Mankind Pharma Limited (MANKIND) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Mankind Pharma Ltd Q4 F526 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this meeting is being recorded. I now hand the conference over to Mr. Abhishek Agarwal from Mankind Pharma Ltd. Thank you and over to you, sir.

Good afternoon, everyone. We welcome you to our fourth quarter and FI 26 earnings call on board. Mr. Rajiv Juneja, our vice chairman and managing director. Mr. Arjun Juneja, chief operating officer. Mr. Sudikta Roy, Sina president, sales and marketing. Mr. Ashutosh, global chief financial officer and Mr. Prakash Agrawad, president strategy. We will begin today's discussion with Rajeev Janajar's providing quarterly and annual update followed by business insights from Mr. Sheetal Arora thereafter. Mr. Ashutosh the one will provide a detailed overview of the financial performance before we move on to the session, please note that statement made on these call that relates to future event, more performance of forward looking in the nature and reflects management current expectations. These statements are subject to various risks and uncertainties. An actual result may differ materially and mankind does not undertake any obligation to update or revise these statements in the future. A detailed disclaimer in this is included in the investor presentation uploaded on our website. With now, I will hand over to Rajiv sir for his remarks.

Thank you Abhishek and a very good afternoon to all. Welcome to the quarter four. 26, financial year 26 earning call. In financial year 26, we made steady progress in strengthening our core business while continuing our strategic advancements towards specialization-led growth. Our focus initiatives towards people Processes and technology supported by better execution, discipline, and capability enhancement are now translating into quarter on quarter performance improvement. In quarter four, our overall revenue increased by 11.8% year on year to 3,443 crore with adjusted EBITDA margin of 27.1%. And for the full year, 26, revenue increased by 17.0%. Year-on-year, to 14,278 crore rupees with adjusted EBITDA margin of 25.4%. Domestic revenue, excluding consumer healthcare, increased by 12.9% in quarter four. Driven by double-digit growth in mankind's domestic business. Supported by robust growth in PSV specialty business. For the financial year 2026, overall domestic revenue increased by 14.4% year on year. Moreover, I would like to highlight that our volume growth has increased to 2.3% in financial year 26 versus 0.5% last year led by strategic initiatives undertaken in last few quarters. Mankind's overall CPM has also improved to Rs. 7.2 lakh per month and in financial year 2026 from Rs. 6.5 lakh in And financial year 25. The secondary sales as per IQVIA during the quarter was 8.7% versus 10.7% IPM, excluding GLP-1 primary due to strong performance in chronic growth supported by 14.7% in cardiac and 11.6% in anti-diabetes. Mutant growth in anti-infective partially offset by quarter-on-quarter recovery in gastro, gynec, vitamins and derma. Mankind's chronic share increased by 120 BIPs year-on-year to approximately 40% during the quarter and 190 BIPs to approximately 39% in full financial year 2026. We expect this growth momentum to continue. We witness 1.1x outperformance to IPM in cardiac and 2.1% outperformance to IPM in anti-diabetic. Again, x GLP-1 in financial year 26. In financial year 26, our brand portfolio continue to scale as a number of 200 crore brands. Increased to 13 from 11 in financial year 25, while Rs. 50 crore brands increased to 54 from 49 in financial year 25. To further strengthen our specialty chronic portfolio, during the quarter, we acquired the brand Rio Hotel from Roche, a renowned textbook brand of grinozepam. Brand used for neurological and psychiatric conditions, including epilepsy and seizure disorders. BSV domestic specialty business witnessed strong double-digit growth, led by robust growth in back-to-date brands like Entity, Folligraph, HMG. During the quarter, our revenue from OTC business increased by 20% to Rs. The growth was primarily driven by a strong growth of 57% year-on-year in modern trade and e-commerce channels. For the financial year 2026, revenue increased by 9% to Rs.879. The steady sequential improvement across brands, therapies, and divisions strengthens our confidence. In regaining our growth momentum as seen in the past, as the industry landscape transforms, our strategic focus is now increasing towards specialty chronic therapies and R&D-led innovation products. We continue to invest in and adopt best-in-class technologies, enabling us to build a more resilient, differentiated And future radio organization for long-term sustainable growth. And we remain confident that in financial year 27, we will be much better here as compared to year 26 for all our businesses. Now I invite Sheetal to provide more details on our business performance.

