Anthem BioSciences Ltd (NSE: ANTHEM) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Ajay Bhardwaj — Chief Executive Officer
Mohammed Gawir Baig — Chief Financial Officer
Amey Chalke — Investor Relations
Analysts:
Vivek Agrawal — Analyst
Saion Mukherjee — Analyst
Bansi Desai — Analyst
Neha Manpuria — Analyst
Jash Gandhi — Analyst
Kartik Bane — Analyst
Sanjay Kumar — Analyst
Vivek Gautam — Analyst
Presentation:
operator
Sa. Sam. Ladies and Gentlemen, Good day and welcome to Anthem Biosciences Q3 and FY26 earning conference call hosted by JM Financial Institutional securities Limited. As a reminder, all participant line will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation. Conclude should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Chargal from GM Financial Institution securities Ltd. Thank you. And over to you sir.
Amey Chalke — Investor Relations
Thank you Danish. Good afternoon and warm welcome to all the participants on on Anthem Biosciences 3Q FY26 earnings call hosted by JM Financial. Today on this call we have with us from the Management Mr. Ajay Bharagwaj, Managing Director and Chief Executive Officer and Mr. Gavir Baik, Chief Financial Officer. I will now hand over call to Mr. Ajay Bharadwaj for his opening remarks. Thank you. And over to you sir.
Ajay Bhardwaj — Chief Executive Officer
Thank you Namaskar. This is Ajib Harwaj, CEO and Founder of Anthem Biosciences. I would like to start by reporting that our consolidated revenue from operations for the nine months ending on 12-31-2025 for this financial year that is was 1513 crores. The CRDMO business out of which was 1260 crores and the specialty ingredient delivered 254 crores. A very positive growth in EBITDA. EBITDA was stronger than ever at 671 crore which gave us a EBITDA margin of 41.5%. This does include an additional income other income of 105 crores which was on account of AS which was on account of forex gains, road debt and financial and other non operating income as.
This is when you compare to the previous year which was 72 crores this time it’s grown to 105 crores. Now our PBT before exceptional items was 572 crores. We’re very happy with this number. And out of this year there was one one time exceptional item of 25.4 Cr and it’s largely because of the in November 21st, 2025 the government notified four new labor codes and as a result of which we had to take an exceptional item exceptional of 25.4 crores. Now PAT after tax was 402 crores with our PAT margins at 24.8%. When you compare this with previous year, this is after the exceptional item with previous year was 25.7%.
So in fact Pat has grown from 369 crores in the previous nine months, this nine months to 402 crores. So our consolidated revenue from operations for the for the quarter now Q3 I’m going to talk about was 423 crores out of which 333 crores was CRDMO and 90 crores were specialty ingredients. EBITDA for the quarter was 191 crores which is 41.8%. And this also includes, as I’ve said, that there is a other income of 33.5 crores. PBT before exceptional item was 156 crores and PAT I.e. profit after tax was 93 crore and PAT margin was 20.3%.
So. In conclusion I would like to say our 9 month FY26 performance has shown a steady progress in revenue terms and with improving margin profile. Our EBITDA has grown at 23% and PBT before action optional items has grown around by about 20%. Our quarterly revenue performance was lower than the Q3 of the previous financial year and that was influenced largely by the higher base that we had that time. Although the margin improvement utilized the revenue discrepancy, the underlying demand and in conclusion, our underlying demand remains robust and our historically strongest quarter, which is the fourth quarter is still ahead and we are confident of delivering a strong finish to this financial year.
And this in nutshell has been Anthem’s performance for the nine months and the quarter that we just finished that is Q3. So I’ll leave it to any. Leave the floor for questions. Anybody has any questions, I’d be very happy to Me and along with me Mr. Gavir Beg who’s our CFO is also here. We’d be very happy to answer those.
Questions and Answers:
operator
Thank you so much sir. Ladies and gentlemen, we’ll begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchdown telephone. If you wish to remove yourself from the question queue, you may press star and two participants are request to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. Our first question comes from the line of Vivek Agarwal from Citigroup. Please go ahead.
Vivek Agrawal
Yeah, thank you. Thanks for the opportunity. Just want to understand your full year guidance. Right. So in the nine months we have the top line viewers in the low double digit and the full year guidance for somewhere looks around 20 to 20% plus. So is it still holding that guidance. Given that you also talked about that the fourth Q is going to be so just some color on the full year guidance. Actually that would be helpful.
Ajay Bhardwaj
Sure. Vivek Kaver will respond to that.
Mohammed Gawir Baig
So Vivek, with respect to our nine month performance, although revenue has grown at about 11 to 12% we will have a strong finish to the year. Quarter four has traditionally been the highest quarter for us because that’s the nature of the CDMO business and we should be looking at a good quarter four as well. What we had mentioned was we would look at a revenue growth estimate of about 20% with EBITDA margins remaining constant, margin profile remaining steady. We’ll also look at a margin growth of 20% both on EBITDA and PAC terms as well. What we are seeing right now is our margin has improved from last year numbers to current year numbers and that has been on account of several factors which we had talked about in terms of backward integration material margins have improved.
