Anthem Biosciences Ltd

Financial Performance

• Consolidated quarterly revenue: Rs 418 crores.
• CRDMO contributed Rs 341 crores, 81.5% of revenue.
• Specialty Ingredients contributed Rs 78 crores, 18.5% of revenue.
• EBITDA: Rs 176 crores; margin 39.6%.
• EBIT includes Rs 25 crores of other income.
• PBT: Rs 145 crores.
• PAT: Rs 120 crores; margin 27.1%.
• Net cash at June 30, 2026: Rs 1,720 crores.
• Q1 results reflect timing shifts in deliveries.
• Underlying demand remains strong with deliveries concentrated in the latter half.
• Margins improved YoY across EBITDA and PAT.
• Cost efficiencies, yield optimization, and productivity support margins.
• Committed to sustaining revenue growth aligned with long-term performance.

Capacity and Utilization

• Unit 1 utilization ~78% in Q1 FY27.
• Unit 1 utilization was ~74% at year-end FY26.
• Unit 2 custom-synthesis utilization ~50%; fermentation ~50%.
• Unit 2 expansion added about 130 kiloliters.
• Unit 3 utilization ~30–35% in Q1 FY27.
• FY26 Unit 3 utilization ~15%.
• Unit 4 under construction; commissioning by end-FY28.
• Phase 1 adds 365 kiloliters of custom synthesis and 100 kiloliters of fermentation.
• Unit 4 capex: Rs 1,200 crores.
• Unit 4 site about 30 acres.
• Civil works largely complete; commissioning by end-FY28.
• Phase 1 uses half the area.
• Ramping to near-full capacity across Units 1–3 in two years.

Capex and Projects

• FY27 capex target around Rs 700 crores.
• Unit 4 capex Rs 1,200 crores.
• Phase 1 adds 365 kl custom synthesis and 100 kl fermentation.
• Capex split about 50:50 between FY27 and FY28.
• Unit 4 site ~30 acres; civil works underway.
• End-FY28 Unit 4 readiness.
• FY28 capex remains elevated due to Unit 4.

Guidance and Outlook

• Growth prospects intact; historical double-digit growth; no fixed annual percentage guidance.
• Q2–Q4 upswing expected as deliveries recover.
• FY27 revenue growth in line with history; margins largely intact.
• Tax rate expected around 25% to 25.5% for the full year.
• CDSCO approval awaited for Semaglutide; domestic supply planned.
• AI for QA review and target discovery; potential long-term benefits.
• GLP-1 opportunity remains long-term robust.

Liquidity and Balance Sheet

• Net cash position at 30-Jun-2026: Rs 1,720 crores.
• No material debt-related disclosures this quarter.

Q&A Highlights

• Order book provides ~60% visibility for full-year deliveries.
• One new Big Pharma customer onboarded; biotech acquired by Big Pharma.
• Semaglutide CDSCO approval timing remains pending; domestic supply potential.
• ESOP cost for FY27 is Rs 9 crores; Q1 Rs 2.25 crores.
• About 100+ early-stage programs; 10 late-phase; commercialization in 18–24 months.
• Unit4 capacity aligns with pipeline growth; ramp-up across all units over two years.

Meeting Details

• Date and time: July 22, 2026 at 11:30 AM IST.
• Type and mode: group earnings conference call, virtual.
• Organiser: Anthem Biosciences Limited.

Participants

• Managing Director & CEO.
• Chief Financial Officer.

Purpose

• Discuss Q1 FY27 unaudited standalone and consolidated results.

Additional Notes

• Call details will be available on the company's website.

Anthem Biosciences Ltd board meeting filing dated July 14, 2026

Details status to exchanges

• RTA confirms dematerialised/rematerialised details furnished to all exchanges.
• Registrar's certificate enclosing the details has been submitted.

AGM notice and report access

• Dispatched letters to shareholders without registered emails directing them to the Annual Report web link.
• Annual Report FY2025-26 is available via web link and exact navigation path.
• 20th AGM scheduled July 22, 2026 at 3:30 PM IST via VC/OAVM.
• Regulatory amendment to SEBI LODR 2015 Reg 36(1)(b) replaces hard copy with a web-based document.
• Shareholders without registered emails are requested to update their address with depository participants.

