Anthem Biosciences Ltd Q1 FY27 Results Analysis: Revenue Plunges 22.6%, PAT Sinks 12%

Anthem Biosciences Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 418.22 Cr (-22.58% YoY) and PAT growth of -11.67% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

The company reported a sharp 22.58% YoY revenue decline, the lowest in three quarters, despite improving gross margins due to backward integration. Employee cost escalation and operating deleverage caused PAT to fall 11.67% YoY. Management's prior optimism on restocking was not borne out, and no guidance was provided for FY27.

Key Investment Insights

Key Positives

• CRDMO gross profit margin expanded 964 bps YoY to 68.15% from 58.51%.
• Total gross profit margin expanded 778 bps YoY to 65.04%.
• EBITDA margin on Total Income basis expanded 154 bps YoY to 39.60%.
• Credit rating upgraded to ICRA AA (Stable) from AA- (Positive).
• Subsidiary contributed Rs.17.93 Cr PAT, offsetting part of consolidated decline.
• Net cash of Rs.1,374.3 Cr provides headroom for capex plans.

Risk Factors

• Revenue declined 22.58% YoY and 31.55% QoQ, the lowest since Q3FY26.
• Employee cost as % of revenue rose 552 bps YoY to 18.85%, causing operating deleverage.
• PAT declined 11.67% YoY despite margin expansion, due to fixed-cost burden.
• Management's prior claim of restocking not visible in revenue numbers.
• Effective tax rate boosted by deferred tax credit, not sustainable.
• Promoter group member sold 3.05% stake, reducing holding.