We have kept our cost under control from an operating leverage point of view, we’ll continue to grow on the margins and that will reflect an EBITDA performance which will be upwards of 20% from a guidance point of view for the full year as well. For FY26 as well as packed margins upwards of 20% in terms of revenue growth, it will be in the mid teens around 15 to 16% is what we will anticipate to end the year with. But. Margin guidance of 20% plus on EBITDA and Pat remains intact and we will look at delivering more than the numbers that we have talked about on a 20% number for EBITDA and Pat. Thanks.
Vivek Agrawal
And given that we have seen a structural improvement, we have seen margin expansion. Right. So how much is like likely to be structural? Right. Are we seeing some flow through in FY27 as well? Right. Because it looks like that the gross margins have expanded meaningfully and the margins have expanded in EBITDA margin have expanded in this quarter despite sharp increase in employee expenses, etc. Right. So is it fair to assume that in 27 and 28 for example, the margin may trend significantly higher than this year?
Mohammed Gawir Baig
Our aspiration is always to have the margin trend pointing north. And if you look at our document as well what we had submitted to the to SEBI when we are doing the ipo, we had mentioned that for one of the intermediates a lot of for one of the customer products a lot of intermediates was being outsourced and hence our China procurement had gone up, had shot up in One particular year. What had happened over the course of this financial year is we have completely discontinued that China supplies because now we manufacture the intermediates in house by procuring the raw materials.
So we are completely backward integrated. And hence that shift is seen in the material margin improvement. So structurally we want to ensure that material margin continues to improve. There is on product as well. We want to have yield improvement so that that could benefit us as well as our customers. So material margin we want to move trend north. Other expenses as well as employee costs are more costly, less variable, more fixed in nature. So unless we are looking at a significant expansion, which we are keeping in mind that new getting added but, but this being fixed in nature, there would be a lot of some operating leverage which should come in play.
Having said so, we are operating at a. At a good level from an EBITDA margin point of view which is upwards of 40% and we want to keep our margin steady though aspiration wise. We want to grow, but we would keep our margin steady.
Vivek Agrawal
Understood. And your last question if I may ask on revenues, right. So you have talked about that some slowdown because of high base, but is there any disruption in it, one or two products etc. And whether these products are expected to come back maybe in the fourth year or next year. If you can provide some color. Thank you.
Ajay Bhardwaj
Yeah, this is a business question for sure. A lot of our peers and this is a global phenomena because you’ve had a very turbulent last night or a year or so in terms of being uncertainty in the marketplace and uncertainty certainly with regard to funding as well as our customers future plans. So with many companies have destocked a little bit and they have rationalized their stocks to lower level of safety stocks. So that is one reason why there’s been a little slowdown. Otherwise we were very confident of delivering 20% growth in the top line as well.
However, that situation will be in our minds and what we hear from them is that will be corrected in the subsequent year. So we are very hopeful, we’re very positive. Nothing has changed materially for us on the ground and we continue to add more customers in the biotech space and also have added actually in this year some large pharma customers as well. The numbers are not significant yet. But once you add big pharma customers, some of these numbers can become very significant. So we are very, very positive about the FY27 and 28.
Vivek Agrawal
That is great. So just you have added one large pharma customer this year. Right. So it’s just can you provide some more clarity like advanced molecule or some, for example, molecules in the starting phase, like phase one or phase two.
Ajay Bhardwaj
No, we’ve added more than one large customer. So there is some of it is development work. Some of these products are being approved so they are going into the market. But as you know, when a new product approval comes in, it takes time to build sales. But what’s good is that, you know, we are in with the customer on supply of advanced intermediates and should the product grow. And that of course depends on the success in the marketplace. But obviously big companies always have a better possibility of achieving success. We will grow with them. So, you know, our bet is on the fact that as our customers grow, we will, we will ride on that to grow strongly.
At the same time we’ve actually, as we said before, we’ve added four, we’ve had four new approvals and four new products in the last year, in this year rather which have gone to gone got approval. So we feel we are in a very good position to benefit from them subsequently.
Vivek Agrawal
Understood, sir, thank you. All the best.
Ajay Bhardwaj
Thank you. Thank you, Vivek.
operator
Thank you so much, sir. Our next question comes from the line of Shayan Mukherjee from Nomura. Please go ahead.
Saion Mukherjee
Yeah, hi. Thanks for taking my question on next year. You know, you indicated things should get better. So should we expect growth closer to what your trajectory has been around 20% in fiscal 27 on back of the existing commercial product and the new launches that you had ramping up?
Ajay Bhardwaj
Shayan, tough question to answer. I am very optimistic, but can I give it, I mean we’re still, we’re not finished with this year. When we are more into the next year early, we’ll have more visibility. But obviously, you know, as we have said before and that has not changed, our business tends to be lumpy. It tends to be good in some quarters, not so good in other quarters. But directionally we are looking northwards in terms of top line and bottom line and we expect to maintain. So if you’re saying in the next five years, will we have a cagr of what we’ve had in the last five years, I expect so.
But will it be immediately next year? I can’t say till I’m a little bit into that year. It’s a little bit still distant from us but you know, it won’t be for the want of trying. We have been, we’ve been very good in terms of discipline, in terms of execution and that hasn’t changed. What has also not changed is our customers confidence in us and the regulatory environment for us, if anything with the new announcement, which is that India and us are friends again all over, there is nothing, no tensions in trade that will also which had actually put a lot of unease in our customers mind.
