Synopsis: CRDMO company stock fell 7 percent after weak Q1 FY27 results, although management expects stronger deliveries in H2 FY27 and maintained healthy operating margins.
The share of this company, which is a leading Indian contract research, development, and manufacturing organization, came under pressure after the company reported weak Q1 numbers
With a market capitalization of Rs 43,304 crore, Anthem Biosciences Ltd’s share on Wednesday made a day low of Rs 735 per share, down by 7.1 percent from its previous close price of Rs 791.70 per share. The share of this company has given 5.42 percent over the last year.
Result Overview
QoQ View
The revenue from operations declined by 31.5 percent QoQ to Rs 418.2 crore in Q1 FY27 from Rs 610.9 crore in Q4 FY26. EBITDA fell by 44.9 percent QoQ to Rs 175.5 crore from Rs 318.4 crore, while the EBITDA margin declined to 39.6 percent from 52.1 percent.
This was accompanied by a PAT decline of 36.8 percent QoQ to Rs 119.9 crore in Q1 FY27 from Rs 189.8 crore in Q4 FY26, with the PAT margin falling to 27.1 percent from 31.1 percent.
YoY View
The revenue from operations declined by 22.6 percent YoY to Rs 418.2 crore in Q1 FY27 from Rs 540.2 crore in Q1 FY26. EBITDA fell by 18.1 percent YoY to Rs 175.5 crore from Rs 214.3 crore, although the EBITDA margin improved to 39.6 percent from 39.4 percent.
This was accompanied by a PAT decline of 11.7 percent YoY to Rs 119.9 crore in Q1 FY27 from Rs 135.8 crore in Q1 FY26, while the PAT margin improved to 27.1 percent from 25.1 percent.
Segment Performance
The CRDMO business remained the company’s largest revenue contributor, generating Rs 340.8 crore in Q1 FY27. However, revenue declined from Rs 512.8 crore in Q4 FY26 and Rs 452.7 crore in Q1 FY26, mainly due to a lower number of scheduled deliveries during the quarter.
The Speciality Ingredients segment reported revenue of Rs 77.4 crore in Q1 FY27, compared to Rs 98.1 crore in Q4 FY26 and Rs 87.5 crore in Q1 FY26. Overall, total segment revenue stood at Rs 418.2 crore, down from Rs 610.9 crore in Q4 FY26 and Rs 540.2 crore in Q1 FY26.
Why H2 FY27 Could Be Better for Anthem Biosciences?
Q1 Weakness Linked to Delivery Timing
The company said its weak Q1 FY27 performance was mainly due to the timing of deliveries to key customers and not because of lower demand. Management said demand remains healthy and expects a higher share of scheduled deliveries to happen in the second half of FY27, which could support better revenue growth.
Margins Stayed Strong
Despite lower revenue, Anthem Biosciences maintained healthy profitability. EBITDA stood at Rs 175.5 crore with an EBITDA margin of 39.6 percent, while PAT came in at Rs 119.9 crore with a PAT margin of 27.1 percent. The company said better cost control, improved production yields, and higher employee productivity helped support margins.
Strong Cash Position
The company remained financially strong with Rs 1,719.7 crore in net cash at the end of Q1 FY27. This gives Anthem enough flexibility to invest in capacity expansion, manage short-term business fluctuations, and take up larger customer orders without relying on debt.
Growth Pipeline Remains Healthy
Anthem Biosciences continues to have a strong growth pipeline, supported by 14 commercial molecules and 10 Phase III molecules. With significant manufacturing capacity already in place, the company is well positioned to increase production and meet higher customer deliveries in the second half of FY27.
Conclusion: Anthem Biosciences reported a weak start to FY27 due to delayed customer deliveries, which impacted revenue and profit. However, strong margins, a debt-free balance sheet with Rs 1,719.7 crore in net cash, and a healthy pipeline of commercial and late-stage molecules indicate the company remains well placed for a stronger second half of FY27 if deliveries pick up as expected.
About the Company
Incorporated in 2006, Anthem Biosciences Ltd is in the business of providing CRDMO services and the manufacture and sale of specialty ingredients. It delivers Integrated CRDMO services across discovery, development, and commercial manufacturing for small molecules, peptides, lipids, oligos, high-potent APIs, and large molecules.
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