Akums Q4 FY26: CDMO volumes lift margins as FY26 stays a year of transition

FY26 revenue was INR 4,359 crores. Adjusted EBITDA was INR 522 crores (12.0% margin) and adjusted PAT was INR 276 crores.

FY26 revenue mix was CDMO 80.0%, domestic branded formulations 10.2%, API 4.2%, international branded formulations 3.3%, and trade generics 2.3%.

The company stated supplies are expected to commence from FY28 onwards; the contract was described by management as fixed price till 2032.

The JV project cost is about USD 45 million with Akums holding 51%. The JV is to procure medicines worth USD 25 million per year from Akums in FY27 and FY28, with supplies expected to start by end of Q2 FY27; the Zambia plant is expected to commence operations during FY29.

Management cited sustained pricing pressure, especially in cephalosporins, leading to continued losses (FY26 API EBITDA negative INR 40 crores). They expect losses to reduce sharply through cost optimization, portfolio actions and a shift to higher margin products and regulated markets, though FY27 may still be loss-making.

FY26 capex was INR 222 crores. Management guided FY27 capex target of about INR 300 crores.

Trade generics revenue in Q4 FY26 was INR 27 crores and EBITDA turned positive at INR 1.4 crores after prior losses; management expects a smaller, profit-focused footprint going forward.