1. At a Glance
Anthem Biosciences (ABL) just pulled a biotech mic-drop in Q1 FY26 — revenue up59.6% YoYto ₹540 crore, PAT up64.8%to ₹136 crore, and an EBITDA margin of a juicy 35%. This is not your typical pharma generics snoozefest; Anthem’s in the CRDMO big leagues, with capabilities in both small and large molecules, and customers willing to sign fat cheques for complex science. The only “downside”? A triple-digit P/E that could make venture capitalists blush.
2. Introduction
Founded in 2006, Anthem Biosciences is the quiet overachiever of India’s life sciences industry — the kid in class who aces both chemistry and biology, while also running a profitable side hustle. Unlike pure-play CDMOs or CROs, Anthem plays the fullContract Research, Development, and Manufacturing Organization (CRDMO)game — from target identification to commercial-scale manufacturing — across bothNCEs (small molecules)andNBEs (biologics).
While many Indian players specialise in either chemistry or biology, Anthem’s USP is straddling both worlds, allowing it to win business in hot growth areas likeAntibody-Drug Conjugates (ADCs),RNAi, andlipid nanoparticles(yes, the same tech that powers mRNA vaccines).
Its second act is theSpecialty Ingredientsbusiness — think probiotics, peptides, enzymes — high-value niches that keep cash flowing when long-cycle drug projects take time to pay off.
3. Business Model (WTF Do They Even Do?)
Anthem’s core business is split into:
a) CRDMO Services (~81% of revenue)
- End-to-end drug development: discovery, preclinical, clinical, and commercial.
- Modality spread: 7 ADCs, 2 RNAi, 10 lipid-based, 10 peptide-based, 1 oligonucleotide program (FY25).
- 8,000+ customer projects executed, 675+ clients globally.
b) Specialty Ingredients (~19% of revenue)
- Fermentation-based APIs and nutritional actives.
- Sold to regulated (US, EU, Japan) and semi-regulated markets.
Why it works: Anthem’s combination of
small & large molecule capabilities makes it sticky with clients. Case in point — FY25’stop 5 customers made up 71% of revenue, with two clients contributing ~46% between them. That concentration is a risk, but also proof that big pharma trusts them for mission-critical work.
4. Financials Overview – Q1 FY26 vs Q1 FY25 & Q4 FY25
| Metric | Latest Qtr (Q1 FY26) | YoY Qtr (Q1 FY25) | Prev Qtr (Q4 FY25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 540.21 | 338.60 | 483.00 | 59.55% | 11.85% |
| EBITDA (₹ Cr) | 191.07 | 121.00 | 195.00 | 57.87% | -2.02% |
| PAT (₹ Cr) | 135.79 | 82.37 | 83.00 | 64.83% | 63.54% |
| EPS (₹) | 2.42 | 1.47 | 1.48 | 64.63% | 63.51% |
Commentary:
- Strong YoY growth across revenue, EBITDA, and PAT — CRDMO demand clearly holding up.
- QoQ profit spike is thanks to higher other income and better cost control.
- Margins still elite at 35% despite capacity expansions in progress.
5. Valuation (Fair Value Range Only)
Method 1 – P/E
- EPS (TTM) = ₹8.07
- Sector P/E (global CRDMOs) ~ 40–50x
- FV range = ₹323 – ₹404.
Method 2 – EV/EBITDA
- EBITDA (TTM) = ₹672 Cr
- Sector EV/EBITDA ~ 18–22x
- FV range = ₹560 – ₹684.
Method 3 – DCF (10% discount
