Operator
Ladies and gentlemen, good day and welcome to Mankind Pharma Ltd. Q2 and H1 FY27 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 will now hand the conference over to Mr. Archit Gupta from Mankind Pharma Ltd. Thank you and over to you, sir.
Thank you, Yashashree. Good evening, everyone, and thank you for joining us for our second quarter and H1FY27 earnings conference call. On call today, we have Mr. Rajiv Juneja, our Vice Chairman and Managing Director, Mr. Sheetal Arora, Chief Executive Officer and Full-Time Director, Mr. Arjun Juneja, Chief Operating Officer, Dr. Anil Kaur, Group Chief Scientific Officer, Mr. Dharita Roy, Senior President, Sales and Marketing, Mr. Ashutosh Dhawan, Lomad Chief Financial Officer, and Mr. Prakash Agarwal, President Strategy and IR. We will begin today's call with Mr. Rajiv Duneja, who will provide an overview of the quarter, followed by key business updates from Mr. Sheetal Arunaga. Mr. Ashutosh Dhawan will then take us through the financial performance, after which we will open the floor for Q&A. Before we proceed, please note that certain statements made during today's call may be forward looking in nature and are based on management's current expectations. These statements are subject to risks and uncertainties that could cause actual results to differ materially. Mankind undertakes no obligation to update or revise any forward looking statements, whether as a result of the information, future events, or otherwise. Please refer to the detailed disclaimer, available in the investor presentation, uploaded on our website earlier today. With that, I now hand over the call to Rajiv sir for his remarks.
Thank you Erkan. A very good evening to all of you. Welcome to quarter 2 and H1 financial year 27 are in call. At Mankind, our strategy is centered around three priorities, strengthening our core business, Scaling chronic and specialty therapies, and investing in future growth platforms. We made steady progress across each of these during the quarter, residing in another period of strong operating performance. During the quarter, overall revenue increased to 4,338 Up 17% year-on-year, while EBITDA for the quarterly increased by 27.2% to 1175 crore rupees, and EBITDA margin improved by 210 BIPs year-on-year to 27.1%. PSE portfolio continued its 20% growth momentum for the second consecutive quarter, led by strong performance in both domestic and international markets. Revenue for domestic business, excluding consumer healthcare, increased by 15.9% year-on-year to 3,428 crore fees in quarter 2, financial year 27. Driven by strong double-digit growth in both Manitine and BSV specialty business. American strong foundations, combined with discipline execution over the last few quarters, have resulted in outperforming to IPM in quarter 2, financial year 27. According to IQVR, our secondary sales grew by 15.7%, representing a 1.1 outperformance versus the IPM growth of 14.2, excluding the liquidity. This was largely driven by a 1.2x volume, outperformance, continued strategic chronic therapies, and trauma-incovering key acute therapies led by gastro and whiteheads. Our initiatives across leadership and field changes, process optimization, focus product portfolio, doctor's engagement, and extensive use of technology have resulted in improving Volume growth trend from 0.5% growth in financial year 25 to 2.3% volume growth in financial year 26, 4.7% volume growth in first quarter this year to now outperforming IPM with a volume growth of 6.7% in quarter 2. One of our key strategy priorities has been to increase the contribution of chronic therapies through focused initiatives, including medical marketing, new product launches, license, and selective brand acquisition. We have consistently outperformed the chronic market and strengthened our position in key therapies area. As a result, our chronic share excluding BSV expended by 80 BIFs year-on-year to 37.4%, led by 1.1x outperformance in cardio and anti-diabetes, again excluding therapy. And a strong 1.9x output form is in chronic respiratory treatment order. While we are expanding our recently launched multi-therapy mass market division, BISTAR, we are also promising towards the launch of new divisions in cardio, gastro, and dental therapies. These divisions will enhance focus on high potential brands, improve specialist engagement to accelerate growth. Our consumer healthcare business delivered a revenue of 229 crore in quarter to 27. Impacted by slower offtake in category for the industry and some reason In fact, in East and South, despite sort of growth, became market share in key brands like Malpours and Praganips. Our modern trade and e-commerce share increased to 18% from 12% a year ago, supported by 55% growth in that channel. Innovation and specializations continue to remain central to our long-term strategy and we are still building differentiated science-led pipelines that complement our existing portfolio. As we share our in-house pipeline asset, MTP-11093, a best-in-class jack elevator, A member of the International Commissioner has received funding from PRIP program by the Government of India, a first for mankind. Beginning of this journey, we recently announced the strategic acquisition of Armed Cell Therapeutics, providing us access to next generation 2018 CARTI Cell Therapy Platform being developed by highly experienced Founding Team. We view this as an important step towards creating an innovation platform for future growth. As we continue to strengthen our leadership across acute therapies, build scale in chronic and specialty segments, and selectively invest in innovation platforms, we remain confident in our ability to deliver sustainable growth and accelerate long-term value for patients and shareholders. Now, I invite Siddharth to walk you through more details on our business problems.
