Good morning, everyone. I am Forum Goshar from Adfactors PR Investor Relations.

On behalf of Anthem Biosciences Limited, it is my pleasure to welcome you all to the Q1 FY27 earnings conference call. Joining us on the call today from the management team are Mr.

Ajay Bhardwaj, Managing Director and Chief Executive Officer, and Mr. Gawir Baig, Chief Financial Officer.

We will begin today's call with opening remarks from the management, following which we will open the floor for question-and-answer session. Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking in nature.

These statements are based on the management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Anthem Biosciences Limited undertakes no obligation to publicly update or revise any forward-looking statements based on subsequent events or developments.

With that, I would like to now hand over the call to Mr. Ajay Bhardwaj to deliver his opening remarks.

Thank you, and over to you, sir.

Thank you. Good morning, everyone.

This is Ajay Bhardwaj. I'm pleased to announce our first quarter results for the financial year FY27.

Our consolidated revenues from operations for the quarter were ₹418 crores, out of which the CRDMO business contributed 81.5% of the revenues, delivering ₹341 crores. Specialty ingredients contributed 18.5% of our revenues, delivering ₹78 crores.

The EBITDA was ₹176 crores, including other income, with EBITDA margin at 39.6%, that is nearly 40%. The EBIT includes other income of ₹25 crores.

PBT was ₹145 crores. Our profit after tax for the quarter was ₹120 crores, with PAT margins at 27.1%.

Net cash position of the company as of June 30th, 2026, was ₹1,720 crores. Our first quarter of FY27 results reflects timing shifts in deliveries to key customers.

The underlying demand remains strong, with a higher concentration of scheduled deliveries in the latter half of the year. We are positioning to capture that momentum.

We remain firmly committed to sustaining revenue growth aligned with our long-term historical performance. On the margins front, we delivered year-on-year year-on-year improvement across both EBITDA and PAT margins.

Our disciplined focus on cost efficiencies, yield optimization, and employee productivity continues to reinforce our industry-leading margin profile, positioning us to sustain this performance throughout the year. Thank you very much.

Now I get, I'm open to questions. I have with me my colleague, Mr.

Gawir Baig, who's our CFO. Any questions, we'll be happy to answer.

Thank you for taking my question. Can you update on the capacity utilization at Unit 1, 2, and NeoAnthem as of first quarter, and how should we think about utilization levels in these units change in the course of the next 3 years?

Also, any timeline with respect to regulatory inspection required for Unit 3 by US FDA or European authorities?

Thanks, Saion. See, with respect to our capacity utilization, last year when we ended the year, roughly about Unit 1 was about 74% utilized.

We continue to have the same utilization in our Unit 1 in even this quarter, roughly about 75% 78% utilized right now on the custom synthesis side. Unit 2 was about 65% utilized last year for the full year because we had gone through significant expansion over there by adding about 130 kL.

This quarter being a slightly softer quarter, our utilization was about 50% for Unit 2 across the expanded capacity on custom synthesis side. Fermentation utilization is about 50% for Unit 2 across that 140 kL that we have in fermentation.

Unit 3 has been picking up from a utilization point of view. Roughly about 30% to 35% is the utilization for quarter one of FY27.

This is a ramp-up from what we had about 15-odd percentage of utilization in FY26, there is a ramp-up in Unit 3. What do we expect going forward?

See, we expect all of this units to be completely full, and that's the reason why Unit 4 is what we are setting up. We are in the midst of construction over there, and I think by end of next year, we'll be able to commission Unit 4, which can add another 365 kL of custom synthesis and 100 kL of fermentation.

In the next 2 years, we would look at ramping it up to almost optimum capacity utilization across all the three units.

Okay. Thank you.

Just one clarification: so the increased utilization at NeoAnthem is primarily the shifting of some production from the existing units to NeoAnthem? Is that what is happening?

Some of it is that, but most of it is new orders that we are getting because we have a very modern pilot plant there. We have also our peptide synthesis and oncology manufacturing there, some new projects are being put into that unit now.

It is not just shifting some of it, it is mostly new projects that are coming into Unit 3.

Thank you. Just one more question: in the quarter, is there any update on, say, new contracts, new client traction, large pharma, mid-pharma, any development that you would like to share, and some of the initiatives on peptides, etc., if you can talk about any traction that you've seen over the last 3 months?