Good afternoon, everyone. Thank you for joining us for Mankind Pharma's Quarter 4 and Financial A26 Earnings Court. It is a pleasure to connect with you all today. Financial A26 has been an year of improving execution, disciplined growth, and deeper integration across businesses. Our performance this quarter reflects not only healthy demand momentum, But also the resilience of our business model, the strength of our brands, and the commitment of our team across the organization. Let me begin with our domestic business. In quarter for financial year 26, our domestic revenue growth 13.4% year on year to Rs 2886. More importantly, our organic growth, excluding OTC, stood at 10.1%. The highest level since the BSV acquisition. This growth was broad based driven by improving execution across therapies, sustained momentum in chronic therapies and strong traction in BSV domestic portfolio. For financial year 26, domestic revenue increased 14.4% year on year to Rs 12,217. With organic growth of 8.6% excluding OTC. What gives us confidence going forward is that this growth is supported by improving prescription strength, healthy volume expansion, and strong brand traction across multiple therapies rather than being dependent on any single product or category. Let me share some key highlights for the quarter. Starting with our acute businesses, as per IQVR, our gastro portfolio outperformed the market, growing 1.1 times the IPM growth rate. Flagship brands such as Pentakine deliver strong momentum, outperforming IPM by 1.4 times. We are also encouraged by the continued leadership of Vona Pradhan. Which is now the number one Piskai brand by both value and volume in its category. In Gynecology, we delivered 10.8% year-on-year growth supported by 6% volume. Our Di-Dogestron portfolio grew by 20% year-on-year. While our iWave portfolio maintained excellent momentum led by 52% growth in Foley Graph and 40% growth in HMG. Across other acute therapies as well, we are seeing healthy momentum. Vitamins and minerals therapy grew 12.5% year-on-year, while brands such as NeuroKind, Archipress, and D3Must also delivered healthy performance. Coming to chronic therapies, an important long-term road driver for us in anti-diabetes. Excluding GLP-1, we outperform IPM by 1.6 times. Supported by 5% volume growth, improving our CVM rank to number 4. In Cardiac, we outperform IPM across all key molecules. Telmekind has now become a Rs.750 plus crore brand for us. While our brands in roboost rating and saline dipain are among the fastest growing in their respective segments. One of the strongest indications of the sustainability of our business continues to be our prescription leadership. For the ninth consecutive year, we maintained our leadership position with rank number one in prescription, supported by 15.1% prescription share and 84.1% prescribed annotation. This reflects the trust we have built with doctors over decades, supported by consistent quality. Affordability and strong field execution. Moving to our international business, our export revenue for the quarter grew by 4% year-on-year to Rs. 557 crore, primarily impacted by geopolitical headwinds. However, on full-year basis, our international business revenue increased by 35% year-on-year to Rs. 2061 crore. Looking ahead, we remain optimistic about the long-term opportunities in international market. During the year, both our Udaypur and Ambarnath facilities received EUGMP certification, which will further strengthen our ability to expand into semi-regulated markets. As we move forward, our strategic priorities remain very clear. To continue driving scale with profitability. To strengthen our presence in chronic and specialty therapies. And most importantly, to build future ready healthcare organization with long-term sustainable growth. With that, I would now like to hand over the call to Aushuduji, who will take through the financial performance in video today. Thank you so much.

Thank you, Sheetal. A very good afternoon, everyone. Thank you all for taking time out to join our quarter four FI26 earnings call. Today, I will be sharing detailed insight into our financial performance both for the quarter as well as FI26. Our revenue from operations for quarter 4 FI26 has increased by 11.8% year-on-year basis to Rs. 3,443 crores as compared to Rs. 3,079 crores in Q4 FI25. This was led by strong 13.4% growth in the domestic business. For FI26, our revenue grew by 17% year-on-year basis to Rs 14,278 crores vis-à-vis Rs 12,207 crores in FI25. Our gross margins for the quarter has increased by 60 basis point year-on-year basis to 72.2% from 71.6% in Q4, FI25. This increase is majorly led by better seismics as our chronic contribution has increased by 120 basis point on a year-on-year basis. For the full year, our gross margin has marginally improved by 20 basis point to 71.6% as compared to 71.4% in FI25. Our adjusted EBITDA margin for the quarter has increased to 27.1% as compared to 23.1% in Q4 FI25. This increase of 400 basis point is on account of 60% basis point increases in the gross margin. 240 basis point benefit is from the operating leverage. And moreover, Q4 last year expenses had a higher base because of launch and relaunch of certain focused brands. Our reported EBITDA margin for the quarter is 26.4%. The difference between the reported and adjusted EBITDA margin is due to the true of impact of the new labor code adoption. For FI26, our adjusted EBITDA margin is 25.4%, which is within our guidance range of 25% to 26%. This adjusted EBITDA margin is lower by 50 basis point as compared to last year, which is primarily attributable to higher R&D spend. The R&D expenses for the quarter was rupees 103 crores, which is at 3% of the sales, and for the full year 2026 is 2.8% of the sales, which was 2.2% in FI 25. This 2.8% is in line with our guidance of 2.5% to 3% for the full year FI 26. The finance cost for Q4 FI 26 has declined to Rs. 142 crores from Rs. 157 crores in quarter 3 FI 26. This reduction was primarily driven by full quarter impact of repayment of the final tranche of commercial papers of rupees 1500 crores in Q3 FI 26. Along with this, there were certain repayment of the bank borrowings during the quarter. In Q4, FI 26. The depreciation and amortization expenses was broadly in line at INR 223 crores as compared to rupees 231 crores in quarter 4 FY25. And if we look at the full year. The depreciation and amortization expenses has increased to Rs.886 crores vis-a-vis Rs.621 crores in FI25. Which is primarily due to the full year impact of depreciation and amortization related to BSV assets. The effective tax rate for Q4 FI26 was at 15.1% as compared to 16.8% EGR in Q4 FI25. However, the effective tax rate for the full year F525 is 16.9% as compared to 20.3% last year. The profit after tax for Q4 FY26 grew by 30.4% year-on-year basis to Rs.559 crores with bad margins, improving to 16.2% during the quarter as compared to 13.9% in Q4 FY25. Resulting in an increase of 230 basis point. This growth was primarily driven by stronger EBITDA margin and lower finance cost. However, in the last year, F525, we reported higher other income on account of gain from monetization of our subsidiary Mahananda Spire Resorts. Our diluted EPS is rupees 13.4 per share of rupee 1 paid for the current quarter. The cash EPS, which is EPS adjusted for non-cash items like depreciation and amortization, has increased during the quarter to rupees 19.1 from rupees 15.9 in quarter 4 FI 25, an increase of 0.5% year-on-year basis. For the full year FI26, PAT decreased marginally in value terms by 3.4% on year-on-year basis, 2 rupees 1938 crores from rupees 2007 crores last year. The back margin for FI26 is 13.6%, which has decreased by 280 basis point year-on-year basis from 16.4% in FI25. This decline is primarily driven by higher finance cost and depreciation cost along with over other income due to PSP acquisition which got consummated in October 2024. The diluted EPS and cash EPS for FY26 were at Rs. 46.3 and Rs. 68.1 respectively. The net working capital days as at 31st March, 2026 is 52 days as compared to 50 days as at 31st March, 2025. In FI26, our CFO to EBITDA ratio has increased to 89% as compared to 80% in FI25. This is primarily driven by reduction in effective tax rate and working capital in value terms has remained constant as at 31st March 2026. Our capex spent in FI26 increased to Rs.737 crores. Remaining at 5.2% of the total revenue, which is at the higher end of our guidance of 5% of revenue. As highlighted by Rajivji, in line with our enhanced focus on R&D and specialized products, we are setting up a new best-in-class biotech facility in Vadodara. Accordingly, our capex guidance for FI26 is expected to be in the range of 6% to 7% of FI27 revenue. In line with our prudent financial strategy, our net debt is Rs. 3,932 crores as of 31st March 26, resulting in the net debt to adjusted EBITDA ratio of 1.1x in Q4 FI26. We remain on track to repay the acquisition-related debt by FI 28. With this, we conclude our financial update and welcome any questions which you may have. Over to you, Abhishek.

