Mankind Pharma reported one of the strongest results this earnings season. Profit rose almost 38%, well above estimates, as margins improved and exports grew by a third.
Mankind Pharma reported consolidated net profit of ₹716 crore for the September quarter, up 37.7% from ₹520 crore a year earlier. That was well above analyst estimates of about ₹627 crore. Revenue from operations rose 17.3% to ₹4,338 crore.
Margins drove the gain. EBITDA rose 27.2% to ₹1,175 crore, and the EBITDA margin widened by 210 basis points to 27.1%. Profit grew more than twice as fast as revenue. A better product mix, cost control and lower interest costs as debt falls all contributed.
Chronic leads
Mankind’s core domestic pharmaceutical business, excluding consumer healthcare, grew 15.9% to ₹3,428 crore. Its secondary sales, which measure sales from distributors to pharmacies and show real demand, grew 1.1 times faster than the Indian pharmaceutical market. Growth was strongest in cardiac and anti-diabetes medicines.
That matters for the business. Medicines for chronic conditions like heart disease and diabetes are taken for years, which gives drugmakers steady, repeat revenue. Mankind has historically been strongest in acute treatments such as antibiotics and painkillers, so its expansion into chronic therapies makes its earnings more stable and predictable.
The international business grew 32.7% to ₹681 crore. Mankind has now launched 50 products in the US, and its exports are becoming a more significant part of the business. Over the first half, exports grew 31% to ₹1,286 crore.
Consumer healthcare slows
The one weak area was consumer healthcare, which sells over-the-counter brands such as Manforce and Prega News. Revenue rose just 1.2% to ₹229 crore. Mankind said slower demand across the category and regional problems in eastern and southern India held back growth. It still gained market share in its key brands, and sales through modern trade and e-commerce rose 55%, now making up 18% of the segment, up from 12% a year ago.
Weak consumer healthcare sales match what other companies are seeing. Discretionary spending on non-essential products is under pressure as inflation and fuel costs squeeze household budgets, even as prescription medicines hold up.
A stronger balance sheet
Mankind has cut its debt sharply. Net debt fell to ₹2,639 crore at the end of September from ₹4,791 crore a year earlier, and net debt is now just 0.6 times annual EBITDA. Most of the debt came from Mankind’s acquisition of Bharat Serums and Vaccines, and paying it down quickly frees up cash for further investment.
The company is also investing in advanced therapies. It has bought a 70% stake in Armed Cell Therapeutics, which is developing CAR-T cancer therapies. The board also approved merging several wholly owned subsidiaries to simplify the group’s structure.
For the first half, revenue rose 15.1% to ₹8,368 crore and profit rose 33.7% to ₹1,290 crore. The results show a business with strong growth, improving margins and falling debt.
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