That also has. And then with the EU India trade deal, we expect that things are now on even keel. So that’s always good for business and I’m very positive.
Saion Mukherjee
Great just to get some color because a lot of moving parts here. So if I understand correctly, you know, the last few years you had, you know, quite a good ramp up in some of your commercial products. So when you look forward for the next couple of years, which will be a bigger growth driver for Anthem would be the ramp up of your recently commercialized product like the four that you had or the ones which are already in the market, you could get more volumes market here. How should we think? Or you know, you also talked about, you know, lateral contracts.
So I’m wondering can that those sort of start ramping up pretty quickly. So these are like three drivers that I see. If you can, you know, give some color as to what, which one would be the most or if you can rate the importance of these drivers for you at least in the short term.
Ajay Bhardwaj
Yeah. Again you, you asking a very tough question. My simple answer will be all of the above. We would love to see all of them grow. We expect that the commercial products which have still, the ones that we are already supplying to, which are our established products, they have still a lot of headroom to grow. And you know, there are many markets where major markets where approvals are awaited. So I expect that, you know, there we’ll have some very decent numbers, as you rightly said. Some of these new products, I expect that they will be a little slower to take off in the next year, if you’re looking at next year.
But you know, three or four years from now we could be like laughing all the way to the bank as they say, because these would become major products. There is a lot of effort on our side to go laterally into companies and that is also yielding fruits. So this is a hard one to answer. You know, they’ve shown a lot of interest and if we hit a jackpot with one or two of them, it’ll be wonderful. But you know, can I predict it at this point? I don’t have a crystal ball. I’m afraid not. But if you say cumulatively all these three activities, that is what matters put together, it will, it will give us a stronger foundation and a stronger base and therefore we’ll be more steady.
So I’m not worried. And you’ve rightly Shian, you’ve Shan, you have pointed out the three, you know, corners on which we are edifices on which we are building, fourth being our specialty ingredients.
Mohammed Gawir Baig
Also Shan, the existing molecules, the base is higher for the new molecules. We’ve just come gone commercial base is lower. So from a base effect point of view, if you look at it, the percentage growth might be, look, might be slightly higher for the newer molecules because just because the base is too small for them existing molecules, even if we continue to grow at a decent rate over there that will help us. That will compensate. That will. The overall basket will then show a good growth across both existing and new.
Saion Mukherjee
Understood. Just if I can ask one last question before I join back this material cost to sales you explained, you know, it is the gross margin improvement because of intermediate supplies now coming to India. Is the full impact already there in the numbers or how should we think about this number in the quarters ahead?
Mohammed Gawir Baig
The impact is there in the numbers but see that’s with respect to a particular product in the CDMO revenue stream. So the material margin is a component which is a weighted average across multiple products in CDMO as well as products in the specialty ingredients side. But to answer your question, the full impact is there because we don’t source the intermediate anymore from China and we are completely now backward integrated with the filings. Everything taken care of. So outsourcing is nil right now. So the full impact is baked in.
Saion Mukherjee
And so this level of margin should sustain in your view, gross margin?
Mohammed Gawir Baig
Yes, should be, should be able to. Yeah, yeah.
Saion Mukherjee
Thank you. Thank you.
operator
Thank you. Next question come from the line of Bansi Desai from JP Morgan. Please go ahead.
Bansi Desai
Yeah, hi, thanks for taking my question. So my first question is on our pipeline. If you can comment on how you know, this has grown, you know, particularly you know, early phase, phase 1, phase 2, we know phase 3. Out of 10 molecules, 4 have been commercialized. So probably you would have 6 in the phase 3 as of today if you can, you know, so if you can just update on that and out of the early phase, you know, any, any indication as to, you know, how many of them are likely to move into phase three in your view in next one to two years.
Mohammed Gawir Baig
So Banshee, with respect to early phase molecules, we still have similar numbers, about 130 to 140 numbers which are there on the pipeline side. I think on the phase two programs it will be about five or six of them. Which would be in the phase two side which we would expect to move towards phase three in the next couple of years, 18 to 30 months, sort of a timeframe subject to they clearing the development hurdles because in our business it’s also subject to the clinical trials risk. On the. So the pipeline on early stage is still robust.
On the phase three side we haven’t added any more from what it was. In quarter two of last year four molecules went commercial. So still at six, there was one particular molecule which had gone through FDA review. I think it has come back to the company for additional work. So we are waiting for an outcome of that to understand what is the status of the phase 3 molecule. But as of now phase 3 numbers remains the same.
Bansi Desai
We generally hear, you know, improvement in the biotech funding environment. You know, in the recent months also there has been a lot of pent up demand given the funding environment has been weak altogether in the last two, three years. So. So are we likely to see, you know, benefits of that, you know, tickling to us, you know, as we go ahead, you know, are we likely to see more expansion of our pipeline on these products especially.
