Anthem Biosciences has settled an upside sharing arrangement amounting to ₹1,276.83 million with its principal shareholders. The settlement follows the divestment of stakes by Viridity Tone LLP and was executed in accordance with regulatory requirements.

The transaction was implemented pursuant to the approval granted by public shareholders at the company’s Annual General Meeting held on July 22, 2026. This action fulfills the obligations outlined in the Waiver-cum-Amendment Agreement dated December 30, 2024.

Settlement Details

The company informed stock exchanges that the payment was made to the Upside Principal Shareholders: Mr. Ajay Bhardwaj, Mr. Ganesh Sambasivam, and Mr. K. Ravindra Chandrappa. The disclosure was filed under Regulation 26(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This settlement concludes the financial obligation arising from the earlier stake sale by Viridity Tone LLP, as initially intimated to exchanges on April 22, 2026.

Anthem Biosciences reported a 22.6% year-on-year decline in consolidated revenue from operations to ₹4,182 Mn for the quarter ended June 30, 2026, attributing the drop to timing shifts in customer deliveries rather than demand weakness. Despite the top-line contraction, Profit After Tax (PAT) fell by a narrower 11.7% to ₹1,199 Mn, while EBITDA margins expanded by 153 basis points to 39.6%, reflecting disciplined cost management and yield optimization. Management emphasized that the company retains a strong order book with 60% of annual deliveries already secured, positioning it for recovery in subsequent quarters.

Operational Visibility and Order Book

During the earnings conference call held on July 22, 2026, Managing Director Ajay Bhardwaj and CFO Gawir Baig clarified that the soft Q1 performance is characteristic of the CRDMO business cycle, where delivery schedules are dictated by client needs. The company currently holds an order book representing 60% of its expected full-year revenue, providing high visibility for the remainder of FY27. Bhardwaj noted that deferred deliveries are scheduled for Q2, Q3, and Q4, with capacity utilization expected to rise significantly in the coming quarters. The Specialty Ingredients segment, which contributed ₹774 Mn (18.5% of total revenue), faces domestic supply chain pressures but is expected to recover as raw material markets stabilize.

Capacity Utilization and Expansion Plans

Capacity utilization varied across facilities in Q1FY27. Unit 1 operated at approximately 78% utilization on the custom synthesis side, maintaining levels similar to the previous year. Unit 2, which underwent significant expansion adding 130 kiloliters of custom synthesis capacity, saw utilization drop to 50% due to the softer quarter, though fermentation utilization remained steady at 50% across its 140 kiloliters. Unit 3 (Neo Anthem) showed improvement, rising to 30–35% utilization from roughly 15% in FY26, driven primarily by new projects in peptide synthesis and oncology manufacturing rather than mere production shifting.

To address future demand, Anthem is constructing Unit 4 on a 30-acre site, with Phase 1 set to add 365 kiloliters of custom synthesis and 100 kiloliters of fermentation capacity, along with food and nutraceutical plants. The total capex outlay for Unit 4 is approximately ₹1,200 crore, split evenly between FY27 and FY28. Management expects to commission Unit 4 by the end of FY28. For FY27, targeted capex stands at ₹700 crore, remaining elevated to support this expansion.

Financial Metrics and Margins

The company’s net cash position strengthened significantly to ₹17,197 Mn as of June 30, 2026, up from ₹7,848 Mn in the prior year. Standalone revenue declined to ₹3,838 Mn from ₹5,380 Mn in Q1FY26, with standalone net profit dropping to ₹1,020 Mn. However, management highlighted that effective tax rates are expected to normalize to around 25–25.5% for the full year, compared to higher rates in FY26 driven by losses in the Neo Anthem subsidiary. ESOP expenses for FY27 are estimated at ₹9 crore, down from ₹16 crore in FY26, further supporting margin stability.

What the Numbers Show

The divergence between revenue decline (-22.6%) and PAT decline (-11.7%) underscores Anthem’s operational leverage and pricing power. While top-line growth was muted by logistical deferments, the expansion in EBITDA margins to nearly 40% indicates that cost controls and yield improvements are effectively offsetting volume shortfalls. The robust cash position of ₹17,197 Mn provides ample runway for the ₹700 crore FY27 capex program without diluting equity or increasing debt. With 60% of the annual order book already secured, the risk of further significant downside appears limited, suggesting that the Q1 results represent a temporary trough in a cyclical delivery pattern rather than a structural demand issue.