Good evening, everyone, and thank you for joining us for Bank and Farmers Order 2 and H1 Financier 27 Urza in Scott. It is a pleasure to have you with us as we share our performance and key development for the model. As our business continues to evolve, we are seeing the benefits of strategic choice made over the past few years. The quarter was marked by the strong operating momentum and continued advancement of our long-term priorities. Let me take you through the key developments. Our domestic business delivered another quarter of strong growth, with revenue increasing by 14.8% year-on-year to 3,657 crore. This was driven by 16% growth in mankind's core domestic ex-consumers and mutant growth in BSV domestic business, partially impacted by muted growth in consumer health. Importantly, we continue to outperform the IPM by 1.1 times led by 1.1 times outperformance in chronic with 19% year-on-year growth in cardiac and 16% growth in anti-diabetes. Recovery in acute continue with 1.1 times outperformance driven by 26% year-on-year growth in vitamin and And 19% growth in cash flow. Further supported by key brands such as Goodstaff, Pentamine, and DiGrobo. Anti-infected continue to recover quarter-in-quarter with a growth of 5.4% in Q2 Financially 27 versus 3.6% in Q1 Financially 27. BFB business also delivers strong momentum, with robust growth increased by NUMOVA 51%, Lollopin 45%, Anti-ID 37% and ASVS 45%. Another encouraging effect is the increasing sale of our brand portfolio. We have added 9 new brand families with sales over 50 crores, taking the total to 63 in March September 26 versus 54 in Financially 26. And 4 brand families with sales over 100 crores, taking the total to 22 during the same period. This reflects the continued productivity and scalability of our commercial industry. Additionally, we are seeing encouraging traction across our newer brands, including Monarong, Ampagrit, Dynodew, Neurobrand PFS, and Pentanograph. While still in the early stages of their life cycle, These brands strengthen our future growth pipeline and have the potential to evolve into meaningful scale over time. Our focused efforts to expand our presence in the hospital segment are gaining healthy interaction. During the quarter, we saw a strong 23% year-on-year growth in hospital We see strong long-term growth potential in this segment through specialized engagement and targeted launches. Moving to our international business, revenue for the product increased by 33% EUR per year to 680 crores driven by strong growth in both Bank and International and BSV's brand-based specialty. BSV continues to increase global adaptation of its specialty portfolio across fertility, critical care, and women's health. Looking ahead, our priorities remain clear. We are driving profitability growth at scale, increasing the contribution of chronic and specialty therapies. Expanding our international footprint through our differentiated product portfolios. Stattening our innovation pipeline and creating long-term value through discipline and execution. What gives me the greatest confidence is not our numbers but For our people, every day more than 27,000 colleagues across factories, R&D centers, offices, and the field carry forward the mankind's purpose. Their hunger to grow, humility to learn, honesty in action, and hard work remain our greatest competitive advantage. As we build the next mindset, we will remain guided by the same values that have defined us since the day one. Integrity, humility, hard work, and an unwavering commitment to improving life. Our journey continues with confidence, purpose, and optimism. With that, I would now I would like to hand over the call to Ashutosh Ji, who will take you through the financial performance in greater detail. Thank you so much.
