Anthem Biosciences Ltd Q4 FY26 Earnings Call: Plans Rs.1,200 Cr Unit 4 Expansion, Guides 38-40% EBITDA Margin

Anthem Biosciences Ltd held its Q4 FY26 earnings call on May 19, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter Caps a Strong Year

• FY26 consolidated revenue of Rs.2,124 Cr— CRDMO contributed Rs.1,773 Cr (83%, +18% YoY) and specialty ingredients Rs.352 Cr (17%). Total revenue including other income was Rs.2,280 Cr (+18% YoY).
• FY26 EBITDA of Rs.990 Cr at 43.4% margin— margins expanded +420 bps YoY with absolute EBITDA growth of 31% YoY. PAT stood at Rs.592 Cr (+31% YoY), PAT margin 26%.
• Q4 FY26 revenue of Rs.611 Cr (highest ever)— up 26% YoY; CRDMO delivered Rs.513 Cr (+31% YoY) and specialty ingredients Rs.98 Cr (+8% YoY). Q4 EBITDA margin was 48.1% with PAT of Rs.190 Cr (+130% YoY).
• Net cash position of Rs.1,375 Cras of 31 March 2026, providing flexibility for inorganic growth.
• Revenue grew 15% in FY26while EBITDA and PAT each grew over 30%, exceeding the initial guidance of ~20% growth on all three metrics.

Phase 3 Programme Expands; Commercial Ramp Underway

• 10 Phase-3 molecules in the pipeline— four newly added molecules are non-lateral, having progressed from early-phase work with the same emerging biotech customers. The basket spans ADCs, peptides, oligos, and bio-transformation, with at least one in each category.
• Four molecules transitioned from Phase III to commercial during FY26— three with emerging biotech customers (launched) and one with a large pharma (launched). These contribute 8-9% of Q4 FY26 revenue, with significant headroom to grow toward the 60% commercial revenue contribution cited by management.
• Commercial pipeline expanded to 14 molecules— alongside 10 late-stage (Phase 3) programmes and 100+ early-stage R&D projects. The company currently handles ~100 projects and can scale to ~200 using new labs at Unit Three.
• Biotech funding recovered ~50% YoYin the first four months of FY27, with early-stage project inquiries increasing(though individual project sizes are smaller).
• Two new direct relationships with large pharma companieswere established in FY26, both growing healthily.

Unit 4 to Double Total Capacity; Rs.1,200 Cr Phase 1 Outlay

• Unit 4 Phase 1 CAPEX of Rs.1,200 Crplanned across FY27 and FY28, with completion targeted by March FY28 (later half). The 30-acre facility is larger than Units 1-3 combined.
• Phase 1 adds 365 kL custom synthesis and 100 kL fermentation capacity— nearly doubling custom synthesis (425 kL → 790 kL) and adding 50% more fermentation (180 kL → 280 kL).
• Unit 2 capacity expanded by 50% (270 kL → 376 kL)during FY26; Unit 3 is fully operational, providing sufficient headroom until Unit 4 comes online.
• FY28 CAPEX guided at ~Rs.700 Crand thereafter ~Rs.500 Cr(period unspecified).Smaller expansions on Unit 2 and Unit 3 (CWIP) will be completed in H1 FY27.
• Unit 3 expected to turn profitable in FY27(current fiscal year), while management remains open to inorganic growth in the right geography and quality.

Backward Integration Lifts Gross Margins Above 65%

• Gross margins sustained above 65% in H2 FY26— driven by completion of backward integration for a key intermediate during Q3/Q4 FY26. Management aims to maintain and grow marginsdespite the challenge of sustaining such levels at larger scale.
• FY26 EBITDA margin of 43.4% (+420 bps YoY)and PAT margin of 26% reflect strong operating leverage; management expects to sustain 38-40% EBITDA margins going forward (FY27) through operating leverage.
• FY26 revenue breakdown:Commercial molecules (incl. 4 new launches) 60%, development & manufacturing for early/late-stage ~15%, R&D 8-9%, specialty ingredients 17%.
• Destocking impact is behind the company— restocking has begun, expected to positively impact revenue and profitability in FY27.
• Specialty ingredients grew 8% in Q4 FY26after a flat first three quarters; management targets ~20% revenue growth for FY27 and is investing in a dedicated food facility(no timeline specified)to avoid cannibalisation by CDMO work.

Peptides, ADC Platform, and Biologics Build-Out

• Peptides represent the largest TAMdriven by diabetes and obesity; management stated Anthem offers cost of goods "rivaling Chinese manufacturers" for GLP-1 type peptides (Segment 7).
• ADC platform works on 15-20 payload varieties— some proprietary, with specific details confidential per client requirements. New orders span both biological and chemical modalities, with increasing demand for peptides and RNA in custom synthesis.
• AI in CRDMO aids molecule discovery and route optimization— but manufacturing (83% of Anthem's business) requires physical execution, leaving the company relatively protected. AI implementation is a work-in-progress, applied case-by-case across recruitment, HR, and warehousing.
• Large molecule CRDMO strategy focuses on early-stage biologics development— Anthem has 4-5 development projects; the approach mirrors India's small molecule CRDMO position 20-25 years ago, with management noting that "mental barriers to outsourcing to India are now gone."
• Biosimilar asset progressing well— refiling in three batches underway; site approval has a lead time of ~1 year, with P&L impact expected in FY28 under the CRDMO segment.

GLP-1 Catalyst in H2 FY27; Tariff Risk Contained

• GLP-1 generic commercialization by customers expected within 6-8 months (~H2 FY27)— pending customer approvals, using Anthem's material. Management described this as a "big contributor" going forward and noted conversations with "all the big players" to offer an India-based active alternative to current Chinese imports.
• US pharma tariffs have had no impact so far— commercial products with big pharma have separate tariff arrangements; early-stage biotech customers remain unperturbed given policy uncertainty and the view that India and the US "are aligned long-term" (Segment 12).
• Management aspires to ~20% long-term revenue growth(historical track record) but refrained from issuing specific guidance for FY27 or FY28. Priorities for FY27 are to build "one of the most agile, science-led, and future-ready CRDMO platforms in the world" (Segment 2).
• Key risks acknowledged:broader geopolitical uncertainty and inflationary pressure; however, management remains confident in technology platforms to maintain both growth and profitability.
• Unit 3 profitable in FY27; Unit 4 completion by end of FY28— management reiterated its aspiration to become the leading CRDMO out of India, citing sticky long-term customer relationships and the fastest growth rate among its peers.