Good day, ladies and gentlemen. Welcome to the Akums Drugs and Pharmaceuticals Q1 FY 2027 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Umesh Laddha. Thank you, and over to you, sir.
Good afternoon, everyone. On behalf of Ambit Capital, I thank the management of Akums Drugs and Pharmaceuticals for the opportunity to host their Q1 FY 2027 earnings conference call. Joining from the management today we have Mr. Sanjeev Jain, Managing Director, Mr. Sandeep Jain, Managing Director, Mr. Sumeet Sood, CFO, and Mr. Sahil Maheshwari, Head Strategy. We now begin with opening remarks from the management, post which the forum will be open for question- and- answer session. Thank you and over to you, Ankit, sir.
Thank you, Umesh for the introduction. Good afternoon, everyone. Welcome to Akums Q1 FY 2027 earnings call. I am Ankit Jain and I head Investor Relations at Akums Drugs and Pharmaceuticals Limited. I will commence with a standard disclaimer that any discussion on today's call might include certain forward-looking statements which are predictions or projections of future events.
Our business faces several risks and uncertainties that could cause our results to differ materially from what is expressed or implied in such statements. At Akums, we do not undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. I hope you would have had the opportunity to go through our financial reviews and reviewed our investor presentation that was shared on Saturday. I would now like to hand over to our Managing Director, Mr. Sandeep Jain, to discuss our performance. Thank you.
Namaste, everyone, thank you for joining us today for our Q1 FY 2027 earning call. With Q1 FY 2027, we have begun FY 2027 on a strong and encouraging note. We registered a healthy revenue growth of over 13%, with EBITDA increasing by more than 30%. The growth was primarily led by CDMO segment, characterized by double-digit volume growth along with improvement in API prices. The consistent performance of CDMO showcases healthy demand and environment as well as our clients.
Trust in Akums as the preferred manufacturing partners. Marketing segments, domestic as well as exports, saw muted quarterly performances. With multiple initiatives underway, we are confident of these segments returning to growth path in coming quarters. Our API and trade generic segments performed in line with prior guidance. With Zambia order to likely reflect during current financial year. Akums is well-placed to deliver a robust operating performance during FY 2027.
On 23rd of July, we announced the acquisition of Oriflame India's manufacturing business. The transaction covers two manufacturing facilities, one at Roorkee, Uttarakhand, and other one at Noida, Uttar Pradesh, along with a leased warehouse situated at Noida, Uttar Pradesh. With the acquisition, we expand our manufacturing footprint in skincare, cosmetics, and wellness products.
This is in line with our strategy of tapping into niche formulations to improve our positions among existing as well as prospective clients and augment our margins. Coming to operating performances for our quarter, CDMO once again delivered a healthy top-line growth of over 18%, aided by both volume growth and improvement in API prices. API segment continued on its journey towards becoming EBITDA positive as higher share of non-cepha products led to better gross margin. The trade generic segment remained EBITDA positive during the quarter.
Akumentis, our domestic branded formulation segment, restarted its growth journey with a healthy 7% revenue growth during the quarter. Margins were impacted due to increase in employee strength. We expected improved performance from the segment from quarter three onwards. Our international branded formulation business had a muted quarter but is expected to return to growth as we remain confident on the structural attractiveness of our chosen geographies. I shall now request our CFO, Mr. Sumeet Sood, to take you through the detailed financials for the quarter. Over to you, Mr. Sumeet.
Thank you, sir. Thank you, Sandeep Ji. Good afternoon, everyone. I would now take you through the financial highlights for the quarter ended 30th June 2026. Our operating revenue stood at INR 1,167 crore, an increase of 13.9% year-on-year. Quarter one FY 2026, the revenue was INR 1,024 crore and increasing 0.8% quarter-on-quarter. Quarter four FY 2026, our revenue was INR 1,158 crore.
The operating EBITDA for the quarter was INR 175 crore, an increase of 35.4% year-on-year. Quarter one FY 2026, our EBITDA was INR 129 crore and 15.1% quarter-on-quarter. Q4 FY 2026, our EBITDA was INR 152 crore. Margins were robust at 15%, improving 230 basis points year-on-year. Quarter one FY 2026, we were at 12.6%. 187 basis points quarter-on-quarter. On Q4 FY 2026, we were at 13.1%. The EBITDA, including other income, stood at INR 205 crore, increasing 31.7% year-on-year.
