Anthem Biosciences Q1 misses: consolidated revenue slides 23% YoY, PAT ₹120 Cr
PAT -11.67% YoY · revenue -22.58% · margins flat · miss vs street
₹418.22 Cr
-22.58% YoY
₹119.94 Cr
-11.67% YoY
27.07%
+2.9pp YoY
₹2.13
Anthem Biosciences opened FY27 with a weak first quarter that reverses its recent growth trajectory. Consolidated revenue from operations fell 22.6% YoY to ₹418.2 Cr (and 31.5% sequentially from ₹610.9 Cr), while consolidated net profit declined 11.7% YoY to ₹119.9 Cr; basic EPS was ₹2.13. The shallower profit fall flatters the quarter — it was propped up by a ₹10.1 Cr deferred-tax credit that pulled the effective tax rate down to 17% from 27% a year earlier. Stripping that out, underlying PAT fell roughly 19% YoY, closer in line with the topline decline.
Q1 FY-2027 vs prior quarters
The weakness was broad-based. CRDMO revenue, the core franchise, dropped 24.7% YoY to ₹340.8 Cr and Speciality Ingredients fell 11.5% to ₹77.4 Cr. Operating (EBITDA) margin came in near 36% — below the 38-40% band management guided on the May-2026 concall and well down from 43.9% in Q4 FY26. The higher reported NPM of 27.1% (vs 24.1% a year ago) is a tax artefact rather than operating leverage; PBT margin was essentially flat YoY.
The stock went into the print at ₹791.55, up 0.1% over the past month of trading.
Management is confident in continuing its strong growth trajectory, aiming for historical growth rates of 20% or more in both revenue and profitability for FY27 and beyond. While refraining from specific FY27/FY28 guidance, they highlighted significant investments in technology and facilities, particularly Unit 4, whic
— This quarter: missed
The print undershot the street, which had penciled in revenue of roughly ₹540-599 Cr and EPS near ₹2.4 (TradingView consensus). More pointedly, it contradicts management's own guidance from two months ago, when they reiterated confidence in sustaining 20%+ revenue and profit growth for FY27, citing restocking tailwinds and a strong GLP-1 contribution. Q1 delivered an outright decline instead, which means the company now needs roughly 30%+ growth over the remaining nine months for the full-year ambition to hold. Standalone tells a sharper story than consolidated — standalone revenue fell 28.7% and PAT 31% to ₹102.0 Cr — with the ~₹18 Cr gap to the consolidated PAT driven by subsidiary Neoanthem's ₹8.2 Cr profit and the consolidated-level tax credit; readers comparing the two numbers should note this divergence is genuine, not an error.
What to watch
W1
Full-year guidance risk: with Q1 revenue down ~23% YoY, ~30%+ growth is now needed over the next nine months to hit management's 20%+ FY27 target.
W2
Margin recovery toward the guided 38-40% EBITDA band (Q1 at ~36%) and the GLP-1/restocking contribution management flagged on the last call.
W3
Sustainability of the ~17% tax rate — the ₹10.1 Cr deferred-tax credit is unlikely to repeat, so reported PAT growth normalizes lower next quarter.
Clean digital PDF, clear headers. Source in Rs Million, converted to Cr (÷10). No exceptional items this quarter (Q4 FY26 had a tiny ₹0.98 Cr gain). Consol PAT cushioned by a ₹10.07 Cr deferred-tax credit cutting effective tax to 17% vs 27% YoY; ex-credit PAT fell ~19% YoY. Consol includes wholly-owned subsidiary Neoanthem Lifesciences (net profit ₹8.2 Cr). Standalone materially weaker than consolidated.
Informational and educational content only. Not investment advice.