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Akums Q4 net profit drops 4.3% despite revenue growth

For the full year FY25, total income rose 1% YoY to ₹4,170 crore, adjusted EBITDA was flat at ₹513 crore and margin rose slightly to 12.3%.

May 26, 2025 / 23:19 IST
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    Akums Drugs and Pharmaceuticals Ltd. on Monday reported a 4.3% year-on-year decline in adjusted net profit for the fourth quarter of FY25, even as revenue rose 12.4%, reflecting margin pressures and continued investment in capacity and R&D.

    Adjusted PAT for Q4FY25 stood at ₹44 crore, down from ₹46 crore in Q4FY24. Revenue rose to ₹1,073 crore, while adjusted EBITDA grew 13.3% YoY to ₹111 crore, with margins holding at 10.4%.

    For the full year FY25, total income rose 1% YoY to ₹4,170 crore, adjusted EBITDA was flat at ₹513 crore  and margin rose slightly to 12.3%. Adjusted PAT grew 6.4% YoY to ₹234 crore.

    The company attributed the flat annual revenue to muted industry volumes and API price erosion, though it maintained profitability through operational discipline and a focus on high-margin segments.

    CDMO business which contributed 78% of revenue, with 14.1% EBITDA margin. Domestic branded formulations: rose 9% YoY, international branded formulations rose 14% YoY.

    Trade generics & API continued to post operational losses.

    Akums secured a €200 million contract to supply pharmaceutical products to regulated European markets, with commercial supplies beginning in 2027. The company invested ₹272 crore in capex and ₹130 crore in R&D during FY25, reinforcing its innovation-led growth strategy.

    “Our entry into Europe is a pivotal step in our global CDMO expansion,” said Managing Director Sanjeev Jain. “We are laying the foundation for Akums to emerge as a trusted global CDMO.”

    Co-MD Sandeep Jain added, “Despite industry volatility, we stayed focused on fundamentals—operational discipline, innovation, and global ambition.”

    Viswanath Pilla
    Viswanath Pilla is a business journalist with 16 years of reporting experience. Based in Mumbai, Pilla covers pharma, healthcare and infrastructure sectors for Moneycontrol.
    first published: May 26, 2025 11:18 pm

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