Yeah. In terms of adding customers, we actually have one new Big Pharma customer which has been added, and we expect that to yield significant numbers going forward.

One of our large biotech customer also got acquired by a Big Pharma. That is something that we still yet to pan out.

This happened very recently, maybe a month old. It all continues to be good.

Just to again add to your query when Gawir was answering that 50% utilization of Unit 2 in this quarter, and the subsequent quarters, we are very confident of having much better numbers because our customers have deferred deliveries to the quarter two and quarter three and four. The capacity utilization is only going to go up.

We continue to be very bullish for the year. We have very high degree of visibility because 60% of what we need to do, we already have order book.

We are sitting on a very strong order book. That gives us the confidence that we'll achieve our growths that we intended to do right at the beginning of the year.

Thank you, sir. Sir, just take one clarification.

You mentioned one new Big Pharma significant contribution possible. Any timeline that you have in how much time we will see that traction showing up in numbers?

It should happen in the latter quarters of this year. The agreement hasn't yet been signed, but it's in the works.

Sometimes these drag out, but the customer is on board. It's just a matter of now crossing the T's and dotting the I's, and that's happening.

Okay. This is a existing commercial project that you would be starting to manufacture, or this is a new molecule?

It's an engagement, which is a multidimensional engagement. There's R&D, there's new projects, some products that they need, they want to diversify their supply chain.

That's going to happen as well.

Understood. Thanks a lot, sir.

Thank you.

Yeah.

Thanks for giving the opportunity. I just wanted to understand, you had mentioned that we have the visibility of 60%.

Usually at the start of the quarter, what is the visibility which we have for next quarter sales? Secondly, if you can just bifurcate what constitutes the remaining 40% or if you can just give what is the visibility which you get in your manufacturing business, what is the visibility which you get in your R&D business, and what is the visibility you get in your specialty ingredients business?

See,

specialty ingredients business, let me address that first. That's an ongoing business.

That's largely India focus, so that is month-on-month we get orders. Some of them are, of course, long-term contracts, but this is more of a B2B business within India.

When it comes to quarter-on-quarter, see, we get visibility. Some of the large customers, they give us orders for the whole year forecast, and then it's a rolling forecast which is revised and updated every 3 to 3 to 6 months.

We have a fair degree of visibility there because these need to be manufactured, and there's a lot of raw materials that need to be procured, we have that window to know that. When it comes to R&D, that is, again, whenever we sign a contract, we know that the next quarter this is what our deliveries are, and sometimes it spills into the quarter after that also.

Generally, that's an ongoing input we get, but largely, for one or two quarters, there is predictability. When we are going in at the beginning of the year, when we have something like 50% of next year's order book already in our hand, then we feel confident that the rest of the 50% we'll make up in the rest of the year.

This year, after one quarter, admittedly it's a muted quarter, we still have 60% of our order book full. As we are very confident about what will happen for the rest of the year.

Usually the remaining portion is won through new clients which we are onboarding, or it could be even for your existing products which you supply customers increase the volumes? What would be the mix?

It's usually a mix of both. We still have three more quarters to go this year, and that's a long time.

We will onboard some new customers, so that's an unknown that will contribute at least some percentage of sales. However, some of the existing customers, like very recently one of our customers came back and said, "Can you supply us extra material this year?"

We said, "Yes, we could." That PO got factored in.

Additionally, there is also in terms of sometimes the projects in the biotech customers that we have get very healthy clinical outcomes, and suddenly there's a new order that they need because they need to do the next phase. It's a mix of both.

There's no one size that fits all. All of them is happening at the same time.

Udit,

just to clarify over here, the order book that we are talking is largely for the CRDMO business. Because specialty ingredients is a normal day-to-day, month-on-month business which needs to be delivered.

The order book concept is largely because for CRDMO business, we need to procure the raw materials and manufacture it. There's a lead time in terms of manufacturing it and also procuring the raw material, and hence we get orders in advance.

When we started off the year, we were with about 60% of the order book for the full-year delivery. Now, even after quarter one, we have replenished the order book.

Even right now also, we stand with about 60% of the order book still being there.