Thank you, Ashutosh. Hi, Nirav. So, Nirav, we can open the forum for Q&A.

Thank you very much. We now begin with the question and answer session. Anyone who wishes to ask a question, may click on the raise hand icon to ask your questions. Participants are requested to announce their company name before proceeding with their question. We'll wait for a moment while the question queue assembles. First question is from the line of Kunal Damesha. Kindly announce your company name and proceed with your question. Can you hear me? Yes, go ahead.

Hi, this is Kunal from Macquarie Capital. Thank you for the opportunity and congratulations on good side of numbers. First question for Rajiv, sir, on, you know, some of the disruption that we had witnessed in FY26, you know, in some of our teams, and we had done a lot of hiring, you know, and they were undergoing training, etc. So, where do you put progress on those aspects now? Do you think that the entire disruption is behind us? Uh, and then we are like back to, uh, business as usual, uh, for our domestic business.

Uh, Kunal, thank you so much for this question. Uh, you have, uh, said in the past as well, that, uh, whatever corrections, what we've done are done. Now we are, uh, on the path of recovery. And as you can see in the fourth quarter, and as the whole total year performance of mankind. It is the right track. So whatever, uh, see, I mean, we are basically acute heavy company, uh, 40%, 38% approximately sales come from chronic site. So whenever any kind of disruption happens, chronic does not get affected because of its own reason. Patient keeps taking it. Only in the case of acute, we got some hit. Now, since people are properly placed, things are at the environment, it's very, very right. So we see, I mean, path to recovery, path to better growth, performance better than the last year.

Sure. And on that note, sir, could you provide some outlook for top line growth for FI27 as well as the profitability outlook?

So, I can see only one thing that growth would be better, top-line growth would be better than the last year, double-digit. And also, we'll try to outperform the IQV. That's the aspiration, actually. And as far as the bottom line is concerned, every day is concerned, that too would be better than this year, 26. We can expect, I mean, the guidance has been given 25.5 to 26.5. If they're getting range of that.

For the EBITDA margin.

Okay. And lastly, on, you know, the GLP-1, you know, segment, right, that is, you know, because of that, IPM is also witnessing a faster growth. And I believe we were supposed to be launching our GLP-1 in the month of April or something. So where are we on that journey? And, you know, with the initial market formation, you would have seen, you know, what's the best positioning that you would kind of go ahead with in terms of product as well as the placement of the product.

