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Informist, Friday, Aug. 1, 2025

By Narayana Krishna and Gopika Balasubramanium

HYDERABAD/MUMBAI – Mankind Pharma Ltd. is planning to clear its debt by 2027-28 (Apr-Mar) to reduce its interest costs and improve margins and net profit, the company's management said in a post-earnings conference call Friday. 

As of Jun. 30, Mankind Pharma's net debt was at INR 52.49 billion. The company's interest cost, which rose to INR 1.7 billion for the June quarter against INR 108.4 million a year ago, has a significant impact on the overall performance of the company. Mankind Pharma's management said the focus was to liquidate the debt as planned to improve the profit after tax. 

In October last year, Mankind Pharma completed the acquisition of Bharat Serums and Vaccines Ltd. for a total consideration of INR 137.68 billion. The company funded the buyout through a combination of internal accruals, debt and instruments like convertible debentures and commercial papers.

"And as we highlighted that our endeavour is to clear all the debt by FY28. So till FY28, there will be an interest burden. And, then slowly and gradually, the PAT (profit after tax) is going to increase as we are going to liquidate our debt," the management said.

Mankind Pharma said it is confident of maintaining its earlier guidance of achieving its consolidated earnings before interest, tax, depreciation and amortisation margins at 25-26% for FY26. For the June quarter, the company reported a 20-basis-point on-year improvement in its EBITDA margin to 23.8%. 

Late Thursday, the company reported its June quarter earnings. Its consolidated net profit declined 18% on year to INR 4.38 billion while its revenue rose 24.5% to INR 35.70 billion from a year ago.  

The company said it will maintain its gross margins upwards of 70% as guided earlier. For the June quarter, Mankind Pharma's gross margins fell 130 bps to 70.5%.

Mankind Pharma's management said the integration of the Bharat Serum business into the consolidated operations is in progress, and it is confident of delivering healthy performance FY26 onwards. To strengthen Bharat Serum's biological products capabilities, Mankind Pharma is planning to expand its research and development and development centre at Ambernath, Maharashtra, the management said. The company is also setting up a new facility in Baroda, Gujarat, to scale up its biologics and de-risk from the Bharat Serum's Ambernath facility. Mankind is planning to invest INR 1.50 billion to INR 2.0 billion on the proposed new facility, and it is expected to be ready by December 2026.

Mankind Pharma said the company's modern trade and e-commerce channel registered 50% year-on-year growth in its sales in the June quarter, growing fast and contributing 11% of the overall consumer health business revenues. However, the margins in the modern trade and e-commerce segment are slightly on the lower side at 18-20%.

On the upcoming Glocogan-Like-Peptide-1 or GLP-1 opportunity, the company is working on an obesity-related product and phase-II trails on that drug are currently in progress in Australia. The company is also planning to launch its version of semaglutide, as and when the patent for this drug expires.
 

At 1420 IST, shares of Mankind Pharma traded slightly higher at INR 2,569.70 on the National Stock Exchange.  End

Edited by Tanima Banerjee

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