Mankind Pharma reported a strong performance for Q3 FY’26, with overall revenue growing 11.5% YoY to INR3,567 crores, achieving an adjusted EBITDA margin of 25.9%. The 9-month revenue surged 18.7% YoY to INR10,835 crores. Management highlighted improvements in workforce stability, brand optimization, and strong traction in chronic therapies like cardio and anti-diabetics.
Q3 and 9M FY’26 Financial Highlights
Mankind Pharma conducted its Investor Conference Call following the release of its Q3 and 9 Month FY’26 results. For the quarter, the company posted overall revenue growth of 11.5% year-on-year (YoY), reaching INR3,567 crores, with an adjusted EBITDA margin of 25.9%. For the 9-month period of FY’26, revenue increased by 18.7% YoY to INR10,835 crores, maintaining an adjusted EBITDA margin of 24.9%.
Domestic Business Momentum
The Domestic business showed steady growth, recording an 11.1% YoY revenue increase in Q3 to INR3,046 crores, supported by strong organic growth of 9.1% (excluding OTC). Chronic therapies were a key driver; the segment showed consistent quarterly growth of 12% to 15%. The company noted significant success with new launches, such as the inhaler portfolio growing at 30%, and Crenzlo emerging as the Number 1 brand in its category with 92% YoY growth.
Rajeev Juneja noted that organizational transformation efforts over the last 12 to 15 months, including workforce restructuring, are now translating into gradual recovery trends, emphasizing the company’s unique focus on daily sales and hygiene over traditional quarterly targets.
Segment Performance and Strategic Focus
The OTC business saw sequential improvement, with revenue growing 5.2% YoY in Q3. Key OTC brands like Gas-O-Fast and Ova News grew significantly. Meanwhile, the International business saw export revenues grow 14% YoY to INR521 crores in Q3. The newly integrated BSV business delivered double-digit growth, with its prescription portfolio surpassing the entire FY’25 sales within the first 9 months of FY’26.
Detailed Financial Metrics
Ashutosh Dhawan detailed key financial movements. Gross margins for Q3 increased 170 basis points YoY to 72.6%, driven by price realization and inventory accrual adjustments. The reported EBITDA margin stood at 22.9%, lower than the adjusted margin due to exceptional items like stamp duty on the slump sale of the BSV branded generic business. Profit After Tax (PAT) grew 9.5% YoY to INR414 crores, resulting in a diluted EPS of INR9.9 for the quarter. The company’s net debt was reduced to INR4,294 crores as of December 31, 2025, leading to an improved net debt to adjusted EBITDA ratio of 1.3x.
Addressing Underperformance and Future Outlook
Management addressed softer growth in the acute segments, particularly anti-infectives, attributing the lag to internal corrective actions and team settling post-transformation. The company expects recovery in anti-infectives as doctor relationships mature. Regarding organizational change, Sudipta Roy confirmed that approximately 20% to 25% of the field force and managers are new to Mankind over the last year, which impacted rhythm in the GP-dominated acute segments.
In response to market queries, the company confirmed it is on track for a Day 1 launch of its GLP-1 product around the end of March. Management remains confident that key focus areas—domestic business, chronic growth, and operational hygiene—will lead to outperforming industry growth going forward.
Source: BSE
