Anthem Biosciences Limited — Q3 FY26 earnings call

Call held 5 Feb 2026

Management summary

Anthem Biosciences delivered a strong 9M FY26 performance with consolidated revenue of ₹1,513 crore and a robust EBITDA margin of 41.5%, driven by backward integration and cost efficiencies. While Q3 revenue was impacted by a high base and global destocking, management remains optimistic for a strong Q4 and maintains full-year revenue growth guidance of 15-16% and margin guidance of 20%+. The company is actively expanding capacity and advancing its pipeline in peptides and biosimilars, positioning for future growth.

Highlights

  • Consolidated revenue from operations for 9M FY26 reached ₹1,513 crore, with CRDMO contributing ₹1,260 crore and specialty ingredients ₹254 crore.

  • EBITDA for 9M FY26 was ₹671 crore, representing a 23% growth and an EBITDA margin of 41.5%, driven by backward integration and cost control.

  • PAT after tax for 9M FY26 increased to ₹402 crore from ₹369 crore in 9M FY25, despite an exceptional item, with a PAT margin of 24.8%.

  • Management expects a strong finish to FY26, with Q4 historically being the strongest quarter, and maintains full-year revenue growth guidance of 15-16% and margin guidance of 20%+.

  • Structural margin improvements are expected to sustain due to in-house manufacturing of intermediates, eliminating dependence on China supplies.

Concerns

  • Q3 FY26 revenue performance of ₹423 crore was lower than Q3 of the previous financial year due to a higher base.

  • An exceptional item of ₹25.4 crore was incurred in 9M FY26 due to the notification of new Labor Codes.

  • 9M FY26 revenue growth was 11-12%, below initial expectations, attributed to global destocking, market uncertainty, and funding challenges.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹423 Cr
  • EBITDA
    ₹191 Cr
  • EBITDA Margin
    41.8%
  • PAT
    ₹93 Cr
  • PAT Margin
    20.3%

9M FY26

  • Revenue
    ₹1,513 Cr
    YoY +11%
  • EBITDA
    ₹671 Cr
    YoY +23%
  • EBITDA Margin
    41.5%
  • PAT
    ₹402 Cr
    YoY +8.9%
  • PAT Margin
    24.8%

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
₹1,937 Cr Total
  • CRDMO (9M FY26) ₹1,260 Cr 65.0%
  • CRDMO (Q3 FY26) ₹333 Cr 17.2%
  • Specialty Ingredients (9M FY26) ₹254 Cr 13.1%
  • Specialty Ingredients (Q3 FY26) ₹90 Cr 4.6%

Capital allocation

high confidence
  • Capex ₹1,000 Cr
    • Unit-4 expansion (Phase 1) ₹1,000 Cr
    • 16 kiloliter peptide facility ₹200 Cr
    Currently, the civil work is going on. What we are doing is, it's a 30 acre land parcel and we are looking at a Phase 1 and a Phase 2. We are looking at only half of the land parcel right now to construct and the civil work is ongoing right now. So, significant spends haven't happened because construction takes time. I think towards in March '27 financial year, we will have major portion of CAPEX going out for this Rs. 1,000 crore Phase 1 expansion that we are doing. It's still in an early stage civil work mode right now on Unit-4. ... If you look at proportionate CAPEX, including, the other utilities, which is set up as part of the facilities, then it will be about Rs. 200 odd crore.

Guidance & targets

Revenue

  • Full Year Revenue Growth Revenue · FY26 · Medium confidence 15-16%
    In terms of revenue growth, it will be in the mid-teens around 15% to 16% is what we will be anticipating to end the year with.

    — Mr. Gawir Baig

Profitability

  • Full Year EBITDA Margin Profitability · FY26 · High confidence 20% plus
    But our margin guidance of 20% plus on EBITDA and PAT remains intact, and we will look at delivering more than the numbers that we have talked about on it. 20% number for EBITDA and PAT.

    — Mr. Gawir Baig

  • Full Year PAT Margin Profitability · FY26 · High confidence 20% plus

    — Mr. Gawir Baig

Capacity

  • Unit-3 Asset Turn Capacity · in 3 years' time · High confidence 1.4-1.5
    I would say that's a good assumption. Definitely, we have to do it.

