Akums' CDMO volumes grow, but operating margin trails healthcare peers
Management linked the quarter's growth to CDMO volumes, while trade generics remained a drag and the 14.51% margin lagged the peer median.
Filed 02 Nov 2026, 17:14 IST · after market close · Akums Drugs & Pharmaceuticals Ltd (AKUMS)
Key takeaways
- Double-digit CDMO volume growth led Akums' Rs 1,342.39 cr consolidated revenue in Q2FY27, management said.
- The 14.51% operating margin was 5.76 percentage points below the 20.27% median for 44 reporting healthcare peers.
- Trade generics revenue fell 35.3% year on year and 9.1% sequentially, while management said API losses were significantly curtailed.
Price around the results
CDMO volume growth carried the quarter
Akums reported consolidated revenue of Rs 1,342.39 cr and operating profit of Rs 194.73 cr in Q2FY27. Management said the CDMO segment delivered double-digit volume growth and led the quarter. Reported earnings also included Rs 28.91 cr of other income, making operating profit the cleaner measure of core business performance.
Margin remained below the healthcare peer median
Akums' 14.51% operating margin was 5.76 percentage points below the 20.27% median among 44 healthcare peers that had reported the quarter. The comparison places the company's operating profitability near the lower end of the reported peer set, at ninth from the bottom.
Trade generics and API remained the weak spots
Management said trade generics revenue declined 35.3% year on year and 9.1% sequentially, in line with its expectations. It also said API losses remained an issue but had been significantly reduced. The company said the API segment is continuing toward EBITDA break-even.
Expansion plans remain management's stated focus
Management said the European CDMO project was progressing as planned and that the company continued to deepen its presence in the Indian pharmaceutical market. It said commercial supplies for the Zambia initiative from the Indian plant were scheduled for Q4FY27, with revenue booking expected in Q1FY28. The company also said it remained optimistic about delivering positive results and that the CDMO demand environment remained robust.
Results were filed after market close
Akums filed the consolidated Q2FY27 results after market close on 2 November 2026. The filing therefore does not include an immediate market response to the numbers.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹1,342 cr |
| Other income | ₹29 cr |
| Expenses | ₹1,148 cr |
| Operating profit | ₹195 cr |
| Operating margin (%) | 14.51% |
| Interest | ₹26 cr |
| Depreciation | ₹43 cr |
| Profit before tax | ₹155 cr |
| Tax | ₹40 cr |
| Net profit | ₹115 cr |
| EPS (₹) | ₹7.37 |
Operating margin of 14.51% compares with a Healthcare sector median of 20.27% across 44 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The CDMO segment delivered double-digit volume growth during the quarter.
Guidance & outlook
- The company says the CDMO demand environment remains robust.
- The company remains optimistic about delivering positive results.
- The API segment is working toward achieving EBITDA break-even.
Expansion
- The European CDMO project is progressing according to plan.
- The Zambia initiative is scheduled to begin commercial supplies from the Indian plant in Q4 FY27, with revenue booking expected in Q1 FY28.
New initiatives
- Akums is continuing to deepen its presence within the Indian pharmaceutical market.
Problems & risks
- API losses remained an issue, although they were significantly curtailed.
- API and trade generics declined in line with expectations.
- Trade generics revenue declined 35.3% year on year and 9.1% sequentially.
What to watch
- Whether operating margin moves toward the 20.27% healthcare-peer median.
- Whether trade generics' decline narrows from 35.3% year on year and 9.1% sequentially.
- Whether API losses continue to be curtailed as the segment works toward EBITDA break-even.