Anthem Biosciences shares fell 7% on Wednesday, hitting a day’s low of Rs 732, after the drugmaker posted weak numbers for the June quarter.

The company reported a consolidated net profit of Rs 119.9 crore for the quarter. That’s down 11.7% from Rs 135.8 crore in the same period last year. Revenue also slipped, falling 22.6% to Rs 418.2 crore from Rs 540.2 crore a year earlier.

Most of the pain came from Anthem’s core business, known as CRDMO. In simple terms, this is the part of the company that develops and manufactures drugs and ingredients on contract for other pharma firms, and it makes up over 80% of total sales.

Revenue from this segment fell 24.7% to Rs 340.8 crore. The smaller Speciality Ingredients unit was down too, slipping 11.5% to Rs 77.4 crore. Management was quick to explain the miss.

Chairman and CEO Ajay Bhardwaj said the weakness came down to timing, not weaker demand. He said several large customer deliveries had simply moved later in the year, and the company expects that to even out over the coming quarters.

There was a silver lining as well. Despite lower profit, Anthem’s margins actually improved during the quarter. EBITDA margin rose to 39.6% from 38.1% a year ago, helped by tighter cost control and better plant efficiency.

The company’s balance sheet also remains strong. Anthem held net cash of Rs 1,719.7 crore as of 30 June, more than double the Rs 784.8 crore it had a year ago. Annualised post-tax return on capital employed stood at 23.3% for the quarter.

Broader pharma sentiment did not help either. Indian drugmakers came under pressure this week after the US announced a phased tariff plan on generic medicines, a category that accounts for a large chunk of India’s pharma exports.

The stock has clawed back some of its early losses since. At around 11:52 am, shares of Anthem Biosciences were trading at Rs 771.35, down 2.55% for the day. Even after today’s fall, the stock remains up close to 21% so far this year.

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