We continue to believe that GLP-1 represents a very large and long, large long-term opportunity for the Indian market. Our approach remains strategic and focus on long-term value creation. We do not want to compromise on the profitability in an increasing growth in market. Along with the GLP-1, we are also focusing on adjacent and supportive therapies such as vitamins and minerals, proteins and GA-related products. To build a stronger and more sustainable long-term growth. So we always believe that profitability should be better because there is a mad rush in the market right now of GLP-1. So we are focusing on GLP-1. It's a long-term and a large opportunity for any Indian companies to ignore that. But we are also focusing on adjusting and supporting therapies like vitamins and minerals and protein, which are going to grow better in a time before.

So, sir, when will our launch be there on GLP OneFront? And in which all formats we are targeting?

We already launched around a month ago. We are targeting those endocrinologists around the top.

Endocrinology doctor. Okay, perfect. I have more questions. I'll join back the team. Thank you and all the best.

Thank you. Next question is from the line of Tushar Manudani. Kindly proceed with your question and announce your company name.

Yeah, myself, Tushar, Manu Ganev from Motila Losual Financial Services. Again, congratulations on good set of numbers. So just going forward while you have highlighted on the growth guidance, would you also share the perspective in terms of what's happening on the raw material cost side given the kind of sort of turmoil that's happening because of this Middle East war issues and which might have impact on, let's say, gross margins and EBITDA margins?

See, I mean, you cannot deny that some kind of a disruption is there as far as the raw materials are concerned, packaging materials is concerned, XCP is concerned, but whatever precautions we have to take, we have taken, and hopefully whatever guidelines have been given, we'll try to just cover up, we'll come up with that expectation. That's a hope, actually.

Understood. Secondly, on the consumer health side, while FY25 was pretty strong, but FY26, again, the growth has moderated. Fourth quarter, particularly, there was a low base effect, so 20% growth. But having said that, FY26, again, has been a moderate year for consumer health. Could you highlight any initiatives to revive or further sort of strengthen the growth in this segment?

I'm an initiative in the form of that whenever something is wrong in mankind, we just work on the basics, fundamentals, and that we are continuously doing. And hopefully next year as well, we will just give double-digit growth in consumer division, better margins, and better things will happen.

Would this be backed by any new launches sort of this or would be more like line extension of the existing brands?

I mean, in OTC side, it's always the brand value, the strength of a brand in terms of revenue is more important. Whatever new launches will happen, these launches will be extension of the present brands only. So, no new launches right now because last year we launched 2-3 products. I mean, they need to really come to a critical mass, some kind of level of revenue, then we can think of launching more products.

If I can add, Tushat, the year was also impacted by Google GST, so a couple of basis points impacted there. And secondly, there is a lot of initiative as seen from the IRTEC also that e-commerce is growing at 50% plus. So that is a very growing segment for the consumer. So there is a lot of impetus in growing that segment as well.

Understood. And lastly, on exports, while the INR terms growth has been 5%, so if you could, like, I assume that in the constant currency, the growth would have been further muted. And if you could further break that down into exports of mankind and exports BSV and, you know, share, like, how we expect to revive this growth.

So, we are not breaking it down in terms of, you know, Mankind and BSV, it's all one company now since, you know, Q4 is a full quarter presentation. However, we can give you some color that Mankind growth was better than BSV and BSV was partly impacted due to some of these countries where it has some exposure, LATAM, RCIS and some leadership change in Philippines, which is one of the largest market. So, there was a little dip in the fourth quarter, but next year, we see revival. We are expecting high double-digit growth in both these international business units.

Broadly, tender business and non-tender business, at least in the exports part, if you can give that break up.

No, no, we don't call it out. So we just focus on mandate plan.

Okay. Got it. Thanks. Thanks a lot.

Thank you. Next question is from line of Harith Ahmed, kindly announce your company name and proceed with your question.

Hi, this is Harit from Avengers. My first question is on the, you know, chronic therapy performance that you've disclosed. So while for the year we've indicated a 1.1x performance versus IPM, for the fourth quarter, it's coming a bit lower at 0.9x. Are there any pressures that we're seeing on the chronic side in certain therapies, which is leading to a bit of softness in 4Q?

See, there is no pressure on chronic therapies because it's a long-term growth routine. We believe that chronic growth trajectory is sustainable over the long term. See, Indian continue to remain a significantly under-penetrating therapies like diabetes, obesity, cardiac arrest, respiratory, because the way lifestyle diseases are increasing, diagnosis level are also improving. And healthcare awareness are also increasing, plus insurance penetration is also gradually rising. So we are not chasing short-term growth. We are investing in franchisees and therapies that can compound sustainability for many years. So we have, we have invested, we have seen around 20 years ago, mankind was nothing in chronic therapy. Now we are approximately 39% contribution comes from chronic therapy. So one or two quarter doesn't make any difference in chronic therapy. Maybe it's a for a long time we have to see.

Okay. Got it, sir. And then, like you disclosed the 1.1X versus IPM for chronic therapies, what would that number be for acute therapies? And then, you know, for the quarter, you've called out certain acute brands like Cifakind recording a very strong outperformance. So, for acute therapies specifically, how should we think about growth in FI27?

Acute therapy would mean the line of IPM growth. So, last year, our acute growth was muted, but this year, it would be matching the IPM.