Thanks, Sheetanthi. Good evening, everyone. I am delighted to have you all with us on our quarterly NH1FI27 earnings call. Let me give you a brief of financial highlights of our quarterly performance for quarter to FI27. Our revenue from operations during quarter to FI27 has increased by 17.3% year-on-year basis to Rs. 4,338 crores as compared to Rs. 3,697 crores in quarter to FI26. It's driven by strong growth in our base business as well as ESV speciality business. Our gross margins for the quarter has increased by 90 basis points year-on-year basis to 72.2% from 71.3% in quarter to FI 26. This year-on-year increase is primarily driven by three factors. Firstly, the impact of sales price increase, which we have taken. Secondly, the favorable sales mix as our chronic contribution has increased by 80 basis points on a year-on-year basis. And thirdly, there has been a favorable base effect as quarter to last year. Our gross margins were compressed due to GST 2.0 transitioning impact. Our reported EBITDA margin for the quarter has increased to 27.1% as compared to 25% in quarter to FI 26. This increase of 210 basis point is primarily driven by three factors. 90 basis point increase is from cross-margin expansion, reduced R&D expense by 40 basis point, and the balanced 80 basis point benefit has come from operating leverage due to sales growth. The EBITDA margins for H1 FI27 is 26.7%, which has increased by a 230 basis point year-on-year basis. The improvement is primarily due to increase in gross margins by a 160 basis point, and the balanced 70% benefit has come from operating leverage. The R&D expenses for the quarter was Rs. 108 crores, which is at 2.5% of sales, and the same is lower than R&D spend of 2.9% of sales during quarter to FI-26. This 2.5% is lower than our guidance of 3% for the full year FI-27. The finance cost for quarter two FI27 has declined to Rs. 105 crores from Rs. 110 crores during Q1 FI27 as Q1 FI27 had a NCD repayment of Rs. 1250 crores. In Quarter 2 FY27, the depreciation and amortization expenses has increased to Rs. 236 crores as compared to Rs. 222 crores in Quarter 2 FY26. This is in line with the asset capitalization undertaken during the period. The effective tax rate for H1 FI27 was at 24%, which has increased from 17.1% in H1 FI26. The increase in effective tax rate is due to adoption of new tax regime this year following the expiry of the tax exemption period. The profit after tax for quarter to FI27 grew by 37.7% year-on-year basis to Rs. 716 crores with fat margins improving to 16.5% during the quarter as compared to 14.1% in quarter to FI26, resulting in an increase of 240 basis points. This growth was primarily driven by stronger EBITDA margin and lower finance cost, which has got partially offset because of increased ETR. Our diluted EPS is Rs.17.2 per share of Rs.1 paid for the quarter. The cash EPS, which is EPS adjusted or not cash item, like depreciation and amortization, has increased during the quarter to Rs.22.9 from Rs.17.7 in quarter to FI26, An increase of 29.1% year-on-year basis. The net operating working capital for the quarter on trailing 12-month basis has increased to 51 days as compared to 46 days in the corresponding period last year, mainly due to increased working capital. In H1 FI27, our cash flow from operations has increased to Rs. 10819 crore as compared to Rs. 1637 crores in H1 FI26, which is on a year-on-year basis an increase of 11.1%. In H1 FI27, our cash flow to EBITDA ratio has decreased to 81% as compared to 92% in H1 FI26. The drop of 11% in cash flow to EBITDA is due to increased working capital. Our capex spent during the quarter has increased to rupees 214 crores as compared to rupees 163 crores in quarter to April 26. The capex as a percentage of revenue is 4.9% of the total revenue, which is lower than our guidance of 6% which is 7% of revenue for FI 27. In line with our prudent financial strategy, we have reduced our net debt to Rs. 2,639 crores as on 30 September 26, resulting in the net debt to adjusted EBITDA ratio of 0.66. Thank you very much.
Operator
Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please use the raise-hand feature available on the dashboard. We will wait for a moment while the question is assembled. We will take our first question from Rashmi Shetty. Kindly introduce yourself and go ahead with your question, please.
Yeah, so I am Rashmi from Dalit Capital. Am I audible?
Yeah, congratulations on good set of numbers and thanks for the opportunity. Sir, what is driving your export business? Because when I'm trying to adjust your numbers, you know, and splitting between your organic and inorganic growth, you know, both seems to look strong this quarter. So, what exactly is driving this, and how should we look, you know, for the entire year?
So, Rashmi, we gave the guidance of 20% growth rate on a constant currency dollar basis for the export, and the actual growth is coming to upward of 30%, and the delta is driven because of the currency exchange benefit.
Okay. To add to it, our international business growth is given by both BSP as well as Mankind, supported by strong performance in branded specialty products and new U.S. launches. So, BSP grew by 34%, while Mankind, U.S. and other international market grew by 29% and 37% respectively. So, we expect double yield growth in international business in the financial Okay.
And generally, if, if in, you know, earlier, just one to two years before US was something a bigger contributor to the overall export market, you know, we had reached around 70 to 75%. We still hold it or your other branded markets are also equally contributing it now.
So, I think the U.S. market and other branded markets are almost more or less equal now, and we expect going forward the other emerging markets to take over the U.S. market in terms of the contribution.
