1QFY27: Soft quarter; potential for recovery ahead Quick Note

Research evidence excerpt

1QFY27: Soft quarter; potential for recovery ahead Quick Note

Global Markets Research

Anthem Biosciences ANTH.INx ANTHEM IN 21 July 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

Rating1QFY27: Soft quarter; potential for recovery ahead Remains Buy

Target price INR 900 RemainsQuick Note

Closing price INR 792 20 July 2026

Anthem reported 1QFY27 results on 21 July 2026. It was a subdued quarter, coming in

slightly below our estimates. Sales/EBITDA missed our estimates by 3%/2%. Earnings

missed our estimate by 11%. Both the CRDMO and Specialty Ingredients segments Research Analysts

recorded a decline y-y and q-q. However, gross margin improved y-y due to lower raw India Pharmaceuticals

material costs and currency benefits, in our view. We expect a significant ramp up in Saion Mukherjee - NFASL

revenues through the rest of FY27F that can drive revenue growth of 17%+ in FY27F. This saion.mukherjee@nomura.com

should be driven by its strong order book that will be executed through rest of the year. +91 22 403 74184

We have currently factored in 19.2% revenue growth for FY27F. Management stated “ Kushal Chovatia - NFASL

1QFY27quarterlyresultsreflecttimingshiftsindeliveriestokeycustomers.The kushal.chovatia@nomura.com

underlyingdemandremainsstrong,andwithahigherconcentrationofscheduled +91 22 403 74013

deliveriesinthelatterhalfoftheyear.”

• CRDMO segment revenues declined by 25% y-y and 34% q-q (3% y-y decline in USD

terms vs our estimate). The decline was on a relatively large base of 4Q as customers

usually stock up inventory at the start of the year. Specialty Ingredients segment

revenues declined 12% y-y and 21% q-q.

• Gross margin expanded by a substantial 778bp y-y and 30bp q-q. The y-y expansion

was driven by the CRDMO segment, where gross margin increased by 10pp y-y.