Understood. This 60% visibility which you mention is only for the CRDMO segment, or when we say this is for the whole business?

How should one interpret?

When I talked about 60% as a fraction, that's for the whole business. For the whole business.

Understood. Thanks a lot.

My second question, sir: we had highlighted that last year also we had onboarded two new Big Pharma as clients, and current year also, as you mentioned, we have onboarded another Big Pharma as a client. I just wanted to understand where are we currently in terms of discussion for some of lateral projects or already commercialized molecules, and what stage, have they already audited and have we already signed contracts, and when can we see those translating into orders?

Yeah.

When we onboard a new customer, there are two ways it's done. One is they acquire an existing asset that we've been working on, largely they leave the team untouched for a year or 2 years because it's a new acquisition for them.

It remains business as usual for some time. Then the lateral entry, only early this month, we got some new inquiries of existing products for a Big Pharma customer with whom we are doing fairly good business.

Now that's something we still have to win, but the fact that they are sending us these inquiries itself means that we've established more than just a toehold in these companies. Also, as I said, for one of the customers we onboarded last quarter, they are giving us their registered starting materials and some advanced intermediate inquiries.

Again, those are some of those numbers have already kicked in, but it's just the beginning. See, these relationships have a time frame of maturing over 3 or 4 years.

Just on a quarter basis, it can be just a start, and it's like warming up the car. We have miles to go, and that will happen in the subsequent quarter and subsequent years.

Every time we enroll a customer, these relationships are for years. That's been our experience.

Every time we bring onboard a new customer, it gives us a lot of hope that this is now going to span over many years of contribution.

Sir, just one last question. Just wanted to understand, a lot of biologic drugs are going off-patent.

Do we plan to be drug substance suppliers as these products go off-patent and to any of the companies which are looking to commercialize it?

We do have some of those, absolutely. This is not our strategy that we look at the products which are going off-patent and we start working on them.

See, generally that becomes part of the generics business, though it's a biosimilar generics, but we stayed away. There are customers who approach us.

See, for ADCs, they need already established mAbs which have gone off-patent or something like that. Those projects we work on, or something which a client will come to us and say, "We need this biosimilar.

Would you develop it for us and manufacture it?" Those interest us a lot.

We have as of now, and I'm not saying it's never going to happen, peptides is another area. These are also large molecules.

There we work with customers, and we also have our own strategy there. Generally speaking, we don't follow the patent expiry list.

Understood. Thanks a lot, sir.

Sir. Thank you for the opportunity.

Sir, first question is around on your pipeline and late-phase molecules. As of now, you have something like 100-plus kind of active projects plus 10 molecules are in late phase.

Can you give some highlight that how many of these projects are into a space of, we can say, GLP or ADC kind of segments, and any near-term visibility in terms of commercialization?

Thanks, Mehul. Yes, right now we have about 100-plus programs which are in early stage development and 10 on the late-phase side.

Path to commercialization will still be some time away, closer to about 18 to 24 months. Last year, customers have commercialized four new molecules, we hope that some of these 10 which are in the late phase would get commercial soon, and that will add on to the commercial molecule kitty of ours.

In terms of the modalities in which we are working, see, we have a couple of molecules which are on the ADC side, which are in late phase. Else, peptide molecules are mostly on the early stage side.

Okay. Thank you.

One last question. Sir, you already mentioned that there has been some timing-related shift in terms of customer ordering, and that will be placed in a later part of the year.

Given Q1 is down almost 25% on a YoY basis, how do you see the full year as a growth number for the CRDMO as a business segment? See,

historically, and if you look at our long-term historical growth, we have been delivering numbers consistently, and it's a double-digit growth we have delivered. What we are saying is, for this year also, our growth prospects remains intact.

We have our order book full, we will make up for the lost sales whatever decline you have seen in quarter one numbers in terms of a quarter two upswing as well as a quarter three upswing. You will see the numbers coming back as a recovery in Q2, Q3, and Q4.

Our growth prospects for the full year remains intact. It will be in line with our historical growth performance, and our margins also remains mostly intact.

This is a nature of our business where you'll see that there will be some element of upswing in some quarters and some downswing in some quarters because end of the day, the CRDMO business is dependent upon the deliveries schedule of customers, and hence there is a lumpiness in terms of the business on the CRDMO business side. Don't worry about quarter-on-quarter deliveries being lower or higher.