Okay. And my next question is related to the margin. You know, this quarter we have achieved on the higher end of the guidance that is around 27%. If you can split that, you know, whether this expansion we are seeing mainly because of your higher ramp-up in the BSV segment, you know, where the margin was around 28%, there we are seeing a big expansion in your operating margin, or it is your base portfolio, that is the Mankind portfolio.
So, it's a mixed bag of both the things, and we highlighted in our earlier calls also that BSV margin is approximating to the overall company margin. So, it's the overall growth which has been driving this. And as we highlighted, that 0.7 is coming because of operating leverage in this number, because of the higher sales growth.
So, Rashi, you have to account for a higher domestic growth. So, that is a high gross margin business and chronic distribution is also increasing. So, that is leading to that kind of margin drop down.
So, is it fair to assume that, you know, every year because of a good operating leverage and operating efficiency, you know, coming up, at least we should aim at 100% business point expansion?
So, fundamentally and directionally, what you were saying is correct, Rashmi, and we will come up with a reliable guidance when we will come up for FI 20's 28 data point. But the operating leverage should play a positive role in increasing the margins.
Okay, sir. Thank you so much. That clearly helps.
Operator
Thank you. Our next question is from Neha Manpurya. Kindly introduce yourself and go ahead with your question, please.
Yeah, thank you for taking my question. This is Neha from Bias of America. Two questions from my side. First, on the India business. Sir, I think after the underperformance for the last few quarters, we had mentioned that it is aspiration to grow higher than the industry. Obviously, we have gotten there this quarter. Now, if you were to think about the India domestic, you know, the Rx growth for mankind more near term and slightly more longer term, do you think we should be, you are confident that we should be able to sustain this higher-than-industry growth, or do you think realistically it will still be in line with industry growth in the near term before we start out performing more sustainably?
Thank you for the question. Look at the legacy of mankind. We've always beaten in the past a good number of years, not one year, but many decades, IPM by 1.3 to 1.4. Just look at the history, it draws some kind of a conclusion. Thank you very much. Thank you very much. Thank you. One of the things that we have done today is to discuss today's discussion. We have always said that we are in the process of making our foundation stronger, and we have done so. So, when what you say comes true, you feel very happy and very, very excited now. If you can say that you're going to be at Mexico. And as Mr. Asgore told you, we keep informing you what we expect in future, but we always believe that we should say less and do more. That's the philosophy of mankind, and we want to continue on that. Again, I must tell you one thing, that focus has always been India. We know India very well, so focus is always on domestic growth, from where we are drawing maximum growth. And in the past, we've said a number of times that we want our chronic share should increase from 39% to 50%. We stick to that. We want that we'll be outperforming the IEPM, absolutely. And we have some planning for that. We will be doing much better in hospital side, chronic side, and we have identified certain states Where we have a ranking, which is less than our right ranking. So, we are just focusing over there, and hope that we come to your expectations.
That's great, sir. My second question, Ashutoshji, is on the margins. I think we have guided to 25 and a half, 26 and a half margins. We are obviously tracking ahead of that. I know seasonally this is a strong quarter. But is it fair to assume that there is a possibility of us probably being at the higher end of that margin change or probably, you know, probably higher than that? And also, how do I think about, you know, given that you have a 70% stake in ourselves, the R&D spend there, would that also now start flowing through our P&L?
No, no, absolutely right, Neha. So, as far as the margin guidance is concerned, so we would like to maintain the same guidance, 25.5 to 26.5. And as far as the R&D guidance, the guidance was given 28, 2.8% to 3% of the revenue. For this fiscal, we expect the R&D guidance to, the R&D spend to be upper end of the guidance, Yes, which will be close to 3% of the revenue, with accounting for the impact of ACTX in the R&D.
And so, how should we think about the, I know you have an analyst meeting tomorrow, but in terms of the spend that ACTX needs, you know, the funding that we put, you know, how long do you think Bitcoin sustained before needs, you know, more capitals to progress on the R&D? Just some call of this.
So, the current commitment, whatever has been done, is to the extent of 48 billion and this is the discussion. So, this is good up to fiscal year 2028.
Okay. This is helpful. Thank you so much.
Operator
Thank you. Ladies and gentlemen, to ask a question, please use the raise-end feature available on the dashboard. Our next question is from Simran Thakkar. Kindly introduce yourself and go ahead with the question, please. Thank you so much for the opportunity.
