Anthem Biosciences Limited (NSE: ANTHEM, BSE: 544449) delivered a strong set of results for the quarter ended September 30, 2025, driven primarily by sustained growth in its Contract Research, Development and Manufacturing Organization (CRDMO) business. The Bengaluru-based biotech firm posted consolidated quarterly revenue of ₹5,500 million, EBITDA of ₹2,661 million, and net profit of ₹1,734 million, marking a continuation of its earnings momentum since listing earlier this fiscal. Margins remained robust, with EBITDA at 44.5% and PAT at 29%.
The CRDMO business accounted for over 85% of revenue this quarter, while the specialty ingredients segment showed a sequential and year-on-year decline. The latest results reflect not only strong operational performance but also capital discipline, with the company closing the quarter with a net cash position of ₹9,934 million.
How did Anthem Biosciences’ Q2 FY26 performance compare with Q1 FY26 and Q2 FY25?
Revenue from operations for the quarter stood at ₹5,500 million, representing a 4.8% increase over Q2 FY25 and a 1.8% sequential rise over Q1 FY26. The CRDMO segment contributed ₹4,719 million, growing 8.5% year-on-year and 4.2% sequentially. The specialty ingredients segment, by contrast, declined 13.1% year-on-year to ₹781 million and fell 10.7% compared to the previous quarter.
EBITDA rose to ₹2,661 million, up 19.3% from the same period last year and 24.2% from the previous quarter. Profit after tax increased to ₹1,734 million, a 7.1% rise year-on-year and a 27.7% jump sequentially. The company also reported ₹482 million in other income, driven in part by ₹303 million from forex gains and government incentives like RoDTEP.
What trends emerged in Anthem Biosciences’ H1 FY26 financial performance?
For the first half of FY26, Anthem Biosciences reported revenue from operations of ₹10,902 million, up 26.3% compared to H1 FY25. The CRDMO business delivered ₹9,267 million during the period, rising 32.3% year-on-year. Specialty ingredients revenue remained flat at ₹1,636 million.
EBITDA for H1 FY26 stood at ₹4,804 million with margins at 41.4%, while net profit reached ₹3,092 million with margins at 26.6%. Other income for the half-year period came in at ₹710 million, which included ₹340 million in forex gains and incentives. Financial and other non-operating income contributed ₹370 million.
The growth trajectory in CRDMO volumes, backed by commercial molecules and expanded capacity, has translated into sustained financial outperformance. Operating leverage and improved cost optimization helped elevate profitability despite volatility in raw material and input costs.
What role did the CRDMO segment play in Anthem Biosciences’ Q2 FY26 growth?
The CRDMO segment continues to serve as the company’s growth engine. In Q2 FY26, this business unit contributed 85.8% of revenue and posted a year-on-year growth of 8.5%. This was attributed to higher demand from global clients spanning drug discovery to commercialization phases. Anthem Biosciences positions itself as a rare Indian biotech firm with integrated New Chemical Entity and New Biological Entity capabilities, offering both research and manufacturing services under one umbrella.
Management reiterated that the CRDMO business has delivered consistent growth for five quarters in a row. The company has also indicated that over half of its CRDMO revenues are now derived from commercial-stage molecules, reflecting a shift from early-stage R&D to more profitable manufacturing relationships.
How will newly commissioned capacities at Unit II and the upcoming fermentation block at Unit III contribute to sustaining Anthem Biosciences’ CRDMO revenue growth momentum through FY26 and beyond?
Anthem Biosciences Limited’s strategic investments in physical infrastructure are now translating into direct revenue-supportive capacity. During the quarter, the Bengaluru-headquartered contract development and manufacturing firm completed the final commissioning of its Unit II facility in Harohalli, adding 76 kiloliters of custom synthesis capacity. With this, the total synthesis capacity at Unit II has reached full operational status, allowing the company to cater to higher-volume commercial programs under its CRDMO business.
Further expansion milestones are underway at Unit III (NeoAnthem), also located in Harohalli, which now houses fully functional blocks for R&D labs, peptide manufacturing, high-potency API production, and custom synthesis. The only pending module, which is the fermentation block is expected to be commissioned by the end of calendar year 2025. Once fully operational, these facilities will provide Anthem Biosciences with expanded capabilities to scale fermentation-based biologics and specialty molecules, crucial for capturing new global biopharma contracts.
