Anthem Bioscienc Q2 FY27 Results (NSE: ANTHEM)
Signal: Margins at cyclical peak
The read
The key inflection is a Q2 revenue recovery to ₹5,940.32 million, +42.0% QoQ and +7.9% YoY after Q1's delivery-timing decline, alongside a second-quarter margin recovery to 45.7%; however, the gross-margin tailwind depends on whether the 584bps expansion persists and the subsidiary still reduced consolidated PAT by ₹94.23 million versus standalone.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹594.03 Cr | +7.9% | +42.0% |
| Net profit | ₹211.46 Cr | +21.9% | |
| EPS | ₹3.75 | +21.4% | |
| EBIT margin | 45.7% |
P&L walk
Consolidated revenue recovered to ₹5,940.32 million, +7.9% YoY and +42.0% QoQ, while gross margin expanded to 68.9% from 63.1% and EBITDA margin to 45.7% from 39.7% YoY; PAT rose 21.9% to ₹2,114.63 million.
Segments
The subsidiary dragged consolidated earnings relative to the parent: standalone PAT was ₹2,208.86 million versus consolidated PAT of ₹2,114.63 million, a ₹94.23 million gap; no segment results table was disclosed in the provided filing.
Key positives
- Consolidated revenue recovered to ₹5,940.32 million, +42.0% QoQ and +7.9% YoY, reversing the Q1FY27 delivery-timing decline.
- Gross margin expanded 584bps YoY to 68.9% as raw-material cost fell to 33.8% of revenue from 36.6%; the filing does not disclose the driver.
- Operating EBITDA margin expanded 604bps YoY to 45.7%; EBITDA grew 24.3% versus revenue growth of 7.9%, while depreciation declined 8.3% YoY to ₹307.11 million.
- Net debt declined to ₹186.75 million from ₹341.23 million at March 31, 2026, while H1 operating cash flow remained positive at ₹3,181.70 million.
Key concerns
- The 584bps gross-margin expansion is not attributed in the filing, so persistence of the raw-material tailwind is unconfirmed.
- H1 operating cash flow fell 22.0% YoY to ₹3,181.70 million despite H1 PAT of ₹3,314.04 million, indicating weaker cash conversion.
- Standalone employee benefits plus other expenses rose 23.3% YoY, materially faster than standalone revenue growth of 3.5%.
- The subsidiary reduced consolidated PAT to ₹2,114.63 million from standalone PAT of ₹2,208.86 million, a ₹94.23 million divergence.
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