Quarter one FY 2026, we were at INR 156 crores and increasing 9.6% quarter-on-quarter. Quarter four FY 2026, we were at INR 187 crores. EBITDA margins stood at 17.1%, increasing 231 basis points. Year-on-year Q1 FY 2026, we were at 14.8%, and quarter-on-quarter Q4 2026, we were at 15.7%. The PAT of the company stood at INR 101 crores, an increase of 56.1% year-on-year.
We were at INR 65 crores on quarter one FY 2026 and increasing 24.1% quarter-on-quarter. Q4 2026, we stood at INR 81 crores. If we were to look at the various segments and their performance, if we start with the CDMO, the revenue stood at INR 964 crores, increase of 18.6% year-on-year. We were at INR 813 crores Q 1 FY 2026, an increase of 1.3% quarter-on-quarter. Q 4 FY 2026, we were at INR 952 crores. Revenue growth was driven by healthy volume growth and rebound in API prices.
In Q2 as well, API prices seem to be on an increasing trend. EBITDA for the quarter stood at INR 163 crores, an increase of 36.8% year-on-year. Quarter one FY 2026, it stood at INR 119 crores, an increase of 19% quarter-on-quarter. FY 2026, it was INR 137 crores. The margin was further aided by improved capacity utilization. Domestic branded formulation stood at INR 115 crores, an increase of 7.3% year-on-year and an increase of 12.9% quarter-on-quarter.
EBITDA for the quarter was INR 12 crore, a decline of 25.4% year-on-year and a decrease of 46.5% quarter-on-quarter. For the international branded formulation business, revenue stood at INR 35 crore, a decline of 1.5%. At Q1 of 2026, we were at INR 35 crores and a decline of 3.6% quarter-on-quarter. Q 4 FY 2026, the revenue stood at INR 36 crore. EBITDA for the quarter stood at INR 6.9 crores, a decline of 14.4% year-on-year and a decline of 31% quarter-on-quarter.
API revenue stood at INR 32 crores, a decline of 29.7% year-on-year. Q 1 FY 2026, it was INR 45 crore and a decline of 22.3% quarter-on-quarter. Q 4 2026, the revenue stood at INR 41 crore. EBITDA for the quarter was at INR -4 crore. The losses were lower than Q1 FY 2026, which stood at INR -6 crores, as well as Q 4 FY 2026, which stood at INR - 12 crores. This was largely driven by an increase of non-cepha products in our overall portfolio. Trade generic business stood at INR 21 crore, a decrease of 9.5% year-on-year and a decrease of 23.4% quarter-on-quarter.
EBITDA continued to remain at breakeven for the second quarter in a row. It is generally higher than the breakeven of INR 0.1 crore compared to INR -5 crore Quarter one FY 2026 and INR 1.1 crore in Quarter four FY 2026. Our balance sheet continues to remain very healthy with a cash surplus of INR 1,616 crores. The operating cash flow for the company for the Quarter one stood at INR 65 crores. This concludes the financial highlights for the quarter. I would request the moderator to open the forum for the question- and- answer session. Thank you, everyone.
Thank you very much. We will now begin with the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vivek Agarwal from Citigroup. Please go ahead.
Thanks for the opportunity and congrats on good set of numbers. Just on the CDMO segment, is it possible if you can highlight how to think overall growth in terms of volume and value this year as well as the next year. Second, if you can also give some color as well as the margins are concerned. Thank you.
Sure. Hello, everyone. This is Sahil. Vivek, look at the volumes for Q2, right? The volumes also look healthy in high teens at least for this quarter as well. As the momentum continues, we can update how the rest of the year also goes, but whatever visibility we have today, Q2 also looks extremely encouraging. API prices, they are volatile, right? But at this point in time, they are volatile moving upwards. Practically, if you look at it, Q2 also looks steady, and we expect to end this year as well on a good note.
Understood. Any color on the margin trajectory?
Margins are expected to remain in similar levels, right? We have always guided for a 14%-15% margins. Obviously, quarterly, as you've always discussed, it is difficult to rate the business quarterly. Overall, at annual level, we expect that the margin should remain in the 14%-15%. Given Q1 has been strong, we can incline towards the upper bracket of it.