Ajay Bhardwaj
Yeah, that’s a very good observation Bansi, because we have actually your, you know, your estimation is absolutely correct. We are seeing an improvement in environment lot. Many requests for, for RFQs have come in the last one quarter and it suddenly, you know, it wasn’t looking so healthy for a while now, but it is turning around and that’s what we hear from our customers as well. So which is always good news for us. And if the rest of the geopolitical scene settles down, of course that is something you and I can’t control. But if it happens, and all indications are that at least on the trade side we are now not at loggerheads with major western partners, I think it will be really good for us.
So yeah, you’re absolutely right. I think new things are going to happen and the rest is of course, you know, we have to, we can just hope and pray that the success of molecules in the marketplace gets better. So and that’s something that again I have, we have no control on it. But if that happens again, Anthem will be a direct beneficiary.
Bansi Desai
That’s good to know. And maybe my second question therefore, you know, on a rather, you know, semaglutide API, you know, given the product is going to go generic very soon, you know, we have spoken in the past about, you know, manufacturing API for domestic generic players here once the product goes off patent. So how should we think about that opportunity? We also at the same time hear China being extremely competitive. I know you mentioned in the past that you are, you are also going to be competitive in terms of pricing. But you know, you know, how do you see this whole opportunity playing out for us?
Ajay Bhardwaj
Well, you know, we, as we have said repeatedly, we are very much in the mix. However, many companies in India are also taking a big bet on it. But again, I would say we are among the very few who are completely backward integrated. That is Anthem’s mantra has always been that we, as you saw, you know, improvement of margins this year, if we are dependent on some for critical raw materials or a critical input from outsources outside of India or which are not under our control, we work quite assiduously, make sure that we reverse that situation.
So even in the case of Semaglutide, we are arguably the most backward integrated company in the country. So over the long term we see a very good play in it. We are in conversations and in advanced stage of supplying raw materials for different types of testing to many of the customers who, many of our customers within India who are playing in that space. So yeah, it is very much a position for us that we have taken. But I just want to say for us, peptide is more than just GLP1 semaglutide. We are working with innovators and we are working with many other small biotechs because this is an area of very large interest.
So Anthem has made a sizable investment in developing peptide chemistries and so we work with innovators to ensure that we work on novel molecules as well. So GLP is a more immediate opportunity. However, as we can all imagine you yourself mentioned China will be very aggressive. But you know, we believe we’ll be able to face the competition. But that’s more immediate. But we also have a long term plane peptides.
Bansi Desai
All right, thank you so much. I’ll join back with you.
Ajay Bhardwaj
Thanks.
operator
Thank you. The next question comes from the line of Amit Chalk from GM Financial. Please go ahead.
Amey Chalke
Yeah, thank you for giving opportunity. So I have one question on the capacity utilization. So is it possible for us to give utilization across unit 1, 2, 3 and are we fine with the capacity, the available capacity for the 20% growth expectation for next two years?
Ajay Bhardwaj
Yeah, on capacities we have no problems. You know, we’ve mentioned expansion units just now, even in unit two. So Gaber will give you the numbers, the details. But yeah, capacity wise we are good. And this is, this can take care of the next couple of years. Meanwhile our Unit force will also become available. So as we have said repeatedly, we have to be bold in planning expansion and also have a fair degree of perspicacity to see that this business is now going to is pointing in this direction and make those bets in advance. So capacities wise, we’re okay.
Sorry Gavin, you want to elaborate?
Mohammed Gawir Baig
Yeah, I’ll elaborate. So if you specifically on units per unit capacity, capacity utilization that you have asked for. Unit 1 is a small scale facility, 25 kiloliters custom synthesis capacity and we are almost operating at about close to 75% occupancy over there. Unit 2 where we have 376 kiloliters capacity from a custom synthesis manufacturing point of view. And in the last quarter we had just commissioned the CP7 which is a new block which was about 76 kilo litres. So that block is yet to be utilized. Leaving that aside on 300 kilo litres of capacity, we are roughly about 75% utilized over there.
So we have close to about 20% incremental capacity to add up over there. New Anthem, which is the third unit that’s still underutilized because that also is in a very early stage from an capacity from a ramping up mode. So there we have significant scope to add more utilization. So that’s on the custom synthesis side. Fermentation. New Anthem is yet to be commissioned on unit. On Anthem fermentation, one particular liters we would be about 4, 46, 47% capacity utilized. So decent capacity to continue on the growth part.
Amey Chalke
Right. And we do have scope for further brownfield expansion in unit 2. Unit 3 or this is it what we have added so far.
Mohammed Gawir Baig
Unit one full. Unit two full. No scope of expansion. The the scope of expansion which was there we added in, in this financial year where we added 130 kiloliters. Okay. Unit three, after this initial completion of this expansion which is the fermentation capacity, what we have done is we have constructed shells which could be repurposed. So the reason why we have constructed shells is it prevents any element of civil work and hence any disruption which could happen onto the the overall infrastructure in unit three. So we have constructed three different shells which could be repurposed and where we can quickly fit out on custom synthesis or fermentation or any other form of expansion which you want to do.
So there are three blocks which are empty blocks in unit three to expand over them.
Amey Chalke
Sure. And in unit four, have we finalized yet on the modalities which we would be making the new unit or is it yet to be done.
