Mankind Pharma Limited achieved a 72.14% reduction in carbon emissions during the financial year 2025-26 compared to the base year FY 2020-21. The company sourced 91.69% of its electricity from renewable sources and processed 4,503 metric tonnes of plastic waste for recycling as part of its sustainability initiatives. These disclosures were made in the Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, which received reasonable assurance from SGS India Private Limited for core indicators.

The company reported that 69.33% of hazardous waste was disposed of through co-processing for energy recovery. Additionally, Mankind Pharma reduced ground water intensity by 37.26% from the base year FY 2019-20. The company has established a sustainability steering committee under the Risk Management Committee to oversee Environmental, Social, and Governance (ESG) matters.

Operational and Financial Overview

Mankind Pharma operates seven manufacturing plants and eight offices nationally, with two international offices. The company serves 28 states and 8 union territories in India, along with 38 international countries. Exports contributed 9.45% to the total turnover. The paid-up capital of the company stands at ₹41,28,28,328.

Employee Statistics

The company employed a total of 19,270 employees and 3,356 workers as of the end of the financial year. The workforce includes 507 female employees and 566 female workers. The gender diversity on the Board of Directors stands at 12.5%, with one female member out of eight directors. There were no differently abled workers reported, while the number of differently abled employees stood at three.

Environmental Performance

The company has set a target to become carbon neutral by FY 2029-30. Key environmental initiatives include the installation of solvent recovery plants and Zero Liquid Discharge (ZLD) facilities at API-1 and Udaipur in Rajasthan. The formulation facility in Sikkim has also been upgraded to ZLD. The company reported no fines or penalties for non-compliance with environmental laws during the year.

Governance and Assurance

The BRSR report was prepared on a standalone basis. SGS India Private Limited conducted an independent assessment, providing reasonable assurance for BRSR Core Indicators and limited assurance for non-core indicators. The company confirmed that it has not conducted any Life Cycle Perspective (LCA) assessments for its products but incorporates environmental considerations such as energy efficiency and waste management into its operations.

Global brokerage firm Jefferies has reiterated its Buy rating on Mankind Pharma with a target price of ₹3,000, underscoring its confidence in the company's ongoing recovery trajectory. The brokerage remains bullish, pointing to early signs of a turnaround as a key driver of its positive stance.

Limited Downside Risk in Adverse Scenario

Jefferies assessed the risk-reward profile of Mankind Pharma and noted that even under a worst-case or "rainy-day" scenario, the implied downside stands at only approximately 11%. The brokerage characterised this probability as low, suggesting that the risk of a significant decline in the stock remains contained relative to the potential upside reflected in its target price.

Mankind Pharma Preferred Over Sector Peers

In its comparative assessment of the Indian pharmaceutical sector, Jefferies expressed a clear preference for Mankind Pharma over two prominent peers. The brokerage indicated that the upside potential for both Dr. Reddy's and Cipla is limited at current levels, making Mankind Pharma its preferred pick within the space.

Key Highlights

• Jefferies maintains Buy rating on Mankind Pharma
• Target price set at ₹3,000
• Bullish on early signs of a turnaround
• Rainy-day scenario implies only ~11% downside, deemed low probability
• Mankind Pharma preferred over Dr. Reddy's and Cipla, where upside is seen as limited

Overall, Jefferies' stance reflects a constructive outlook on Mankind Pharma, backed by improving business indicators and a favourable risk-reward profile compared to select sector peers.