Business is intact, and we will continue to deliver on our growth numbers for FY27 as well.

I also want to sensitize all of you that sometimes in this year, we'll again have a bumper quarter. Please don't make that as the benchmark because then the subsequent quarter may not be able to match up to it.

There'll be soft quarters, and there'll be some very, very nice quarters. As Gawir just explained, it depends on when our customers want delivery.

Sometimes they all come together, but as you saw when we explained our capacities, we have the capacities to deliver. The next quarter, our capacity utilization are definitely higher, and we just will have this lumpiness in our business.

It's the nature of our business.

Keep looking at our business more on a year-on-year front.

Holistically, if you look at it, it's a year-on-year. That's how we have always looked at it.

I know we are new to the markets and markets are used to quarter-to-quarter performance, but this is a different type of business.

That's helpful. Sir, last question on your Unit 4.

Can you provide some current status, where we have reached, how much capex we have already incurred into Unit 4, and what are our capex outlay for next 2 years for Unit 4, as well as the timeline of commissioning this Unit 4?

We have articulated this. Roughly about ₹1,200 crores is the capex outlay for Unit 4, and this is Phase 1 of Unit 4.

Unit 4 is a large-scale addition for us, roughly about a 30-acre property. Phase 1 will be using half of the area available for expansion.

In Phase 1 itself, we'll be adding about 365 kL of custom synthesis, 100 kL of fermentation. We are also adding a food and a neutra plant over there.

This will take about 2 years' time for us to build. We broke ground last year.

By end of this FY28, we will be ready with our Unit 4. The ₹1,200 crores what we are talking about roughly could be a 50-50 split across both these years, FY27 and FY28.

Civil work is almost getting done over there in Unit 4. We will start putting in orders for equipments to come in now, it will take time.

By end of FY28 is when we would be ready with our Unit 4 expansion.

Okay. Thank you.

That's all from my end. Thank you.

Hi. Good morning.

Just following up on the previous question, what would be the target capex for this year, FY27? FY27

targeted capex for this year will be closely about ₹700 crores.

Okay. It will remain elevated next year also because of Unit 4, and then it should come down from there.

Is my understanding correct?

Sorry, come again, please, on this?

Because of Unit 4 capex, it will remain elevated next year, FY28, as well. After that, the capex will come down from those levels.

Is my understanding correct?

That's correct.

Okay. Again, following up on the growth, obviously there are quarterly fluctuations, but for the full year, do you still maintain your targeted growth rate of 20% for this year?

See, our growth is intact. We are not giving a guidance of any particular percentage, but historically, if you look at our last 10 years' growth, we have delivered quite healthy growth rate, and we'll continue to do that in this year as well.

Understood. For the quarter, I see a very low tax rate.

For the full year, would the tax rate normalize to around 25%?

It should normalize to about 25%. If you look at last year, our tax rate was high because we had losses in our Unit 3 subsidiary, NeoAnthem.

Hopefully NeoAnthem will be turned break-even this year and maybe profitable as well in the full-year basis. We will have a much more marginalized tax rate of about 25 20 25, 25.5% for this full year.

Got it. Thank you.

Thanks for taking my questions. My first question is on semaglutide API.

If you could share, have we started our commercial supply on this product to domestic players? Secondly, in light of the fact that one of your peer is facing scaling up issues on the API manufacturing front, are we seeing more inbound queries from domestic players who are seeking alternate source?

Thanks, Bansi. We have not started supplying.

That's something that is still in the works. We are awaiting approvals from CDSCO.

We've done all the work. We're ready to scale up as well.

We've done enough trials and enough scale-up activities to know that our product, once we have permission, we'll be able to supply people. As we've said earlier, we have sampled almost all the big players, and many of them are waiting for us to have the approval from CDSCO, and then they're ready to go.

That's something that is waiting to happen, and it will happen sometime this year, for sure. None of this is because somebody else has not been able to scale up.

Again, should that opportunity arise, we are ready in to service that. GLP-1 still hasn't kicked in in terms of sales for us, but it's something that is in the works and should happen soon.