Understood. The Q1 margins are a bit higher side, and this is a kind of aberration, right?
As I said, the prices of the API were also high. If you remember, Q4, we also had built some inventory to protect ourselves, right? These are strategic calls we took which helped us secure our margins.
Understood. Lastly, if you can help us understand, Sahil, what are the initiatives that you are taking in the branded and really the domestic and international formulations, how to look at the growth trajectory in these markets as well? Thank you.
Quickly, I'll tap both of these segments. First is domestic branded Akumentis. As was mentioned in the initial notes, we have added almost 200 people in our field force to tap through adjacent headquarters, which are of importance, where we can cap some growth. The focus here remains how do we expand our presence into prescription business. The focus still remains on our key performing therapies, which is gynecology, cardiology, as well as pediatrics. And we also have presence in orthopedias and derma, which are smaller. That remains our focus within the Akumentis business, and we are very positive that over the next two, three years, this will be a key segment for the company, both in terms of top line as well as the profitability.
On Unosource, again, while this quarter was muted, we see good growth orders in our coming quarters. There are strategy which we are taking are twofold. One is, while we say we are present in 60+ geographies, which are our star, focus, gold, whatever you call them, these markets which where we have to drill down. There are few set of markets which we have discussed that these are focus markets where most of our time, energy, resources will go. Secondly, the product portfolio as well. We are filing niche first to launch products in various markets, which will help us build sticky, high-margin businesses.
Understood. What exactly has been impacted growth of these segments in this quarter?
Akumentis, if you look at top line growth was there, but bottom line was not there, given most of it, the additional EBITDA drain that we had in Q1 was largely on account of almost 200 field force. That's almost 15% increase in our field force. In the initial quarters, as you rightly understand, you don't generate PCPM out of. That was a drain on our EBITDA. On Unosource, that was one quarter where we saw limited, but Q2, Q3 onwards, we'll have the growth back on track.
Perfect. Thank you. Thank you. That's all, my friend.
Moderator. Next questions, please.
Next question we have from Pooja.
Hello, sir. I wanted to ask that with the IPM growth accelerating, what is your outlook on the volume growth for the FY 27?
Pooja, thanks for the question. If you recollect quarter three of last year, quarter four of last year, quarter one of this year, we have seen almost high teens of volume growth, right? Q2 also looks strong at high teens, right?
Right.
While the volume growth in the IPM has been in the range of 2%-3% or something, plus the new launches, right. For us, this has always been the key driver for our businesses, and particularly over the last one year, this has been the key lever for our growth. While this could be a period where we have sizable volume growth, we remain confident that our volume growth will at least be in double digits in the coming quarters.
Sure, sir. Thank you.
Next question from Aanchal Maheshwari.
Sorry to interrupt, sir. Your voice is breaking.
I think there is some challenge with the moderator.
Current participant.
Yes. We are also.
The next question is from the line of Aanchal Maheshwari from Naredi Investment. Please go ahead.
Hi. I just had one question on your domestic growth side. Sir, can you give us a mix of how much was the volume growth and how much is the value growth mix? Also, are we planning any price increases for our domestic business this year?
The growth has been driven by a mix of new product launches, price growth, as well as volume. Given the growth is only 7-odd%, all three have contributed their bits to this top-line growth. As far as price growth is concerned, we have already taken price growth, and this will also be reflected as we move on this quarter.
Sir, is it possible to quantify the numbers?
No.
Okay.
Thank you. The next question is from the line of Sangeeta from Cogito. Please go ahead. Sangeeta, please go ahead.
Hello, this is Sangeeta's partner, Andre. First of all, congratulations for a great set of numbers. My first question was on API. This is a question I keep asking. Is there a timeframe within which we will evaluate whether we want to continue with this business? That's my first question.
The management is fully confident. This is a business we have been investing for over three, four years now, the fruits of which are very visible as we speak. The quarterly losses have been gradually coming down. As far as we speak, as of now, we are fully into this business. Our cepha business, we have been able to come out of the low-margin products and as well as increase our basket of non-cepha products, including lansoprazole, montelukast and so on, which are helping us improve our margins. I think at this point in time, it's not a question of whether we make a U-turn from here or not. It is how do we improve the profitability and then scale this business into a profitable venture.
