Anthem Biosciences Limited — Q1 FY27 earnings call

Call held 22 Jul 2026

Management summary

Anthem Biosciences Limited reported Q1 FY27 consolidated revenues of Rs. 418 crores, with strong EBITDA and PAT margins of 39.6% and 27.1% respectively. Despite a softer Q1 due to timing shifts in deliveries, the company remains confident in achieving its full-year growth targets, supported by a 60% order book visibility and the addition of a new Big Pharma customer. The company is also progressing with its Unit 4 expansion, targeting commissioning by end of FY28 with a FY27 capex of Rs. 700 crores.

Highlights

  • Consolidated revenues from operations for the quarter were Rs. 418 crores.

  • EBITDA was Rs. 176 crores, with EBITDA margin at 39.6%.

  • PAT for the quarter was Rs. 120 crores, with PAT margins at 27.1%.

  • Net cash position of the company as of June 30, 2026, was Rs. 1,720 crores.

  • Added one new Big Pharma customer, expected to yield significant numbers.

  • Maintained 60% order book visibility for full-year FY27 delivery.

Concerns

  • Q1 FY27 results reflect timing shifts in deliveries to key customers, leading to a softer quarter.

  • Unit 2 utilization was about 50% for Q1 FY27 across expanded capacity.

  • Q1 is down almost like a 25% on a YoY basis, though full-year growth is expected to be intact.

Key financials

  1. Revenue ₹418 Cr
  2. EBITDA ₹176 Cr
  3. EBITDA Margin 39.6%
  4. PBT ₹145 Cr
  5. PAT ₹120 Cr
  6. PAT Margin 27.1%

What they filed

Q1 FY27: revenue down 22.6%, net profit down 11.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue525 498 483 540 550 +5%423 −15%611 +27%418 −23%
EBITDA195 160 195 191 218 +12%157 −2%267 +37%151 −21%
Net profit162 124 83 136 173 +7%93 −25%190 +129%120 −12%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹419 Cr Total
  • CRDMO ₹341 Cr 81.4%
  • Specialty Ingredients ₹78 Cr 18.6%

Capital allocation

high confidence
  • Capex ₹700 Cr
    • Unit 4 expansion (365 kiloliters custom synthesis, 100 kiloliters fermentation, food & nutra plant) ₹1,200 Cr
    FY27 targeted capex for this year will be close to about Rs. 700 crores. We broke ground last year. By end of this FY28, we will be ready with our Unit 4. The Rs. 1,200 crores what we are talking about roughly could be a 50-50 split across both these years, FY27 and FY28.
  • Debt Net cash ₹1,720 Cr
    Net cash position of the company as of June 30, 2026 was Rs. 1,720 crores.
  • Liquidity Cash ₹1,720 Cr
    Net cash position of the company as of June 30, 2026 was Rs. 1,720 crores.

Guidance & targets

Capacity

  • Unit 4 commissioning Capacity · By end of next year (FY28) · High confidence Commissioned
    We are in the midst of construction over there and I think by end of next year, we'll be able to commission Unit 4...

    — Gawir Baig

  • Unit 4 readiness Capacity · End of FY28 · High confidence Ready
    By end of this FY28, we will be ready with our Unit 4.

    — Gawir Baig

Product Pipeline

  • Late-phase molecules commercialization Product Pipeline · 18-24 months · Medium confidence Commercial soon
    Path to commercialization will still be some time away, closer to about 18 months to 24 months.

    — Gawir Baig

Revenue

  • Full year growth Revenue · FY27 · Medium confidence In line with historical growth performance (double-digit)
    Our growth prospect for the full year remains intact. It will be in line with our historical growth performance and our margins also remains mostly intact.

    — Gawir Baig

  • New Big Pharma customer traction Revenue · Later quarters of this year (FY27) · Medium confidence Showing up in numbers
    Well, it should happen in the later quarters of this year. It's the agreement hasn't yet been signed, but it's in the works.

    — Ajay Bhardwaj

Capex

  • FY27 targeted capex Capex · FY27 · High confidence Rs. 700 crores
    FY27 targeted capex for this year will be close to about Rs. 700 crores.

    — Gawir Baig

Tax

  • Full year tax rate Tax · Full year (FY27) · High confidence 25% to 25.5%
    So, we will have a much more marginalized tax rate of about 25% to 25.5% for this full year.

    — Gawir Baig

Product Supply

  • Semaglutide API supply Product Supply · This year (FY27) · Medium confidence Start supplying
    We certainly have not started supplying. That's something that is still in the works. We are awaiting approval from CDSCO.