Ajay Bhardwaj
So some of it is going to be small scale molecule expansion which we know we will need because a lot of the thrust in early development is in small scale molecules. So again, going by past performance, some of these molecules will start moving towards commercialization and we will need extra capacity. Capacity. So that is going to happen. Then we are going to be expanding more in peptides. We need, we, we believe not. We believe we need to add more fermentation because large scale fermentation because there is projects that are being discussed with us on that then oligos.
So these are some of the novel, you know. And if some of the peptide projects look. Start looking rosier, then we will add more oncology products. That is high potent capacities as well.
Amey Chalke
Sure. The last question I have is on the fermentation side. We have good experience of working on the fermentation related technology but so far we have been limited to only pharma. Is there any thought process of going into non pharma fermentation opportunities? Because some of our peers are also thinking on that. Yeah. Thank you, sir.
Ajay Bhardwaj
Yeah. If there is, you’re right, there is if there’s opportunity to do something which is non pharma and it will, you know, give us the, the right IP protection for our clients and the right kind of product. Yes, we look at it for sure and we are having some of those discussions. It is in some way, it’s not new to us. We do nutrition based products anyway which are fermentation based and they are non pharma. But we might even look at something industrial if it is the right product mix and it has a great future and we have some discussions with respect to that as well.
So.
Amey Chalke
Yes, sure. And last question I have on the specialty ingredients. What is the growth driver for speciality ingredients for next two to three years? One is the GLP one. Apart from this, what all things would drive the growth in specialty ingredients. Thank you and I will join back with you. Okay, thanks Amir.
Mohammed Gawir Baig
So on specialty Ingredients There are three growth drivers. One obviously you’ve talked about on GLP1. The second one is we’re investing significantly on fermentation. The intent over there is a lot of probiotic work. What we do for our clients, some significant amount of probiotics strains gets imported from outside of India and hence we have tied up with a fairly large Indian customer where we are looking at from an import substitution point of view, we would be supplying that probiotics to them going forward for India market as well as for other customers as well with Refer to this customer for India market as well as for RW markets and and for other customers.
The probiotics part will be a significant growth story. On the specialty ingredient side, the third growth factor for specialty ingredients is the biosimilar products. We are working on the development of a biosimilar product for a particular US customer which is an approved biosimilar drug. They manufacture it outside of India and we’ve been working with them on the development of this biosimilar so that the manufacturing could shift to India and we can supply to them from India. So major growth drivers are these three existing products. We still will continue to grow. We have a couple of products on vitamin K2, seven srasio 50 days.
These are our flagship fermentation based products. We will continue to grow in those products. Probiotic strains, enzymes. These are all organic growth. These are the new areas where new probiotics is not a new area specifically, but it’s a focus area for us. And the new areas are the GLP1 and the biosimilars for us for specialty ingredients growth.
Amey Chalke
Sure. Thank you so much.
operator
Thank you. Our next question comes from the line of Neha Manpuria from Bank of America. Please go ahead.
Neha Manpuria
Thanks for taking my question. As we, as we are starting work or doing work on un. You mentioned that obviously there’s a fair bit of order that you’re building up, but how should we think about creating capacity versus getting into new business? Particularly if I look at capex across peers both in India, China and Europe. On the CDMO side, is that capacity investment essential to get new business? That’s my first question. And second, on peptides, while you did mention that, you know you want to get more on peptides, what do you think differentiates Anthem from its on its ability to get more business on peptides.
How should we get more confidence around that? Thank you.
Ajay Bhardwaj
Thank you. Neha. The first question is a very important and also a little bit of a philosophical question. How do we decide what capacity to put. Listen again for everybody who’s on this call in our business, first we have to build it and then they will come. Our customers want to see that we have the capability as well as the capacity to handle the project. Then only they are interested in giving us the project. See, we all admire China’s scale but they built capacities and then they were able to fill it up with the business from the world.
So some of that without being. Sometimes I think, you know, we have to do it carefully and so far we have done that. We Managed our, you know, our CapEx versus our business fairly well and that’s reflected in our return on our ROCE’s which are very strong. We have to build new capacities, then only we can attract more customers. So when we have to, when do we start building these new capacities? Start building them in advance of. When you see that some of these projects that you are looking at which are in phase two now may advance to phase three and phase three to commercial.
So at that point you have to plan your capacities and that’s why we are so bullish about it. Second of course is, you know our, our projects tend to be a greenfield. It’s very hard for us to, you know, we have looked around for acquiring a good asset but it’s very hard to find really good assets. So we build greenfield a lot and to a standard that will pass muster with regulators as well as our own internal standards as well as our customer standards. And I think we are second to none when it comes to that.
And that’s another reason why we have to start building in advance. The question that you asked on peptide. Well you know we are, without taking any names, we are already making a few peptides commercially. Most all of them are in the generic space and we supply to many to customers in India and also in talks with customers overseas now and with GLP1 which our partners all recognize that we have the ability to do it. And that is the reason why innovator companies are looking at anthem to partner with us to develop new peptides. If they didn’t have confidence in our ability, they will not come to us.
So peptide is something we have I would say reached a fair degree of proficiency in making and developing and so we are in a good place there. I don’t have any names to give you, but trust me and believe me that we are among the pioneers in peptide development in the country.
