Mankind Pharma Q2FY26: Revenue up 20.8% YoY chronic share 37%

What Mankind Pharma reported for Q2FY26

Mankind Pharma announced its Q2FY26 results with Revenue from Operations at INR 3,697 crore, up 20.8% year-on-year. The company attributed the performance to outperformance in chronic therapies and consolidation benefits from Bharat Serum and Vaccines (BSV), while flagging disruption from GST-related changes. Management commentary also highlighted the impact of uneven weather on its OTC business during the quarter.

Rajeev Juneja, Vice Chairman and Managing Director, said the company’s revenue increase was “supported by outperformance in Chronic and BSV consolidation, partially impacted by GST disruption.” He added that OTC was impacted due to “heavy rains along with GST 2.0,” and the company expects growth recovery in the second half.

Mix shift: acute plus chronic, with chronic gaining share

Mankind’s prescription portfolio spans acute and chronic therapies, and the company has described this as a way to de-risk across therapeutic segments. The material notes a conscious shift toward chronic therapies over recent years. One disclosure states chronic share rose to 36% in FY24 from 18% in FY18. Another line in the provided material also cites chronic share rising from 28% in FY18 to 36% in FY24.

For Q2FY26 specifically, the chronic portfolio share is stated to have increased 200 bps YoY to 37.1%, led by ongoing outperformance in cardiac and anti-diabetic therapies. Management also stated that chronic outperformance was led by 1.3x and 1.2x performance in cardiac and anti-diabetes, respectively.

Domestic formulations: BSV consolidation supports growth

The note included in the material states that domestic formulation revenues grew 16.1% YoY in Q2FY26, driven by BSV consolidation and continued outperformance in cardiac and anti-diabetes. It also states that, excluding BSV, domestic formulation growth was 6.6% YoY.

Separately, the company’s India business is described as having moderated to ~9% YoY growth (ex-BSV) in 9MFY25, from mid-double-digit growth in the past. The same set of notes links the slowdown to regulatory challenges and increased competition, while expecting recovery as chronic traction strengthens and some acute categories stabilise.

Consumer health and OTC: rains and GST disruption

The consumer health business is described as having declined 2.6% YoY in Q2FY26, with the decline attributed to supply chain disruption led by GST changes and uneven monsoon conditions. Management also cited heavy rains and “GST 2.0” as a factor that impacted OTC during the quarter, while signalling an expectation of recovery in the second half.

The company also continues to expand its consumer wellness presence beyond pregnancy care and sexual wellness into broader categories through selective launches, as described in the material.

Exports: sharp growth with portfolio consolidation

The export business is stated to have grown 82.6% YoY in Q2FY26, driven by an increase in base business sales supported by launches over the past 12 to 24 months and consolidation of the BSV portfolio. Excluding BSV, exports are described as having grown in the mid-single digits YoY in Q2FY26.

During the quarter, the company launched three products in the US, taking the total launched products to 48 as of Sep’25. One projection in the supplied research notes expects export revenue CAGR of 23% over FY25-28E, including BSV, assuming traction in base business growth led by new product launches.

BSV integration and growth guidance

BSV integration is repeatedly described as “under progress,” with expectations of improving growth from FY26. One note states BSV is expected to see single-digit growth in FY25 and 15%+ growth from FY26 onwards, with exports expected to grow faster.

Another point in the material provides guidance of 18-20% growth for FY26 for BSV, with the domestic specialty business expected to deliver 12-15% growth and international around 18-20% growth. Management also said BSV growth initiatives are progressing, with double-digit sequential growth led by mandate brands.

Financial and operating context from the provided material

The company is described as having a pan-India presence with a 16,570+ field force. It is also described as having 25 factories and 6 R&D centres in India as of 2023, and deriving 97% of operating revenue from the Indian market. The company is also cited as having entered agritech and pet care in 2022.

A shareholder-style note included in the material cites revenue of INR 10,335 crore, EBITDA of INR 2,550 crore, PAT of INR 1,942 crore, and net cash position of INR 3,260 crore (the period is not specified in the provided text).

Key numbers table: Q2FY26 operating indicators mentioned

Stock, valuation, and ownership snapshot from the notes

The provided material includes multiple brokerage views and valuation references. One note retains an ‘ADD’ rating and rolls forward a target price to INR 2,800, citing valuation references including 39x FY27E and implying 25x EV/EBITDA and 34x P/E (ex-amortisation) on FY27E. Another note introduces FY28 earnings and maintains an ‘Accumulate’ rating with a revised target price of INR 2,697 at 30x FY28E P/E (adjusted for amortisation), implying EV/EBITDA of 22.8x.

The research excerpt also lists CMP (as on 19 May 2025) at INR 2,560, with a 52-week high/low of INR 3,055 / INR 1,901. A shareholding pattern snapshot in the material shows promoters at 72.7% (Mar-25).

Market impact: what the quarter highlights for investors

The quarter’s numbers underline two parallel trends described in the material. First, consolidated growth is being supported by BSV integration, visible in domestic formulation growth and the sharp jump in export growth, while the base business is described as facing softer growth in parts of India.

Second, the growth profile appears increasingly tied to chronic therapies and specialty segments, with chronic share stated at 37.1% in Q2FY26 and management pointing to outperformance in cardiac and anti-diabetes. But near-term volatility remains visible in consumer health and OTC, where the company cited heavy rains and GST-related disruption as direct operational headwinds.

Analysis: why chronic focus and BSV matter in the disclosures

The supplied notes position chronic expansion as a structural driver, citing traction in cardiovascular, anti-diabetics and urology, alongside expected recovery in key acute segments such as anti-infectives. They also highlight BSV as a high entry-barrier portfolio that can be EBITDA-accretive over time, even as debt-funded financing can dilute near-term EPS (with accretion mentioned from FY27/28).

Funding details included in the text say the BSV acquisition was for INR 13,630 crore enterprise value, with funding cited as approximately INR 10,000 crore via NCDs/CPs and INR 3,000 crore via QIP, alongside INR 3,000 crore CPs raised in Jan’25. The same material mentions a target of 2x net debt to adjusted EBITDA by FY25-end as a monitorable.

Conclusion

Mankind Pharma’s Q2FY26 update shows strong consolidated revenue growth of 20.8% YoY, with chronic therapies and BSV consolidation supporting domestic formulations and exports, while OTC and consumer health faced GST and monsoon-linked disruption. The next set of monitorables flagged in the supplied notes include recovery in acute segments, progress on BSV integration and growth guidance, and movement toward the stated net-debt target by FY25-end.