    — Mr. Ajay Bhardwaj

Product Launch

  • Advanced Biosimilar Market Entry Product Launch · next two years · Medium confidence in market
    We expect that that should go in the market in the next two years.

    — Mr. Ajay Bhardwaj

Pipeline

  • Early Stage ADC Programs Pipeline · ongoing · High confidence 6-7 programs
    On the early stage, I would say we will have about 6 to 7 programs, which are ongoing.

    — Mr. Gawir Baig

Product Contribution

  • GLP-1 Drugs Revenue Contribution Product Contribution · FY28 · Medium confidence Significant part of turnover, not 20-30%
    But will it be a significant part of our turnover? I would say yes. Will it be 20%-30%? I do not think so. But it still will be a major contributor to our topline as well as the bottom-line.

    — Mr. Ajay Bhardwaj

What to watch in Q4 FY26

FY26 Revenue Growth

Next quarter (FY26 results)
Current 11-12% (9M FY26)
Target 15-16% (full year FY26)

Why it matters

To assess if the anticipated strong Q4 and recovery from destocking materialized, aligning with full-year guidance.

In terms of revenue growth, it will be in the mid-teens around 15% to 16% is what we will be anticipating to end the year with.

Risks & concerns

  • Global Destocking and Market Uncertainty

    high

    Customers reduced safety stocks due to geopolitical tension and uncertainty, impacting 9M FY26 revenue growth.

    Management acknowledged

  • Clinical Trial Risk for Pipeline Molecules

    medium

    Progression of early-phase molecules to Phase 3 is subject to clinical trial success and associated risks.

    Management acknowledged

  • Aggressive Competition in Semaglutide

    medium

    China is expected to be very aggressive in the Semaglutide market, requiring Anthem to leverage its backward integration for competitiveness.

    Management acknowledged

  • Lag in New Product Ramp-up

    medium

    Newly approved products, especially from small biotechs, take time to achieve full commercial success, often requiring Big Pharma involvement.

    Management acknowledged

Q&A highlights

7 direct
Full Year Guidance & Margin Sustainability Direct
In terms of revenue growth, it will be in the mid-teens around 15% to 16% is what we will be anticipating to end the year with. But our margin guidance of 20% plus on EBITDA and PAT remains intact...

Clarified full-year revenue growth expectations and reaffirmed margin targets despite 9M performance.

Asked by Vivek Agrawal

Structural Nature of Margin Expansion Direct
What had happened over the course of this financial year is, we have completely discontinued China supplies because now we manufacture the intermediate in-house by procuring the raw materials, so we are completely backward integrated, and hence that shift is seen in the material margin improvement.

Confirmed that margin improvements are structural due to backward integration, providing confidence in their sustainability.

Asked by Vivek Agrawal

Reasons for Slowdown and Future Outlook Direct
This is a global phenomenon because we have had a very turbulent last year in terms of uncertainty in the marketplace and uncertainty with regard to funding as well as our customers' future plans. What many companies did is they have destocked a little bit...

Provided context for the moderated growth, attributing it to macro factors like destocking, and expressed optimism for FY27/FY28.

Asked by Vivek Agrawal

Semaglutide API Opportunity and Competition Direct
So, even in the case of Semaglutide, we are arguably the most backward integrated company in the country. Over the long term, we see a very good play in it.

Highlighted Anthem's competitive advantage in Semaglutide through backward integration and its long-term strategic focus on peptides.

Asked by Bansi Desai

Capacity Utilization and Expansion Plans Direct
Unit-1 is a small-scale facility, 25 kiloliters, custom synthesis capacity and we are almost operating at about close to 75% occupancy over there. ... On 300 kiloliters of capacity, we are roughly about 75% utilized over there. We have close to about 20% incremental capacity to add up over there.

Provided detailed insights into current capacity utilization and confirmed sufficient headroom for growth, along with future expansion plans for Unit-4 and peptide facilities.

Asked by Amey Chalke

Differentiation in Peptides and Biosimilars Direct
As a competitiveness or a differentiator to customers, we have the ability of doing discovery development and commercial manufacturing on peptides and commercial and manufacturing at scale with the new facility which has just come up.

Articulated Anthem's unique value proposition in peptides, covering the entire value chain from discovery to commercial scale, and outlined its strategy in biosimilars.