Okay. And lastly, on the margins for the quarter, at 27%, this is probably the strongest that we've seen in the last few quarters. And I can also see a very strong, significant control on employee costs and other expenses. So, what exactly is driving this, and should we look at this 27% level of EBITDA margins at the combined business level to sustain?

Let me start with the EBITDA margin guidance, so that Rajivji has given that it will be better than this year, and we are expecting to be 25.5% to 26.5% for FI 2027. And this year, the performance has been better. Approximately 400 basis point is there, which is a mix of one is the GC has been better. 60 basis point is coming plus the operating leverage as we called out in the that has also played a role that we have been able to control. And then there has been certain reversal or the waiver of the of the of the commission. So that has also contributed to to this. So that's why the margin improvement has been there. On a year-on-year basis. In addition to that, if we look at Q4 last year, there was a bit of a bulge in that because certain BSV-related brands were relaunched, repackaged, and plus we also launched Ampa. So there were certain launch and relaunch related expenses which were there.

Okay. Got it, sir. Thanks for taking my question.

Thank you. Next question is from the line of Siddharth.

Hi, thank you for taking my question. Congratulations on a good quarter. Just wanted to understand and follow up to Harit's question. There is a quarter-on-quarter significant decline in employee expenses. Is that on account of certain manpower rationalization? And on a sustained basis, how should one think of that? Secondly, on the GLP-1 launch, are you looking to launch both pens and vials? And what about the oral format? And in continuation of that GLP-1, right, what kind of an impact have you seen on your base diabetes business? And how do you see that play out going forward in context of GLP-1s doing the way they are? Yeah, those were the questions.

Let me answer you for the GLP one. So there's a mad rush in the market. Every company is launching. And if at this particular time you launch, you'll be lost somewhere. So we've always been a contrarian kind of organization. We always think what others are doing, we should not do. In this competitive market, we have launched our GLP plan. And we are not in a hurry to launch oil. We're not in a hurry to cut down the prices. What we're doing, we're basically working on the adjacent therapies like vitamins, minerals, protein side. Because ultimately, a company which would be selling the complete portfolio will be having a better advantage. So our approach is a bit different than the rest of the people, actually. So if you launch in 50 people or 50 people, 50, 50, 100 kind of a competitive market, you'll end up losing. We will not be even noticed. Had we had the advantage of launching this product first, One or two months in advance, then it was all right. Not now. We have launched our plan and we basically are building it slowly and gradually. Let this strong get past. Let people burn their own things. Then we'll come. And next to your question is Prasant Asutoshji.

Yeah, so this is, so regarding the employee cost, so there are two questions. One is the quarter on quarter drop and the sustainability aspect. So, so, so before commenting on quarter on quarter sequential drop, let me draw you to the, to the whole year number. If you see the full year perform or the full year employee cost FI 25 and 20 minutes. In percentage basis to the overall revenue, we are almost flat 22.1, 22.1. Value wise, there is increase of 491 crores on our overall for the full year performance, which is partly because of BSV, because last year BSV was for 159 days. This year it's for the full year. Impact is there. If you normalize that, so then you will, there is a 10% increase in the employee cost year on year basis. Having said that, coming to the quarter-on-quarter sequential drop in the employee expense, there is a 9% drop sequentially. So, which is comprising of one, there is a 3.5% drop in the revenue. So, that's one. That's also, there is a normal saving in the employee cost on account of incentive. Plus, there is a true-up has been there. Both put together are contributing close to 5, 5.5% drop. And the balance 3.5% drop is coming on account of the waiver of the director fees or the commission fee. So because of these two reasons, you are seeing a sequential drop in the employee cost. On an overall basis, on a normalized basis, an normalized basis, so there is a 10% increase in the employee cost if we normalize it for BSV.

Yep. Right. And sir, if you could just help understand the impact on the base diabetes therapies after GLP-1's base diabetes or base cardiology therapies, because we're clearly seeing X of GLP-1, the growth in diabetes seems to be, you know, more mid-single digits like. So is there any impact that you're seeing on ground and how do you see that going forward?

Shiddharth, to answer this, I think scientifically, if you see in last few months, there has not been a direct impact on the primary anti-diabetic and cardiac therapy. And it is too early to say also that the therapy regime will change. So even the customer's feedback and all other feedbacks also are saying that it is too early to say. But what we have seen is it is not impacted much in terms of primary diabetic and cardiac therapies.

Got it. Thank you.

Thank you. Next question is from the line of Kunal Runderia. Kindly announce your company name and proceed with your question.

Hi, good afternoon, sir. Kunal Randhir from Access Capital. Sheetal ji, you mentioned a few brands like Telmakine, Diderbon doing extremely well. So good to hear that. But some of your other bigger brands like Moxikine, Amlokine, Goodself are not really showing growth. So my question is, I would like to understand some of the moving parts of your growth guidance in India. So does it mean, are you assuming that some of these brands will show better growth? Or should we expect higher price hikes, maybe closer to the 10%? And you know, range that is allowed, or will it be new products driven? So some more color would be helpful, sir.