Okay. Just would like to give some feedback as a minority shareholder, that as a minority shareholder, we would be delighted if you actually got rid of this business. You have an absolutely outstanding CDMO business, and you have a lot of traction in the exports business as well. If you were to focus on that, it would delight us. Just a comment that I wanted to
Sure. Perfect way for this, I think we work in the best interest of the shareholders in the company. Being a minority or a majority, we take decisions which are best for the company in terms of capital allocation as well as management bandwidth.
As far as the Europe and Zambia business is concerned, I think you had given a guidance of 15%-17% EBITDA margins on Zambia. Do you have any actual numbers to share with us in terms of the EBITDA margins? Is there any updated margin guidance that you can give us on the European business?
Rightly on both the Zambia as well as Europe, these will be margins which are similar, maybe a tad higher than in the higher teens compared to our current CDMO business. That's what we can speak as of now. Zambia is something we expect in the H2 that will deliver for this fiscal, the $25 million, which will roughly translate to almost INR 240-odd crores in our revenue, and similar in the next financial year as well. Within the next financial year, we will kickstart our European business as well. Both of these businesses will uplift the corporate margins.
As far as the capacity utilization strategy is concerned, you've always invested in a lot of capacity, and you believe in having a lot of spare capacity. Having said that, your utilization has gone up in the previous quarter. Going forward, what is your strategy going to be like? Can we look forward to better capacity utilization, or are you going to continue with your strategy for having a lot of spare capacity because that gives you a competitive edge over others?
Our style has always remained to be prepared for market opportunities. If you really look at Q2, was a weak volume quarter last year. Q3, we suddenly had almost a high teens, 20%-odd volume growth, which was again seen in quarter four, again seen in quarter one. Right. Our spare capacity was of real help. As we have always said, we could move up to 55%, 58%, 60-odd percent as our total peak utilization. We are already at 50-odd percent. The strategy remains given, there's a continuous focus on better quality drugs in the market. There are increasing opportunities of volume growth. We are in process of further expanding our capacity.
Right. Last time we spoke about the need to recruit a certain amount of senior talent. Where are we on that front, either in terms of actually having people come on board or work in progress in terms of senior talent being onboarded?
Senior talent, I don't know which conversation last time, but senior talent, the company today is very well run by professionals across all domains. From quality, R&D, business development and so on. There is always a need in an organization to bring in fresh blood. As of now, given you could see in our financials as well, there is ample leadership and talent which is there. Rightly so, we stem a lot into our homegrown leadership as well. We are fully ready. You've seen orders across Zambia, across Europe, across domestic volume growth. Across all fronts, we have great industry talent, which is still with us.
Last time we spoke about the fact that a lot of your people are about 12th class pass. That there is perhaps a need to draft in more educated and more experienced and more senior talent. That is the context in which I was making this query.
I don't think that it kind of conversation had ever happened. We do have all MPharm, PhDs, Doctorates. You will find that we are having, say, best percentage of pharmaceutical graduates and postgraduates if you compare it with the rest of the industry.
Okay. Thank you.
I don't think where the conversation had came to.
This is actually, I think, on a one-on-one with someone. This is some feedback that has also been given to us by some of your ex-employees. That's why I'm taking the liberty of sharing this with you.
No, sure. You can ask anything, but we do have lots of PhDs and MPharm and MSCs, all Doctorates are there.
Okay. Thank you. Thank you very much.
All the heads are from top industries like Dr. Reddy's and like that.
Right. Okay. Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. I repeat, please limit your questions to two per participant. The next question is from the line of Bhavin Chheda from Enam Holdings. Please go ahead.
Good afternoon, sir. Congrats to the management team for strong growth numbers. Sir, the Zambia sales were supposed to start from Q2 onwards. Has that started?
I think we always maintained FY which is there. It will likely be in Q3 and maybe some parts in Q4. As we speak, we are already in advanced stages where we have agreed upon the volumes and the prices with the government over there of almost 100 + products that we will be supplying in Zambia. That is completely on track and this fiscal will recognize the revenue.
Okay. On the overall net cash number you mentioned on the call was around INR 1,600 crores or that was the cash?
Yes.
That was net of debt, INR 1,600?
Yes.
Okay. Thank you.
That's net of debt.
Thank you.
Thank you.
