Synopsis: CDMO stock hit 10% upper circuit as Q3 revenue rose 14.9% YoY to ₹1,160 crore, EBITDA grew 21.5%, and net profit jumped 58% QoQ, aided by global approvals and CDMO growth.
A pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services has come into the spotlight after its shares hit 10 percent upper circuit, attracting attention from investors and market watchers.
With a market capitalization of Rs. 7,539.96 crore, the shares of Akums Drugs and Pharmaceuticals Limited were trading at Rs. 479.25, up by 6.35 percent from its previous day’s closing price of Rs. 450.65 per equity share. The stock has touched an intraday high of Rs. 495.70, hitting an upper circuit of 10 percent from previous day’s closing price.
Q3FY26 Results
In Q3FY26, the company reported a revenue of Rs. 1,160 crore, up 14.9 percent YoY from Rs. 1,010 crore in Q3FY25 and a modest 1.7 percent QoQ increase from Rs. 1,018 crore in Q2FY26, reflecting steady top-line growth.
EBITDA for the quarter rose sharply to Rs. 147 crore, a 21.5 percent YoY increase over Rs. 121 crore in Q3FY25 and a significant 56.4 percent QoQ jump from Rs. 94 crore in Q2FY26, indicating improved operational efficiency and cost management.
The company’s net profit reached Rs. 68 crore, up slightly 3 percent YoY from Rs. 66 crore in Q3FY25 and showing a strong 58.1 percent QoQ growth from Rs. 43 crore in Q2FY26, driven by higher margins and robust EBITDA performance.
In Q3FY26, the company’s revenue was primarily driven by its CDMO business, which contributed 79 percent of the total revenue. Domestic Branded Formulations accounted for 9.9 percent, followed by API at 4.7 percent. International Branded Formulations made up 4.3 percent, while Trade Generics contributed the remaining 2.1 percent.
Global Manufacturing Progress
The company achieved significant milestones in its global manufacturing journey by securing EU GMP certification for two of its facilities. This includes the renewal of EU GMP approval for the Oral Solids Plant and the grant of EU GMP certification for the Oral Liquids Plant, strengthening its compliance with international quality standards.
Regulatory Approvals
In a key regulatory development, the company received its first approval from the UK MHRA for Rivaroxaban tablets, marking an important step in expanding its presence in regulated international markets.
Strategic Focus
The company remains committed to its goal of becoming a global manufacturing leader, with a continued emphasis on international compliance and high-quality standards, positioning itself for sustained growth in global markets.
Management View
According to Mr. Sandeep Jain, Managing Director, the EU GMP certifications reflect the company’s strong compliant infrastructure, robust quality systems, and skilled teams. The focus remains on disciplined growth while strengthening presence in regulated markets.
According to Mr. Sanjeev Jain, Managing Director, the company’s emphasis on operational excellence and disciplined growth supports its long-term global vision, enabling responsible expansion in regulated markets and stronger global partnerships.
Akums Drugs and Pharmaceuticals Limited is an Indian pharmaceutical company, founded in 2004 and based in Delhi, that manufactures and sells a wide range of products both in India and internationally. Its portfolio includes pharmaceutical drugs, ayurvedic and herbal products, nutraceuticals, over-the-counter items, derma and cosmetic products, healthcare and hospital supplies, and active pharmaceutical ingredients (APIs).
The company produces branded formulations in various forms such as tablets, capsules, injectables, ophthalmics, and soft gels across therapeutic areas including gynecology, cardiology, orthopedics, pediatrics, dermatology, anti-infectives, pain management, and gastroenterology. It also operates as a contract development and manufacturing organization (CDMO) for the pharmaceutical industry.
A return on equity (ROE) of about 17.2 percent, a return on capital employed (ROCE) of about 16.2 percent and debt to equity ratio at 0.03 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 23.2x lower as compared to its industry P/E 28.3x.
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