1.At a Glance
Ladies and gentlemen, meetAnthem Biosciences Ltd, the newest shiny biotech kid on Dalal Street that’s managed to turn petri dishes into profit machines. Listed inJuly 2025, this Bengaluru-based CRDMO star is trading at ₹697 with amarket cap of ₹39,119 crore, and an eyebrow-raisingP/E of 84.5— yes, it’s priced like it’s already discovered the next Ozempic.
InQ2FY26, Anthem clocked₹5,500 million (₹550 crore)in revenue and₹1,734 million (₹173 crore)in PAT. That’s aYoY growth of 7.1% in profit, while keeping itsEBITDA margin at a juicy 40%. For a company that literally manufactures science, the numbers are as sterile as its lab floors.
WithROE at 20.8%,ROCE at 28.5%, anddebt/equity at a peaceful 0.05, Anthem is what you get when a scientist marries a chartered accountant. But wait — itsEV/EBITDA of 51.4suggests investors are already paying biotech prices for biotech dreams.
So, is Anthem a real bio-revolution or just another lab-coated love story? Let’s disinfect the data.
2.Introduction
Anthem Biosciences has quietly evolved from a contract research lab to amulti-modal CRDMO powerhouse, blending small molecule chemistry with large molecule biology — a combination as rare as finding punctual approvals in Indian pharma.
Founded in2006, Anthem’s journey is a masterclass in turning complexity into scale. Think of it as India’s version of Thermo Fisher meets Syngene, but with better humour and lesser corporate suits.
2025 was a blockbuster year for Anthem — IPO done, profits up, and the biotech crowd drooling over itsADCs (Antibody Drug Conjugates)andRNAi platforms. The company now runsthree facilitiesacross Karnataka, producing everything from peptides to enzymes. If molecules could vote, Anthem would win by a landslide.
But there’s a twist:70% of revenuescome from justfive clients. That’s not customer concentration — that’s customer dependence therapy. Add to that itsEurope-heavy revenue (54.6%), and you’ve got a company that earns in euros but dreams in rupees.
Yet, Anthem’s balance sheet looks like it just came out of a detox retreat — lean debt, high cash generation, and profits growing faster than a yeast culture on steroids.
So, does the bio buzz justify the valuation? We’ll dissect it like a well-labeled DNA strand.
3.Business Model – WTF Do They Even Do?
Anthem Biosciences isn’t your average pill pusher. It’s aCRDMO— Contract Research, Development, and Manufacturing Organization — which basically meanspharma companies outsource their R&D headachesto Anthem, who then turns science projects into finished drugs.
It operates across two main segments:
a) CRDMO Services– Anthem is one of the few Indian firms that can handleboth small molecules (chemicals)andlarge molecules (biologics). They offer a buffet of services: from target identification and lead selection topre-clinical and clinical manufacturing— everything short of administering the drug to patients.
b) Specialty Ingredients– This is the money-spinner side hustle. Anthem makesfermentation-based APIs, enzymes, probiotics, and vitamin analogues— products that end up in everything from your energy drink to your vitamin D capsule.
If the CRDMO business is their scientific symphony, specialty ingredients are
the background percussion keeping profits steady.
Withthree facilities— Bommassandra, Harohalli Unit II, and an under-construction Unit III — Anthem’s total custom synthesis capacity will soon exceed~670 kL, alongside fermentation capacity of~182 kL. Translation: they’re brewing more than your neighborhood craft beer brand.
4.Financials Overview
| Metric (₹ Cr) | Q2FY26 | Q2FY25 | Q1FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 550 | 525 | 540 | 4.8% | 1.9% |
| EBITDA | 218 | 195 | 191 | 11.8% | 14.1% |
| PAT | 173 | 162 | 136 | 6.8% | 27.2% |
| EPS (₹) | 3.09 | 2.90 | 2.42 | 6.6% | 27.7% |
Annualised EPS = 3.09 × 4 =₹12.36At CMP ₹697 →P/E ≈ 56.4(not bad for a company priced at 84x TTM, market still catching up).
Commentary:Revenue is growing like a disciplined child — small steps, no tantrums. EBITDA margin at40%is elite, and PAT jumped 27% QoQ like it just had a Red Bull. If Anthem maintains this rhythm, it might just become India’s next biotech bluechip.
5.Valuation Discussion – Fair Value Range Only
Let’s sanity-check Anthem’s ₹697 party price.
a) P/E Method:
- Annualised EPS: ₹12.36
- Reasonable Biotech P/E Range: 40x–60x→ Fair Value Range = ₹494 – ₹742
b) EV/EBITDA Method:
- EBITDA (FY25): ₹672 Cr
- EV/EBITDA peers average: 25x–35x→ Fair EV Range = ₹16,800 – ₹23,500 CrSubtract Net Debt (~₹113 Cr – cash rich): negligible→ Fair Value per share ≈ ₹598 – ₹837
c) DCF (Simplified):Assume 20% earnings growth next 5 years, terminal growth 5%, discount 12% → ₹620 – ₹800
🎯 Fair Value Range (Educational): ₹600 – ₹800
This fair value range is for educational purposes only and is not investment advice.
6.What’s Cooking – News, Triggers, Drama
- IPO & Listing (July 2025):Anthem raised ₹33,950 million (~₹3,395 crore) and made a smashing debut. Within months, it’s already in the CRDMO hall of fame.
- Results Announcement (Nov 2025):Q2 revenue ₹5,500 million, PAT ₹1,734 million, proving that science and profits can co-exist.
- Insider Trading Violation (Oct 2025):One “designated person”
