Q2 FY27 results analysis · November 03, 2026
Anthem Biosciences Ltd Q2 FY27 Results Analysis: EBITDA Margin Tops 50%, PAT Jumps 22%
+21.9%PAT year on year, Rs. 211.46 Cr
Source: Quarterly results filing (NSE)
Quick summary
Anthem Biosciences Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 594.03 Cr (+7.91% YoY) and PAT growth of +21.93% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 594.03 Cr (+7.91% YoY) |
| PAT (Q2) | Rs. 211.46 Cr (+21.93% YoY) |
| EBITDA margin | 50.60% (+611 bps YoY) |
| EPS (Q2) | Rs. 3.75 (+21.36% YoY) |
Quarter Snapshot
Q2 FY27 validated management's delivery-recovery guidance: revenue snapped back 42.04% QoQ to Rs.594.03 Cr and company-basis EBITDA margin of 50.60% far exceeded the 38-40% guide, with PAT up 21.93% YoY on operating leverage. The blemishes are H1 revenue still down 7.25% YoY, Specialty Ingredients well behind its ~20% growth guide, a back-ended capex program, and Neoanthem still loss-making.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "Ahead of Q1, against a demanding base" | Rs.594.03 Cr, +42.04% QoQ, above the Rs.550.50 Cr base | Played out |
| EBITDA margin | "Compressing vs the 44.5% Q2FY26 base; the 38–40% guide is the line to defend" | 50.60% — expanded ~611 bps YoY — favorably | Contradicted |
| Employee cost | Headwind (Q1 print 18.85% of revenue) | 13.68% of revenue in Q2; cost +3.06% QoQ on +42.04% revenue — leverage returned | Contradicted |
| Input costs vs backward integration | "Headwind building… backward integration is the disclosed mitigant" | Materials 33.80% of revenue, −276 bps YoY | Played out in the company's favor |
| FX tailwind fading | "Less FX kick than the July arc alone would suggest" | Other income +23.34% YoY; Q2 FX content undisclosed (H1 unrealized FX loss Rs.13.24 Cr) | Partially observable |
| US pharma tariffs de-escalating | Sep-29 zero-tariff carve-out; generics excluded | Not addressed in the filing — open for the call | Not observable |
| Watch: order book (60%) | Does it improve | Not disclosed in the filing — open for the call | Not observable |
| Watch: Unit 4 capex run-rate | H1 vs Rs.700 Cr | Rs.110.51 Cr (15.79%); CWIP Rs.309.11 Cr — back-ended | Partially |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Delivery recovery in Q2–Q4 FY27 | Q1 FY27 earnings call (Jul 22, 2026): "You will see the numbers coming back as a recovery in Q2, Q3 and Q4" | Revenue Rs.594.03 Cr, +42.04% QoQ, +7.91% YoY — above the Rs.550.50 Cr Q2FY26 base | Met |
| EBITDA margin 38–40% (company basis, incl. other income ÷ total income) | Q4 FY26 earnings call (May 20, 2026) | 50.60% in Q2 (44.49% in Q2FY26) — exceeded | Met |
| FY27 tax rate ~25–25.5% | Q1 FY27 earnings call | H1 ETR 24.84% (in range); Q2 28.65% (27.30% ex prior-period charge) — H1 | On Track |
| FY27 capex ~Rs.700 Cr ("close to about Rs. 700 crores") | Q1 FY27 earnings call | H1 capex Rs.110.51 Cr = 15.79% of guide; CWIP Rs.309.11 Cr vs Rs.264.35 Cr — needs a steep H2 step-up | Back-ended |
| Neo Anthem break-even/profitability in FY27 | Q1 FY27 earnings call | Q2 subsidiary drag −Rs.9.42 Cr | Not yet visible; too early |
| FY27 revenue growth "in line with our historical growth performance" (~20% historical; no % committed — "Our growth is intact. We are not giving a guidance of any particular percentage") | Q1 FY27 earnings call | H1 −7.25% YoY; +20% FY growth now requires H2 of Rs.1,542.93 Cr, i.e. +48.65% YoY | Stretch |
| Specialty Ingredients ~20% growth | Q4 FY26 earnings call | Q2 +0.58% YoY; H1 −5.62% | Behind guide |
Key Investment Insights
Key Positives
- Revenue grew 42.04% QoQ to Rs.594.03 Cr (+7.91% YoY), validating management's Q2-Q4 delivery recovery guidance
- Company-basis EBITDA margin of 50.60% exceeded the 38-40% guidance band, up ~611 bps YoY from 44.49%
- EBITDA grew 24.14% YoY to Rs.330.39 Cr while total expenses fell 3.28% YoY
- PAT grew 21.93% YoY to Rs.211.46 Cr; normalized PAT Rs.215.47 Cr after adding back Rs.4.01 Cr prior-period tax charge
- CRDMO revenue +49.43% QoQ and +9.23% YoY with contribution margin up ~1,061 bps YoY to 71.92%
- Cost of materials fell to 33.80% of revenue from 36.56% (−276 bps YoY), consistent with backward integration
- Trade receivables fell to Rs.527.24 Cr from Rs.590.59 Cr; H1 FCF of Rs.428.68 Cr with CFO/PAT at 0.96x
- Net cash of Rs.1,242.48 Cr; borrowings reduced to Rs.38.66 Cr from Rs.51.07 Cr
Risk Factors
- H1 FY27 revenue is still −7.25% YoY; reaching ~20% FY growth requires H2 revenue of Rs.1,542.93 Cr, i.e. +48.65% YoY
- Specialty Ingredients revenue grew only 0.58% YoY in Q2 and −5.62% in H1 versus management's ~20% growth guidance
- Subsidiary Neoanthem remains loss-making with a −Rs.9.42 Cr PAT drag in Q2 against the FY27 break-even promise
- Q2 effective tax rate spiked to 28.65% (27.30% ex prior-period charge) from 24.47% YoY
- H1 capex of Rs.110.51 Cr is only 15.79% of the ~Rs.700 Cr FY27 guide, requiring a steep back-ended H2 step-up
- Other expense rose 36.23% YoY to 9.53% of revenue from 7.55%
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