My name is Simran from the Earth Capital. So, my question goes like this.
We can't hear you. Can you be a sound?
So, my question goes like this, sir. Given the Supreme Court judgment, the Supreme Court mandated committee on the marketing practices And the 29th Jan, 2027 herein. So, how is the company strengthening its marketing compliance framework and governance? I mean, how do you see the regulatory direction for the industry altogether? That's my question, Ma.
Thank you, Timran. So, I think this whole UCPMP guideline is not something which has come to light right now. This has been there since three to four years. However, this has been voluntary in nature, and also there is some sort of statute which is there from the Department of Pharmaceuticals. But now with this whole Supreme Court ruling, the government wants it to have more statutory powers. However, if I talk about from mankind's perspective, we have been preparing for it, not just in the last three, four years, but since the last seven to eight years. And we are all geared up, and I think from even if whatever the committee recommends, whatever guidelines they come up with, we are fully geared up to comply.
I understand so. So on the second thing, on the tax litigation front, the annual report review of 2026, wherein 1,609 crore of desolavings under Section 37.1. So, if that holds up, how do you see the tax class interest going there and the contingency liability that we have created for?
Okay. So, thanks, Imran, for the question. As far as the tax demand is concerned, so we are pleased to inform you that we have received a favorable order from the Commissioner of Appeals. So, wherein they have quashed the four years in the order, favorable order has been passed, and the overall exposure has been brought down from the old level by 300-odd crore rupees. And having said that, whatever is there, the accounting provision as well as the financial or the payout, everything has been accounted for in the hookup account. So, because of this particular tax litigation, we don't expect anything to change only from the financial metrics or the financial parameters of the committee.
I understand so. Thank you so much. Thank you.
Operator
Before we take the next question, we would like to remind participants, to ask a question, please use the raise-and-feature available on the dashboard. Next question is from Makran Bosekar. Can you introduce yourself and go ahead with the question, please?
Hi, my name is Makran. I am from Rimiti Investment Advisors. I was just curious about that we have seen quite a weaker monsoon in many parts of the country this year. So, has this impacted any negatively?
Yeah, hi, Mankar. We have seen our growth trend in last quarter. It has not been based on anti-infection, if you've seen. So, seasonality and monsoon affects more or less anti-infection on acute part, but our business has been dominated. Our growth has been dominated by chronic part mostly, and to some extent gastro and multivitamins, so which is not dependent on season. So, there has been some impact, but it's not too much because our contribution to chronic, semi-chronic portfolio in terms of growth was much higher.
Operator
Thank you. Next question is from Rahul Jeevani. Please introduce yourself and go ahead with the question, please.
Hi, sir. Thanks for taking my question. This is Rahul Jeevani from IIFL. Sir, on the India IndiaRx business, obviously, this quarter's growth was partly aided by the lower base of last year. So, IndiaRx grew 16% for us, and last year, same quarter, the business had grown 5%. So, if I look at on a two-year CAGR basis, our IndiaRx growth is still around 11%, which is slightly below industry growth, given that IPM is now growing at around 12-13%. So, where do you think we are still lacking versus market? Is it largely the acute business, which is, let's say, still growing slower for us, which is leading to our growth being below industry?
Raoul, very good question, but let me explain to you that if you just look at last year, this quarter was having the highest sales. But even then, I'd say that yes, whatever you are saying is right. But look at the growth of mankind, it's 15.7% is the growth this quarter. And this is not the end of the growth. We feel that going forward, we'll be doing better. That's kind of a confidence we carry in our head, because whatever corrections were supposed to happen, they have happened, we have the past, going forward, quarter after quarter, and year after year, you see the new mankind, better mankind, the same kind of a mankind which used to perform a few years back, that's kind of what we carry in our head now. And Continuously, if you just look at our volume-wise growth, just look at this quarter 2, 26, our volume growth, that basically is the right matrix. Our growth was minus 0.5%. Quarter 3, last year, it was 1.5%. Quarter 4, last year, it was 2%. This year, first quarter, the volume growth is 7.7%. According to volume growth, this is 6.2%. And apart from this, just look at the performance of new products, when you just, how we basically see our performance on two, three fronts. One, what is the PCPM, productivity, what is the growth, what is jump in the sales, and the most important, the volume growth, and the launches of new products. So, that basically talks about that fundamentally company is doing better. I mean, this is how we basically operate. And on all fronts, we are seeing consistently we are improving and hope that we keep surprising the market in future.