Mohammed Gawir Baig
Now I’d like to add something Neha on this. See peptides we started work around 2012, 13, 14, around that time when we were doing lab scale work for most of our customers. We currently work with innovator peptides close to about eight, nine programs are there on innovative peptides which are under development from lab scale. Now we have expanded into a full blown 16 kiloliters Commercial scale manufacturing facility at Neoanthem. It’s a fantastic facility. You should come visit and see us on the peptide facility. So we as a competitiveness to or a differentiator to customers, we have ability of doing discovery development and commercial manufacturing on peptides and commercial and manufacturing at scale with the new facility which has just come up.
So that gives a unique, that gives a good proposition for customers to keep the products more development or in a late scale project also to come to us because you don’t then need to venture out somewhere else looking out for capacity to tech transfer the project. So that’s a differentiator for us. On the GenRisk website GLP1 they did talk about we are completely backward integrated over there. We manufacture the fermentation fragment as well as do the synthesis and only company in India to be completely backward integrated and hence be competitive from a cost point of view to play to compete against the Chinese on semaglutide.
So that’s the uniqueness or the competitiveness when we target our Indian customers are looking at tapping the row markets as well as India markets in the GLP1 space, the generic semaglutide space side.
Neha Manpuria
That’s very helpful sir. Just a follow up on the first question. So unit three as we see it ramping up probably in 27 more so in fiscal 28, would it be fair to assume that we get to that one 1.4, 1.5 asset turn probably in 3 years time? Would that be a fair assumption?
Ajay Bhardwaj
I would say that’s a good assumption. Definitely we have to do it.
Neha Manpuria
All right, thank you so much.
operator
Thank you so much. Our next question come from the line of Jas Gandhi from Dalal brochure. Please go ahead.
Jash Gandhi
Yes sir. Thank you for the opportunity. So I just wanted to confirm on the four new molecules that have been approved in the past quarter have they started contributing to our revenues? And I mean when can we see. A full ramp up of these molecules?
Mohammed Gawir Baig
Yes, they have contributed revenues for this nine months because customers have taken smaller batches because they are just looking at launching this product in the market. But I think the major impact we will get to see only towards end of this calendar year when we get to know more orders from them. This is still at an early stage of commercial launch so the product will if I have to see a full blown impact, maybe it might take a couple of years for these four commercial molecules to show good result as what our existing molecules have shown.
Okay, sure, go ahead.
Ajay Bhardwaj
No, no, I was just going to add that these the products which are with small biotechs, they don’t really take off right away because more often than not these companies are already are parallelly negotiating to sell themselves just to big pharma. So there is always a little lull now that they have an approved Product they are taking quantities to go for a launch but at the same time they are also working on mergers and acquisitions as a result of which we very often find that only after big pharma steps in there is a possibility of a quick ramp up.
But you know this is not something again an event that we can, we know fully off and we can’t control it also. But this is another reason why sometimes there is a lag between the product being commercially approved and giving you the full benefit of full blown commercial success. So that time we have to wait.
Jash Gandhi
And sir, is the end market potential for these products lucrative enough for large farmers? Any indication, I mean what, what size could they reach? Any, anything you can. Are they expected to be blockbusters?
Ajay Bhardwaj
Some of them are. And remember very often the indication in which they get their first approval is usually a small or orphan indication that is just to get the product approved. Parallel people start working immediately on other indications and that’s what’s happening with these molecules and that’s the reason why they’ve taken more material for more clinical trials as well. So very often a small molecule indication is an entry point and after that is when the expansion takes place. So many of these, some of these products are in that mode as well. You know one of our biggest products got one approval today.
It has six or seven indications which are approved and that’s what makes it a blockbuster. So this is happening parallel.
Mohammed Gawir Baig
Just to add just I think in the last call I would have given some estimates of the peak market sales for these four customers. Four products roughly peak market sales roughly about $10 billion. I haven’t checked any changes on the analyst estimates for these 4N molecules in this course of the last 2, 3 months unless numbers would have changed significantly. But my sense is it’s a 10 billion dollar estimates across the four molecules which are there which got commercial for us.
Jash Gandhi
Okay, perfect. Thank you so much.
operator
Thank you. Our next question comes from the line of Karthik Vani from Bajaj Life Insurance. Please go ahead.
Kartik Bane
Thank you very much for the opportunity. I just wanted to understand this thousand crore capex for the unit four that we have planned for the in terms of two years. So where exactly are we? What would be the execution? Milestones and bottlenecks to watch out for.
Mohammed Gawir Baig
So Karthik, currently the civil work is going on. We are. So what we’re doing is it’s a 30 acre land parcel. So we are looking at phase one and a phase two. So we are looking at only half of the land parcel right now to Construct and the civil work is ongoing right now. So significant capacity sorry spends haven’t happened because construction takes time. I think towards in March 27th financial year we’ll have major portion of CapEx going out for this thousand crore phase one expansion that we are doing. It still is an early stage civil work mode right now on unit 4.
Kartik Bane
Okay. And secondly on the EBITDA margin outlook or the growth that we have got how much is contributed by the constant currency as most of our projects are also outside India.
