MANKIND - Mankind Pharma

📊 NSE: MANKIND 🏢 Pharmaceuticals - Indian - Bulk Drugs & Formln 📅 Last Updated: 12/14/2025 9:35

💰 Financial Performance

Revenue Growth by Segment

Domestic Business grew 14.5% YoY to INR 3,184 Cr (86.1% of revenue), while Exports surged 82.6% YoY to INR 513 Cr (13.9% of revenue) due to BSV consolidation. The Consumer Healthcare segment saw a 2.6% YoY decline to INR 226 Cr, impacted by supply chain disruptions and monsoon patterns.

Geographic Revenue Split

Domestic market accounts for approximately 86.1% of revenue (INR 3,184 Cr in Q2 FY26), while Exports contribute 13.9% (INR 513 Cr). Historically, the domestic market has represented up to 92% of total operating income.

Profitability Margins

Gross Margin stood at 71.3% (down 20 bps YoY), EBITDA Margin at 25.0% (down 280 bps YoY), and PAT Margin at 14.1% (down 750 bps YoY) for Q2 FY26.

EBITDA Margin

25.0% in Q2 FY26, representing a 280 bps YoY decline from 27.8% in Q2 FY25. This contraction was driven by the consolidation of BSV and one-time discounts provided to stockists during the GST 2.0 transition.

Capital Expenditure

INR 163 Cr spent in Q2 FY26 (4.4% of revenue). The company maintains a guidance of 5% of revenue for FY26 capex, with organic capex expected at INR 600-800 Cr per annum over the medium term.

Credit Rating & Borrowing

CRISIL Ratings maintains a 'Stable' outlook. Net debt to adjusted EBITDA improved to 1.4x in Q2 FY26 from 1.8x in March 2025, following the repayment of INR 3,000 Cr in commercial paper using QIP proceeds.

⚙️ Operational Drivers

Capacity Expansion

Organic capex of INR 600-800 Cr per annum planned over the medium term to support growth.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but 75% in-house manufacturing supports a healthy gross margin of 71.3%.

Manufacturing Efficiency

PCPM (Per Candidate Per Month) for the domestic business improved to INR 7 Lakhs (TTM basis) from INR 6.8 Lakhs. BSV specialty business PCPM improved to INR 12.6 Lakhs from INR 11.1 Lakhs.

📈 Strategic Growth

Expected Growth Rate

12-15%

Growth Strategy

Mankind aims to achieve growth through the integration of Bharat Serums and Vaccines (BSV), acquired for INR 13,768 Cr, which provides access to high-entry-barrier specialty segments like women's health and fertility. The company is shifting its portfolio towards the Chronic segment, which now accounts for 36% of revenue and grew at 13.5% (outperforming IPM's 13.3%). Additionally, Mankind leverages its massive distribution network of 18,000+ field force and 500,000 doctors to drive a 1.7x volume outperformance compared to the Indian Pharmaceutical Market (IPM).

Products & Services

Pharmaceutical formulations for acute and chronic therapies, Manforce condoms, Gas-O-Fast antacids, Prega News pregnancy kits, fertility hormones, and critical care medicines.

Brand Portfolio

Manforce, Gas-O-Fast, Prega News, HealthOK, and BSV specialty brands.

New Products/Services

BSV specialty portfolio and new chronic therapy launches; new products achieved 1.7x volume outperformance vs the industry.

Market Expansion

Focus on Tier 2 and below cities (45% of revenue) and expanding the specialty/super-specialty presence through BSV integration.

Market Share & Ranking

4th largest pharmaceutical company in India by value; 1st in prescription share at 15.3%.

Strategic Alliances

Completed the 100% acquisition of Bharat Serums and Vaccines (BSV) for INR 13,768 Cr in October 2024.

🌍 External Factors

Industry Trends

The Indian Pharmaceutical Market (IPM) is growing at 8%, with a significant shift toward chronic therapies. Mankind is positioning itself by increasing its chronic revenue share to 36% and acquiring BSV to lead in the specialty super-specialty segments. The industry is also seeing a digital shift, with Mankind's Modern Trade and E-commerce share rising from 8% to 12% in H1 FY26, supported by 45%+ growth in these channels.

Competitive Landscape

Competes with top Indian pharma players; maintains a notch lower price increase (3.9%) than IPM (4.2%) to gain volume share.

Competitive Moat

Mankind possesses a durable moat through its extensive distribution network, reaching 500,000 doctors and maintaining the highest prescription share in India at 15.3%. Its 75% in-house manufacturing provides cost leadership and supply chain control. The acquisition of BSV adds a specialty moat with complex R&D platforms and high-entry-barrier products in critical care and fertility, where competition is limited.

Macro Economic Sensitivity

Sensitive to monsoon cycles (impacting OTC/Acute sales) and domestic GDP growth, as 86-92% of revenue is India-centric.

Consumer Behavior

Rapid shift to digital channels, with Modern Trade and E-commerce growing at 45%+ YoY.

Geopolitical Risks

Low international exposure as exports only contributed ~8-14% to total operating income.

⚖️ Regulatory & Governance

Industry Regulations

Subject to DPCO/NLEM price caps on 16% of the portfolio; non-scheduled products (85%) allowed 10% annual price hikes.

Environmental Compliance

ESG compliance mentioned as key for capital raising and stakeholder confidence.

Legal Contingencies

The company faces a potential contingent tax liability of approximately INR 1,000 Cr following Income Tax assessment orders and disallowances of over INR 1,800 Cr. While management considers these demands untenable, an adverse outcome would materially impact the financial risk profile.