Mankind Pharma Q3 net profit rises 9.5% as BSV boost offsets acute weakness

Mankind Pharma

• Mankind Pharma Q3FY26 net profit up 9.5% YoY to Rs.414 crore, revenue up 11.5%
• Adjusted EBITDA margin rises to 25.9% due to domestic pharma and BSV consolidation.
• Net debt fell to Rs.4,294 crore, with leverage improving post BSV acquisition

Did our AI summary help?

Mankind Pharma Ltd net profit (PAT) rose 9.5 percent year‑on‑year to Rs 414 crore in the December quarter led by stronger domestic pharma performance and consolidation benefits from Bharat Serums and Vaccines (BSV) even as it continued with corrective actions in underperforming acute therapies.

Revenue increased 11.5 percent to Rs 3,567 crore. The pace of profit growth, however, lagged revenue as reported margins compressed.

Earnings before interest, tax, depreciation and amortisation (EBTIDA) was flat at Rs 816 crore and EBITDA margin fell to 22.9 percent from 25.6 percent, reflecting the impact of one‑time items that the company adjusted for. Adjusted EBITDA rose to Rs 923 crore with a 25.9 percent margin, down 170 basis points (bps) bps from the previous year but up sequentially from 25 percent in Q2, as management cited improving mix and the BSV consolidation benefit.

“Mankind’s revenue increased 11.5 percent YoY, with adj EBITDA margins of 25.9 percent percent primarily due to improvement in domestic pharma and BSV consolidation,” vice chairman and managing director Rajeev Juneja said in the statement. The company remains focused on scaling chronic therapies and its women’s health portfolio post the BSV acquisition.

Mankind’s domestic business, which still anchors the P&L, grew 11.1 percent to Rs 3,046 crore, aided by base business growth and BSV consolidation. Exports rose 14.1 percent to Rs.521 crore. But the company flagged a gap between its secondary sales growth and the broader market - secondary sales grew 8.5 percent versus 11.8 percent for the Indian Pharmaceutical Market (IPM), “primarily due to underperformance in acute therapies amid ongoing corrective actions,” the company said.

Chronic remains the brighter spot. Juneja said Mankind’s chronic share increased 200 bps to 39.3 percent, driven by strong growth in key therapy areas — cardiac grew 16.7 percent and anti‑diabetes 14.4 percent.

The company highlighted outperformance in anti‑diabetes to key brand families, including Telmikind and Lipirose/Statpure.

In consumer health, momentum improved sequentially but remained modest. Over-the-counter (OTC) revenue rose 5.2 percent YoY in Q3FY26, reversing a decline of 2.6 percent in the previous quarter, with modern trade and e‑commerce share increasing to 13.1 percent from 9.8 percent a year ago, supported by around 40 percent.

“Revenue from OTC grew by 5.2 percent in Q3FY26 versus -2.6 percent in Q2FY26. We expect growth to improve further,” Juneja said.

A key investor focus remains the company’s leverage after acquiring BSV. As of December 31, Mankind reported net debt of Rs 4,294 crore, down from Rs 6,739 crore in year-ago period. Net debt to EBITDA also trended lower, declining from 2.2x to 1.3x over the period shown in the presentation, indicating that cash generation is helping deleverage post‑acquisition.

For the nine months ended December 2025, consolidated revenue climbed 18.7 percent to Rs 10,835 crore, but PAT fell 12.6 percent to Rs 1,379 crore, with margins lower year‑on‑year.

Management’s focus

Juneja said Mankind is building long‑term growth on four pillars — base domestic business, faster‑growing specialty chronic, high‑potential OTC, and BSV’s super‑specialty portfolio. The investor presentation reiterated that BSV’s integration is progressing, with the super‑specialty portfolio described as a high‑entry‑barrier platform for medium‑ and long‑term growth.