Mohammed Gawir Baig
So see if you look at it what we have given out in the financial is so specialty ingredients is pure play India income because 90% of the business is India and specialty ingredients CDMO is where it’s completely export oriented and dollar denominated whatever increment. So we as a policy don’t hedge and hence whatever appreciation from a currency. What we have seen is what we recognize as an FX income which we have articulated as the other operating income in the opening statement that Ajay had mentioned. The other operating income which is not factored in the revenue line item and the revenue from operations line item is about 41 crores for nine months and for this quarter it is about 6.4 crores.
Kartik Bane
Okay. And lastly of the molecules in the early stages do we have any ADCs there? Like out of these? 130, 140 how many would be ADCs?
Mohammed Gawir Baig
There’s one. So in late stage there is one molecule which is in phase three there is one molecule which is there ADC on the early stage I would say we will have about six to seven programs which are ongoing.
Kartik Bane
Okay, thank you very much.
Ajay Bhardwaj
Thank you Karthik.
operator
Thank you. The next question comes from the line of Sanjay Kamal from ithoughts pms. Please go ahead.
Sanjay Kumar
Hi sir, thanks for the opportunity. First is just a follow up on Semaglutide. Are we focusing on the oral SEMA or the injectable version of Semaglutide? And last quarter I think we had said that process validation is underway. So any timelines for filing DMF and have you signed any customers in India?
Ajay Bhardwaj
See we are not in the fill finish thing so we don’t we focus on semaglutide as the active not the oral or injectable. And yes we have signed up with a bunch of customers in India. Are we filing a DMF in the US yet? No, but that is something which will be subsequent because at the moment most of our customers are focused on launching it are in row and that is Something which we are very, very well geared up for. And yes, we’ve done validation batches and all the rest of it. So we haven’t filed the DMF though we are in a position to do it.
Hello, Any call? Okay, so I’m said, though we haven’t filed the DMF though all the documentation and PMC document needed for that is ready. But we are working with our customers to do that. Yes, we are working with major Indian companies in this space.
Sanjay Kumar
No, I understand it’s the API. But the customers who have signed with us, will they be using it for oral or injector motion? Do we have any visibility on that or.
Ajay Bhardwaj
Many of them are trying to develop oral. Oral is a little hard, but everybody will use it for injectable right away. But oral also has patterns which are longer which go a little further. But yeah, I know that there are a few people who are working on orals as well. So oral will definitely be in the mix.
Sanjay Kumar
Okay. And second, a couple of questions on biosimilars. We have repurposed a plan for what is the reactor scale or the capacity from this plant? And the product that we have signed, is it a MAB or a fusion protein?
Ajay Bhardwaj
It’s a microbial biosimilar and it is. Our capacity is. We have two trains, one each of 200 literature fermentation and that can produce a lot of product because microbial fermentations are usually one or two days only as opposed to Cho Cho fermentation which can be weeks. So yeah, it is a large molecule based on microbial. Microbial. Microbial bug. It’s a. It’s a. It’s a microbe.
Sanjay Kumar
Got it, got it. And what is the current global market size for this biosimilar and what revenue can we expect in say FY28 for this product?
Ajay Bhardwaj
Oh, it’s product is a massive. It’s gone. It’s gone biosimilar long time ago. And you know, there’s no. There are other players in it, but the company that we are working with have a decent market share in the US So they already have got this product in the market which they currently make in the US the idea for them is to stop that production and shift that production to us so that they can get all the advantages of Anthem’s technology as well as the low cost, you know, input that we provide and that they have.
They were fairly decent business already. Remember this particular area, it’s been generic for a long time. There has been no replacement for it. There are other Players who make this. But in this space though, this is a very old molecule. It’s the only one that is approved for this indication and no new replacements have come so it has stood the test of time.
Sanjay Kumar
Okay, okay. And can you comment on the future pipeline for biosimilars? You said this is a microbial but can we also do a CHO based mammalian biosimilars? Where are we on other.
Ajay Bhardwaj
Yeah Sanjay, we are working on a bunch of projects there and those are also biosimilars. Again we have chosen some products where there are no biosimilars available even though the product has gone off patent and we are working with one of them is fairly advanced and we expect that that should go in the market in the next two years.
Sanjay Kumar
Oh then is this 200 litre capacity.
Ajay Bhardwaj
We’ll have to build new capacity for that. That’s something which is going to be a separate facility. Unit three has, you know we’ve created as we said the infrastructure already what we are putting in place and that’s already past the design stage. We are now negotiating with vendors to supply, you know, partly single use and partly fixed fermentation for chosen.
Sanjay Kumar
Okay, final question if I can, what will be the capex that will be needed to set up a 16kl pet paid facility? Just trying to understand the replacement cost.
Mohammed Gawir Baig
So Steve, if you look at proportionate capex including you know the other utilities which is set up as part of the facilities and it will be about 200 odd crores.
Sanjay Kumar
Okay, okay, got it.
Mohammed Gawir Baig
And because that will be, you know you set up other utilities like ETP and ancillary blocks etc which is common to the facility, common to the plan. Other blocks are there so you have to proportion that as well. So from that point of view it will be roughly about 200 crores which will be there.
