissioner of Income-tax (Appeals) and had deposited Rs 10.974 crore under protest after the September-quarter end. Management said, based on its legal assessment and an external fact-finding review, that no material adjustment was required; the statutory auditor drew attention to the matter without modifying its conclusion.

Conclusion

Akums’ September 2026 quarterly result was led by CDMO: external CDMO revenue increased by Rs 310.537 crore year on year and its segment result rose by Rs 78.835 crore. That growth occurred alongside higher material, employee, depreciation and finance costs, lifting consolidated quarterly profit to Rs 114.565 crore from Rs 42.696 crore.

The next disclosed developments are the integration of the Rs 56 crore Oriflame manufacturing-business acquisition and management’s stated plan to expand in colour cosmetics, skincare and wellness. The appeal against the Rs 156.018 crore tax demand also remains unresolved after Akums deposited Rs 10.974 crore under protest and management said no material adjustment to reported results was required.