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Informist, Saturday, May 16, 2026

By Gunjan Rajput

NEW DELHI - Mankind Pharma Ltd. is expected to report a year-on-year decline in its March quarter net profit as higher input and logistics costs, partly due to geopolitical tensions in West Asia, are likely to weigh on margins.

The pharmaceutical company is expected to report a nearly 6% on-year decline in consolidated net profit for the March quarter at INR 4.04 billion, according to the average of estimates from four brokerages. The company's revenue is expected to rise nearly 11% on year to INR 34.15 billion, the estimates show. On a sequential basis, the net profit is likely to decline nearly 22%, while revenue is expected to fall nearly 4%, the estimates show. Mankind Pharma will announce its March quarter earnings on Tuesday.

The highest estimate for the company's net profit is INR 4.45 billion from Motilal Oswal Financial Services Ltd., while the lowest estimate of over INR 3.76 billion is from Kotak Securities Ltd. The highest revenue estimate is by JM Financial Institutional Securities Pvt. Ltd. at INR 34.37 billion, and the lowest is by Kotak Securities at nearly INR 33.66 billion.

The company's net profit is expected to decline despite higher revenue as rising raw material and logistics costs are likely to put pressure on margins. Kotak Securities also flagged that geopolitical tensions in West Asia have pushed up prices of key raw materials and freight costs, adding to cost pressures.

The company's revenue growth is driven by steady growth in the domestic formulations business, supported by chronic therapies and consumer healthcare segments, as well as contributions from the Bharat Serums and Vaccines portfolio, according to brokerages. 

The company's earnings before interest, tax, depreciation and amortisation are expected to rise in line with higher revenue, mainly because the company is earning more from its core operations and can better spread its costs as volumes increase, according to a report by Motilal Oswal. However, higher input and logistics costs may limit any sharp improvement in margins, analysts said.

The pharma company's EBITDA is estimated at INR 7.96 billion, rising 16% on year and declining over 2% sequentially, according to estimates from four brokerages. The highest estimate is INR 8.34 billion by Motilal Oswal and the lowest is INR 7.57 billion by Kotak Securities.

Going ahead, analysts will closely monitor the trend in raw material costs, the trajectory of the Bharat Serums and Vaccines portfolio, the recovery in domestic formulations, and updates on new product launches.

For the financial year 2025-26 (Apr-Mar), Motilal Oswal expects Mankind Pharma's net profit at INR 18.88 billion on revenue of INR 142.68 billion.

Friday, shares of the company ended at INR 2,503 on the National Stock Exchange, up nearly 2%. The shares are up nearly 20% since the company reported its December quarter results.

Out of the six brokerage reports on the company available with Informist, three have a ‘buy' recommendation on the stock with an average target price of INR 2,603. This is over 4% higher than the current market price. Two brokerages have a ‘hold' recommendation on the stock with an average target price of INR 2,322. One brokerage has a ‘sell' recommendation with the target price of INR 2,030.

The following are the March quarter earnings estimates for Mankind Pharma from four brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Akul Nishant Akhoury

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