    — Ajay Bhardwaj

Cost

  • ESOP cost Cost · FY27 · High confidence Rs. 9 crores

    Previously Rs. 16 crores → Rs. 9 crores

    ESOP cost is about Rs. 9 crores for FY27. So, Q1 is about Rs. 2.25 crores. This was roughly about Rs.16 crores for FY26. There is a decline on the ESOP cost.

    — Gawir Baig

  • ESOP cost Cost · Next year (FY28) · High confidence Rs. 5 crores
    The fourth-year ESOP charge for the ESOPs which have been granted will be about closer to about Rs. 5 crores next year. So, there will be a decline.

    — Gawir Baig

What to watch in Q2 FY27

Unit 2 capacity utilization

Q2 FY27 onwards
Current ~50% for Q1 FY27
Target Increased utilization

Why it matters

Indicates operational efficiency and revenue generation from expanded capacity.

This quarter being a slightly softer quarter, our Unit 2 utilization was about 50% for Unit 2 across the expanded capacity on custom synthesis side.

Risks & concerns

  • Timing shifts in customer deliveries

    medium

    Q1 FY27 results reflect timing shifts in deliveries to key customers, leading to a softer quarter, but underlying demand remains strong with recovery expected in later quarters.

    Management acknowledged

  • Raw material turmoil for Specialty Ingredients

    medium

    The Specialty Ingredients business, being more focused on the domestic market, has faced pressure due to raw material turmoil, but decent growth is still expected for the full year.

    Management acknowledged

  • Regulatory approval for Semaglutide API

    medium

    Commercial supply of Semaglutide API is awaiting CDSCO approval, which is critical for market entry and sales.

    Management acknowledged

  • Lumpiness in CRDMO business

    low

    The CRDMO business is dependent on delivery schedules, leading to quarterly fluctuations, but the overall business remains intact for the full year.

    Management acknowledged

  • Impact of M&A on customer side

    low

    Acquisition of a biotech customer by a Big Pharma could lead to changes, but management sees it as an opportunity for new engagements and long-term relationships.

    Management downplayed

Q&A highlights

8 direct
Capacity utilization and future expansion plans Direct
With respect to our capacity utilization, last year when we ended the year, roughly about Unit 1 was about 74% utilized. We continue to have the same utilization in our Unit 1 in this quarter, roughly about 78% utilized right now on the custom synthesis side. Unit 2 was about 65% utilized last year for the full year because we had gone through significant expansion over there by adding about 130 kiloliters. This quarter being a slightly softer quarter, our Unit 2 utilization was about 50% for Unit 2 across the expanded capacity on custom synthesis side.

Provides detailed insight into current operational efficiency across different units and outlines future capacity ramp-up plans with Unit 4.

Asked by Saion Mukherjee

New client traction and pipeline initiatives Direct
In terms of adding customers, we have one new Big Pharma customer which has been added. We expect that to yield significant numbers going forward. One of our large biotech customer, also got acquired by a Big Pharma.

Highlights successful business development and potential for future revenue growth from new and evolving client relationships.

Asked by Saion Mukherjee

Revenue visibility and segment-wise breakdown Direct
When I talked about 60% as a fraction, that's for the whole business. ... Just to clarify over here, the order book that we are talking is largely for the CRDMO business. Because specialty ingredients is normal day-to-day, month-on-month business which needs to be delivered.

Clarifies the scope of the 60% revenue visibility and explains the differing business models for CRDMO and Specialty Ingredients.

Asked by Udit Bokaria

Q1 FY27 performance and full-year growth outlook Direct
If you look at our long-term historical growth, we have been delivering numbers consistently and the consistent, it's a double-digit growth we have delivered. What we are saying is, for this year also our growth prospects remain intact.

Addresses concerns about the Q1 YoY decline and reaffirms management's confidence in achieving historical double-digit growth for the full year.

Asked by Mehul Sheth

Unit 4 capex outlay and commissioning timeline Direct
We have articulated this, roughly about Rs. 1,200 crores is the capex outlay for Unit 4 and this is Phase 1 of Unit 4. ... By end of this FY28, we will be ready with our Unit 4.

Provides specific financial details and timelines for a major capacity expansion project, crucial for future growth.

Asked by Mehul Sheth

Semaglutide API commercial supply and regulatory status Direct
We certainly have not started supplying. That's something that is still in the works. We are awaiting approval from CDSCO. We've done all the work, we're ready to scale up as well.