Thank you. The next question is from the line of Praveen Jayaraman from Avendus Spark Institutional Equities. Please go ahead.
Hello. Good afternoon, sir. Am I audible?
Yes.
Yes.
Thanks for the opportunity and congratulations on the good set of the numbers. Sir, can you explain on the acquisition which we have done recently, whether it's a capability acquisition or a capacity acquisition, what we are seeing there and how it's going to add to us?
Sure. If you look at the overall style of our acquisitions always been to enter into novel niche formulations. Cosmetics, we have already been doing for over a decade now. Our plant five is devoted and dedicated to cosmeceuticals, which has good profitability as well as we were almost at peak utilizations. The acquisition rationale behind this is to expand our capacities into the skincare cosmetics as well as this will enable us to venture out into the color cosmetics as well, which is a fast-growing space.
The strength and the mode that Akums today has is formulations R&D. We'll build onto this to tap to additional niche market within the cosmeceuticals. This will help us expand our presence in that area as well. While this whole BPC market is growing rapidly, our aim remains how can we serve markets which add meaning to our top line and bottom line?
Okay, sir. On the last participant, you said the capacity utilization was already around 50%, and we can maximum go up to 55%. With these European and Zambian orders coming in, we can see some increase in capacity utilization going forward. Would we be resorting these low-margin profile orders to subcontracting, or how are we planning to optimize the orders going forward, sir, with us already reaching 50% utilization?
There is no concept of subcontracting, honestly. We are in the business of delivering manufacturing volume to the clients, obviously. While there would be some chunk of portfolio which would be low margins, there is no rationalization as such, right? If you really look at today, the gross margins are well above 40%, and you don't really wish to lose any of them. The business you do with a lot of customers is through a basket approach as well. Right. We are in the process of setting up one more facility in Baddi, which will go live almost at the end of this financial year itself, which will significantly boost our oral manufacturing capabilities. Right.
Right. Sir, what would be the CapEx for the same?
We are still discussing. As we go live, we'll update you with it.
Okay. We are adding one more facility in oral, and we are not resorting to this subcontracting. Okay.
Right.
Thanks for that, sir. Thank you, sir. That's it from me.
Thank you. The next question is from the line of Axay Shah from VVD Asset Managers LLP. Please go ahead.
Thank you for the opportunity, sir, and congratulations for the fantastic set of performance in CDMO business. Sir, my question is that we have increased our gross margin by 1.5%. Can you quantify how much is due to value addition that we are going in high value products, and how much is due to inventory gains?
Very limited would be of inventory gains per se. Most of it is largely through high-value products getting added.
Okay. This kind of gross margin is sustainable going forward? Sorry, - 0.5%.
Yes, that's the expectation. Also, within the overall corporate gross margins, there has also been a positive from the API gross margins. API, we used to operate last year at almost 90%+ gross margins, which in this quarter, we are almost at 75% gross margins. This has also been a positive, and obviously CDMO is the one which is inching forward.
Okay. Sir, we have done good work in API where our EBITDA is reducing month-on-month basis. Is it expected going forward or there is any seasonality in that?
There's no seasonality. If you really look at it, two quarters, we have been able to do it. This quarter as well, we are completely in control of it. This is expected to gradually come down, and we should achieve break-even.
Okay. Thank you so much, sir. Best of the luck for future.
Thank you.
Thank you.
Thank you. The next question is from the line of Divya Daga from VGSPL. Please go ahead. Divya, you have been unmuted. Please go ahead. Divya, I'm sorry to interrupt. You're not audible. Could you please recheck your handset or mic?
Am I audible now?
Yes, you're audible. Please go ahead.
Okay. I just have one question. I want to know what can be the volume growth next year. What are we expecting?
Divya, very difficult as of now to quantify the volume growth. We have always been significantly better than the market. We expect the volume growth in the industry to sustain and continue. This is what we have received the feedback. As of now, the expectation is we'll at least be double digits in our volume growth for this year, the next of the year. As I also just mentioned previously, we are also adding capacities in oral tablets, which should go live by the end of this year. The volume growth should continue in the foreseeable future.
Okay. I just have one last question. For our new acquisition, what can its number be in coming years? How big do we see it?
Can you please elaborate more?
Inorganic, how much are we
Yeah
proposing to spend? How big could it get?
If you really look at it, this Oriflame acquisition or in general?
