Anthem Biosciences Limited — Q4 FY26 earnings call

Call held 20 May 2026

Management summary

Anthem Biosciences reported a strong Q4 and full-year FY26 performance, driven by robust growth in its CRDMO business and significant margin expansion. The company outlined substantial capex plans for Unit 4 to double custom synthesis capacity and enhance fermentation capabilities, aiming for continued sustainable growth. Management expressed confidence in its technology-led approach, competitive positioning in peptides, and ability to maintain high profitability despite market dynamics.

Highlights

  • Consolidated revenue for FY26 reached ₹2,280 crores, an 18% YoY growth.

  • EBITDA for FY26 grew 31% YoY to ₹990 crores, with margins expanding 420 bps to 43.4%.

  • Q4 FY26 saw the highest-ever quarterly revenue at ₹611 crores, a 26% YoY increase.

  • Q4 FY26 PAT surged 130% YoY to ₹190 crores, with PAT margins at 28.7%.

  • Net cash position as of March 31, 2026, stood strong at ₹1,375 crores.

Key financials

2 periods

Q4 FY26

  • Consolidated Revenue
    ₹611 Cr
    YoY +26%
  • EBITDA
    ₹318 Cr
    YoY +52%
  • EBITDA Margin
    48.1%
  • PAT
    ₹190 Cr
    YoY +130%

FY26

  • Total Revenue
    ₹2,280 Cr
    YoY +18%
  • EBITDA
    ₹990 Cr
    YoY +31%
  • EBITDA Margin
    43.4%
  • PAT
    ₹592 Cr
    YoY +31%

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 (FY26)
₹2,125 Cr Total
  • CRDMO ₹1,773 Cr 83.4%
  • Specialty Ingredients ₹352 Cr 16.6%

Capital allocation

high confidence
  • Capex ₹1,200 Cr
    • Unit 4 Phase 1 expansion, adding 365 kiloliters of custom synthesis capacity and 100 kiloliters of fermentation
    • Unit 2 and Unit 3 ongoing expansion (CWIP)
    In Phase 1 of that expansion, and we are looking at investing almost about Rs. 1,200 odd crores across two years, this year FY27 and in FY28. We aim to complete the Phase 1 expansion by March '28 financial year, maybe towards the latter half of March '28. This will add close to about 365 kiloliters of custom synthesis capacity and 100 kiloliters of fermentation vis-à-vis our current capacity which is 425 kiloliters custom synthesis and 180 kiloliters fermentation. We are more or less doubling on custom synthesis and adding 50% more on the fermentation side. So, that's on Unit 4.
  • Debt Net cash ₹1,375 Cr
    Net cash position as of March 31, 2026, is Rs. 1,375 crores.
  • Liquidity Cash ₹1,375 Cr Cash situation allows flexibility for future opportunities.
    Net cash position as of March 31, 2026, is Rs. 1,375 crores. Our cash situation allows us to be flexible; we can look at these possibilities.

Guidance & targets

Revenue Growth

  • Overall Revenue Growth Revenue Growth · coming years · High confidence 20% and more
    Well, thanks, Bansi. Just an overall comment, if you look at our track record, we have delivered growth in the vicinity of 20% and more, and that's what we aspire to even in the coming years.

    — Ajay Bhardwaj

Capex

  • Unit 4 Capex (FY27-FY28) Capex · FY27 and FY28 · High confidence ₹1,200 crores
    In Phase 1 of that expansion, and we are looking at investing almost about Rs. 1,200 odd crores across two years, this year FY27 and in FY28.

    — Gawir Baig

  • FY27 Capex Capex · FY27 · High confidence ₹700 crores
    Roughly about Rs. 700 crores and then post that will be about Rs. 500 crores.

    — Gawir Baig

  • FY28 Capex Capex · FY28 · High confidence ₹500 crores

    — Gawir Baig

Capacity Addition

  • Unit 4 Custom Synthesis Capacity Capacity Addition · by March '28 · High confidence 365 kiloliters
    This will add close to about 365 kiloliters of custom synthesis capacity and 100 kiloliters of fermentation vis-à-vis our current capacity which is 425 kiloliters custom synthesis and 180 kiloliters fermentation.

    — Gawir Baig

  • Unit 4 Fermentation Capacity Capacity Addition · by March '28 · High confidence 100 kiloliters

    — Gawir Baig

Project Completion

  • Unit 4 Phase 1 Completion Project Completion · March '28 · High confidence March '28
    We aim to complete the Phase 1 expansion by March '28 financial year, maybe towards the latter half of March '28.