Sure, sir. So, let's say on a sustainable basis over the medium term, do you think that an India portfolio can clock this consistent 11 to 12% kind of a growth trajectory?
The key is that we will outperform IPM, IQD or whatever is that. Indian pharma market will definitely outperform that.
In terms of the collective action, if you see, there is a huge improvement in the leadership and the field force. The team has stabilized. There was some small disruption in the last 6-8 quarters. So those have stabilized in the last 3-4 quarters and we started seeing some improvement with Rajivji highlighted and the volume kept on improving. And this momentum has picked up both in chronic as well as acute. That's why we are able to see broad-paced growth and that's why we are able to now outprop up idea which we believe that we will continue to do so for the foreseeable period.
Sure, Prakash. Are we graving out any quantitative number in terms of the outperformance which we are targeting versus the IPM? In the past, our outperformance had been 1.2x versus the IPM.
I think, Rahul, two points I want to mention. One is we are still this quarter also we have been outperforming the market and traditionally what even Rajesh has told that we have been 1.3, 1.4 times earlier. But this is the phase where even there is some unpredictability in terms of IPM growth also. So if you see today, we cannot say that what kind of growth of IPM will be there for next two, three quarters. But in terms of outperforming the market, it would be around 1.2 or 1.1 to 1.2, which we can see next, you know, two quarters. But in addition to that, I think one point needs to be added here because quarter two When you were talking about, Rahul, last year, the basic key metrics like, you know, cardio, diabetes, or even for that matter, vitamins and gastro, our mankind's performance was still more than the market, even in quarter to last year. So comparing that, we are still doing better in those key metrics for our success.
Sure, sir. And just on the chronic side, can you talk about your GLP-1 strategy? Thank you, sir. Because obviously there we were trailing competition in terms of market share, so what is the thought process in terms of scaling up on the semaglutide opportunity in India?
We mentioned the past as well that we said that let the competition competitors become a bit common and sensible, and we start working on it and the working has been started. We are entering this market very statistically, launched one in Cardio Labrador, one in Kionics, and going forward, you'll see the response.
Sure, sir. That's it from my side. I will join by the team. Thank you.
Operator
Thank you. We have a follow-up question from Niharika Agarwal. Please introduce yourself and go ahead with the question, please.
Hello, this is Niharika Agarwal from Nirmal Bank. Thank you for the opportunity. So, I wanted to understand a little bit on the fee-first productivity. We approximately have 63 brands now, correct, that give over 500 million of sales versus 54 in FY26. So, I was looking more towards, you know, how much of this is coming from scaling existing, how much of the growth is coming from scaling existing versus addition of new brands, and is the sales productivity per MR improving, or is the growth coming more from higher selling costs?
So, if you see, the bigger brands get bigger, especially in the chronic side, and the idea for the company is always to bring in more 50-100 crore brands because that's what drives growth. At the same time, if you see, we've been talking about, you know, addition and introduction of new divisions. For that, we need to hire more people. So, it's an ongoing process. It's a mix of both older brands and scaling of newer brands. If you see our field force productivity, last year was around 7 lakhs, and quarter 2 ending, really 12 months is about 7.4 lakhs. So, despite hiring more people, given the growth, we have been able to improve our MR. Okay, thank you.
And on the chronic mix versus, so, you know, we are seeing sustained growth in chronic space, but the chronic share remains below the IPM, right? So, what is the realistic feeling for us, for the chronic mix over the next one year, and would reaching it improve margins for us as well?
So, Nyarika, Q2 base acute is always higher. That's why chronic is looking 37.
Last year, we closed around 38.5-39.
So, our goal and ambition is to add 100 to 200 basis points every year. And our 4 to 5 year ambition is to touch 50%.
Operator
Okay, thank you. Thank you. Next question is from Bansi Desai. Please introduce yourself and go ahead with the question.
Yes, thank you. This is Bansi Vesai from JP Morgan. My first question is on BSV. Sir, you highlighted a very strong growth for some of our brands. If you can help us understand what has driven this strong growth. And I recall that some of these brands, you know, especially like Anti-D, for instance, had very low penetration levels in India. So, you know, over the last few quarters, you know, I'm sure, you know, you'd have taken measures to improve access, penetration. So, we can throw some color on that side as well as to where we are and what is the potential of growth for some of the key brands that you mentioned.
