Mankind Pharma (MANKIND) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 consolidated revenue rose 21% year-on-year to INR 3,697 crore, with EBITDA margin at 25%; H1 FY26 revenue increased 23% year-on-year to INR 7,268 crore, driven by chronic segment and BSV consolidation despite GST and monsoon disruptions.

• Profit after tax for Q2 FY26 declined 21.3% year-on-year to INR 520 crore due to higher finance, depreciation, and non-recurring costs from BSV consolidation; diluted EPS was INR 12.4.

• Domestic business grew 15% year-on-year in Q2, supported by BSV consolidation, while export revenue surged 83% year-on-year to INR 513 crore, mainly due to BSV and new launches.

• OTC business revenue declined 3% year-on-year in Q2 due to GST-related supply chain issues and uneven monsoons, but key brands saw strong secondary sales growth.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY26, reflecting BSV acquisition and OTC business transfer.

Financial highlights

• Gross margin for Q2 FY26 was 71.3%, with EBITDA margin at 25%; reported EBITDA grew 8.7% year-on-year to INR 924 crore.

• Consolidated net profit for Q2 FY26 was INR 520.18 crore, up from INR 444.62 crore in Q2 FY25; six-month net profit was INR 964.80 crore.

• Net debt reduced to INR 4,791 crore as of September 30, 2025; net debt to adjusted EBITDA improved to 1.4x.

• Cash flow from operations in H1 FY26 increased 44% year-on-year to INR 1,637 crore; CFO to EBITDA ratio improved to 92%.

• Standalone operating margin for the trailing twelve months at 27%, net profit margin at 16%.

Outlook and guidance

• Management expects growth recovery in H2 FY26 as GST-related disruptions subside, with sustainable long-term growth led by base business, specialty chronic, OTC, and BSV portfolio.

• BSV portfolio guidance maintained at 18%-20% growth for FY26, with domestic expected at 12%-15%+ and international at 18%-20%+.

• EBITDA margin guidance for FY26 remains at 25%-26%, likely at the lower end; R&D spend guidance at 2.5%-3% of sales.

• Chronic and respiratory segments expected to continue outperforming IPM, with 1.1x-1.2x outperformance in H2.

• No material impact expected from ongoing income tax proceedings, with appeals filed and legal opinions supporting management's position.