Anthem margin jumps as revenue outpaces expense growth
The consolidated operating margin rebounded 6.59 percentage points, but other income contributed 18.78% of pre-tax profit.
Filed 24 Jun 2026, 12:50 IST · Anthem Biosciences Ltd (ANTHEM)
Key takeaways
- Consolidated Q4FY26 operating margin expanded 6.59 percentage points QoQ as revenue grew 44.38% while expenses rose 29.25%.
- Other income contributed 18.78% of pre-tax profit, making the 104.44% QoQ increase in net profit less purely operating.
- The stock fell 3.83% five sessions after the result, unlike all three prior result reactions, which were positive.
Price around the results
Q4 revenue rebound lifts operating profit
Anthem Biosciences reported a sharp consolidated QoQ rebound, with revenue up 44.38% to Rs 610.94 cr and operating profit up 69.98% to Rs 267.21 cr. Net profit rose 104.44% to Rs 189.76 cr, helped by the operating recovery and higher other income.
Lower cost intensity widened the margin
Expenses increased 29.25% QoQ, well below the 44.38% revenue growth, widening operating margin by 6.59 percentage points to 43.74%. Interest rose 442.86% and depreciation increased 14.65%, but neither offset the benefit from faster revenue growth. Other income was 18.78% of pre-tax profit, while the tax rate rose 2.86 percentage points to 31.72%, so the net-profit gain included a meaningful non-operating contribution but faced a higher tax drag.
Margin recovered after Q3 dip and stayed above peers
Operating margin moved from 35.45% in Q1FY26 to 39.62% in Q2, fell to 37.15% in Q3, and recovered to 43.74% in Q4; the latest quarter therefore reversed the previous quarter's decline rather than extending it. Anthem's margin was 20.36 percentage points above the 23.38% median for the 48 Healthcare peers that had reported the same quarter.
Management reiterated a broad growth commitment
Management said the company remains committed to delivering sustainable growth across all business segments. The presentation also said the company continues to maintain a healthy financial position, but provided no quantified operating target in the cited commentary.
The market reaction broke from its recent pattern
The stock opened with a 1.73% gap but ended the reaction session down 0.87%, and was down 3.83% after five sessions; the reaction coincided with a corporate action and volume was 6.83 times normal. That direction differed from the three prior result reactions, all of which were positive, although the five-day decline was below the 4.91% median absolute move in that history.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹611 cr | ₹423 cr | +44.38% |
| Other income | ₹52 cr | ₹8 cr | +539.58% |
| Expenses | ₹344 cr | ₹266 cr | +29.25% |
| Operating profit | ₹267 cr | ₹157 cr | +69.98% |
| Operating margin (%) | 43.74% | 37.15% | — |
| Interest | ₹2 cr | ₹0 cr | +442.86% |
| Depreciation | ₹40 cr | ₹35 cr | +14.65% |
| Profit before tax | ₹278 cr | ₹130 cr | +113.01% |
| Tax | ₹88 cr | ₹38 cr | +134.09% |
| Net profit | ₹190 cr | ₹93 cr | +104.44% |
| EPS (₹) | ₹6.76 | ₹1.65 | +309.70% |
Operating margin of 43.74% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.87% | -1.04% |
| Next session | -2.32% | — |
| 5 sessions | -3.83% | -5.05% |
| 15 sessions | -0.93% | — |
| 30 sessions | -2.09% | — |
Volume on the results session was 6.83× 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.
Guidance & outlook
- Anthem remains committed to delivering sustainable growth across all business segments.
What to watch
- Whether operating margin holds above 43.74% after the Q4 rebound.
- Whether revenue growth continues to exceed expense growth after +44.38% versus +29.25% QoQ.
- Whether other income remains near 18.78% of pre-tax profit.