Thanks, Vansi. Growth for the mandate brands have always been strong for the last two quarters, upwards of 20-25%. And some of these top three brands we spoke has been 30 to 40 percent. And this is being driven by many initiatives. One is the demand creation, especially for, you know, innovative product like NID, where you have to have a lot of, you know, awareness programs that we've been driving. Secondly, we have also increased the dynet coverage over the last 18-24 months from 33,000 to now 37,000. And also, we have been expanding our IVF coverage, especially into, you know, the IVF clinics like Indira and the chains. And also, what is different about BSP portfolio is a lot of clinical work is getting done for their key brands, especially NTID, Foley drafts, and even Histoblo, which is a, you know, recently introduced product in the PFS space. So, there is a lot of clinical work which gets done, a lot of doctor involvement is there, and a lot of awareness programs are there. So, those things are leading to growth in the mandate brands, which is upward of 30%.
So, there is no element of low base here, right? You know, for the last 4-6 quarters, we've seen good growth, but we expect this kind of momentum to continue.
Okay. And then my second question is, you know, while we've done well on an overall basis in India, our X portfolio, this is coming on despite the fact that, you know, our anti-infective probably still, you know, lagging behind IPM. And I noticed some of the key brands like Moxikine, Cefakine are still probably, you know, either declining or, you know, growing at a very low pace. So, if you can comment if the primary numbers are also suggesting the same, and if not, you know, what are the, you know, measures that we are taking to revise growth in the anti-infective segment?
Bansi, when you were talking about, you know, anti-infectives, we can see there is a progressive trend from quarter to quarter. Starting from last year, say, quarter three to quarter four to quarter one and quarter two this year, there has been a progressive trend for all antibiotics, including oxygen, CV, safer kind, good safe. In fact, good safe is even doing better than the market also in this quarter. So there are a lot of antibiotics which are coming into trend. And considering the strategic part of what we're saying is that we are rebuilding our mass speciality, especially when we talk about antibiotics, the impact comes from mass specialities more for mankind. And we have been rebuilding this speciality for antibiotics. Simultaneously, we are also building consultant backup for these antibiotics, say, surgeons and even for that matter, ENT also. So, and also in the antibiotic space, we are launching and we have launched also some of the good antibiotics which are giving a very good result.
All right. So, shall we expect even this segment to come at par compared to IPM or, you know, in fact, even go beyond that in terms of growth?
So, in coming quarters, probably if we match the IPM growth in anti-infectives, then probably, yes, of course, we are looking to, you know, do better than the IPM when the contribution from new products also will come into anti-infectives.
Operator
All right. Thank you. Thank you. Next question is from Rashmi Shetty. Please introduce yourself and go ahead with the question, please.
Yeah, thanks for the opportunity again. Just on the consumer business, you know, if you can explain what is the impact that we have seen in East and South, and what should we expect for the full year? Are we sticking to the guidance of high single-digit to low double-digit growth for consumer health business?
Rashmi, as well as I should really confess to you that we are unhappy with our own performance in consumer business, very brandy I am talking to you, very, very honestly I am talking to you, and the kind of transforming changes we brought a few years back in mankind, the same kind of changes you will see in the next few months in consumer side. Having said The point is, some positive side of the consumer is that we have taken better share in Manforce and Braganews, share has increased. Number one. Number second, basically, is what? Our e-commerce is growing very fast, 100% growth. It is now contributing around 15% in the total sales. So trust is more towards e-commerce. But yes, we are not happy. And we hope that next three months or six months, and next year especially, this will come on right track. Right now, this year, we expect that growth will be in single digit.
That would be high single digit or it would be low single digit?
I don't mean. High single digit.
Okay. But we should expect that, you know, it should recover back in the, in FI 28, right?
Okay. And so this e-commerce segment, whatever sales we do, that becomes the part of the consumer business segment or it is a part of domestic portfolio, that is your Rx portfolio?
I'm just saying your question, what question you asked about consumers, right? I'm just referring to that question only. And I said that consumer business, quick commerce, e-commerce is really fantastic. And if right now growth is 100%, we expect, I'm hoping that it can Okay.
Operator
Thank you. Thank you. Next question is from Umesh Ladda. Kindly introduce yourself and go ahead with the question, please. Umesh, kindly unmute your connection.
Can we go to the next question? Hello.
Operator
Yes, Umesh, we can hear you.
Yeah. Hi. So, my first question is that earlier we were almost 10% under indexed to IPM versus now we are 8%. So, which factors have narrowed this gap down? And also on the hospital presence, we are increasing our hospital presence. So, is it more centered again towards tier 1 and metros or it's on a broad-based level? We under-index to metros? To IPM.