Clarifies the status of a high-interest product and the regulatory hurdle before commercialization.

Asked by Bansi Desai

Sustainability of high margins Direct
We believe, because we use new technologies like flow, we are bringing in bio-catalysis, things that normally people are not doing, which are quite revolutionary in cutting down cost of goods. So, that allows us to A, engage with the customer at a very different level because you talk to them a language which they really, really appreciate that you're not just a pair of hands, you're actually contributing to innovation and technology development.

Explains the strategic drivers behind the company's ability to maintain industry-leading margins, focusing on technology and innovation.

Asked by Bansi Desai

Impact of Artificial Intelligence on the biotech pharma ecosystem and Anthem's business Direct
This is something that's an evolving landscape. We do see and we intend to start using it in specific use cases. ... But that's good news for us because if they use AI in deciding targets for specific antigens, then those means there'll be more targets available. ... Anthem will, I believe tend to benefit.

Demonstrates management's awareness and proactive approach to integrating emerging technologies like AI, and its potential impact on the business model.

Asked by Saion Mukherjee

3 min read 7 chapters

Detailed narrative

Q1 FY27 Performance Overview

Anthem Biosciences Limited reported consolidated revenues from operations of Rs. 418 crores for Q1 FY27. The CRDMO business contributed Rs. 341 crores, representing 81.5% of revenues, while Specialty Ingredients contributed Rs. 78 crores, or 18.5%. The company achieved an EBITDA of Rs. 176 crores, resulting in a strong EBITDA margin of 39.6%, and a PAT of Rs. 120 crores with a PAT margin of 27.1%. Despite these robust margins, Q1 was a softer quarter due to timing shifts in customer deliveries, leading to an approximate 25% YoY decline.

Capacity Utilization and Expansion Plans

Unit 1 maintained a capacity utilization of about 78% for custom synthesis in Q1 FY27. Unit 2, which underwent significant expansion by adding 130 kiloliters, saw its utilization at approximately 50% for the quarter. Unit 3 (Neo Anthem) is ramping up, reaching 30-35% utilization from 15% in FY26. The company is actively constructing Unit 4, a large-scale expansion project with a total capex of Rs. 1,200 crores for Phase 1, split roughly 50-50 between FY27 and FY28. Unit 4 is expected to be ready by the end of FY28 and will add 365 kiloliters of custom synthesis and 100 kiloliters of fermentation capacity.

Revenue Visibility and Full-Year Outlook

Management expressed strong confidence in achieving its full-year growth targets, despite the Q1 softness. The company maintains a 60% order book visibility for the full year's required deliveries, primarily driven by the CRDMO business. They anticipate a recovery in Q2, Q3, and Q4, expecting full-year growth to align with their historical double-digit performance. The underlying demand remains strong, with a higher concentration of scheduled deliveries expected in the latter half of the year.

Client Acquisition and Product Pipeline

Anthem Biosciences successfully onboarded one new Big Pharma customer, which is expected to contribute significantly in the later quarters of FY27. The company also noted that one of its large biotech customers was acquired by a Big Pharma, which could open new avenues for engagement. The late-phase pipeline includes 10 molecules, with commercialization anticipated within 18-24 months, adding to the existing 14 commercial molecules.

Semaglutide API and Regulatory Progress

The company is actively working towards commercial supply of Semaglutide API for domestic players. They have completed necessary trials and scale-up activities and are currently awaiting approval from CDSCO, which is expected this year. Management views GLP-1 as a robust long-term opportunity, with initial focus on securing domestic regulatory clearance before exploring other markets.

Cost Management and Margin Sustainability

Anthem's disciplined focus on cost efficiencies, yield optimization, and employee productivity continues to support its industry-leading margin profile. The company expects to sustain its strong margins throughout the year. The full-year tax rate is projected to normalize to 25-25.5%, partly due to Unit 3 expected to break even. ESOP costs are anticipated to decline from Rs. 16 crores in FY26 to Rs. 9 crores in FY27 and further to Rs. 5 crores in FY28.

Innovation and Competitive Differentiation

Management emphasized its strategy of driving business through technology and innovation, including the use of new technologies like flow chemistry and biocatalysis, to reduce cost of goods. This approach allows Anthem to engage with customers at a higher level, contributing to innovation and technology development. Combined with a strong track record in regulatory compliance and high-quality manufacturing, this strategy helps Anthem differentiate itself and maintain its competitive edge.

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