Anthem Biosciences Ltd (ANTHEM) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 and H1 earnings conference call of Anthem Biosciences. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Radhika Kedia from Anthem Biosciences. Thank you, and over to you, ma'am.
Radhika Kedia (Anthem Biosciences Ltd): Thank you, Sayesha. I am Radhika Kedia from Investor Relations at Anthem Biosciences, and I welcome you all to our earnings conference call to discuss our Q2 and H1 FY '27 results. Our results are uploaded under the Investor tab of the website that shows financial information, in case you would like to download and reference them during this discussion. On call today, we have with us Mr. Ajay Bhardwaj, Managing Director and Chief Executive Officer, and Mr. Gaurav Baig, Chief Financial Officer of Anthem Biosciences. We will begin the call with brief opening remarks from the management followed by a Q&A session. Please note that certain statements made during the call may be forward-looking in nature. Such forward-looking statements are subject to certain risks and uncertainties that could cause the actual results or projections to differ materially from those statements. Anthem Biosciences Limited will not be in any way responsible for such actions taken based on such statements and undertakes no obligations to publicly update those forward-looking statements. I would now like to hand over the call to Mr. Ajay Bhardwaj for his opening remarks. Thank you, and over to you, sir.
Ajay Bhardwaj (Anthem Biosciences Ltd): Thanks, Radhika. Good afternoon, everyone. This is Ajay and I thank you for joining us as we share our key financial highlights for Q2 and H1 FY '27. First of all, we are pleased to report a robust performance for Q2 FY '27 with consolidated revenue from operations going up to INR594 crores for the quarter. The CRDMO business delivered INR509 crores of revenue, supported by the specialty ingredients, which delivered INR85 crores revenue. The EBITDA was INR330 crores, with EBITDA margins at 50.6%. EBITDA for Q2 F '27 includes other income of INR59 crores whereas the corresponding figure for Q2 FY was INR48 crores. PBT was INR296 crores, while PAT
Ajay Bhardwaj (Anthem Biosciences Ltd): Profit after tax was 211 crores with PAT margins at 32.4%. Moving on to for the half-year results, the consolidated revenue from operations was 1,012 crores. The CRDMO business delivered 850 crores and specialty ingredients was 162 crores of revenue. EBITDA was 506 crores with EBITDA margins for the half-year being 46.2%. EBITDA for corresponding H1 FY27 includes other income of sorry not for the H1 FY27 includes other income of 84 crore and the corresponding figure of H1 FY26 was 70 crores. Profit after tax, PAT, was 331 crores with PAT margins at 30.2% for the half-year. The net cash position of the company as of September 30, 2026, is 1,534 crores. I'd like to state that we expanded our EBITDA and PAT margins year-on-year by maintaining strict discipline around cost efficiencies, yield optimization, and workforce productivity. We have further solidified our industry-leading margins and are well-positioned to sustain this performance for the whole year. Underlying demand continues to remain strong and we are confident of our ability to sustain growth and create long-term value for all stakeholders. I now hand you back to the moderator and thank you very much for listening.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Akash, an individual investor. Please go ahead.
Akash: Yeah. Hi, sir. I have two questions. First one is since our inception, how has customer expectation evolved from the clients' customers' perspective? When the client faces a complex molecule or any unexpected technical problem, is Anthem increasingly become their first choice or partners? They're intently turning for the solutions, and what do you believe makes Anthem stand out in the mind of our clients or our partners?
Ajay Bhardwaj (Anthem Biosciences Ltd): So Akash, thank you very much for asking your question. A very different question from usually what we get in investor calls. But you're absolutely right. We've always played on the thesis that Anthem is the go-to partner for more complex molecules where the customer is looking for not just a pair of hands to get the job done, but for looking at intellectual contribution and creating options where they can we can generate IP for the client, as well as give them multiple options at solving that problem. So the way our customer expectations are right now station is that increasingly they look at Anthem as a solution provider, not just as a contract researcher or a contract manufacturer. So you're you've hit the nail on the head. The customer expectations have moved quite a lot in the last few years and that's where I think Anthem distinguishes itself from its peers. We tend to position ourselves and with the track record to show it that we provide unique, technology driven, and novel solutions for our customers. So yeah, the customer expectation certainly has moved up.
Akash: Okay, and the second one, on given current geopolitical environment and dependence on the specialized enzymes, biocatalysts, and other critical process inputs, are we largely self-sufficient or backward integrated, or do certain supply dependencies still exist?
Ajay Bhardwaj (Anthem Biosciences Ltd): So you know, you're breaking up a bit, but if I understand the question correctly, you've asked whether we are self-sufficient in providing enzyme-based or biotransformation-based solutions to our customers. Is that correct?
Akash: Yes.
Ajay Bhardwaj (Anthem Biosciences Ltd): Sorry? Yes? Okay.
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