We last year because of some corrective action and because there was a less performance of acute, our acute growth of new day, but we are encouraged by the sequential improvement. We started witnessing from Q2. If you see Q2 onwards, Q2, Q3, Q4, we're growing quarter and quarter that recovery trajectory is already visible across several therapies and give us confidence for financially at 27. At the same time, we are consciously improving the quality of our growth. When I say quality of our growth, it means higher contribution chronic. Now it's almost 39% specialty business. We are number one in human health care and differentiate therapies rather than depending on a seasonal acute spike, which may come in one quarter, then next day it may not come. So we believe that financial year 27 is very strong year for us driven by multiple factors. First is normalization in acute portfolio after the softer performance scenes during financial year 27. Second is sustained momentum in chronic therapies, where we continue to outperform IPM across all segments of all the key segments. Cardiac diabetes is graduated. And third is increasing contribution from specialty and different products, including opportunities like GLP-1 and related therapies. So overall, we see a healthy balance between recovery and acute. And just standing standing in chronic and specialty business, which give us a confidence that definitely next year, financially 27, we will be at least doing double digit growth and aspiration, like Raji G has said, aspiration is always better to do than the market as you see the history of mankind in last 30 years, we have always outperformed market. That's why we have become youngest company to come on fourth rank in 30 years. So aspiration is always there and we are recovering. In not, you know, even in chronic, but acute therapy is also coming back.

Yeah, I got my question, but any price hikes would be like what you have taken normally in the last few years?

You have taken normal price hike in line with the industry. I can just quote the IBM numbers if you like. Just give me one second. Yeah, so for the year, our price size as per IQ has been 4.2. Industry is around 4.4. So we are in line with the industry price size.

Sure. Thanks, Prakash. Just one more question, if I can. Your modern trade is growing very well. I think 50% plus this quarter. Last quarter, it was around 40% or so, if I remember correctly. So just wondering how long can such, you know, growth trajectory continue? And then what, you know, going forward, maybe what should be a normalized growth trajectory?

So, can you repeat the question? Did you say modern trade for Rx business?

No, you mentioned, I think it was mentioned 57% growth in modern trade. On the OTC piece, right? But again, how much can it continue? How long can it continue growing? Because we were at 40% last quarter also.

On a smaller base, this kind of a growth was expected. In the past, our base was very, very small. We are just working on this and hopefully better growth, double-digit growth. I mean, high teens growth would be there, but we don't expect, I mean, 50-60% kind of growth. High teens would be there.

So Kunal, if you refer FI25, the share of e-com and modern trade was close to 9%. This year it has increased to 13%. So there is little more headroom where we can increase this salience from e-com and modern trade.

Got it. Got it. Thank you very much. I have a few more questions. I'll turn back. Thank you.

Thank you. Participants, you may click on the reason I can. Next question is from Makran. Kindly proceed with your question and also announce your company name.

Hello, am I audible?

Yes, go ahead.

Yeah, hi, thanks. Congratulations on good set of numbers. My question has been answered. Thank you.

Thank you very much. Our next follow-up question is from the line of Harid. Can we announce your company name and proceed with your question?

Thanks for the opportunity again. So specifically on the specialty side of BSV, we've called out very strong growth in a couple of brands like Polygraph and HMG. So trying to understand what is the sustainable growth for these brands and then from the two NTD brands that we have, Antid and Roklon. So, within the overall NTD category, what is the market share that we have? Because the way I understand, you know, a large part of the market is still with the polycronal versions. So, just trying to understand the addressable opportunity for the two brands that we have, and the potential market share for us in this segment.

So, Arif? MD is an innovative product with 100% market share. In India, this is, you know, PSV is the only product to bring to the RH negative from others. And that's why it is one of the biggest brands in more than 200 crore plus of brand sales that we can. In the past two years with mankind coming in, the number of state coverage has also increased. It used to be 10, 12 states which used to cover in terms of, you know, prescribing doctors of the state hospitals also. Now the number is 15 plus. We've added two more hospitals last year, which is Tamil Nadu and Prabhupada.

So we are seeing strong traction in this.

You see, secondary is growing in mid-teens. And we expect that we'll continue to grow and expand the awareness program because since it's an innovative product, you need to have more awareness. Not many people know about it. So that's the activity which Mankind is also helping. We had campaigns of Amitabh Bachchan and a lot of other doctor campaigns that has happened. And in India, in terms of penetration, about 5% is the number of, you know, women which face this issue. So the market is huge.

Prakash, the polyclonal versions will still be dominating the market rate, and I understand our aspiration to grow the market share, so I am just trying to understand what exactly is the addressable market.

To our understanding, Decombinate is a much superior product. And that's why the share gain is 100% polycronal was there as per our understanding in the market five years back. But currently, it is not there. We can come back to you and go one on one on this. But our understanding is we have full market share on India markets.

Understood. Thanks for that.

Thank you. Next question is from the land of Alankar Garude. Can we announce your company name and proceed with your question?

