Anthem Biosciences

Research evidence excerpt

Anthem Biosciences

Global Markets Research

Anthem Biosciences ANTH.INx ANTHEM IN 19 July 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

Rating1QFY27F preview: Likely a subdued quarter Remains Buy

Target price INR 900 RemainsQuick Note

Closing priceANTHEM reports 1QFY27 results on 21 July 2026. We highlight the key trends and 16 July 2026 INR 759

outlook:

• The B2B CDMO business has witnessed significant volatility q-q. This is particularly Research Analysts

prominent for companies with a small scale and high product concentration. Sales are

impacted by customers’ destocking and restocking cycles. 4QFY26 revenue recorded India Pharmaceuticals

a strong recovery, after a subdued 3QFY26 (y-y decline of 15% in 3QFY26 followed Saion Mukherjee - NFASL

by 26% y-y growth in 4QFY26). 4Q is typically a seasonally strong quarter as saion.mukherjee@nomura.com

+91 22 403 74184 customers build up inventory at the start of the year. After a strong 4QFY26, we

estimate a moderation of sales in 1QFY27F. We factor in a 27% q-q decline in Kushal Chovatia - NFASL

revenue in 1QFY27F. kushal.chovatia@nomura.com

+91 22 403 74013

• Despite the 17% decline in revenue y-y, we forecast a 225bp expansion of EBITDA

margin y-y. We expect an expansion of EBITDA margin driven by significant (900bp)

improvement in gross margin y-y. The expansion of gross margin follows vertical

integration and the benefit of currency depreciation, in our assessment.

• Outlook and commentary

○ After a weak 1QFY27F, the Street will watch out for commentary on growth for the

rest of the year. As such, management has not provided specific guidance for

FY27. The existing order book with key customers provides good visibility on

near-term growth. The company expects to sustain high-teens growth and current

profitability.