Akums Drugs Q1 FY27 Results: Revenue Rises 14%, PAT Jumps 56% as CDMO Drives Growth
Akums Drugs and Pharmaceuticals Ltd reported a strong operating performance for the first quarter of FY27, with consolidated revenue increasing nearly 14% year-on-year and profit after tax (PAT) rising sharply by 56.1%.
The company’s Q1 FY27 performance was primarily driven by continued double-digit volume growth in its Contract Development and Manufacturing Organisation (CDMO) business, along with improved gross margins and a significant reduction in losses from the API and trade generics businesses.
The company also announced the acquisition of Oriflame India’s manufacturing business for ₹56 crore, expanding its presence in skincare, cosmetics and wellness products.
Akums Q1 FY27 Financial Highlights
Akums recorded revenue of ₹1,167 crore in Q1 FY27, compared with ₹1,024 crore in Q1 FY26, representing growth of 13.9%.
EBITDA increased significantly to ₹175 crore, compared with ₹129 crore in the corresponding quarter last year. EBITDA margin improved to 15.0% from 12.6%.
Profit after tax stood at ₹101 crore, up from ₹65 crore in Q1 FY26, marking a strong 56.1% year-on-year increase.
| Particulars | Q1 FY27 | Q1 FY26 | YoY Growth |
|---|---|---|---|
| Revenue | ₹1,167 Cr | ₹1,024 Cr | 13.9% |
| EBITDA | ₹175 Cr | ₹129 Cr | 35.4% |
| EBITDA Margin | 15.0% | 12.6% | +240 bps |
| Profit Before Tax | ₹139 Cr | ₹96 Cr | 45.6% |
| PAT | ₹101 Cr | ₹65 Cr | 56.1% |
| PAT Margin | 8.4% | 6.2% | +220 bps |
The company’s total income was reported at approximately ₹1,197 crore, including other income of ₹30 crore. EBITDA including other income stood at ₹205 crore.
CDMO Remains the Key Growth Engine
The CDMO business continued to be the biggest contributor to Akums’ performance.
CDMO revenue increased to ₹964 crore in Q1 FY27, compared with ₹813 crore in Q1 FY26. This represents growth of approximately 18.6% year-on-year.
The company said it continued to witness double-digit volume growth, helping capacity utilisation improve to around 50%.
CDMO accounted for 82.6% of the company’s revenue during the quarter, making it the dominant business vertical.
The company attributed the performance to a healthy demand environment, increasing volumes and continued trust from clients who use Akums as a manufacturing partner.
CDMO EBITDA increased to ₹115 crore, compared with ₹107 crore in Q1 FY26, while the EBITDA margin stood at around 12% based on the segment figures presented.
API Business Moves Towards EBITDA Break-Even
Akums’ API segment continued to make progress towards becoming EBITDA positive.
The company highlighted that API prices increased during Q1 FY27 after declining for the previous three quarters. However, management noted that volatility in API prices remains high and could continue into Q2.
Another positive development was the increasing contribution of non-cephalosporin products, which helped improve gross margins.
API losses were significantly curtailed during the quarter, with the segment’s EBITDA loss reducing to around ₹4 crore, compared with a larger loss in the previous quarter.
The company expects the API business to continue moving towards EBITDA positivity.
Trade Generics Remains EBITDA Positive
The trade generics business continued to remain EBITDA positive during Q1 FY27.
The presentation indicates that trade generics EBITDA was around ₹1 crore, compared with ₹0.1 crore in Q4 FY26.
The company highlighted that losses in the API and trade generics businesses have been substantially curtailed, supporting the improvement in consolidated profitability.
Domestic Branded Formulations Return to Growth
The domestic branded formulations business restarted its growth journey during the quarter.
Revenue from domestic branded formulations was around ₹35 crore, broadly stable compared with the previous year.
However, the company reported 7% revenue growth for the quarter in this segment and said margins were impacted by an increase in field-force strength as it expanded into additional territories.
Management expects performance from the domestic branded formulations business to improve going forward.
International Branded Formulations Remain Muted
The international branded formulations business had a muted quarter.
Revenue was around ₹21 crore, compared with ₹23 crore in Q1 FY26.
The company, however, remains confident about the structural attractiveness of its selected international markets and expects the business to return to growth.
Business Mix Shows Strong Dependence on CDMO
Akums’ revenue mix in Q1 FY27 remained heavily weighted towards CDMO.
| Business Vertical | Share of Revenue |
|---|---|
| CDMO | 82.6% |
| Domestic Branded Formulations | 9.9% |
| International Branded Formulations | 3.0% |
| API | 2.7% |
| Trade Generics | 1.8% |
The numbers highlight the importance of the CDMO business to Akums’ overall growth strategy, while the company continues to develop its branded formulations, API, trade generics and other specialised businesses.
Gross Margin and EBITDA Margin Improve
Akums reported a gross profit margin of 44.7% in Q1 FY27, compared with 43.2% in Q1 FY26.
The improvement was attributed to the performance of the CDMO and API businesses.
EBITDA margin increased substantially from 12.6% to 15.0%, supported by gross margin improvement and operating leverage.
