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Informist, Wednesday, Nov. 5, 2025

By P. Madhu Kumar

MUMBAI – Mankind Pharma Ltd. is expected to report a low double-digit year-on-year growth in its consolidated net revenue for the September quarter but a fall in its net profit due to integration-related costs for the recently acquired Bharat Serum Vaccines. Analysts said higher depreciation and amortisation expenses following the acquisition are likely to negatively impact profitability in the near-term. The revenue growth will be driven by strong performance in its chronic therapy and prescription medicine segments.

The company's profitability for the reporting quarter will also take a hit due to the goods and services tax cuts as the government has left the rates unchanged for active pharmaceutical ingredients at 18%, while the GST for finished goods was reduced to 5% from 12%. This is likely to put pressure on the company's margins.

Mankind Pharma is expected to post a nearly 26% year-on-year decline in its consolidated net profit for the September quarter to INR 4.87 billion, according to the average of estimates from five brokerages. The highest estimate for the bottom line is INR 5.50 billion from HDFC Securities while the lowest is INR 4.45 billion from Systematix Shares and Stocks.

Growth in the company's diverse consumer healthcare segment may have moderated by around 5% on year due to a high base and the recent GST cut, which is expected to weigh on overall profitability, according to Motilal Oswal Financial Services. This segment is likely to report 15% growth in the reporting quarter, down from 20% in the same quarter last year.

The company's consolidated net sales for the quarter are estimated at INR 37.30 billion, up 21.3% year on year. The highest estimate for its top line is INR 37.82 billion from Nirmal Bang Equities and the lowest is INR 36.78 billion from Systematix.

Motilal Oswal expects the prescription segment to grow 8.5% on year, driven by salesforce restructuring and sustained traction in chronic therapy lines. The brokerage said the consumer healthcare division, which includes popular brands such as Manforce and Prega News, could see only a 5% growth due to a high base effect, even though newer launches are gaining traction. "In the first two months of 2QFY26 (Jul-Aug'25), chronic therapies grew 11.5% year-on-year, compared to 9.5% YoY growth in 2QFY25 and slightly better than 11% YoY growth in Q1FY26," Motilal Oswal said about the growth in chronic therapies segment of the overall market.

Mankind Pharma's consumer health products include over-the-counter and wellness brands such as Gas-O-Fast, HealthOK, and AcneStar across various categories such as women's hygiene, pregnancy care, digestive health, vitamins, and skincare. The company also offers other consumer products such as the emergency contraceptive Unwanted-72 and the contraceptive pill Unwanted 21 Days. Analysts said the company's domestic business will continue to outperform the broader market in the September quarter.

Nirmal Bang Equities expects Mankind to outperform the broader market, aided by steady sales growth and a higher market share in its chronic therapies and specialty segments. "Revenue is expected to grow decently due to the BSV acquisition and robust demand in the US market for key molecules, while India growth will remain solid," Nirmal Bang said.

While the acquisition of Bharat Serum will contribute positively in the long term, analysts noted it will remain as a temporary drag on margins due to integration-related costs and higher depreciation and interest expenses.

The company's earnings before interest, tax, depreciation, and amortsation, for the September quarter are expected to rise 9.1% year on year to INR 9.31 billion, according to the average of estimates from five brokerages. The highest estimate for EBITDA is INR 9.77 billion by HDFC Securities while the lowest estimate is INR 8.84 billion by Nirmal Bang. Brokerages attributed this growth to steady operational momentum, despite cost pressures. Kotak Securities expects a modest improvement in margins, led by better pricing in the chronic and prescription segments. "We expect 6–8% growth in domestic business and steady margins despite the GST impact. Sequentially, EBITDA margins should improve marginally as the company stabilises post-BSV integration," Kotak Securities said.

Quarter on quarter, Mankind's performance is expected to improve moderately, driven by revenue growth across core businesses. The company's net revenue for the reporting quarter is seen rising 4.5% sequentially while the net profit is expected to grow 11%, and EBITDA is likely to be up 9.5% from the previous quarter.

However, analysts caution that these sequential gains are on a lower base and that the true profitability recovery will likely take a few more quarters, once the integration of Bharat Serum is complete and finance costs stabilise.

Investors will keep an eye out for updates on the integration related progress of Bharat Serum, capacity expansion plans, and the outlook for chronic therapies. Motilal Oswal said investors will look for management commentary on "scaling up BSV through corrective actions and capacity expansion," as well as progress on clinical trials for new molecules such as GPR-119 and Novel AMR.

Out of the seven brokerage reports on the company available with Informist, six brokerages have a ‘buy' rating on the stock with an average target price of INR 2,764 and only one brokerage has a 'hold' rating. On Tuesday, shares of the company closed over 1% lower at INR 2,369.50 on the National Stock Exchange. The stock is down nearly 8% since the company reported its results for the June quarter on Jul. 31.

Mankind Pharma will declare its September quarter results on Thursday.

Following are the Jul-Sept earnings estimates for Mankind Pharma from five brokerages in descending order of the estimate of net profit in INR million:

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Edited by Ashish Shirke

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