Hi, thank you for the opportunity. This is Alankar Garudev from Kotak Institutional Equities. Sir, firstly, while you explained the points on staff cost as well as HDNA, in general, can you take us through the cost optimization initiatives taken over the last few quarters, and how will you ensure that these do not impact your growth prospects over the medium to long term?

There have been multiple initiatives which has been taken. If we talk about all the employee costs, I think that's what you are referring to. So there has been incentive, rationalization, alignment, plus the span of control and all those things. It's a long topic to be discussed. And secondly, long story short, what our endeavor is that the employee cost should be in the vicinity of 22% of the sales, plus minus 0.5% here and there. But by and large, if you see on the long term trajectory, our endeavor is to maintain employee cost, both fixed variable, all put together in the range of 22% of the overall sales. I think that satisfies your question. Yeah.

Sir, even on SG&A, I mean, you spoke about the high base because of the launches in the previous quarter. But even then, I mean, there has been a pretty good, we've seen that moderate quite a bit. So anything we have done on the SG&A front as well, which you'd like to call out. And yeah, I mean, if you can also help elaborate on the point on growth impact from a more medium to long term standpoint, any impact at all, which could potentially happen, Because of some of these initiatives.

See, if you specifically talk about the S&D or the S&D part, the S&D is more heavy loaded in the H1. So, if you say historically also, it's the expenses are front loaded on the S&D expenses. Plus, it's a mix of discretionary normally, barring the last quarter, last year, as we have called out that there were certain launches and relaunches. Because of that, there was a bit of a bulge, but historically also, if you see Q4 has been softer with regard to the SND expenses. And if you, if you specifically talk about, if you, let's say from last year to this year, that's where if you see FI 26, the overall other expense view expenses in FI 26 is 3424 crore piece, which is 24% of the overall sales. This I am talking the full year number. And if you compare it to last year, FI25, the reflected number is 3008 crore. Out of this 130 odd crore were the one-off expenses, which were attributable to the BSV integration and plus some donation, which was given the earlier part in Q1. And so if you normalize this, it makes it 23.6%. So the comparison is between 24% and 23.6%. So, that delta of 0.4% is mainly because of increased R&D spent. So, long story short, the effort is to maintain the cost structures, not to tinker it too much, and the overall other expense is 24%, vis-a-vis 23.6% last year. The delta is on account of increased R&D spent, which we called out earlier.

Got it. Got it, Ashutoshji. The second question is on BSV's international business. Apart from the impacts you called out in LATAM, CIS, Philippines, can you lay out the plans to drive growth more from a three to four-year standpoint?

Yeah, surely. So, there's a lot of initiative going in the last, you know, since the acquisition. There's a lot of awareness programs. First, let me take some domestic initiatives. There's a lot of awareness programs in terms of coverage, in terms of increasing doctor prescriptions for, you know, the key products like Antidy, which is, you know, we believe there could be a huge potential, and 15 plus states have now been covered. The second is increase in the gynec coverage. So when we acquired it was 32,000 plus, now it is 37,000 plus. So this is a significant increase in the gynec coverage and that's how you can see that especially the women's health care and fertility products are doing so well. We now cover 90% of the IVF centers, 43,000 centers. There's a lot of initiative for these IVF products like polygraph, which is seen a 40% plus kind of growth, which is the fastest growing, much faster in the market. And there is a lot of clinical work getting done in terms of, you know, studies like we mentioned in the past that polygraph, we have done refresh studies. Anti-D, we have done rhythm studies. Now we have another product for LRG, which is doing extremely well for rush studies. So there is a lot of clinical work getting done, increase in coverage getting done, increase in awareness getting done.

This is more for the domestic business.

In the international business, we just started scratching the surface. There is a lot of scope in terms of... Expanding the existing products, as we mentioned, to each of these markets, from starting with, you know, RO1 to all the way to RO3 markets. Focus is incrementally on women's health care and IVF, where we are seeing strong traction. Secondly, also, we are expanding our GTA markets. So, Philippines, Malaysia, and Africa are the key GTA markets where we are expanding. And this year, we expect that there will be good launches in few of these semi-regulated markets for the key products. So that's why we feel that, you know, it should, the growth in an international business should be high teens to 20%.

Got it. Just to summarize there, Prakash, even Rajivji, it's been almost two years since we acquired BSV. Would you like to say that the acquisition both on the domestic as well as on the international front has played out more or less in sync with your expectations back then?

See, whenever you acquire something, there are always certain kind of hiccups, but DSV Azure has always been a very, very important kind of acquisition for that time. It has given us something which we did not have. Difficult products, complex products, political products, so we are very happy with that. Number one, number second basically is what? When we brought the leadership chain in domestic side, the response is very good, and whatever problems we saw due to different reasons, in the Philippines side, we changed the leadership, otherwise geopolitical disturbances. So we see, I mean, it's a very, very good fit in mankind, and going forward, But we expect a lot from a BSP cycle.

Got it. And one final question, with your permission, you have approved an investment of up to 500 crores in one of your subsidiaries, Mankind Medicare. Currently, this entity is into droppers. So what is the game plan here?

