Mankind Pharma Limited (MANKIND) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Mankind Pharma Ltd Q1 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 now hand the conference over to Mr. Arjit Gupta from Mankind Pharma Ltd. Thank you, and over to you, sir.

Thank you, Yashashti. Good evening, everyone, and thank you for joining us for our first QOD FY27 earnings conference call. On call today, we have Mr. Rajiv Tuneja, our Vice Chairman and Managing Director, Mr. Sheetha Darula, Chief Executive Officer and All-Time Director, Mr. Sudhirtho Roy, Senior President, Sales and Marketing, Mr. Ashutosh Dawal, Global Chief Financial Officer, and Mr. Prakash Agarwal, President Strategy. We will commence today's call with opening remarks from Mr. Rajiv Duneja, who will provide an overview of the portal, followed by key business updates from Mr. Shrita Lavika. Mr. Ashutosh Dhawan will then share the detailed financial performance for the portal, following which we will open the floor for the Q&A session. Before we begin, please note that today's discussion may include certain forward-looking statements based on management's current expectations. These statements are subject to various risks and uncertainties that may cause actual results to differ materially and mankind does not undertake any obligation to update or revise these statements in the future. Please refer to the detailed disclaimer available in the investor presentation uploaded on the website. With that, I now hand over the call to Ali Sir.

Thank you, Ashish, and a very good evening to all. Welcome to Q1 27, Earning Call. Our discipline, execution, and strengthening business fundamentals resulted in improvements across key operations, key operating, and financial metrics in Q1 27, laying the foundation to deliver a sustainable route. During the quarter, overall revenue increased to 4,031 crore, up 13% year-on-year, with an EBITDA of 1,060 crore rupees, and EBITDA margin improving by 250 pips year-on-year to 26.3%. Revenue from the domestic business, excluding consumer health care, increased by 11% year-on-year to 3,180 crore rupees. Quarter 1,27 led by double-digit growth in pay business and a strong growth momentum in chronic and BSV specialty business. The secondary sales as well, IQV grew 12.7% during the quarter. Led by healthy volume growth of 4.7%, which increased by 220 BIFs in a year. Growth was supported by continued strong momentum in chronic portfolio and outperformance in the gastro, vitamins, gyneic segment, which led to growth recovery in acute business. Yes, the IPM has witnessed... A significant shift towards chronic and specialized therapies driven largely by the rising prevalence of chronic diseases and changing lifestyles. In line with this trend, we are steadily expanding our presence in chronic and specialty therapies while continuing to strengthen our Come on, YP Specialty Business. I'm delighted to share that our focused initiatives across key chronic therapies have translated into increase of 80 BIFs year-on-year in our chronic share, excluding BSC to 40%, primarily driven by strong growth of 19.4% in cardiac. 12.7% in anti-diabetic. We maintain, we remain focused on increasing our chronic share to 50% in medium-term. To further strengthen our presence in YT specialty business, we have launched a new division, DISTAR, which would help scale some of the lesser focused brands in existing divisions. Moving ahead, our consumer Healthcare business delivered a revenue of 246 crore rupees in quarter 1, 47, partly impacted by discounted cash-and-carry business. Despite software growth, we gained market share in key brands, man-course, flag-animous, air-so-fast. Also, a modern trade and e-commerce share increased to 15% from 11% a year ago. Supported by 38% growth in that channel. Innovation and specialization continue to remain central to our long-term strategy, and we are steadily building differentiating science-led pipelines that complement our existing portfolio. We have also partnered with DeNovo Science to launch an AI-led drug discovery program. Making an important step in strengthening our innovation, driven, and technology-enabled R&D capabilities. We remain committed to deliver innovative science-backed products at affordable prices, ensuring across the country, and driving sustainable long-term growth. I will now invite Chita to walk you through more details on our business performance.