Asked by Neha Manpuria

Ramp-up of Newly Approved Molecules Partial
They have contributed revenues for this nine months because customers have taken smaller batches because they are just looking at launching this product in the market. But, I think the major impact we will get to see only towards end of this calendar year...

Provided clarity on the current contribution and future ramp-up timeline for new products, indicating a lag between approval and full commercial success.

Asked by Jash Gandhi

Unit-4 CAPEX Progress and Biosimilar Pipeline Direct
Currently, the civil work is going on. What we are doing is, it's a 30 acre land parcel and we are looking at a Phase 1 and a Phase 2. ... On the early stage, I would say we will have about 6 to 7 programs, which are ongoing.

Gave an update on the significant Unit-4 CAPEX and revealed the number of early-stage ADC programs in the pipeline, signaling future growth areas.

Asked by Kartik Bane

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Detailed narrative

Robust Margin Expansion Driven by Backward Integration

Anthem Biosciences demonstrated strong profitability in 9M FY26, with an EBITDA of ₹671 crore and an EBITDA margin of 41.5%. This represents a 23% growth in EBITDA year-on-year. Management highlighted that this margin improvement is structural, primarily due to the company's decision to discontinue sourcing intermediates from China and instead manufacture them in-house. This backward integration has led to improved material margins and, combined with operating leverage from controlled other expenses, is expected to sustain the current margin profile.

Moderated Revenue Growth with Optimistic Outlook

Consolidated revenue from operations for 9M FY26 stood at ₹1,513 crore, reflecting an 11-12% growth. Q3 FY26 revenue was ₹423 crore, which was lower than the previous year's Q3 due to a higher base. The company attributed this moderation to a global phenomenon of destocking by customers, market uncertainty, and funding challenges. Despite this, management expressed confidence in delivering a strong finish to FY26, with Q4 historically being the strongest, and projects full-year revenue growth in the mid-teens (15-16%). They are very positive about FY27 and FY28, anticipating a market correction.

Strategic Capacity Expansion Underway

Anthem is proactively expanding its manufacturing capacity to support future growth. Unit-1 operates at approximately 75% occupancy, while Unit-2, with 376 kiloliters of custom synthesis capacity, is also around 75% utilized on its 300 kiloliters, with an additional 76 kiloliter block (CP7) yet to be utilized. The Neo Anthem (Unit-3) facility is currently underutilized but offers significant scope for expansion. A substantial CAPEX of ₹1,000 crore is planned for Phase 1 of Unit-4, with civil work ongoing and major expenditures expected by March FY27. Additionally, a new 16 kiloliter peptide facility is being developed with an estimated CAPEX of ₹200 crore.

Diversified and Advancing Pipeline

The company maintains a robust pipeline, including 130-140 early-phase molecules, with 5-6 in Phase 2 expected to progress to Phase 3 within 18-30 months. Currently, 6 molecules are in Phase 3, with 4 already commercialized. Anthem has successfully added more than one large pharma customer this year and secured 4 new product approvals. Management anticipates that these newly approved products, while requiring some time for full ramp-up, will become significant revenue drivers in 3-4 years, especially as they gain traction in the market.

Focus on Peptides and Biosimilars as Key Growth Drivers

Peptides, including GLP-1, and biosimilars are identified as key growth areas. Anthem is fully backward integrated in GLP-1 manufacturing, from fermentation to synthesis, positioning it competitively against aggressive Chinese players. The company has 8-9 innovator peptide programs under development and a 16 kiloliter commercial-scale facility. In biosimilars, Anthem is developing a microbial biosimilar for a US customer, with two 200-liter fermentation trains, aiming to shift the customer's production to India for cost and technology advantages. Other advanced biosimilar projects are also in the pipeline, with one expected to market in the next two years.

Favorable Regulatory and Geopolitical Environment

Management noted an improving biotech funding environment, evidenced by an increase in Requests for Quotations (RFQs). The easing of geopolitical tensions, particularly in trade relations with the US and the EU-India trade deal, is expected to create a more stable and conducive business environment. The Indian government's increasing focus on biotech as a strategic sector, coupled with incentives and PLI schemes, is viewed as a positive tailwind for Anthem's continued growth and investment in technology.

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