Mankind Pharma sees strong revenue growth in Q2, H1 FY26

Mankind Pharma announced a 21% year-on-year increase in overall revenue for Q2 FY26, reaching INR3,697 crores, with an EBITDA margin of 25%. H1 FY26 revenue grew by 23% year-on-year to INR7,268 crores, with an EBITDA margin of 24.4%. The domestic business saw 15% year-on-year growth, driven by chronic segment outperformance and BSV consolidation, though impacted by new GST rates. Secondary sales increased by 6.3% year-on-year, and chronic share expanded by 200 basis points to 37.1%.

R&D expenses rose to 2.9% of sales in Q2 FY26, aligning with the 2.5% to 3% guidance. Export revenue surged by 83% year-on-year to INR513 crores in Q2 FY26, and by 82% to INR982 crores in H1 FY26, benefiting from base business growth and BSV consolidation. The company's net debt decreased by INR488 crores from the previous quarter, with its net debt to adjusted EBITDA ratio improving to 1.4x in Q2 FY26.

Despite a 3% decline in OTC business revenue due to supply chain disruptions and uneven monsoon, key brands like Manforce and Gas-O-Fast showed healthy secondary sales growth of 14% and 36% respectively. The company expects recovery in H2 and continues to target outperforming the IPM.