All right, that's clear. My second question is, Ajay, in the past, when you've guided for growth, both on top line and PAT, it appears that clearly we are expecting our margins to maintain at these levels.

Now these are obviously industry-high margins. One is, what gives us confidence that we'll be able to maintain these margins?

Second is, do we expect these margins to sustain if one has to take slightly longer-term view, say, over next 3 to 5 years?

What gives us the thing that we'll sustain the margins this year, as we said earlier, our order book is 60% already in the bag. We know what our costs are, we know what our margins are there, I don't see any challenge with margins this year.

Going forward, it's very hard to predict the future, but at the same time, what we've always been driving our business through technology, through innovation. We have some things up our sleeve which will allow us to maintain these margins, we believe, because we use new technologies like flow, we're bringing in biocatalysis, things that normally people are not doing, which are quite revolutionary in cutting down cost of goods.

That allows us to, A, engage with the customer at a very different level because you talk to them a language which they really, really appreciate that you're not just a pair of hands, you're actually contributing through innovation and technology development. The second part is that also, we're allowing our customers to have better cost of goods, but at the same time, it helps us retain our margins.

Going forward in the next 2 or 3 years, let's look at the historical perspective. We've always had very good margin.

However, when our new units kick in, yes, there is some depression in the PAT because we've made some large investments. See, even in this quarter, we have increased our material margin, even though this top line has not been so great, our material margin has increased.

We are in a position to, I believe, defend these margins.

Understood. That's clear.

Just one clarificatory question here. Gawir, if you could just help us quantify what is the ESOP cost and what is it going to be for the full year for fiscal '27?

The ESOP cost is about ₹9 crores for the full year '27, quarter one is about ₹2.25 crores. This was roughly about ₹16 crores for the full year '26, there is a decline on the ESOP cost.

Okay. Going ahead also, this should be declining, if we have to think about fiscal '28 and beyond?

Because on a like-to-like basis, I think this is the third year when we have taken the ESOP charge. The fourth year ESOP charge for the ESOPs which have been granted, it will be about closer to about ₹5 crores next year, there will be a decline.

Understood. Thank you.

Thanks for the opportunity. Sir, you mentioned that one of your large biotech customer has been acquired by a Big Pharma.

With this, how you see any kind of change in the demand, especially for the projects that you're working with this biotech customer, any particular outlook would you like to share how, I think, this acquisition change the overall outlook of this particular project? Thank you.

Right. There's a constant M&A going on in our customer side.

The latest is one of our very nice, decent-sized biotech customer has been acquired by Big Pharma. However, the impact is not material for the rest of this year.

Usually, when an acquisition takes place, they leave the team alone for a year or sometimes even a couple of years to do their thing, and then only slowly there is a ramp-up of volumes. This is something that we're waiting to see.

We know about the acquisition. We've got an initial letter saying that we've been acquired, but we've had really no meaningful discussions with the acquirer, the Big Pharma.

That is something that actually shapes up over time. Our business actually has very long-term time spans.

We have to look at it from that perspective. We have to be patient.

Also, it's long-term, but at the same time, it's also very sticky business given that it's highly regulated. As long as we keep getting new products approved, we keep building a pipeline of customers, which every year we add a few more, I think we're in a good place because that will deliver the numbers 4, 5, 6 years from now.

Understood, sir. Just one clarification: have you worked with this Big Pharma in the past, with the acquirer?

How is your experience with them? We

they know about us, we met them, but we never had some mean any mean meaningful business with them till now. That's going to change now because the company that they've acquired, we do decent business with them.

It gives us a foot in We've seen in the past, that's a nice way to get into a company.

Understood. Sir, would you like to

Sure, no problem.

Sir, just extending the previous participant's question. This existing customer contract, was this the manufacturing commercial contract or was this a scale-up for product approval, if you could share that point?

Tushar, that's a development contract which we are working with the emerging biotech, which has been acquired by the Big Pharma.

Sometimes this is not yet a commercial product, but even a late-stage acquisition. See, again, we don't have visibility on what the clinical data is, which ever billions of dollars have seen.

This could be it is it is near commercialization, or it is still be a few a year 1 or 2 years of work and very promising data. It's it's not a commercial contract, it's a late Phase 3 development contract.

