Stake Buy: Pharma stock jumps 8% after ICICI Prudential Mutual Fund acquires 72.78 Lakh shares

Synopsis:- A pharma CDMO stock jumped 8% after a mutual fund bought 72.78 lakh shares worth ₹311.5 crore in a bulk deal. In Q2, pressure showed with revenue down 2%, profit falling 36%, and operating margins easing from 12% to 9%.

The shares of contract development and manufacturing organisations gained up to 8 percent in today’s trading session after a prominent mutual fund acquired 72.78 lakh shares via Bulk Deal

With a market capitalisation of Rs 7,208.64 crore, the shares of Akums Drugs and Pharmaceuticals Ltd were trading at Rs 458.00 per share, increasing around 3.22 percent as compared to the previous closing price.

Bulk deal

According to the exchange, Ruby QC Investment Holdings Pte exited Akums Drugs by selling its entire 72.78 lakh shares, representing 4.62 percent of paid-up equity, for Rs 311.5 crore to ICICI Prudential Mutual Fund at Rs 428 per share. This signals institutional confidence in the company’s long-term fundamentals.

Financial & other highlights

Overall, the company’s Q2FY26 performance reflects pressure on both growth and profitability. Revenue plummeted by 2 percent from Rs 1,033 crore in Q2FY25 to Rs 1,018 crore in Q2FY26. Further, during the same time frame, net profit falls sharply by 36 percent from Rs 67 crore to Rs 43 crore. 

Operating performance weakened over the past year. Operating profit declined from  Rs 121 crore in September 2024 to  Rs 94 crore in September 2025, reflecting pressure on margins. Operating margin (OPM) also softened from 12% to 9%, indicating higher costs and lower operating leverage despite relatively stable revenue levels during the period.

The company has a strong dependence on the CDMO business, which contributed a dominant 79% of Q2 FY26 revenue. Domestic branded formulations accounted for 12%, while APIs formed 4.4%. International branded formulations and trade generics remained smaller contributors at 2.2% and 2.4%, respectively.

Akums Drugs and Pharmaceuticals Ltd is advancing a strategic Zambia expansion through a government JV, holding a 51% stake in a US$45 million project. While local manufacturing in Lusaka is targeted for CY2028, near-term revenue of US$50 million is expected from the India-supplied tender over CY2026-27, creating a steady revenue bridge and long-term market access.

Akums Drugs and Pharmaceuticals is one of India’s leading contract development and manufacturing organisations (CDMO), partnering with top pharmaceutical brands across multiple therapies. The company offers end-to-end solutions from formulation to manufacturing, with a strong focus on scale, regulatory compliance, and long-term growth in domestic and global markets.

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