Yeah, which is again under-indexing to metros and tier 1.
Yeah, so we will over-index in tier 2 for tier 63 and we remain. Sorry to interrupt, sir.
Operator
Your audio is coming from a distant.
Operator
Yes, please go ahead.
Okay. So, if I understood the question correctly, it's about over-indexed in the Tier 2 to Tier 6 cities versus under-indexed in Metro and Tier 1. Is that right?
Yeah. And are hospital expansion strategies catered towards Tier 1 and Metro or it is on the broad base?
So, hospital strategy is clearly obvious, because hospitals in general are growing rapidly, be it metros, tier 1, or tier 2 cities. And since we started, you know, from small towns and then progressed from tier 2 to tier 6 cities, and now to metro and tier 1 also. So, the over-indexing is there, but at the same time, we are growing reasonably well in the metros and tier 1 cities also. So, it's overall broad-based growth across.
Okay, got it. And sir, secondly, on the MR addition guidance, anything, any guidance for FY28-29 from the present levels?
So, for FY28-29, we will get back next year. This year, we have said about 7% increase. We are on track level.
Operator
Thank you. Next question is from Alamkar Garude. Please introduce yourself and go ahead with the question, please.
Hi, thank you for the opportunity. This is Alankar Garude from Kotak Institutional Equities. I have another question on OTC, more or less in continuation with the previous participant. See, growth has been sluggish for the company for almost four years now in OTC. But more importantly, we have not seen any major new brand breaking out of the OTC segment for quite some time now. Now, Rajuji, with the transformative changes you spoke about, can we expect more larger new brands coming out from this segment over the next few years?
Well, certainly, when you say the growth of last couple of years is muted, number one, that's not there. The category is much better than what you're mentioning right now. It's double-digit class. Number one. Number second basically is what? If we just look at the kitty of consumer healthcare, guess how fast is one product which is really doing very good? Because you're supposed to understand the dynamics of consumer business. The success rate in consumer business when you launch a new product is in single energy. That means what? More than 90% products when you launch new get failed. So, what strategy we have adopted that when we see some product becomes OTX in our prescription side, we try to move it to and give it to consumer business. Look at the example of our health token. This is one example. Akinesta is another example. In the same way, we have some products in our mind, which we feel that in future will be shifted to consumer side. But before Before that, we just want to build, I mean, very, very robust leadership team in the next couple of months, because everything revolves around people, actually. If you write leaders, things start happening. So much is happening in new age business, we want to come in that line as well.
So, just to give data, this was 25% and lastly, we were 20%.
Yeah, got to your point, sir, as well as Prakash. But yeah, hopefully, we'll see a much better performance going forward as far as OTC is concerned. The other question was on international. You spoke about emerging markets doing well and the contribution from emerging will grow. So, henceforth as well, and maybe U.S. will come down. So, just wanted to understand which are the key markets that are doing well for the company and also your approach. So, do you have your own MRs in these markets or these are largely through the partnership
So, thanks, Anupal, for that question.
So, when we said about international that ROW emerging market, that includes BSP contributions. So, as you know, BSV is more of an emerging market than its specialty play, which is spread across four key clusters. The first one is the ASEAN cluster, where Philippines is a larger market, second is the MENA-Africa cluster, third is the RCIS, and fourth is the NATAM cluster. So, across these markets, our idea is to increase penetration of the existing products, also increase growth from the existing products entering some newer markets.
Got it. And final one, with your permission, on ACTX, see, what is the game plan here post FI-28 once the funding runs out? Are you keen to invest further to pursue the R&D programs or you would prefer a partnership approach or maybe a combination of both?
I think we are open to all sorts of ideas. By the time we reach FY28, and if we have good results coming out of the clinical trials that we will embark upon, I think we are open in terms of partnerships or maybe ourselves funding the programs. Depends, you know how the results come out.
And when are those expected, Arjun?
We expect over the next two years.
Two years. Okay. That's it from my side. Thank you.
Operator
Thank you. I now hand the conference over to management for closing comments. Over to you.
Yeah, thank you. For any further queries or clarifications, please reach out to us on investor.relations at mankindpharma.com. Have a nice day.
Operator
Thank you, members of the management team. On behalf of Mankind Pharma, that concludes this meeting. Thank you for joining us, and you may now exit the meeting.
