Akum Drugs shares tumble 5% despite posting Rs 60 crore Q1 profit

Shares of the newly listed Akum Drugs and Pharmaceuticals fell 5% to a low of Rs 895 even after the company on Saturday reported a net profit of Rs 60 crore for the June quarter against a net loss of Rs 187.4 crore in the corresponding quarter of FY24.

The company’s revenue also jumped 5% YoY to Rs 1,091 crore, up from Rs 969.89 crore in the same quarter of the previous financial year.

Akum also reported that its net debt was reduced by over Rs 200 crore to Rs 212.8 crore on a year-on-year basis.


Further, the adjusted EBITDA margins grew by 21.1% YoY to 12.7%, while the CDMO segment EBIDTA margins improved by 106 bps YOY to 15.5%.

The company’s CDMO segment which accounts for 77% of total revenue and 93% of the adjusted EBITDA, grew to Rs 782 crore, an increase of 5.6% YoY, which was driven by strong growth in sales volume of 13.9%.

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Driven by improved margins of branded domestic and exports business and curtailed losses in trade generics business, the branded and generic formulations segment more than doubled its EBITDA YoY, growing to Rs 17 crore from Rs 7.4 crore.

“Our Q1 results show our ongoing efforts to optimize our operations and capitalise on our strengths in the CDMO segment. We are committed to driving sustainable growth across all our business segments and delivering value to our stakeholders,” said Sanjeev Jain, Managing Director of Akums Drugs & Pharmaceuticals while commenting on the June quarter results of the company.

Further, the board of directors have also approved a plan to set up two production facilities in Jammu at an overall investment of Rs 265 crore, which will be multi-dosage facilities across pharmaceutical and nutraceutical products.

Akums Drugs and Pharmaceuticals is the largest India focused CDMO with a market share of over 30% in the domestic CDMO market serving 26 of the leading 30 pharmaceutical companies in India. It has a manufacturing capacity of 4959 crore units annually spread across 60+ dosage forms. It owns 12 formulation manufacturing units along with 3 API units with accreditations such as EU-GMP, US NSF, WHO – GMP among others.

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