Sanjay Kumar
Okay. And let’s say we make 200 kg output of peptides. What kind of EBITDA margin can we make in peptides be it BMP1s or other generic peptides.
Ajay Bhardwaj
Oh yeah, we will be, we are very confident that we’ll be able to do the. You know what, we have the numbers, we have done the numbers. I don’t have them in front of me but it is eminently doable. We so far have been laser focused, I would say paranoid about margins and I don’t see that going away. Trust me, we are in a very good place. As far as see the peptide for instance you just take GLP1. Making the peptide is only half the story. There is a fermentation element so you have to be able to do fermentation effectively and at a price with, at a cost.
All of you know, P29. P29 from China is very, very competitive and cheap. We will, we find that still a very attractive proposition. We don’t see any worries there. So we are, you take the whole manufacture of say GLP1 right away, right from fermentation to the finished product. But we will be able to get the Ebitdas that we are, we’ve been historically been used to.
Sanjay Kumar
Okay. So even if, let’s say some API prices crash to say $100 per gram, we could still make 35% kind of EBITDA margins in peptides.
Ajay Bhardwaj
Oh, absolutely. 100 would be a nice price. It’s a dream.
Sanjay Kumar
Wow. Okay, that would be. I think.
Ajay Bhardwaj
I believe it will go lower than that. But yeah, 100 would be very nice.
Sanjay Kumar
Okay. Okay, got it. I think that’s it from my side. All the best and thank you.
Ajay Bhardwaj
Thanks. Thanks Sanjay.
operator
Thank you. Our next question comes from the line of Vivek Gautam from GS Investment. Please go ahead.
Mohammed Gawir Baig
Yes, sir.
Vivek Gautam
So I just wanted to know about. Any destocking we are facing in any molecule. And so that is leading to some sort of soft performance over last few quarters and the risk and the situation might improve in the coming quarters. And second question was about what portion of our portfolio will comprise of GLP1 drugs in FY28. Thank you.
Ajay Bhardwaj
Yeah, Vivek, you’re right about stockings. There has been. Hello. So yeah, some problem with the line. See, there has been some definitely because of the general geopolitical tension that we have seen in the last one year where you know, we have been in loggerheads with major trading partner United States. It has put a lot of anxiety in the mind of big pharma and as well as small biotechs. So people are being, have been very wary about building up too much stock and you know, carrying too much inventory. So they have been a little bit mindful of reducing the number of days of safety stock.
So that has affected us. Otherwise we would have been, you know, bumper growth this quarter also. But again we are seeing signs of recovery that all the destocking that had to happen has happened and these results that we are reporting is subsequent to that. So we feel that going forward this will be a. We, we will be in a very good position as far as filling up the, the new requirement which will be post destocking. So that is one on the glp. We are again, what percentage of revenue I don’t know, hard to say. But will it be a significant part of our turnover? I would say yes.
Will it be 20, 30%? I don’t think so. But it still will be a major contributor to our top line as well as the bottom line. And sir, this recent budget announcement of.
Vivek Gautam
India, was there some incentive for the biopharma companies and the trade deals with being signed in us, eu, UK and other countries also? How does that play us? Thank you.
Ajay Bhardwaj
The details of that, Vivek, are yet unknown. So I don’t really know how this will play out with the US and all that. But yeah, the government is encouraging, which is a good thing. The government sees biotech as a strategic sector of economy. You know, it should have been recognized long ago, but it’s better late than never. And I think that this will definitely have a very positive impact on. But you know, they’re offering incentives and PLI based things. I don’t know, I don’t know. The details will still come out. But you know, Anthem is already, regardless of what the government policy is, we are going to be, we are firmly entrenched in this.
We have been doing this for two decades and before that, you know, I’ve been involved for four decades in this now. So biotech is very close to us and we will continue to. So if the winds become favorable from the side of the government then it’s even more, gives us more tailwinds. So I’m just very bullish about this. I’m super confident that biotech, which we’ve talked about for such a long time as a sector, its time has come.
Vivek Gautam
Thank you sir.
Ajay Bhardwaj
Thank you. Thank you Vivek.
operator
Thank you. Ladies and gentlemen, due to the time constant, that was the last question for today. I would like to hand the conference over to the management for the closing comments. Thank you. And over to you team.
Ajay Bhardwaj
So thank you very much to JM and to all the people who were on the line. Unfortunately, only so much time and you know, only that many questions. As we said we would communicate to us we have tried to be as transparent as open about how we see the prospect of Anthem and where Anthem is headed. And we really appreciate the support that we’ve got from the investors and the investment community. And you will see that regardless of what happens in the, in this, in, you know, going forward in the geopolitical situation, Anthem will continue to invest, continue to invest in technology.
And our edge, which is something that we are laser focused on, is doing the same things differently and doing different things that will not change that is our mantra. And thank you very much for being on this call, and I look forward to talking to you again at the end of the year.
Mohammed Gawir Baig
Thank you, everyone.
operator
Thank you so much. Ladies and gentlemen, on behalf of GM Financial Institutional securities limited that conclude this conference, thank you for joining us. And you may now disconnect your lines. Thank you.
Ajay Bhardwaj
Bye bye.