Anthem Biosciences Q2 EBITDA margin hits record 50.6%

Anthem Biosciences Limited reported a record 50.6% EBITDA margin in Q2FY27, up 1,100 basis points from 39.6% in Q1FY27, as revenue from operations rose 42.0% sequentially to Rs 594 crore and EBITDA increased 88.3% to Rs 330.4 crore. The margin was also 610 basis points above Q2FY26.

How did Anthem Biosciences’ Q2FY27 EBITDA margin change?

Anthem Biosciences’ EBITDA margin rose to 50.6% in Q2FY27 from 39.6% in Q1FY27 and 44.5% in Q2FY26. The company described the Q2FY27 outcome as its highest-ever margin, while EBITDA, or earnings before interest, tax, depreciation and amortisation, reached Rs 330.4 crore.

EBITDA grew 88.3% sequentially from Rs 175.5 crore in Q1FY27 and 24.1% year on year from Rs 266.1 crore in Q2FY26. Both rates exceeded the corresponding growth in revenue from operations, which rose 42.0% sequentially and 7.9% year on year to Rs 594 crore.

Profit before tax increased 105.0% sequentially to Rs 296.4 crore in Q2FY27, while profit after tax rose 76.3% to Rs 211.5 crore. The Q2FY27 profit-after-tax margin was 32.4%, compared with 29.0% in Q2FY26, according to the company’s consolidated financial highlights.

What supported Anthem Biosciences’ sequential earnings increase?

Anthem Biosciences’ total revenues rose 47.4% sequentially to Rs 652.9 crore in Q2FY27, including other income of Rs 58.898 crore. The presentation states that Q2FY27 EBITDA includes this other income, comprising Rs 5.754 crore of net foreign-exchange gain classified as other operating income and Rs 53.145 crore of financial or non-operating income.

The comparable Q2FY26 other-income amount was Rs 47.753 crore, including Rs 30.340 crore of net foreign-exchange gain and Rs 17.413 crore of financial or non-operating income. Reported EBITDA and the 50.6% margin therefore include a higher financial or non-operating income contribution than in the year-earlier quarter.

Cost of materials consumed and changes in inventories increased 26.3% sequentially to Rs 146.2 crore, slower than revenue growth. Employee benefits expense increased 3.1% to Rs 78.8 crore and other expenses rose 32.8% to Rs 42.6 crore; against Q2FY26, materials and inventory cost declined 17.3% from Rs 223.4 crore.

Which segment drove Anthem Biosciences’ Q2FY27 revenue rebound?

Anthem Biosciences’ contract research, development and manufacturing organisation, or CRDMO, business drove the rebound, with revenue rising 49.4% sequentially to Rs 509.3 crore in Q2FY27. CRDMO supplied 85.7% of revenue from operations and was 9.2% above the Rs 466.2 crore reported in Q2FY26.

Specialty Ingredients generated Rs 84.8 crore in Q2FY27, accounting for the remaining 14.3% of revenue from operations. Its revenue rose 9.5% from Rs 77.4 crore in Q1FY27 but was only 0.6% above Rs 84.3 crore in Q2FY26, showing that CRDMO accounted for most of the sequential revenue increase.

The quarterly mix was more weighted to CRDMO than the H1FY27 mix. CRDMO represented 84.0% of H1FY27 revenue from operations of Rs 1,012.3 crore, compared with 85.7% in Q2FY27, while Specialty Ingredients’ share declined from 16.0% for the half year to 14.3% in the quarter.

What does H1FY27 show about Anthem Biosciences’ recovery?

Anthem Biosciences’ H1FY27 revenue from operations declined 7.2% year on year to Rs 1,012.3 crore, despite the Q2FY27 rebound. CRDMO revenue fell 7.6% to Rs 850.1 crore in the half year, while Specialty Ingredients revenue declined 5.6% to Rs 162.2 crore.

H1FY27 EBITDA nevertheless increased 5.3% to Rs 505.9 crore, and EBITDA margin expanded 480 basis points to 46.2% from 41.4% in H1FY26. Profit before tax rose 6.0% to Rs 441 crore and profit after tax increased 7.2% to Rs 331.4 crore, producing a 30.2% profit-after-tax margin.

The half-year cost pattern included a 27.2% fall in materials and inventory cost to Rs 330.9 crore, while employee benefits expense rose 15.1% to Rs 160.1 crore and other expenses increased 13.4% to Rs 99.2 crore. H1FY27 other income was Rs 83.787 crore, including Rs 76.765 crore of financial or non-operating income.

How did Anthem Biosciences’ cash and operating scale change?

Anthem Biosciences reported net cash of Rs 1,538 crore at September 30, 2026, down from Rs 1,719.7 crore at June 30, 2026 but above Rs 993.1 crore at September 30, 2025. The company presented this as 1.16 times annualised Q2FY27 EBITDA and 1.52 times annualised H1FY27 EBITDA.

The company disclosed 2,344 employees, including 1,173 scientific staff, along with 425 kilolitres of custom-synthesis capacity and 142 kilolitres of fermentation capacity. It reported Q2FY27 return on equity of 26.8%, post-tax return on capital employed of 50.3%, and gross fixed-assets turnover of 1.55 times.

For H1FY27, commercial molecules contributed 65.3% of revenue and research and development services contributed 8.1%. Anthem Biosciences also disclosed 15 commercial molecules and nine late-stage Phase III molecules across its discovery-to-commercialisation platforms.

Conclusion

Anthem Biosciences’ Q2FY27 result combined a 42.0% sequential increase in revenue from operations with an 88.3% rise in EBITDA, lifting margin to a record 50.6%. CRDMO drove the revenue rebound, while the reported earnings outcome also included Rs 58.898 crore of other income, primarily financial or non-operating income.

The next disclosed event is Anthem Biosciences’ earnings call scheduled for November 4, 2026, following the November 3 presentation. The call may provide further management context on the Q2FY27 margin, the Rs 1,538 crore net-cash position, and the disclosed 15 commercial and nine Phase III molecules.