Anthem Biosciences reversed its no-guidance stance on FY27, now commits to growth
After refusing to give FY27 guidance in May, management now says it will deliver growth numbers — supported by a 60% order book but a soft Q1 that leaves a lot riding on back-end loading.
What's new
- Q1 revenue Rs 418 cr, with CRDMO at Rs 341 cr (81.5%) and specialty ingredients at Rs 78 cr.
- EBITDA at Rs 176 cr (39.6% margin), PAT at Rs 120 cr (27.1% margin); margins improved YoY.
- Order book covers 60% of FY27 requirements after Q1, providing high visibility.
- Unit 4 capex of Rs 1,200 cr targeted for readiness by end FY28.
Themes from the call
Demand
Q1 softness was attributed to timing shifts, not demand loss; 60% order book supports a back-end loaded year.
Margins
EBITDA margin held at 39.6% despite lower revenue, helped by yield optimization and employee productivity.
Capital allocation
Net cash stood at Rs 1,720 cr; FY27 capex guided near Rs 700 cr, with Unit 4 spending split across FY27 and FY28.
Guidance watch
- Double-digit FY27 revenue growth aligned with historical performance (directional only).
- EBITDA and PAT margins to remain broadly intact; employee cost at 12-13% of sales, other expenses at 9-10%.
- Unit 4 Phase 1 readiness by end FY28; FY27 capex ~Rs 700 cr.
Risk flags
- Q1 CRDMO revenue down ~25% YoY (analyst estimate); full-year growth depends on timely deliveries in H2.
- New big pharma customer engagement not yet signed; contribution only in later quarters.
- Specialty ingredients recovery depends on easing raw-material pressures; no fixed timeline.
Key quotes
-
"We have a very high degree of visibility because we already have an order book for 60% of what we need to do."
— Ajay Bharadwaj, CEO -
"The business is intact, and we will continue to deliver on our growth numbers for FY27 as well."
— Ajay Bharadwaj, CEO (July 2026)
The brief
Anthem Biosciences did something unusual on its Q1 call: it gave a growth commitment it had refused to make just two months earlier. In May, management explicitly said it would refrain from providing FY27 guidance. In July, despite a soft first quarter where CRDMO revenue fell nearly 25% year-on-year, the message shifted to 'we will continue to deliver on our growth numbers for FY27'. The reversal was not reconciled. The bullish case rests on a 60% order-book coverage after Q1, a workhorse metric that management says provides 'a very high degree of visibility'. The quarterly lumpiness is real — deliveries are back-end loaded, and Q1's weakness was blamed on timing rather than demand. Margins held up well at 39.6% EBITDA, helped by cost discipline and yield gains. But the guidance pivot raises a question: why commit now when you wouldn't before? Either the visibility has genuinely improved, or the commitment is as directional as the earlier refusal. The answer comes by March next year.
The order book supports the confidence, but the guidance reversal needs more explanation than management gave.