Earnings Outlook
Mankind Pharma Q1 revenue seen up on Bharat Serums buy
This story was originally published at 23:21 IST on 30 July 2025
Register to read our real-time news.Informist, Wednesday, Jul. 30, 2025
By Janwee Prajapati
MUMBAI – Mankind Pharma Ltd. is expected to report improved revenue for the June quarter mainly due to the consolidation of the Bharat Serums and Vaccines business. The company will also report better numbers as a result of growth in the chronic segment, exports, and in the domestic branded prescription formulation business, according to brokerages tracking the company.
The company's consolidated net profit for the June quarter is expected to fall to INR 4.47 billion, down 17% from INR 5.36 billion a year ago. The highest net profit estimate of INR 4.88 billion is from Dolat Capital Market Pvt. Ltd. while the lowest net profit estimate of INR 4.02 billion is from Kotak Institutional Equities.
"Higher depreciation and interest cost is expected to impact PAT growth," HDFC Securities Ltd. said. Muted growth in the anti-infective segment is expected to affect the company's growth rate. The anti-invective is the largest segment and has a 15% share of the company's total revenue.
The company's consolidated net sales are expected to rise to INR 35.74 billion up 24% from INR 28.93 billion a year ago. The highest estimate of INR 36.13 billion is from Nirmal Bang Equities Pvt. Ltd. while the lowest estimate of INR 35.34 billion is from Kotak. "Mankind is expected to outpace peers in terms of growth, led by inorganic initiatives," Systematix Shares and Stocks (India) Ltd. said.
The Bharat Serum and Vaccine business has a high-entry barrier portfolio with speciality in research and development and technical platforms. The key products of Bharat Serum and Vaccine include recombinants, novel delivery, and immunoglobulins. Bharat Serums and Vaccine had domestic revenues of INR 4.42 billion in 2023-24 (Apr-Mar). Mankind's top line growth will be driven by growth in prescription sales in the chronic therapy segment, increased demand for consumer health products, and improved traction in the over-the-counter portfolio.
The domestic branded prescription formulation business of the company is expected to remain the key growth driver, led by the contribution from Bharat Serums and Vaccines business consolidation. The overall prescription business is expected to grow 16% and the over-the-counter segment is expected to grow 12% on year. The prescriptions business has maintained top market position for over eight years as per Intercontinental Marketing Statistics.
Domestic sales of Mankind Pharma account for more than 80% of the company's total revenue. Domestic sales make up 51% of the total sales of Bharat Serums and Vaccines. Mankind Pharma's organic sales are expected to grow 9% on year whereas Bharat Serums and Vaccines' sales are expected to fall 8%, according to Kotak.
Mankind's organic international business is expected to grow 4% on year. "We assume ex-BSV (excluding Bharat Serum and Vaccines), India business to see steady growth of 8% YoY (year on year), led by scale-up in chronic segment and exports to see 5% QoQ (quarter on quarter)," HDFC said.
Mankind Pharma Ltd. is expected to report a consolidated earnings before interest, tax, depreciation, and amortisation of INR 8.91 billion, up 30% on year. The highest EBITDA estimate of INR 9.32 billion is from Nirmal Bang Equities Pvt. Ltd. while the lowest EBITDA estimate of INR 8.47 billion is from Kotak Institutional Equities. The company will declare its June quarter earnings on Thursday.
The gross margin of the company is expected to decline 110 bps quarter on quarter to 70.5% in the June quarter, Kotak said. The brokerage expects EBITDA margin to grow to 23.8% for Mankind Pharma's organic business and to 25.6% EBITDA margin for the Bharat Serums and Vaccines portfolio. "Steady gross margin and costs to support the EBITDA margin expansion", HDFC Securities said.
The key metrics to monitor include organic growth excluding Bharat Serums and Vaccines, strategy for driving growth in consumer health business, and opportunities to accelerate its export business.
Wednesday, shares of the company closed marginally higher at INR 2,575.5 on the National Stock Exchange. The stock has risen almost 6% after the company announced its March quarter earnings.
Of the six brokerage recommendations on the company available with Informist, four have a ‘buy' or equivalent rating and two have a 'hold' rating on Mankind Pharma Ltd. The average target price for the ‘buy' recommendations is INR 2,752.
Following are the Apr-Jun consolidated earnings estimates for Mankind Pharma Ltd. based on reports from seven brokerage firms in descending order of estimates of net profit:
Brokerages | Net Sales (in million) | Net Profit (in million) | EBITDA (in million) |
Dolat Capital Market Pvt Ltd | 35924.00 | 4887.00 | 8981.00 |
HDFC Securities Ltd | 35925.00 | 4882.00 | 8981.00 |
Motilal Oswal Financial Services Ltd | 35611.00 | 4638.00 | 8903.00 |
Nirmal Bang Equities Pvt Ltd | 36135.00 | 4469.00 | 9321.00 |
Antique Stock Broking Ltd | 35446.00 | 4210.00 | 8580.00 |
Systematix Shares and Stocks (India) Ltd | 35863.00 | 4178.00 | 9125.00 |
Kotak Institutional Equities | 35343.00 | 4022.00 | 8479.00 |
Average | 35749.57 | 4469.43 | 8910.00 |
End.
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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