Rating Action & Agencies

• Agency: ICRA Limited.
• Fund-based working capital Rs 175 crore: AA (Stable); outlook Stable; A1+ reaffirmed.
• Term loan Rs 67.50 crore: AA (Stable); outlook Stable; enhanced limit assigned.
• Short-term non-fund based others Rs 10 crore: A1+; enhanced limit.
• Unallocated Rs 23 crore: AA (Stable); outlook Stable; A1+ reaffirmed; enhanced limit.
• Total rated amount Rs 275.50 crore across four facilities.

Outlook & Material Changes

• Outlook revised from Positive to Stable for all long-term ratings.
• Overall rating actions: upgrades/reaffirmations across working capital, term loan, and unallocated.

AGM notice dispatch update

• Newspaper advertisements issued confirming dispatch of AGM notice, annual report, and e-voting details.
• Ads published July 1, 2026 in Financial Express (English) and Vishwavani (Kannada).
• Notice and annual report available on Anthem Biosciences website.

Financials (Consolidated FY2025-26)

• Consolidated revenue from operations: 21,243.33 Mn; up 15.2% YoY.
• EBITDA: 9,896 Mn; EBITDA margin 43.4%.
• Profit after tax: 5,918 Mn; up 31.1% YoY.
• Exports contribute 85% of revenue; CRDMO revenue 83.4% of total.
• IPO listed on NSE/BSE in July 2025; OFS raised INR 33,950 Mn; 67x subscription.

Dividend & IPO details

• Final dividend proposed: INR 2.00 per equity share; record date 26 Jun 2026.
• Dividend payable within 30 days of AGM approval.
• IPO launched July 2025; listing boosted visibility and liquidity.

Capacity expansion & manufacturing

• Unit II expansion completed: Custom Synthesis 376 KL; Fermentation 140 KL; utilization 64.6%/48.7%.
• NeoAnthem Unit III commissioned; 25 KL custom; 40 KL fermentation (to be commissioned).
• Unit IV greenfield: Phase I 365 KL custom, 100 KL fermentation; INR 12,000 Mn; 30-acre site.
• Phase I expected commissioning by March 2028; adds multi-modality capacity.

R&D & innovation

• R&D expense: 181.54 Mn; 0.85% of revenue from operations.
• Key platforms: peptides, oligonucleotides, biocatalysis, flow chemistry; two dedicated R&D centres.
• Patents: 23 filed/pending; 13 patents registered.

ESG, sustainability & CSR

• Renewable energy usage: 94.9% of total energy in FY26.
• Total GHG emissions: Scope 1 17,596 tCO2e; Scope 2 2,338 tCO2e; total 21,488 tCO2e; intensity 0.94 tCO2e/INR Mn.
• Energy intensity: 20.42 GJ per INR Mn; PPP-adjusted 415.34 GJ/Mn USD.
• Waste & water: 99.8% treated wastewater recycled (Units I&II); 91.8% (NeoAnthem Unit III).
• Zero Liquid Discharge (ZLD) implemented; renewable energy targets aligned with SBTi.

Governance & approvals

• Board of eight directors; one woman independent; ESG & CC Committee in place.
• Auditors: SR Batliboi & Associates LLP appointed as Statutory Auditors for 5 years from 2026-27.
• Secretarial: BMP & Co. LLP; ESOP governance and disclosures per regulations.
• 20th AGM scheduled for July 22, 2026; VC/OAVM format; remote e-voting details provided.

Capital structure & promoter ownership

• Equity share capital: INR 1,123.43 Mn; 561.713 Mn shares; promoter stake 68.59%.
• Total equity (consolidated): INR 30,425.16 Mn; debt: INR 1,993.24 Mn.
• Share buy-back completed in 2022; 526.603 Mn bonus shares issued in 2022.
• Post-IPO, promoter holdings remain large; public float supports liquidity.

Related party & governance disclosures

• Significant RPTs with Anthem Biosciences (holding) and Neoanthem Lifesciences (subsidiary).
• Intercompany loans: substantial balances and interest flows; equity investments issued to the holding company.
• ESOPs granted via Anthem; related disclosures available in annual report.