    — Gawir Baig

Profitability

  • EBITDA and PAT Margins Profitability · going forward · Medium confidence constant
    Our aspiration across all the parameters, whether it is revenue, EBITDA, or PAT, is the same. If we continue to grow our business in a particular growth rate; our costs are also escalating in a similar growth rate. With a little bit of an operating leverage, we'll be able to keep our margins constant and continue to have witness a similar growth trajectory in EBITDA as well as in a PAT term.

    — Gawir Baig

Specialty Ingredients Growth

  • Specialty Ingredients Revenue Growth Specialty Ingredients Growth · ongoing · Medium confidence 20%
    Overall, a 20% growth for specialty ingredients as well.

    — Ajay Bhardwaj

Operational Status

  • Unit 3 Profitability Operational Status · this year · High confidence positive territory
    Unit 3 is already turning around and it's going to be in the positive territory this year.

    — Ajay Bhardwaj

  • Unit 4 Readiness Operational Status · next financial year · High confidence ready
    Unit 4 will be ready by the next financial year.

    — Ajay Bhardwaj

What to watch in Q1 FY27

Unit 3 Profitability

This year (FY27)
Current Turning around
Target Positive territory

Why it matters

Indicates successful operationalization and contribution from new capacity.

Unit 3 is already turning around and it's going to be in the positive territory this year.

Risks & concerns

  • Destocking impact on sales

    low

    Destocking had some impact in FY26 but is now mostly behind the company, with expectations of restocking.

    Analyst acknowledged

  • Capacity constraints for growth

    low

    Management states capacity is not a constraint due to Unit 2 expansion, Unit 3 commissioning, and upcoming Unit 4.

    Analyst addressed

  • Tariff situation and geopolitical headwinds

    low

    Tariffs not a problem due to separate deals with big pharma; acknowledges inflationary pressures but confident in technology platforms.

    Analyst downplayed

  • AI disruption in discovery stage

    low

    AI will aid discovery and optimization, but manufacturing remains critical; company is exploring relevant AI applications.

    Analyst acknowledged

  • Competition in Peptides/GLP-1

    low

    Anthem is highly competitive in GLP-1 with strong cost of goods, rivalling even Chinese players.

    Analyst downplayed

Q&A highlights

7 direct
CRDMO growth outlook and destocking impact Direct
On the question of destocking, that portion, there was definitely there with many of our customers, but you have seen that in spite of that we have delivered such good growth. So, going forward, when things get better and when this situation of destocking now swings to restocking, I think Anthem would be even in a better place. I think mostly it's behind us, and we expect that this will have a very positive impact on Anthem's top line and bottom line.

Addresses a key concern about past headwinds and provides a positive outlook for future growth drivers.

Asked by Bansi Desai

Augmenting innovator relationships and capacity as a constraint Direct
Well, yes, it is already, as you rightly said, and there have been two notable additions last year in big pharma, which we didn't have earlier. We expect those relations to broaden... capacity will not be a constraint. Unit 2 expansion added significant capacity... Unit 3 is also fully up and running right now. What we are doing in Unit 4 is more to make ourselves future-ready...

Highlights successful expansion of big pharma client base and assures that capacity is not a bottleneck for future growth.

Asked by Bansi Desai

Strategy for agile, future-ready CRDMO platform and M&A Direct
Anthem is doing is investing in technology... We are looking at can we do this in a continuous fashion? Can we change it to bringing better automation and control? Can we also do more green chemistry? ...Secondly, in terms of acquisitions and growth, apart from our organic growth... we are not averse to looking at acquisitions, both in India and abroad. We are actively searching.

Outlines strategic pillars for long-term growth, focusing on technology and a disciplined approach to inorganic expansion.

Asked by Saion Mukherjee

Capex plans for next year and medium-term Direct
In terms of our capex plan, the first and the major capex what we're incurring right now is on Unit 4... We are looking at investing almost about Rs. 1,200 odd crores across two years, this year FY27 and in FY28... Roughly about Rs. 700 crores and then post that will be about Rs. 500 crores.

Provides specific financial commitments for future capacity expansion, indicating significant investment in growth.

Asked by Saion Mukherjee

GLP-1 opportunity, competitive differentiation, and growth rate Direct
We're in a very good position as far as GLP-1 goes, but this will be in the after most of them have launched and so, we will be in a good place to replace imports. That is a position that we've always been strong in... We absolutely approach every problem from a new technology solution, and which our clients love. I think that gives us a lot of visibility and traction with our clients.

Clarifies the company's strong competitive stance in the GLP-1 market and its unique technology-driven approach as a key differentiator.

Asked by Vivek Gautam

Large molecule CRDMO, India's cost advantage, and innovator willingness Direct
Anthem is as I said, is focused equally and not all our peers in India at least are, we are focused very well on biology as well as chemistry. We're making investments in this space as well, so that we can do large molecules manufacture... The problem if there are any lies in the capacities. In Korea particularly and in China also, the large companies have built up massive capacities. In that sense, they are ahead of us.