Got it, sir. Basically, product pipeline, let's say, re-evaluation and then subsequently to get the commercial contract if this product further progresses on the clinical trial and then commercialization, these are the two key milestones to watch out for as far as business from this product is concerned.

Oh, absolutely. This not just this for us, this is the key milestone we watch for every company of ours whom we're working with, biotech, that get acquired.

Recently, another one got acquired, but that's a little early stage. All these are, as we said in the past on this on this call, it just gives us many more shots on goal.

We are, we're very we're very hopeful that some of these could translate into large-scale business opportunities. Some would be medium-scale.

It just also depends on how successful the Big Pharma is in marketing that product.

Just secondly on this, were we sort of building or already have the capacity for scale-up, considering that it was in Phase 3, eventually was to come up for approval? Were we building enough capacity for this product, and would that require dedicated one?

See, the Phase 3 quantities which we have supplied has been supplied from our existing Unit 1 and Unit 2 itself. Now, in terms of capacity addition, yes, we are doing it in our Unit 4 as whatever room for capacity utilization is there in our Unit 1, Unit 2, and Unit 3.

No doubt that we are doing in Unit 4 is largely keeping in mind that there will be growth in our existing 14 commercial molecules, as well as which we have in the late phase, the 10 molecules that are at commercial require additional quantities to supply over there. Our Unit 4 expansion is largely catered towards this particular

Got it, sir. Got it.

Sorry. No,

no. Go ahead.

It's fine. Gawir has already answered.

Got it. Just lastly on any working capital changes that has happened over last, let's say, a quarter or two?

Not significant, Tushar, because, see, if you look at, our receivables would have come down because quarter four was a large quarter, there would be a crystallization of receivables. Quarter one was a softer quarter, the receivables would be proportionate to the quarter one sales.

There's a little bit of inventory build-up which we have, because we have purchased raw materials for quarter two and quarter three. Then payables would have also gone up a little because of the RM supplies that tied up for Q2.

Overall, I think it's all normal course of business. You look at H1 numbers, you will find that be in line with what H1 of FY26 will [unclear] as H1 FY27 balance sheet.

Got it. Not much change in the inventory levels currently.

No. No,

no.

Got it, sir. Thank you.

Thanks again for the question. Gawir sir, this time around, we have seen that muted trend in other expenses.

Is there any kind of one-off, or you also talked about disciplined focus on cost efficiency, yield optimization, etc.? Something is recurring going forward?

Just want to understand how to look at this other expense line in FY27 and going forward. Thank you.

I think it's largely in line with the expenses that we have. There's no significant one-off in the other expenses line item.

See, our focus has always been in terms of how do we optimize on costs. Across the three metrics on the cost side, raw material margin, we have been consistently increasing, and that's largely focused on yield improvement as well as backward integration of most of the raw materials or most of the key intermediate.

Our employee cost has been amongst the lowest vis-a-vis as a percentage of sales vis-a-vis the industry, although it might look for this particular quarter about 18.8%, it might look higher, but that's largely on account of the muted revenue for quarter one '27. If you look at on an FY27 full-year basis, we will be largely around that 12%, 13% 13% sort of number as a percentage of sales.

Other expenses will also be in a similar 9% sort of the percentage of sales. It is the sales this time is lower quarter one, and hence it reflects about 9.1%, 9.2%.

I think full-year number trajectory will be in that 9% to 10% range itself. There's no one-off, as such, on other expenses either.

Thank you. That's from my side.

Hi, sir. Just couple of questions.

First one, can we say that quarter one is the sort of the lowest quarter for the year, and on a quarter-to-quarter basis, we'll see a growth from 2Q onwards? Secondly, on specialty ingredients, it has been a softer quarter as well.

When do you think that will again sort of come back into growth trajectory? What is it sort of going to drive it this year?

Okay. Thanks, Dhawal.

We clearly see just the Q1 as a softer quarter for the year. We expect it to from here on only to grow.

The second part being that specialty ingredients, well, specialty ingredients also, there's been a lot of turmoil in raw materials because of the war and everything, because this business is more focused in the domestic market. We've had a lot of pressure on supply chain pressures.

At the end of the year, this specialty ingredients should also grow. We are very confident.

We have visibility now that this, over the last year, there'll be very decent growth in specialty ingredients as well.

