Anthem Biosciences: First Take: Miss on revenues, margins ahead of estimates

Research evidence excerpt

Anthem Biosciences: First Take: Miss on revenues, margins ahead of estimates

J P M O R G A N Asia Pacific Equity Research

21 July 2026

Anthem Biosciences Overweight

ANTH.NS, ANTHEM IN

First Take: Miss on revenues, margins ahead of Price (21 Jul 26):Rs791.55

estimates Price Target (Mar-27):Rs850.00

Our First Take: Anthem’s 1Q print was weak as expected with revenue/EBITDA/ Pharmaceuticals & Healthcare

adj. PAT declining 23%/ 21%/ 12% YoY. 1Q revenue at Rs4.2bn was 2% below Services

JPMe and 11% below consensus. CRDMO revenues at Rs3.4bn were down 25% Bansi Desai, CFA AC

YoY, in line with JPMe whereas specialty ingredients revenues were down 12% (91 22) 6157 3581

YoY, ~3% below JPMe. EBITDA at Rs1.5bn was 7% ahead of JPMe but 14% bansi.desai@jpmorgan.com

below consensus. Gross margin at 65% (+780bps YoY, +30bps QoQ) was 200bps Amlan Jyoti Das

ahead of JPMe and EBITDA margin at 36% (+55bps YoY, -770bps QoQ) was (91 22) 6157 3574

300bps ahead of JPMe, supported by higher gross margins and lower-than- amlan.das@jpmchase.com

J.P. Morgan India Private Limited, J.P. Morgan

expected other expenses. Adjusted PAT at Rs1.2bn was 3% lower than consensus, Tower, Santacruz(E), Mumbai - 400098, SEBI

but 23% ahead of JPMe, supported by lower-than-expected depreciation costs and Registration: INH000001873, (91-22) 6157-3000.

tax rates.

Key Positives

1) Strength in gross margins and EBITDA margins despite revenue weakness.

Key Negatives/ Question Marks

1) Decline/lumpiness in CRDMO and specialty ingredients both on a YoY and

QoQ basis. 2) Outlook and guidance for FY27 will be keenly watched given the

weak start to the year; 3) Pipeline update with late stage assets; 4) Performance of

newly commercialized molecules; 5) Outlook on Semaglutide API uptick.

Likely Changes to Consensus