Employee expenses increased 14.4% year-on-year to ₹201 crore, while other expenses increased at a slower rate of 5.9% to ₹145 crore.
This operating leverage helped EBITDA grow faster than revenue.
PAT Growth Outpaces Revenue Growth
The company’s bottom-line performance was particularly strong.
Profit before tax increased 45.6% to ₹139 crore from ₹96 crore in Q1 FY26.
After tax, PAT increased 56.1% to ₹101 crore from ₹65 crore.
PAT margin consequently improved from 6.2% to 8.4%.
The quarterly trend also shows a steady improvement in profitability:
Q1 FY26 PAT: ₹65 crore
Q2 FY26 PAT: ₹43 crore
Q3 FY26 PAT: ₹86 crore
Q4 FY26 PAT: ₹83 crore
Q1 FY27 PAT: ₹101 crore
The company therefore started FY27 with its highest quarterly PAT in the five-quarter period presented.
Oriflame India Manufacturing Business Acquisition
One of the major strategic developments highlighted in the presentation is Akums’ acquisition of Oriflame India’s manufacturing business for ₹56 crore.
The transaction includes two manufacturing facilities in Noida and Roorkee, along with manufacturing operations that will continue to produce Oriflame products.
Akums also plans to add other CDMO customers to these facilities, with the objective of improving revenue generation and utilisation.
Noida Facility
The Noida facility has capabilities across skincare, personal care and hair care products, including:
Creams
Lotions
Scrubs
Face washes
Shampoos
Masks
Conditioners
Toners
Serums
Hot-fill products
The facility also provides capabilities in colour cosmetics, including foundations, primers and CC & BB creams.
Roorkee Facility
The Roorkee plant covers wellness and cosmetics products.
Its capabilities include:
Protein powders
Soft-gel capsules
Tablets
Oral solid dosage packs
Lipsticks
Slim sticks
Liquid lipsticks
Mascara
Eye liners
Why the Oriflame Acquisition Matters
Akums believes the Indian cosmetics market offers attractive long-term growth opportunities.
The company identified several growth drivers, including:
Rising disposable incomes
Urbanisation
Growing demand for sustainable products
Greater accessibility
Influencer marketing
The acquisition also complements Akums’ existing capabilities.
Akums already has more than a decade of experience in cosmetic manufacturing through its dedicated cosmetic plant. The company said strong interest in recent years has resulted in high capacity utilisation at this facility.
The acquisition therefore provides an opportunity to expand manufacturing capacity while entering the fast-growing colour cosmetics segment and strengthening its presence in skincare and wellness products.
The acquired facilities are also HALAL certified, which could create opportunities for exports.
More Than Two Decades of Manufacturing Experience
Akums was incorporated in April 2004 and has built its pharmaceutical manufacturing capabilities over more than two decades.
The company’s expansion journey has included facilities for oral solid dosage, oral liquids, sterile products, nutraceuticals, hormones, cosmetics, dermatology, beta-lactam anti-infectives, steroids and penem anti-infectives.
The company has also expanded into APIs and branded formulations and has developed capabilities serving both domestic and international markets.
Its manufacturing footprint includes facilities across Haridwar, Kotdwar and Baddi, with specialised manufacturing capabilities and multiple regulatory accreditations.
Focus on Innovative Manufacturing Technologies
The investor presentation also highlights Akums’ focus on in-house technologies and differentiated dosage formats.
Its R&D and manufacturing capabilities include technologies such as:
Inlay tablets
Multiple tablets in capsules
Smart tablets
Gummies
Mouth-melting powders in sachets
Tri-layered tablets
Tablet-in-tablet formats
Bi-layered sustained-release tablets
Lyophilised vials
Pre-filled syringes
These capabilities are intended to support the company’s CDMO offering and allow it to cater to differentiated pharmaceutical product requirements.
QIP Funds Fully Utilised So Far
The company also provided an update on the utilisation of funds raised through its Qualified Institutional Placement (QIP).
Akums had raised funds through the issue of equity shares to eligible qualified institutional buyers.
The offer document identified the following key uses:
| Purpose | Amount |
|---|---|
| Repayment of Akums borrowings | ₹159.91 Cr |
| Repayment of subsidiary borrowings | ₹227.09 Cr |
| Incremental working capital | ₹55.00 Cr |
| Inorganic growth initiatives/acquisitions | ₹30.18 Cr |
| General corporate purposes | ₹170.00 Cr |
According to the presentation, the amounts allocated to these purposes had been utilised as of June 30, 2026.
Management Outlook
In its message to investors, Akums’ management said the company remains positive about the year ahead.
The key growth driver is expected to remain the CDMO business, supported by continued volume growth and improving capacity utilisation.
The API business is also showing signs of improvement, with higher prices during Q1 and a greater contribution from non-cephalosporin products.
At the same time, the company expects its domestic branded formulations business to improve after restarting its growth journey, while international branded formulations are expected to return to growth.
The Oriflame manufacturing acquisition adds another potential growth avenue by increasing Akums’ capabilities in cosmetics, skincare and wellness products.