💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue reached INR 1,090 Cr in H1 FY26. The CRDMO business contributed INR 926 Cr (85% of total), while Specialty Ingredients contributed INR 163 Cr (15% of total). The company saw historical growth of 34% in FY2024 and 29% in FY2025, driven by USFDA approvals and capacity ramp-ups.

Geographic Revenue Split

Not explicitly disclosed in available documents, though the company derives major revenues from innovators in regulated markets like the US and Japan.

Profitability Margins

PAT margin improved to 26.6% in H1 FY26 (INR 309 Cr) from 25.6% in FY2025. Operating margins were 37% in FY2025, impacted by ESOP charges and external sourcing of intermediates, but recovered to 41.4% in H1 FY26 due to operating leverage and lower employee costs.

EBITDA Margin

EBITDA margin stood at 41.4% (INR 480 Cr) in H1 FY26, a significant increase from 37% in FY2025. This was driven by a reduction in employee costs from 16-17% to 12.5% of sales and a INR 34 Cr forex gain (contributing 2-3% to the margin).

Capital Expenditure

Anthem is executing a massive expansion: INR 150 Cr for Unit 2 (130 kL expansion), INR 550 Cr for Unit 3 (Neoanthem greenfield), and a planned INR 1,000 Cr for Unit 4 at Harohalli to be operational by FY2028.

Credit Rating & Borrowing

ICRA revised the outlook to Positive from Stable on long-term ratings. Borrowing is used for capex, with repayment obligations of INR 19.0 Cr annually for FY2026, FY2027, and FY2028.

⚙️ Operational Drivers

Raw Materials

Advanced intermediates and API raw materials. External sourcing of intermediates for a specific API caused a margin contraction in FY2024 because the supply chain was not fully backward integrated.

Capacity Expansion

Current synthesis capacity was 270 kL in FY2024, expanding by 130 kL (Unit 2) to reach 400 kL by H1 FY2026. A new INR 450 Cr block for peptides, high-potent compounds, and fermentation is expected to generate INR 650 Cr in revenue (1.4x-1.5x asset turnover).

Raw Material Costs

Raw material costs impacted margins in FY2024 due to lack of backward integration for one API. The company is streamlining manufacturing to shift to in-house production to protect the 37% margin floor.

Manufacturing Efficiency

H1 FY26 utilization stood at 70% for custom synthesis and 55% for fermentation. The company aims for a 1.4x to 1.5x asset turnover on new capital blocks.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved by scaling commercial molecules from 10 to 14, commissioning the INR 1,000 Cr Unit 4 by FY2028, and ramping up the Neoanthem greenfield facility. The company is also targeting 'second source' supply opportunities for commercialized molecules.

Products & Services

Contract Development and Manufacturing Services (CDMO) for NCE and NBE molecules, advanced intermediates, APIs, specialty ingredients, peptides, and high-potent compounds.

Brand Portfolio

Anthem Biosciences, Neoanthem Lifesciences.

New Products/Services

Added 4 new commercial molecules in H1 FY26, bringing the total to 14. New high-end manufacturing for peptides and high-potent compounds is being introduced.

Market Expansion

Expansion into high-potent compounds and peptides; greenfield expansion via Unit 3 and Unit 4 in Bangalore to service regulated market innovators.

Market Share & Ranking

Described as a 'mid-sized player' in the highly competitive CRAMS/CDMO industry.

Strategic Alliances

True North acquired a minority stake in April 2021. The company works as a strategic partner for global pharmaceutical innovators.

🌍 External Factors

Industry Trends

The CDMO industry is seeing an inflow of RFPs to Indian companies. Anthem is positioning itself by building capacity ahead of demand ('build it and they will come' strategy) to capture 20% CAGR.

Competitive Landscape

Highly competitive CRAMS industry with both domestic and international mid-to-large scale players.

Competitive Moat

Moat is built on USFDA-approved facilities, a large scientific workforce (>1,000 scientists), and a track record with innovators. Switching costs are high once a molecule moves to commercial scale with a specific CDMO.

Macro Economic Sensitivity

Sensitive to biotech funding cycles, though the company reported no major impact from the recent 'funding drought' in the biotech sector.

Consumer Behavior

Shift toward outsourcing drug discovery and development by big pharma and biotech to specialized CDMOs to reduce time-to-market.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to stringent manufacturing standards from USFDA, PMDA (Japan), EDQM, ANVISA, TGA, and DCGI. Unit 2 received USFDA approval in June 2023.

⚠️ Risk Analysis

Key Uncertainties

Developmental risk: Failure of a drug in Phase 3 clinical trials can result in 100% loss of expected commercial revenue for that molecule.

Geographic Concentration Risk

Manufacturing is highly concentrated in Bangalore (Units 1, 2, 3, and 4).

Third Party Dependencies

Dependency on innovators' clinical success and market acceptance of their end products.

Technology Obsolescence Risk

Risk is managed by investing in high-end peptide and biotransformation technologies.

Credit & Counterparty Risk

Liquidity is strong with INR 993 Cr cash in hand as of Sept 2025; working capital utilization is moderate at 54.3%.