Akums announces a 19% year-over-year increase in Adjusted EBITDA for Q1 of the Fiscal Year 26, also reaching 1,000 approvals from the Drug Controller General of India.
In a recent press release, Akums Drugs and Pharmaceuticals Ltd., India's leading Contract Development and Manufacturing Organization (CDMO), has announced its financial performance for the first quarter of the fiscal year 2026.
The company reported a total income of Rs. 1,051 crore in Q1 FY26, with its flagship business contributing Rs 79% to the group turnover and an EBITDA of 14.7%. The domestic branded formulation business segment saw a 3% year-on-year (YoY) growth, while the international branded formulation business grew by 2% YoY.
Margins improved significantly, with a 208 basis points (bps) increase from 12.7% last year, reaching 14.8%. The Adjusted PAT (Profit After Tax) calculation includes profit for the quarter, fair value changes to financial instruments, and less tax deferred tax created on brought forward losses.
Akums' strategic moves are not limited to its domestic operations. The company has made significant strides in the European and Swiss markets. It received its first EU dossier approval for Rivaroxaban and filed its first dossier for the Dapagliflozin combination in Switzerland. These products, according to the company, hold substantial market potential in these regions.
The market potential for the Rivaroxaban and Dapagliflozin combination in the European and Swiss markets is significant. Akums plans to commence commercial supplies related to the European contract from April 2027, backed by a €200 million contract, half of which (€100 million) was already received upfront as part consideration. This development fits into Akums' broader vision to strengthen its global CDMO leadership, with these products contributing to a robust pipeline and sustainable growth amid industry challenges like price pressures and slow volume growth.
The company has also reached a significant milestone, securing 1,000 Drug Controller General of India (DCGI) approvals, with 27 fresh approvals in this quarter.
Mr. Sanjeev Jain, Managing Director of Akums, stated that the company continues to work towards long-term growth and strengthening the organization. The company's financial performance, regulatory approvals, and strategic moves indicate a promising future for Akums Drugs and Pharmaceuticals Ltd.
Akums Drugs and Pharmaceuticals Ltd.'s financial report for Q1 FY26 shows a promising future, with a 3% YoY growth in the domestic branded formulation business and a 2% YoY growth in the international branded formulation business. The company's strategic moves, such as securing EU dossier approvals for Rivaroxaban and filing a dossier for the Dapagliflozin combination in Switzerland, indicate a strong focus on expanding in the European and Swiss markets. In finance, Akums expects to commence commercial supplies related to the European contract from April 2027, backed by a €200 million contract. Meanwhile, the company's focus on investing in research and development, as indicated by the 1,000 DCGI approvals and 27 fresh approvals in Q1 FY26, demonstrates a commitment to technological advancement in the pharmaceutical industry. Mr. Sanjeev Jain, the Managing Director of Akums, emphasizes the company's long-term growth strategy and continued efforts to strengthen the organization. This thorough business strategy, along with the company's financial performance, insinuates that Akums Drugs and Pharmaceuticals Ltd. is poised for positive industry growth amid challenges such as price pressures and slow volume growth.
