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Anthem Bioscienc
Our verdict on Anthem Bioscienc isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The company reported EBITDA margins of 44.5% for Q2FY26 and 41.4% for H1FY26, significantly exceeding the 38% target range. (5 exceeded across 5 tracked commitments)
“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.”
The company reports that 9MFY26 revenue from Specialty Ingredients (primarily produced at Unit III) is at Rs. 253.5 Cr (INR 2,535 Mn), suggesting the target for the unit is likely to be met or exceeded by year-end. (1 in progress, 2 met across 3 tracked commitments)
“Our idea would be to push this number to say Rs. 100 Cr - Rs. 150 Cr, by which time we would be supplying. This has been our strategy. We don't like to keep our plants vacant.”
See the full cited Management analysis of Anthem Bioscienc
How durable is the business?
The CRDMO segment showed significant expansion, delivering INR 452.7 crores in revenue for Q1 FY26, driven by increased demand for commercialized products from 5-6 key clients. (5 expanding)
“The CRDM business delivered INR452.7 crores revenues out of that... The strong year-on-year growth in this quarter FY26 reflects our CRDM or revenue stream that started ramping up in Q2 of FY25.”
Backward integration for a key intermediate has been completed, which is expected to protect and improve gross margins in future quarters. (5 expanding)
“We source the raw material, manufacture the intermediates, manufacture the API and supply to the customer, and we are not reliant on any external source. The backward integration had helped us in terms of improving our material margins.”
See the full cited Business Model analysis of Anthem Bioscienc
Where does growth come from?
Expansion is accelerating with the recent commissioning of the CP7 block in Unit-2 and ongoing civil work for the massive Unit-4 facility, which is expected to see major capital outflow by March 2027. (1 accelerating, 1 new trend, 3 steady across 5 signals, 2 leading indicators)
“In Phase 1 of that expansion, and we are looking at investing almost about Rs. 1,200 odd crores across two years... 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.”
The number of commercial molecules has increased from 10 at the time of IPO to 14 currently, representing a 40% growth in the commercial portfolio. (3 accelerating, 2 steady across 5 signals)
“the current contribution from these four molecules will be in the range of closer to about 8% to 9% of our revenues... It takes two to three years to build to have the ramp-up.”
See the full cited Future Growth analysis of Anthem Bioscienc
What could break the thesis?
The company's net cash position has significantly improved to ₹9,934 Mn as of Sept 30, 2025, up from ₹7,848 Mn in the previous quarter, providing a larger buffer for upcoming capital expenditures. (1 easing, 4 stable, 2 high-severity)
“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... Unit 4 is going to be much larger than all the units put together.”
The risk is intensifying due to increased political rhetoric regarding drug pricing and potential US tariffs, though management believes their European supply route provides a buffer. (5 intensifying)
“the net expense recognized in "Exceptional Item" amounts to Rs. 243.91 million in the Consolidated financial results... arising due to change in wage definition and gratuity provisions.”
See the full cited Risk analysis of Anthem Bioscienc
Read the full thesis on Anthem Bioscienc
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