Outlook & risks

• CRDMO outsourcing market to grow 13-15% CAGR; India positioned for share gains.
• Rising demand for biologics, peptides, ADCs, oligos; investments in advanced modalities.
• Key risks: regulatory changes, global supply-chain diversification, FX volatility, and capital-intensity of expansions.

Overview

• Anthem Biosciences provides contract research, development and manufacturing services (CRDMO).
• Consolidated BRSR FY2025-26 disclosures with limited assurance on Core indicators.
• Exports account for 85% of turnover; serves 50 countries and 25 Indian states.
• Three Indian manufacturing plants; no international plants; reporting boundary is consolidated.
• Permanent employees 2,282; workers 1,020; female share of permanent workforce 16%.

Key ESG Risks & Opportunities

• Energy/climate risk from rising costs and regulations; mitigated via DCS automation, PNG boiler fuel, and green chemistry.
• Board-level ESG & Climate Change Committee oversees climate risks, opportunities, and performance.
• Economic performance risk from funding cycles; opportunity via expanded CRDMO and specialty ingredients.
• Water risk: ZLD at all sites; majority water from third-party supply; recycling improves resilience.
• Waste management and safety: e-manifest tracking; zero LTIFR; proactive audits.
• Technology innovation: dedicated R&D centers and advanced manufacturing; capex risk but growth opportunity.
• Anti-corruption and governance: strong policies; Vigil Mechanism; no penalties in FY2025-26.
• IT/cybersecurity: SAP S/4HANA backbone; cloud QMS; access controls mitigate data risks.
• Regulatory compliance: multi-jurisdiction approvals; ISO 14001/45001; risk reviews biannually.
• Talent and succession: formal development programs; attrition risk mitigated via structured planning.

Governance & Policy Highlights

• ESG & Climate Change Committee oversees environmental, social, governance topics at board level.
• Policies cover Anti-Bribery, AML, Code of Conduct, Whistleblower, Conflict of Interest, CSR, Human Rights.
• Policies translated into procedures; extend to value chain partners; board-approved with web access.
• Certifications: ISO 14001:2015; ISO 45001:2018; POSH; EPR and other statutory standards.
• Independent assurance on BRSR Core indicators provided by Vinay & Keshava LLP.

Social Responsibility & Workforce

• Permanent employees: 2,282; 1,909 male, 373 female; 16% female share.
• Board women: 12.5%; KMP women: 20%.
• OHS/ISO: ISO 45001 and ISO 14001 across sites; zero LTIFR.
• Permanent staff receive 100% health insurance and maternity benefits.
• Grievance mechanisms include on-site box and dedicated email for employees.
• 100% of value chain partners assessed for health, safety and working conditions; nine partners identified.
• Return-to-work rate: 100% for permanent parental leave; workers not applicable.
• CSR focus areas include technology incubation, education, women empowerment, healthcare, and environment.

Environmental Performance

• Total energy consumed: 433,798 GJ; renewables 230,595 GJ (53% share).
• Scope 1: 17,596 tCO2e; Scope 2: 2,339 tCO2e; total intensity 0.94 tCO2e per Rs million.
• Energy intensity: 20.42 GJ per Rs million turnover; PPP-adjusted 415.34.
• Waste generated: 10,230.5 MT; recycled 6,330.5 MT; disposed 3,708.5 MT (landfill/incineration).
• ZLD implemented at three locations; 98.6% effluent recycled for utilities/gardening.
• Plastic waste EPR targets achieved; CPCB targets met; plastics collected via KSPCB-authorized recyclers.

Stakeholder Engagement & Complaints

• Key stakeholder groups: employees, investors, customers, vendors, communities; engaged via email, website, meetings.
• Engagement frequency: as needed; topics include governance, welfare, and business engagement.
• FY2025-26 complaints from stakeholders: 0; no unresolved complaints carried forward.

Other Notable Metrics

• EcoVadis assessment: Environment 64/100; Labour & Human Rights 56/100; Ethics 37/100; Sustainable Procurement 24/100.
• Value chain: 100% of nine identified partners assessed for environmental impacts.
• Energy leadership claim: 95% renewable energy per leadership notes; energy balance shows 53% renewables.
• Data privacy/cybersecurity: cyber policy in place; no data breaches reported during the period.