Akums Drugs Reports 12% EBITDA growth, secures €200M EU deal

Akums Drugs and Pharmaceuticals Ltd. has announced its consolidated financial results for the quarter ended December 31, 2024, reporting a 12.1% year-on-year (YoY) growth in Adjusted EBITDA. The company’s performance was largely driven by its Contract Development and Manufacturing Organization (CDMO) segment, which continues to show strong profitability.

Key Financial Highlights (Q3 FY25):

Adjusted EBITDA: ₹1,359 million (up 12.1% YoY, up 0.9% QoQ)
Adjusted EBITDA Margin: 13.3%
Total Income: ₹10,250 million (down 6.1% YoY, down 2.1% QoQ)
Adjusted PAT: ₹663 million (up 15.2% YoY, down 0.5% QoQ)

For the nine months ended December 31, 2024, the company recorded:

Adjusted EBITDA: ₹4,013 million (down 3.6% YoY)
Total Income: ₹30,972 million (down 4.9% YoY)
Adjusted PAT: ₹1,903 million (up 9% YoY)

Segment-wise Performance:

CDMO EBITDA: ₹1,214 million (up 9.2% YoY, down 1.1% QoQ)
Branded and Generic EBITDA: ₹198 million (down 17.1% YoY, up 9.9% QoQ)
API EBITDA: ₹-109 million

Akums’ CDMO segment remains the company’s growth driver, reporting ₹3,652 million EBITDA for the first nine months of FY25, with a 15.4% margin. Meanwhile, API EBITDA losses narrowed YoY, though cephalosporin API prices remain low.

Strategic Expansion into Europe

A major milestone for Akums in Q3 was securing a €200 million contract to manufacture and supply pharmaceutical products to the European market. This move is expected to strengthen the company’s global CDMO footprint and open doors for future European partnerships.

Management Commentary

Sanjeev Jain, Managing Director, expressed confidence in the company’s international growth strategy, stating:
"Q3 was an exciting quarter for us. With our focus on expanding Akums' global CDMO presence, we have taken a significant step by securing a €200 million contract for the European market. We see this as the beginning of many long-term partnerships."

Sandeep Jain, Managing Director, highlighted the company’s continued commitment to innovation and growth, adding:
"We remain the manufacturing partner of choice for pharmaceutical companies. Our volumes showed early signs of recovery in Q3, and we have also in-licensed novel products in dermatology and metabolic segments to drive future growth."

As Akums strengthens its CDMO business and explores new international opportunities, the company remains committed to enhancing profitability and innovation in pharmaceutical manufacturing.

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