Akums Q2 FY27 PAT rises 168% as EBITDA margin reaches 14.5%

Akums Drugs and Pharmaceuticals Limited reported profit after tax (PAT) of Rs 115 crore for Q2 FY27, up 168% year on year, as revenue rose 31.9% to Rs 1,342 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) margin increased to 14.5% from 9.3%.

How did Akums perform in Q2 FY27?

Akums reported consolidated revenue of Rs 1,342 crore for the quarter ended September 30, 2026, compared with Rs 1,018 crore in Q2 FY26. The Rs 324 crore increase translated into 31.9% year-on-year growth, while EBITDA rose by Rs 101 crore to Rs 195 crore from Rs 94 crore, a 106% increase that exceeded revenue growth.

PAT was Rs 115 crore in Q2 FY27 versus Rs 43 crore a year earlier, an increase of Rs 72 crore or 168%. PAT margin rose to 8.4% from 4.1%, while EBITDA margin increased by 5.2 percentage points to 14.5%. Compared with Q1 FY27, revenue increased from Rs 1,167 crore and PAT rose from Rs 101 crore, while PAT margin remained 8.4%.

What drove Akums' Q2 FY27 margin expansion?

Akums' EBITDA margin increased to 14.5% in Q2 FY27 from 9.3% in Q2 FY26 as EBITDA rose to Rs 195 crore from Rs 94 crore. Akums attributed the result to continued momentum in its contract development and manufacturing organisation (CDMO) business, healthy customer demand and improved operating performance.

The disclosed expense lines increased at lower rates than the 31.9% revenue rise. Cost of goods sold rose to Rs 767 crore from Rs 593 crore, employee cost increased to Rs 224 crore from Rs 189 crore, and other expenses reached Rs 157 crore from Rs 141 crore. Based on the reported figures, those changes were about 29%, 19% and 11%, respectively.

How did Akums' CDMO business perform in Q2 FY27?

Akums' CDMO business generated revenue of Rs 1,115 crore in Q2 FY27, up 38.6% from Rs 804 crore in Q2 FY26. CDMO EBITDA increased 99.6% to Rs 168 crore from Rs 84 crore, while Akums said healthy double-digit volume growth, sustained demand and increasing penetration in the Indian pharmaceutical market supported the performance.

The Rs 311 crore rise in CDMO revenue represented most of Akums' Rs 324 crore consolidated revenue increase from Q2 FY26. CDMO EBITDA of Rs 168 crore was also the largest part of consolidated EBITDA of Rs 195 crore in Q2 FY27. The release did not disclose a CDMO margin or a numerical volume-growth rate.

How did Akums' first-half FY27 results compare with last year?

Akums reported revenue of Rs 2,509 crore for H1 FY27, compared with Rs 2,042 crore in H1 FY26, an increase of 22.9%. EBITDA rose 65.3% to Rs 369 crore from Rs 223 crore, while PAT increased to Rs 216 crore from Rs 107 crore. The first-half revenue increase was Rs 467 crore and the EBITDA increase was Rs 146 crore.

H1 FY27 EBITDA margin improved to 14.7% from 10.9%, while PAT margin increased to 8.4% from 5.1%. The H1 EBITDA margin was 0.2 percentage points above the 14.5% recorded in Q2 FY27. Q2 revenue of Rs 1,342 crore exceeded Q1 FY27 revenue of Rs 1,167 crore, and Q2 EBITDA of Rs 195 crore was higher than Rs 175 crore in the preceding quarter.

What expansion beyond pharmaceuticals did Akums disclose?

Akums acquired Oriflame India's manufacturing business during the quarter through its wholly owned subsidiary, Pure & Cure Healthcare Private Limited, for Rs 56 crore. The transaction includes two manufacturing facilities in Roorkee, Uttarakhand, and Noida, Uttar Pradesh, as well as a leased warehouse in Noida. The acquisition marks Akums' entry into colour cosmetics manufacturing.

The acquired operations expand Akums' stated capabilities across colour cosmetics, skincare and wellness products. Management said it is strengthening a product pipeline for global markets that includes more than 30 products for European markets. Management described the pipeline and expanded manufacturing capabilities as part of its ambition to establish Akums as a globally recognised CDMO player across markets, dosage forms and therapeutic segments.

Conclusion

Akums' Q2 FY27 results show profit growth outpacing sales growth: revenue increased 31.9%, EBITDA rose 106% and PAT grew 168%. The movement in EBITDA margin to 14.5% from 9.3%, alongside the increase in PAT margin to 8.4% from 4.1%, explains the difference, while CDMO revenue rose Rs 311 crore year on year.

The next disclosed execution points are the Rs 56 crore Oriflame India manufacturing-business acquisition, including its two facilities and leased warehouse, and the product pipeline of more than 30 products for European markets. Management also said it is continuing to invest in manufacturing infrastructure and expand capabilities for global markets and new manufacturing segments.