Just a small follow-up. On the GLP side, semaglutide, you said you expect CDSCO approval.

Beyond that, what are the other markets that we are targeting? Maybe if we have started any regulatory work on that molecule?

We've started the regulatory work, but we're not targeting any other markets at the moment. We just need to get the decks cleared for being able to produce this product.

We've sampled customers overseas, we're talking to them, but everybody is obviously waiting for are you free to sell in your own country? That's going to be our first gate.

That should happen very soon. We expect it in a quarter or two, and that will put us on course for supplying the market.

We still see GLP-1 as a long-term, very robust opportunity.

Okay. Thank you, sir.

Thank you, Dhawal.

Thanks for taking this follow-up. Ajay, I just wanted to understand, though the whole world is talking about artificial intelligence being part of the biotech pharma ecosystem, what kind of use cases if you are seeing today?

For your business, how you perceive this business is going to be sort of structurally impacted, and what kind of impact it can potentially have on the financials, let's say, if you think about next 3-5 years?

Very good question, Saion. This is something that's an evolving landscape.

We do see and we intend to start using it in specific use cases. See, first, again, it always takes time to separate the hype from reality.

A lot of AI talk is at the moment hype. When we drill down to, "Okay, show us a use case," then it is very thin.

At the same time, some of the very obvious things that we're looking at are document review, when you have a lot of documents to review in quality assurance, which have to be fact-checked and line-by-line and item-by-item, that I think can be automated and brought under AI. There's also a talk of that AI will use a lot of models, will be able to predict chemistry better, they will offer better or give us targets which humans may not be able to foresee or develop.

That's a good news for us, because if they use AI in deciding targets for specific antigens, then those means there'll be more targets available. Somebody still has to go into the lab, put chemical A and B or do fermentation to produce the product.

If more targets are being discovered or are being potential drug candidates, Anthem will, I believe, tend to benefit. We'll get more work to do this discovery part.

That part is still yet to be seen. Then there is also, further downstream, we think that we already do a lot of automation in manufacturing.

We are going to start looking at use cases there where we can see better optimization of our resources, better optimization of our facilities. All those are being looked at, and we will over the next 3-4 years certainly we are very actively seeking use cases.

We don't want to be in a position where we get left out. At the moment, there is still a lot of talk.

Again, remember our clients are some of the biggest pharma companies. We're even asking them, "Where is it that you're using this?"

Even there, we get rather vague answers and not so far something that we can hang our hat on. It is an evolving scenario, but please be reassured that Anthem will not miss out on this opportunity as the use cases develop.

Thank you.

Am I audible? Hello?

Yes.

Thank you for the opportunity. My question is, how are the four recently commercialized molecules progressing versus our expectations?

See,

we did a decent amount of sales last year in March '26 for the recently commercialized molecules. With respect to the pipeline for this year, the order book for this year, I think there would be a growth vis-a-vis what we have delivered on March '26 on these recently commercialized molecules.

It needs penetration in the markets where the innovators have launched this molecule, and based on that, our additional supplies will come in. It will take a couple of years' time for sizable supplies to come in for these molecules.

Okay. Thank you so much for the opportunity.

Thanks for giving the follow-up opportunity. Sir, wanted to understand, what are the usual reasons why a product which is growing year on year, customer goes for deferment of deliveries?

Okay. See, this is a very complex thing.

See, the customers that we cater to service global markets. In some markets, they also anticipate better, higher take-off, and they stock material there.

Then when that does not happen, they also depend on projections. These are the growing molecules.

They will end up stocking in a big geography. Just to take a thing, let's say they expect a lot of sales in China, Germany, and they project certain sales growth in France, and when sometimes that doesn't happen, they reroute that to other markets where they had planned materials from differently.

All this rerouting that happens, and they say, "Okay, let's first exhaust this stock that we have built up in these markets, and then please supply to us later on because we are seeing the growth there, but it is not as per as we anticipated." This is one of the reasons why there is always a rebalancing and deferment of supplies.

Also sometimes remember these are growing molecules, they are adding market after market as approvals. They've filed somewhere, and the approval doesn't come on the time that they've expected it to.

Then they have to wait for another quarter, the file is in, but approvals have been deferred, therefore there is some deferment of supplies. We have confirmed orders, and they will adhere to taking those orders.

