Mankind Pharma Q2 PAT drops 21% on high finance costs; revenue up 20%

Mankind Pharma's Q2 FY26 profit fell to Rs 520 crore on higher finance and input costs, even as strong domestic and export growth lifted revenue by over 20%.

Delhi-based pharmaceutical major Mankind Pharma reported a 21.3 per cent year-on-year (YoY) decline in consolidated profit after tax (PAT) for the September quarter of FY26, at Rs 520 crore, down from Rs 661 crore in the same period last year.

 

What led to the decline in Mankind Pharma’s Q2 profit?

 

The company attributed the fall in profitability to a rise in raw material costs, higher component consumption, and increased employee expenses. A major factor was the sharp jump in finance costs, which rose to Rs 169.68 crore in Q2 FY26 — 24 times higher than Rs 7.10 crore in Q2 FY25 — largely due to financing related to the Bharat Serums and Vaccines (BSV) acquisition.

 

How did revenue and margins perform in Q2 FY26?

 

Despite the drop in profit, revenue from operations grew 20.8 per cent YoY to Rs 3,697 crore from Rs 3,061 crore in Q2 FY25. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose to Rs 924 crore from Rs 850 crore a year earlier. However, the adjusted EBITDA margin slipped to 25 per cent from 27.8 per cent.

 

Rajeev Juneja, vice-chairman and managing director of Mankind Pharma, said, “Our revenue increased by 20.8 per cent, supported by outperformance in chronic and consolidation of BSV, but was partially impacted by GST disruption.”

 

Which business segments drove growth?

 

Mankind’s chronic therapies business outperformed the Indian Pharmaceutical Market (IPM), with cardiac and antidiabetic segments growing 1.2x and 1.3x faster, respectively. Domestic business revenue rose 18.9 per cent YoY to Rs 3,101 crore.

 

However, the consumer healthcare segment saw a 3 per cent revenue decline due to supply chain disruptions caused by GST changes and an uneven monsoon. “Over-the-counter (OTC) sales were impacted due to heavy rains along with GST 2.0, and we expect growth recovery in H2,” Juneja said.

 

How did exports and new launches perform?

 

The exports segment recorded a strong 83 per cent YoY growth, driven by the consolidation of BSV and supported by base business expansion. “Mankind has launched three products in Q2 FY26, taking the total launched products to 48 in the United States (US),” the company said in its investor presentation.

 

How did the stock react to the results?

 

Mankind Pharma announced its results post-market hours. The stock closed 2.53 per cent lower at Rs 2,309.35 per share on the Bombay Stock Exchange (BSE) on Thursday.