Explains the company's strategy for large molecules, acknowledging capacity challenges in India compared to global players but highlighting growing innovator acceptance.

Asked by Dhawal Khut

Specialty Ingredients order book concept and margin maintenance Direct
We don't have order book sort of a concept in specialty ingredients, because we manufacture and then we try to sell to the customers who are already taking the product across multiple geographies and across multiple product categories... We are very confident. Now, we are also adding in Unit 4 a dedicated facility, this is something, which has been lacking.

Clarifies the business model for specialty ingredients and outlines plans to improve its growth and profitability by dedicating capacity.

Asked by Ashish

Impact of AI on CRDMO space and manufacturing Partial
Okay, Amey, what we hear is that it will be a big aid in discovery, which is identification of molecules given a particular target. It will do it far faster and better... But at the end of the day, somebody has to get into the plant and manufacture, and that's 83% of our business, it's a very high percentage of our business. We feel that we are a little protected, manufacturing still has to be done.

Management acknowledges AI's potential in discovery and optimization but emphasizes the continued importance of physical manufacturing, where Anthem has a strong position.

Asked by Amey Chalke

3 min read 6 chapters

Detailed narrative

Robust FY26 and Q4 Financial Performance

Anthem Biosciences delivered a strong financial performance for FY26, with consolidated revenue from operations reaching ₹2,124 crores and total revenue, including other income, at ₹2,280 crores, marking an 18% year-over-year growth. The company's EBITDA for the full year grew 31% to ₹990 crores, with EBITDA margins expanding by 420 basis points to 43.4%. Profit after tax for FY26 also saw a 31% increase, reaching ₹592 crores with PAT margins of 26%. Q4 FY26 was the highest revenue quarter ever, with consolidated revenues of ₹611 crores (26% YoY growth) and PAT surging 130% YoY to ₹190 crores, achieving a PAT margin of 28.7%.

CRDMO Business as a Key Growth Driver

The CRDMO business was a primary contributor to Anthem's success, accounting for 83% of the total revenue and delivering ₹1,773 crores in FY26, an 18% growth over the previous year. In Q4 FY26, the CRDMO segment grew 31% YoY to ₹513 crores. Management highlighted that destocking impacts witnessed in FY26 are largely resolved, with expectations of restocking positively influencing future top and bottom lines. The company continues to strengthen relationships with big pharma, having added two notable clients last year, and anticipates further broadening these connections, especially as small biotech projects in Phase 3 get acquired by larger entities.

Strategic Capacity Expansion with Unit 4

Anthem Biosciences is undertaking a significant capacity expansion with Unit 4, its largest project to date, involving an investment of approximately ₹1,200 crores over FY27 and FY28. This expansion aims to add 365 kiloliters of custom synthesis capacity and 100 kiloliters of fermentation capacity, effectively doubling custom synthesis and adding 50% to fermentation capabilities. Phase 1 of Unit 4 is targeted for completion by March 2028. For FY27, the company projects a capex of roughly ₹700 crores, followed by about ₹500 crores in FY28, ensuring future readiness and supporting anticipated growth.

Specialty Ingredients Segment Strategy

The Specialty Ingredients segment contributed ₹352 crores to FY26 revenue, with Q4 FY26 revenue at ₹98 crores, an 8% YoY growth. Management noted that growth in this segment had been 'patchy' due to CRDMO projects sometimes cannibalizing shared facilities. To address this, Anthem is dedicating a new facility within Unit 4 for specialty ingredients, aiming for a 20% growth trajectory similar to its CRDMO business. This strategic move is expected to provide the necessary focus and capacity for consistent growth in products like serratiopeptidase, vitamins, and probiotics, catering to Indian and ROW markets.

Competitive Edge in Peptides and GLP-1

Anthem Biosciences maintains a strong competitive position in the peptides market, particularly for GLP-1 type peptides, boasting extremely competitive costs of goods that rival even Chinese manufacturers. The company is actively engaging with major players to offer India-based alternatives to imports. Management emphasized its differentiation through a technology-led approach to problem-solving, which is highly valued by clients. This focus on advanced technology and cost-effectiveness positions Anthem favorably to capitalize on the growing GLP-1 market as new formulations are launched.

Technology Investment and Disciplined M&A Approach

The company is heavily investing in technology to build a more agile, science-led, and future-ready CRDMO platform. This includes exploring continuous manufacturing, automation, green chemistry, and relevant AI applications to optimize processes and improve margins. While actively searching for inorganic growth opportunities both in India and abroad, Anthem maintains a disciplined approach, committing to acquisitions only if they make strategic sense and involve the 'right asset.' The company's strong net cash position of ₹1,375 crores provides flexibility for such strategic initiatives.

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