Overall.
In general.
What is our appetite?
In general, as Sumeet Ji mentioned in his opening remark, we have almost INR 1,600 crores of cash with us, the whole balance sheet is not leveraged, right? We'll look it from the angle of is it value accretive and making business rational to the group. I think that's how we'll look at it. Obviously, we'll be cautious in making very large bets. It should make business sense, and we have all the ammunition and gunpowder to latch on to such opportunities.
Okay. Thank you so much, sir.
Thank you. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask a question, please press star and one. The next question is from the line of Abdulkader Puranwala from ICICI Securities. Please go ahead.
Hi. Thank you for the opportunity, and congratulations on good set of numbers. My first question is with regards to your CDMO business. Sir, in terms of this entire API prices going up, how are we seeing the reactions of our customers in terms of what is the kind of inventory they are now having, and how well are we able to pass this on completely to them?
Sure. Two parts to it. I'll address the B part first. The model has always remained a cost plus, right? It is at every purchase order or whatever is the prevailing price of the input materials, that gets passed through. On the inventory, this honestly differs even by the similar set of companies and across. Some see it as a rising API environment and try to hold on to inventory, while some wait and pause to see if they can defer the inventory decisions, right?
This inflated environment, if we even start from February, March, we have been almost five, six months into it and the volume growth still continues, right? Whatever inventory someone would have thought to build in one quarter would now have liquidated, right? This volume growth, I think, is a phenomenon where the secondary in the market continues to pick up. People are used to putting a normal inventory of 45, 60 odd days, whatever is the company policy for them. Right? That's there.
Sure, quite understood. Second question is with regards to the API business. I understand we are trying to inch up our profitability. Earlier, I think we have been guiding about that by end of FY 2027, we should turn that segment profitable. Are we still holding on to that guidance? In terms of growth, then by FY 2028, should we see that business starting at least reporting the single-digit kind of a growth?
Absolutely right, Abdul. The whole target is on a monthly level, at least by the end of February, March, we should be monthly EBITDA positive in this business. Next year, we should start positively contributing to the corporates from this segment.
Sure. Last one question from my end. The INR 1,600 crores of cash what you have on your balance sheet, where is that parked currently? If you could also help us charter a map that how do you plan to spend this, maybe on giving some out as dividend or some M&A, if you can guide, please.
Abdul, I'll answer the first part of the question. Most of the money, in fact, 98% of the money is parked in fixed deposits with nationalized banks, right? The money is safely with these banks. There was another question on inorganic. Our net worth sits at more than INR 3,400 crores, and there is no debt on the company. I think what Sahil was mentioning was, if we get a right acquisition and there are synergies, I think the company has the appetite and DNA to look at an acquisition. I think, likely, Abdul, the money is well secured, and it would be put to good use for business synergies. We continuously explore, and once we have it, we will let everyone know about it.
Understood, sir. Thank you, and all the best.
Thank you.
Thank you. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask a question may press star and one. The next question is from the line of Axay Shah from VVD Asset Managers LLP. Please go ahead.
Thank you for the opportunity again, sir. Sir, as per my limited knowledge of the business, our field force productivity in our domestic formulation business is lower than the industry for MRs. Now we are increasing the MRs. What is the rationale behind that strategy?
As you rightly said, we are lower than the industry average benchmarks, right? The strategy has always been to have a strong clinical presence across our focus power products, right? The expansion was in line where we wanted to tap additional geographies, headquarter cities, through our Akumentis, right? While PCPM is one metric to look at businesses, I think this is more of an outcome of a mature marketing business. We are still in the phase, we are building this business, right? We are cautious of how do we do our investments into field force and products, right? Gradually, as the business will scale up, we'll certainly inch up to the industry averages and hopefully surpass them. At this point in time, we'll have to appreciate that this is a phase where we are building the business.
Okay. Thank you so much.
Thank you. Reminder for all participants, please press star and one to ask a question. As there are no further questions from the participants, I now hand over the conference to Mr. Ankit Jain for closing remarks. Over to you.
Thank you everyone for attending the Q1 FY 2027 earning call for Akums. If you have any remaining questions, you can reach out to the investor relations team. Thank you and have a good day.
Thank you. Thank you, everyone.
On behalf of Akums Drugs and Pharmaceuticals, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you