AHCL

Anlon Healthcare Limited delivered strong financial growth in FY26, with total income increasing by 42.98% year-on-year to INR 172.22 crore. EBITDA saw a 47.55% rise to INR 47.77 crore, and profit after tax grew by 41.77% to INR 29.09 crore. This performance was attributed to expanding demand, improved operational efficiencies, and disciplined execution. For Q4 FY26, total income stood at INR 50.90 crore, a modest increase from INR 48.97 crore in Q4 FY25, but reported PAT was lower at INR 11.07 crore compared to INR 16.65 crore in the corresponding quarter, mainly due to higher operating and development expenses.

FY26 marked a significant phase in Anlon's growth journey with the completion of two key acquisitions. The company acquired Apiqo Organics Private Limited, which strengthened backward integration and added substantial capacity. Additionally, the acquisition of Bizotic Life Science, now a subsidiary, further accelerated capacity expansion and regulatory readiness. These acquisitions have expanded the combined installed capacity to approximately 1400 to 1600 metric tons per annum, positioning the company for its next phase of scale growth. The company also acquired Remember Pharma in FY27.

Management provided optimistic revenue guidance, targeting INR 380-400 crore for FY27. With the current consolidated capacity, the peak revenue potential is estimated to be INR 450-500 crore. Looking further ahead, the company expects to achieve INR 700-800 crore in revenue for FY28. This growth is anticipated to be driven by new API launches, additional DMF filings, and expanding CDMO engagement, with a projected revenue CAGR of 30% over the next three years.

The consolidated EBITDA margin is expected to be maintained in the range of 24-25% for FY27 and FY28. While Apiqo's EBITDA margin is slightly lower (22-23%) due to its chemical/intermediate nature, Bizotic is expected to maintain margins similar to Anlon. The Q4 FY26 PAT was impacted by higher operating and development expenses as the company scales its platform. Raw material price volatility and global supply chain disturbances also posed challenges, but the company is working to pass on these increased costs to customers to maintain margins.

Anlon plans a new Capex of approximately INR 130 crore for facility expansion. This investment will be funded primarily through a bank term loan of INR 65-70 crore, with the remaining amount sourced from internal funds. The company explicitly stated that it does not plan any equity dilution for this Capex. Management also indicated that they expect to be cash flow positive by the end of FY27, supported by internal accruals and debt, without needing external equity for growth.

The company acknowledged a steep jump in inventories and other financial assets, attributed to recent acquisitions and increased raw material prices. Management expects the inventory from acquisitions to be sold in Q1 FY27, leading to a 20-25% reduction by FY27 end. Receivable days remain high, currently exceeding 200 days, which is above the market norm of 120-150 days. The company aims to reduce this to at least 180 days by the end of FY27 through stricter payment terms and by stopping supply to non-paying customers.

Anlon is actively developing three molecules for two global innovators, reinforcing its custom manufacturing strategy. The company plans to launch seven new APIs and file 3-5 additional DMFs in FY27 to enhance regulated market penetration. Commercialization of one CDMO product is expected by Q3 FY27, with others following by Q4 FY27 or Q1 FY28. The company also aims for exports to contribute 60% of revenue in FY27.