Anthem Biosciences shares fell 2.5% on Wednesday after reporting a year-over-year decline in June quarter revenue and profit. While the CRDMO and Specialty Ingredients segments underperformed, the company improved gross margins by shifting to in-house production. Investors are now tracking whether a planned delivery recovery in the second half of FY27 will meet growth targets.
Detailed Coverage
Shares of Anthem Biosciences declined by 2.47% to ₹772 on the NSE following the release of its financial results for the June quarter. The company reported a decline in both revenue and net profit compared to the same period last year, missing analyst estimates for the quarter.
Operational Performance and Margin Trends
The softness in the quarterly performance was primarily attributed to the CRDMO (Contract Research, Development, and Manufacturing Organization) and Specialty Ingredients segments. Earnings missed market expectations by 11%, while EBITDA and revenue fell slightly short by 2% and 3%, respectively. Despite the decline in top-line and bottom-line figures, the company demonstrated an improvement in gross margins, which expanded by 778 basis points year-over-year.
This margin expansion was supported by a strategic shift toward in-house production of intermediate materials, reducing the company's reliance on imports from China. Additionally, favorable currency movements contributed to the stronger gross margin profile, even as overall EBITDA dropped 19% year-on-year.
Financial Position and Future Outlook
Anthem Biosciences continues to maintain a healthy balance sheet, reporting a net cash position of ₹17.2 billion as of June 2026, up from ₹7.8 billion in the prior year. The company's business pipeline includes 14 commercial molecules and 10 molecules currently in Phase III clinical development.
Management has indicated that the current quarterly weakness is largely due to the timing of customer deliveries. They expect a recovery in the second half of the fiscal year, with projections aiming for revenue growth exceeding 17% for FY27. Some brokerage reports have modeled revenue expansion as high as 19.2% for the full year, contingent on the successful execution of the delivery schedule.
What Investors Should Monitor
The primary focus for investors will be whether the company can successfully ramp up deliveries in the second half of the fiscal year to offset the slow start. Success will depend on stable demand for its pipeline molecules and the ability to maintain the recently improved gross margins amid volatile raw material costs. Future updates on the commercialization status of the 10 molecules currently in late-stage development will also be a key indicator of long-term revenue visibility.