Mankind Pharma , a prominent player in the Indian pharmaceutical industry, has released its financial results for the second quarter of fiscal year 2026, revealing a mixed performance amidst ongoing organizational changes and market challenges.

Q2 FY26 Financial Highlights

H1 FY26 Performance

Segment-wise Performance

Domestic Business

• Revenue: ₹3,184.00 crores (15.00% YoY growth)
• Organic growth: ~6%
• Secondary sales growth: 6.30% (vs. IPM growth of 7.20%)

Export Business

• Revenue: ₹513.00 crores (83.00% YoY growth)
• Organic growth: Mid-single digits

OTC Business

• Revenue: ₹226.00 crores (3.00% YoY decline)

Key Developments and Challenges

1. BSV Consolidation: The significant growth in both domestic and export revenues was primarily driven by the consolidation of BSV.

2. Supply Chain Disruption: The company faced challenges due to the rollout of new GST rates, impacting its supply chain.

3. Chronic Therapy Focus: The share of chronic therapy increased to 37.10% from 35.10% in the previous year, indicating a strategic shift in the company's portfolio.

4. R&D Investment: R&D expenses increased to 2.90% of sales, up from 1.90% in the previous year, highlighting the company's focus on innovation.

5. Organizational Transformation: Management acknowledged underperformance against expectations, citing significant workforce changes across the organization as part of ongoing transformation efforts.

Outlook

Despite the challenges, Mankind Pharma's management remains optimistic about the future:

• Expects growth recovery in the second half of FY26
• Maintains BSV growth guidance of 18-20% for FY26

The company's performance in Q2 FY26 reflects both the opportunities and challenges in the pharmaceutical sector. While revenue growth remains strong, particularly bolstered by the BSV consolidation, Mankind Pharma is navigating through a period of internal transformation and external market pressures. The increased focus on chronic therapies and higher R&D investment suggests a strategic pivot towards long-term growth and innovation.

As the company works through its organizational changes and adapts to new market dynamics, investors and industry observers will be keenly watching how these efforts translate into performance in the coming quarters.

Mankind Pharma , India's fourth-largest pharmaceutical company, has reported a robust 20.8% year-over-year revenue growth for the second quarter of fiscal year 2026, reaching INR 3,697.00 crore. The company's performance was primarily driven by strong growth in its chronic segment and the successful integration of Bharat Serums and Vaccines Limited (BSV).

Financial Highlights

• Revenue from operations increased by 20.8% YoY to INR 3,697.00 crore
• Domestic revenue grew by 14.5% to INR 3,184.00 crore
• EBITDA rose by 8.7% to INR 924.00 crore, with a margin of 25.0%
• Profit After Tax (PAT) stood at INR 520.00 crore, with a margin of 14.1%

Segment Performance

Domestic Business

The domestic business, which contributes 86% of total revenue, showed strong growth:

• Domestic revenue increased by 14.5% YoY
• Chronic segment outperformed with 1.3x growth in Cardiac and 1.2x in Anti-Diabetics
• Improved ranking to #4 in Anti-diabetes segment
• Maintained #1 rank in prescriptions with a 15.3% share

Consumer Healthcare

The consumer healthcare segment faced some challenges:

• Revenue declined by 3% YoY due to supply chain disruptions and uneven monsoon
• Modern Trade & E-commerce share increased to 12% in H1 FY26
• Strong secondary sales growth for key brands like Gas-o-fast (36% YoY) and Manforce Condom (14% YoY)

Exports

The export business showed significant growth:

• Revenue increased by 82.6% YoY, primarily due to BSV consolidation
• Mankind (excluding BSV) launched 3 new products in the US market

Strategic Developments

Mr. Rajeev Juneja, Vice Chairman & Managing Director, commented on the results: "Mankind's revenue increased by 20.8% supported by outperformance in Chronic and BSV consolidation, partially impacted by GST disruption. While chronic continued an outperformance led by 1.3x and 1.2x in Cardiac and Anti-diabetes respectively, OTC was impacted due to heavy rains along with GST 2.0 and we expect growth recovery in H2. BSV growth initiatives progressing well - with double digit sequential growth led by mandate brands."

The company remains focused on four key growth pillars:

1. Steady base business
2. Fast-growing specialty chronic segment
3. High-potential OTC business
4. Super specialty BSV portfolio

Outlook

Mankind Pharma is confident in delivering sustainable long-term growth through its diversified portfolio and strategic initiatives. The company's focus on expanding its chronic segment, integrating BSV's super specialty portfolio, and recovering its OTC business positions it well for future growth in the Indian pharmaceutical market.

Despite challenges such as GST disruptions and uneven monsoons affecting certain segments, Mankind Pharma's overall performance demonstrates its resilience and ability to capitalize on growth opportunities in the pharmaceutical sector.