So Medicare is basically the manufacturing arm of mankind. So this investment is towards setting up of best in class Madodra biotech facility.

Ah, okay. Got it. Yeah, sorry. Go on, sir.

No, sir. That's the reason that because next year or in the face manner, we are spending money in this Madotra plant, biotech plant. So this is approval is towards incurring the capex in the coming year.

Okay. So more or less, this 500 crores is entirely for that biotech facility. Okay, sir. That's it from my side. Thank you.

Thank you.

We'll take the last two questions, please.

Next question is from line of Alka Katyaar. Can you announce your company name and proceed with your question?

Hi, I'm Alka from Morgan Stanley. Thank you for the opportunity and congratulations on good set of numbers. So most of my question has already been answered. If you can just highlight on the debt repayment plan. So are we on track? Like, you know, what we have guided earlier? Or how should we look for 27 and 28?

So we are definitely we are pretty much on track. The last payment was done in April 2026 1215. And the next payment is coming due on on. In October, same amount, 1,250, and next year, 2,500 crore is to be rebate. So, we are on track. And we have given our guidance also that for FY27, the net debt to adjusted EBITDA to net debt ratio will be 0.5x. So, we are on track.

Okay. Thank you. And, sir, also, if you can repeat the EBITDA margin guidance for this year.

Thank you. 26.5%. That's what is the guidance. But having caveated with all the geopolitical situation, market condition, but the guidance will be better than the last year. And it was 25.5 to 26.5%.

Okay. Thank you so much, sir. All the best.

Thank you.

Thank you.

Last question, please.

We take the last question from the line of Bharat Shah. Kindly announce your company name and proceed with your question.

Yeah, Bharat Shah from BCA's Capital Ideas Limited. First of all, congratulations, Rajivji. Finally, we are seeing the performance that we have come to ascribe with mankind always. So congratulations to you and Shitalji and the team. There were basically two broad questions I wanted to understand. One got partially answered earlier, but I'll repeat it. We acquired BSP at a point of time where prima facie from a variety of points of view, it appeared whether we overpaid. And whether it is going to deliver and whether it is really delivered or it is under delivered. In other words, some total of the benefits, whether it is exceeding the kind of challenges and difficulties such a large acquisition poses and whether it is played out as we thought from a strategic point of view. And secondly, the entire manpower churning to bring the energy and to bring the same level of aggression that mankind has been known in the past to pursue long-term strategy, but in a very focused, aggressive manner, whether all the changes, despite all the attentions in between, I mean, is it really played out exactly as you desired or there is still a work in progress?

That's a very interesting question, but I tell you. There's a difference when you run, when companies are being run by promoters versus professionals. Promoters always see everything in the long term. We are never much impacted by quarter-on-quarter or volatile years of low points. We always see that whatever entity we acquire would give us Benefits in terms of our long-term growth. What advantages would be there? Keeping that in mind, we basically acquire Bada Syrup. And again, I want to reiterate, whenever you basically take any organization, when you basically acquire any organization, it takes some time. We are just 18, 19 months old in this, and now things have been properly streamlined, whether it's a domestic, whether it's an international side, all is being done. And we hope to see good growth. We don't want to just overstate, but we'll definitely say we don't want to, we just want to surprise everybody. That's the kind of human mindset we have got. One answer for the acquisition. The second basically answer is. Whatever you plan. In a office, whatever you do, some kind of a mismatch is always there. And you always understand this. So we expected that we will be able to change the picture in shortest possible time. It didn't happen. It took us more time. But now all the things are done and dusted. And as you can see, this year, the company is in a healthy state of growth. And we feel that whatever numbers have been projected to you, bottom line, top line, we definitely. Thank you so much.

No, that goes without saying. Before Mankind got listed and after it has been listed, I've observed Mankind for a number of years. And I've always admired the tenacity and the reason to play for long run rather than play for the T20 kind of a match. At the same time, not losing focus on achieving results and aggression to get what is due. So it has always been long-term reason and terrific attention to the ground to execute well, repeatedly, time after time. So this is what you have said is in sync with that. Just one question for Mr. Dhawan. The expected tax rate for the current year will be, last year it has been 17%, and year prior to that has been about 20%. So, what is the likely, Ashutoshji, tax rate for the current year?

Sir, this year for FY27, the expected tax rate will be in the range of 25% to 26%. Because the sixth extension, what we have been enjoying, FI26 has been the last year. That's why our effective tax rate has been in the range of 15 to 16%. So next year, it is going to get increased to 25 to 26%.

Sure. Thank you. And once again, hearty congratulations, Rajiv, Shetalji, and all the very best.

Thank you, sir. Thank you, sir. Thank you, sir.

Thank you.

Thank you very much. And I'll hand the conference over to the management for closing comments.

Thank you, everybody, for attending the call. For any further queries or clarification, please reach out to us or email us on investor.relations at mankindpharma.com. Have a nice day. Thank you. Thank you.

Thank you very much. On behalf of Mankind Pharma, that concludes this meeting. Thank you for joining us, and you may now disconnect your lines. Thank you.