With a combined capacity of 324 kiloliters for synthesis and 142 kiloliters for fermentation, Anthem Biosciences is positioning itself among a select few Indian CRDMO firms that can provide end-to-end support from early discovery through to commercial manufacturing. The timing of these expansions aligns with growing client demand and the company’s push to grow its share of commercial-stage revenues, which already comprise over 56% of its total CRDMO turnover.
Such forward-loaded capex also reinforces the company’s strategy of embedding revenue visibility into its operational backbone. Fixed asset turnover reached 1.54x in Q2 FY26, signaling strong capital efficiency. With additional capacity coming online, analysts expect utilization rates to rise and margins to stay elevated in the second half of FY26.
What is the current institutional and market sentiment on Anthem Biosciences’ stock?
Shares of Anthem Biosciences closed at ₹698.00 on November 7, 2025, up 0.20% on the day of the earnings release. The scrip has been range-bound since its post-IPO peak of ₹873.50 in mid-September. It is currently trading close to its 52-week low of ₹686.00, reflecting some valuation compression despite strong earnings.
Delivery volumes stood at 47.18%, indicating steady institutional interest. However, the stock’s trailing price-to-earnings ratio remains elevated, consistently above 50. Market participants remain divided on short-term upside due to this high valuation base, even as the long-term structural growth story appears intact. The biotech firm’s market capitalization is currently over ₹39,200 crore.
Anthem Biosciences’ high-margin CRDMO mix, strong free cash flow profile, and net cash buffer continue to attract investor attention, but further re-rating may depend on sustained delivery and clearer revenue contribution from new capacity.
How are analysts and institutional stakeholders evaluating Anthem Biosciences’ growth visibility, margin sustainability, and order pipeline strength for the second half of FY26?
Institutional sentiment remains constructive, driven by Anthem Biosciences’ positioning in the outsourced pharmaceutical manufacturing market and its early success in scaling commercial supply partnerships. The upcoming earnings call scheduled for November 10, 2025, is expected to shed light on visibility into order inflows, capacity utilization, and pipeline additions for H2 FY26.
Analysts will also monitor whether the specialty ingredients segment returns to growth or remains under pressure due to client-side inventory adjustments. Any shift in product mix or recovery in this vertical could offer margin tailwinds in the latter half of the year.
With ₹9,934 million in net cash, an ROCE of 36.2% in Q2 FY26, and a fixed asset turnover of 1.54x, Anthem Biosciences enters the second half of the fiscal with a strong financial and operational foundation.
What are the key financial and strategic takeaways from Anthem Biosciences’ Q2 FY26 earnings?
- Anthem Biosciences Limited reported consolidated revenue from operations of ₹5,500 million in Q2 FY26, up 4.8% year-on-year and 1.8% sequentially.
- The CRDMO segment contributed ₹4,719 million, growing 8.5% year-on-year, while specialty ingredients declined 13.1% to ₹781 million.
- EBITDA stood at ₹2,661 million with a margin of 44.5%, supported by ₹482 million in other income, including forex gains and RoDTEP incentives.
- Net profit rose to ₹1,734 million in Q2 FY26, reflecting 7.1% year-on-year and 27.7% sequential growth, with PAT margins at 29%.
- For the half-year (H1 FY26), revenue from operations reached ₹10,902 million, with EBITDA at ₹4,804 million and net profit at ₹3,092 million.
- Anthem Biosciences closed Q2 FY26 with a net cash position of ₹9,934 million, up from ₹7,848 million at the end of Q1.
- Unit II expansion was completed in early November 2025, adding 76KL of custom synthesis capacity; Unit III fermentation facility commissioning is expected by December.
- CRDMO accounted for over 85% of revenue in both Q2 and H1, with 56.4% of CRDMO revenues linked to commercial molecules.
- Fixed asset turnover improved to 1.54x, and post-tax ROCE reached 36.2% for the quarter, indicating high capital efficiency.
- Anthem Biosciences’ stock closed at ₹698.00 on November 7, 2025, close to its 52-week low, with a trailing PE above 50, but delivery volumes remain strong at 47.18%.
- Investors and analysts are focused on capacity utilization, commercial onboarding, and recovery in the specialty ingredients segment for H2 FY26.
- The company’s earnings call is scheduled for November 10, 2025, where further insights into order inflows and operational metrics are expected.
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