Delivery timing cuts Anthem Biosciences' Q1 operating margin to 28.27%
Management attributed the revenue decline to shifted customer deliveries and said scheduled deliveries are concentrated in the latter half of the year.
Filed 21 Jul 2026, 16:26 IST · after market close · Anthem Biosciences Ltd (ANTHEM)
Key takeaways
- Consolidated revenue fell 22.58% year on year to Rs 418.22 cr as management attributed the quarter to delivery timing shifts with key customers.
- Operating margin narrowed 14.99 percentage points year on year to 28.27% because expenses declined only 2.12% against the 22.58% revenue drop.
- Net profit fell 11.67% to Rs 119.94 cr, partly cushioned by a 10.05 percentage-point lower tax rate while other income contributed 17.22% of pre-tax profit.
Price around the results
Customer delivery timing drove the Q1 revenue decline
Anthem Biosciences reported consolidated revenue of Rs 418.22 cr in Q1FY27, down 22.58% year on year and 31.54% sequentially. Management said the result reflected timing shifts in deliveries to key customers. The company also said scheduled deliveries are more concentrated in the latter half of the year.
Operating margin gave back much of the Q4 recovery
Operating margin fell 14.99 percentage points year on year and 17.21 percentage points sequentially to 28.27%. Expenses declined just 2.12% year on year, so they fell much more slowly than revenue; sequentially, expenses declined 9.93% against a 31.54% revenue fall. The margin trend remains volatile: it moved from 43.26% in Q1FY26 to 37.54%, 18.98%, 45.48% and then 28.27%.
Lower tax rate and other income softened the profit decline
Net profit declined 11.67% year on year, a smaller fall than operating profit because the tax rate dropped 10.05 percentage points to 17.04%. Other income represented 17.22% of pre-tax profit, so reported earnings received a material non-operating contribution. Management said it is focusing on cost efficiencies, yield optimisation and employee productivity.
Margin remained above the reported healthcare peer median
Anthem's 28.27% operating margin was 3.63 percentage points above the 24.64% median for the eight healthcare peers that had reported the same quarter. The stock fell 1.60% on the first day after the results, after opening down 5.17%, with volume at 6.63 times the reference level. That decline was unusual against its recent results history, where the stock rose after three of four results and the median absolute move was 4.91%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹418 cr | ₹611 cr | -31.54% | -22.58% |
| Other income | ₹25 cr | ₹51 cr | -51.40% | +9.12% |
| Expenses | ₹300 cr | ₹333 cr | -9.93% | -2.12% |
| Operating profit | ₹118 cr | ₹278 cr | -57.46% | -49.42% |
| Operating margin (%) | 28.27% | 45.48% | — | — |
| Interest | ₹1 cr | ₹2 cr | -53.16% | -44.72% |
| Depreciation | ₹30 cr | ₹40 cr | -24.25% | +13.38% |
| Profit before tax | ₹145 cr | ₹278 cr | -47.98% | -22.37% |
| Tax | ₹25 cr | ₹88 cr | -72.05% | -51.17% |
| Net profit | ₹120 cr | ₹190 cr | -36.79% | -11.67% |
| EPS (₹) | ₹2.13 | ₹6.76 | -68.49% | -12.35% |
Operating margin of 28.27% compares with a Healthcare sector median of 24.64% across 8 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.60% | -0.81% |
| Next session | -1.73% | — |
Volume on the results session was 6.63× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company reported year-on-year improvement in both EBITDA and PAT margins during the quarter.
Guidance & outlook
- The company expects to capture stronger momentum from scheduled deliveries concentrated in the latter half of the year.
- The company remains committed to sustaining revenue growth in line with its long-term historical performance.
New initiatives
- The company is focusing on cost efficiencies, yield optimisation and employee productivity.
Problems & risks
- Quarterly results were affected by timing shifts in deliveries to key customers.
What to watch
- Whether operating margin recovers from 28.27% after the Q1 decline.
- Whether revenue improves from Rs 418.22 cr as management's scheduled deliveries move into the latter half of the year.
- Whether other income remains close to 17.22% of pre-tax profit and continues to support reported earnings.