How they want to redistribute, sometimes even in our business, they'll call up and say, "Okay, we had expected to take it to this geography. Don't ship it there, but ship it to another location."

This happens all the time. Largely, it doesn't affect the overall business, but it can affect the quarter business, as was the case this time.

This was very helpful. Thanks a lot, sir.

Thanks for the opportunity. Hi, Ajay.

As Anthem has expanded into multiple advanced modalities, what do you believe customers value most when choosing Anthem over other CRDMOs? If you had to rank, let's say, two factors, top two, what would those two factors be?

It could be backward integration, but I'll let you Kapoor sahab,

what customers value is what they see in you over a long term. First is do you keep the promises you make?

Secondly, are you just offering them a pair of hands कि आप बता दो क्या करना है, हम कर देंगे, or saying you're asking us to do this, but we will bring this kind of innovation to it? They do value innovation where no longer you're helping them create a new IP.

That's something that Anthem really prides. Third is the ability to be regulatorily compliant.

Your track record on regulatory compliance is also really important to our customers. On all these three counts, if you score high, you're very likely to be favored by the customers.

There are many other subtle factors which I can go on, and we could be here all day, but there is also the quality of your manufacturing. There's also quality of your people, because what our customers want to do is they don't want to just interact with me or senior management or a project manager.

They like to interact with the scientist, they like to interact with the man on the shop floor. If those people know what they're doing, it gives them a lot of confidence.

In our case, that happens to be the case. Our training of our people is 360 degrees.

They get exposed to all aspects of the company's operations. Therefore, the quality of manpower is another factor that Anthem is really, really different from its peers.

Love the brutal honesty, Ajay. No sugarcoating, and that's the way you have been conducting these calls.

I joined many calls, and not just CDMO, this is one call where I have always enjoyed the brutal honesty. If I may ask one more question, and I'll just rejoin the queue.

Thank you for saying that. Stay invested, and if you haven't, please buy Anthem.

We have,

Ajay.

One more question, Ajay. As Anthem continues to broaden its platform, which capability benefits the most from that expansion, and, conversely, which capability becomes the hardest to preserve as the organization scales, and why is that?

See,

the time frame from what used to be specialty to fine chemicals to genericization and then commoditization has shrunk every year, every decade. What you may consider specialty today will become fine chemicals much faster.

A fine chemical will go towards commoditization much faster than before. In that aspect, what hold you in good stead is that you are thinking ahead and saying, "Okay, right now I'm sitting on an asset which is considered very high specialty, but tomorrow that won't be."

What is it that we can do, A, to keep that moat or make that moat bigger? That is in terms of innovation.

Second is, what are the modalities that we need to add? Because this is where the whole industry is growing.

That is where we are very fortunate to have a front row seat, because we work with hundreds of biotechs at any given time. We can see that the new modern modalities that are emerging or the new things that they're looking at are very different.

Very quickly, we bring that skill also in-house. That is, I think, where we try to differentiate from our peers, and that's what I think will keep our nose ahead.

As we said, you have to be very cognizant of the fact that the whole scenario is evolving and changing very rapidly. The old way of doing business, the old way of doing things, it has a value, but if you don't keep moving forward and sharpening your tools to a point where you are different from all the others, you could be left behind.

That is something that we really take a lot of care.

Thank you. Wonderful.

Thank you so much, Ajay. Best wishes.

Thank you.

Thank you, everybody. Once again, it was very nice talking to all of you.

As we've said before, Anthem endeavors to be totally transparent, be accurate, and continues to be well-governed. This is something that we are very mindful of, and we will continue to do that.

Even though this has been a quarter where the top line has been soft, please don't be swayed by that. That's the nature of our business.

There will be quarters going forward which could be very huge. Don't be swayed by that either.

That's also the nature of our business. As long as we are trending upward and have growth very very sharply defined, which, in this case, is what I'm assuring you, we will grow as we've grown in the past, even this year.

Please keep that in mind. Our business has to be looked at for the whole year holistically.

It's the nature of the beast which we can't control. I really thank you for your confidence in Anthem, and we will try our level best to honor that confidence and not give you any reason your confidence to be shaken in Anthem.

Thank you very much.

Thank you.