Akums Drugs and Pharmaceuticals Q2 revenue rises 31.9% YoY

Akums Drugs and Pharmaceuticals Limited reported Q2 FY27 revenue of ₹1,342.39 crore, up 31.93% year-on-year, while profit after tax rose 168.31% to ₹114.57 crore for the quarter ended September 30, 2026. The performance was led by its CDMO business, which accounted for 83.1% of revenue.

What did Akums report in Q2 FY27?

Akums Drugs and Pharmaceuticals reported broad-based improvement in its consolidated financial performance for the July-September 2026 quarter. Revenue increased to ₹1,342.39 crore from ₹1,017.53 crore in Q2 FY26, adding ₹324.86 crore on a year-on-year basis.

Operating profit rose 106.11% to ₹194.73 crore from ₹94.48 crore a year earlier. Profit after tax increased to ₹114.57 crore from ₹42.70 crore, reflecting growth of 168.31%. The company described revenue growth as 31.9% and operating EBITDA growth as 106.1% in its quarterly disclosures.

The company also reported total income of ₹1,371 crore, up 30.6% year-on-year. EBITDA including other income was ₹224 crore, a 76.3% increase from the corresponding quarter of the previous financial year. These figures should be viewed separately from operating revenue and operating EBITDA, which exclude the differing treatment of other income.

Which business drove Akums' quarterly revenue growth?

Akums' contract development and manufacturing organisation, or CDMO, business remained the principal source of revenue in Q2 FY27, contributing 83.1% of the quarterly total. The segment's contribution underlines the company's reliance on pharmaceutical development and manufacturing services for third-party customers.

The available Q2 information attributes the revenue increase primarily to CDMO-led growth. Earlier management commentary cited 18.6% year-on-year CDMO revenue growth and indicated that Q2 volume growth was tracking in the high teens. The reported quarterly outcome shows the overall business grew faster than the earlier CDMO revenue figure cited in the supplied material.

The branded business also recorded sequential margin improvement, according to the presentation summary. However, the supplied data does not provide branded segment revenue, profit, or margin figures. As a result, the scale of its contribution to consolidated earnings cannot be independently quantified from the disclosed information.

How did margins and profitability change for Akums?

Akums' operating profit grew more than twice as fast as revenue in Q2 FY27, with operating profit rising 106.11% against revenue growth of 31.93%. Profit after tax grew even faster at 168.31%, reaching ₹114.57 crore.

The gap between revenue growth and operating profit growth indicates a substantial improvement in quarterly operating profitability compared with Q2 FY26. The company had earlier maintained full-year EBITDA margin guidance of 14% to 15% and said it expected performance to trend towards the upper end of that range, based on its Q1 performance.

Management also noted that the active pharmaceutical ingredients, or API, business remained loss-making, even though the presentation referred to growth in CDMO and API operations. API prices were described as volatile but moving upwards in earlier commentary. The supplied release does not state the API division's loss, revenue, or quarterly margin, limiting a detailed assessment of its effect on consolidated profitability.

What does the Q2 result mean for investors and operations?

For investors, the Q2 result provides evidence of stronger revenue conversion into operating profit, alongside a large increase in net profit. Revenue was ₹1,342.39 crore and operating profit was ₹194.73 crore, compared with ₹1,017.53 crore and ₹94.48 crore respectively in the year-earlier quarter.

The quarter also highlights the importance of CDMO demand to Akums' operations because the segment generated more than four-fifths of revenue. Any change in CDMO volumes, customer demand, product mix, or manufacturing utilisation would therefore be relevant to the company's consolidated performance.

The API business remains a factor to monitor because it is still loss-making. Management's observations on API price volatility show that the business operates in a changing pricing environment, while the disclosed results do not establish when the segment may move into profit.

Conclusion

Akums delivered higher revenue, operating profit and profit after tax in Q2 FY27, with CDMO accounting for 83.1% of revenue. The 31.93% increase in revenue and 106.11% increase in operating profit indicate that the quarter's earnings growth exceeded the pace of sales growth, while branded margins improved sequentially.

The next focus will be execution against management's 14% to 15% full-year EBITDA margin guidance, including its expectation of trending towards the upper end of that range. Investors will also watch CDMO volume performance and any further disclosures on API pricing, losses and the division's path towards improved profitability.