Good evening, everyone. And thank you for joining us for Mankind Pharma's Quarter 1 Financial Year 27 Earnings Form. It is a pleasure to connect with all of you today. Financial Year 2027 started with a healthy growth rate, carrying forward the momentum from last few quarters as we continue to witness frequent improvement across our businesses. Let me begin with our overall domestic business. In Quarter 1 Financial Year 27, Revenue from our domestic business increased by 10.5% year-on-year to 3,426 curve. This growth was driven by a 15.8% increase in our chronic portfolio, growth recovery in executive portfolio, and strong double-digit growth in BAS. Let me share some key highlights for the Starting with our chronic bazaar. An important long-term growth diagram for us. In anti-diabetes excluding thyroid peptides, we outperformed IPM by 1.1x. The Glyde-Brand family continues to demonstrate strong momentum, delivering 29% year-on-year growth in quarter 1 financial year 27. In Carnic, we outperformed IPM by 1.1x, growing 19.4% year-on-year. Our Telmykine family grew approximately from 21% year on year, while LipiRose and Straspill grew 30% and 31% respectively. Coming to acute therapies, our acute portfolio has steadily recovered and is now broadly in line with IT&B. Improving from 6.1% in Q1 financial year 26 to 10.9% in Q1 financial year 27. Our Gastro Portfolio outperformed the market by 1.2% of IPM, growing at 30.6% year renewal with 1.8% of performance in 10.9%. In Gynecology, we delivered 12.7% year-on-year growth ahead of IPM growth of 12.1%. Primarily, that will continue strong double-digit growth in our IPM portfolio. Up 39% in both Holograph and HUMO, and 20% growth in Dialogues, i.e. 1.5 times of market growth. We continue to see healthy momentum in VMN, growing 19.3% year on year, while anti-infective soft study recovery from minus 1.1% in quarter 4 financial year 26 to 3.6% year on year in quarter 1 financial year 27. Our prescription leadership continues to remain one of the strongest indicators of the sustainability of our business. We continue to hold the number one position in prescription. There is 15.2% prescription share in quarter one financial aid from the government. This leadership is underlined by the trust we have earned from doctors over decades, driven by consistent quality, affordability, and distinct field education. Moving to our international business, revenue for the quarter grew 29% year-on-year to 605 crores. As we move forward, our strategic priorities remain clear to drive scale with profitability, strengthen our presence in chronic and specialty therapies, expand our global footprint with differentiated portfolios, and accelerate innovation and efficiency. Equally important in our commitment in fostering talent and nurturing a culture of collaboration and excellence, we aim to build a future-ready healthcare organization that delivers sustainable long-term growth, while staying true to our purpose of making quality healthcare more accessible and affordable. With that, I would now like to hand over the call to Ashurnoji, who will take you through the financial performance in greater detail. Thank you so much.

Thanks, Sheetalji. A very good evening, everyone. It's good to have you all with us today. I will now take you through the Q1 financial year 27 financial update. Our revenue from operations during quarter 1 FY27 has increased by 12.9% year-on-year basis to Rs. 4,031 crores as compared to Rs. 3,570 crores in quarter 1 FY26. This was led by strong growth in BSV speciality business and 29% growth in the international business. Our gross margins for the quarter has increased by 230 basis point year-on-year basis to 72.8% from 70.5% in quarter one FI26. And 60 basis point increase on quarter on quarter basis. This year on year increase is primarily driven by three factors. Firstly, the impact of sales price increase what we have taken. Secondly, a better sales mix as our chronic contribution has increased by 120 basis point on a year on year basis. And lastly, there has been a favorable base effect as quarter 1 last year, the gross margins were compressed due to certain inventory-related accruals taken for slow and non-moving items. Over-reported EBITDA margin for the quarter has increased. To 26.3% as compared to 23.8% in quarter one FI26. This increase of 250 basis point is primarily driven by two factors. 230 basis point increase is from the gross margin expansion and the balance 20 basis point benefit has come from the operating leverage. The R&D expenses for the quarter was Rs. 98,000, which is at 2.4% of sales and is higher than R&D spend of 2.2% of sales as incurred during quarter 1 FI 26. This 2.4% is lower than our guidance of 2.8% to 3% for the full year FI-27. You can ask cost for quarter 1 FI-27 as declined to Rs. 110 crores from Rs. 142 crores during Q4 FI-26. This reduction was primarily driven by the Act of the payment of NCD tranche of Rs. 1250 crores in Quarter 1 FY27. In Quarter 1 FY27, the depreciation and amortization expenses were broadly in line at Rs. 226 crores as compared to Rs. 219 crores in quarter 1 FY26. The effective tax rate for quarter 1 FY27 was at 25.4% as compared to 17.7% in quarter 1 FY26. This increase in effective tax rate is due to adoption of new tax regime. This financial year following the expiry of tax exemption period for our sick implant. The profit after tax for quarter 1 FI27 grew by 29.1% year-on-year, 2 rupees 574 crores, with that margin improving to 14.2% during the quarter as compared to 12.5% in quarter 1 FI26, resulting in an increase of 170 basis point. This growth was primarily driven by stronger EBITDA margins and lower financial cost which has got offset by increased effective tax rate. Our diluted EPS is rupees 13.7 per share of rupee 1 paid for the quarter for the current quarter. The cash EPS, which is EPS adjusted for non-cash items like depreciation and amortization has increased during the quarter 2 rupees 19.2 from rupees 15.9 in quarter 1 FY26, which is an increase of 20.8% year-on-year basis. The net operating working capital days for the quarter on trailing 12-month basis has increased to 52 days as compared to 48 days in the corresponding period last year, which is mainly due to increased inventory levels. In quarter 1, FI27, our cash flow to EBITDA ratio has decreased to 77% as compared to 99% in quarter 1, FI26. This drop of 22% in cash flow to EBITDA ratio is a combination of higher effective tax rate, working capital, and base effect in quarter 1, FI26. Our capex spend during the quarter has increased to Rs.198 crores in quarter 1 FI27 as compared to Rs.127 crores in quarter 1 FI26. The capex as a percentage of revenue is 4.9% of the total revenue, which is lower than our guidance of 6% to 7% of revenue for FI27. In line with our prudent financial strategy, we reduced our net debt to Rs.3,377 crores as of 30th June 2026, resulting in the net debt to adjusted EBITDA ratio of 0.9x in Q1 FY27, and we remain on track to repay the acquisition-related debt by FY28. With this, we conclude our financial update and welcome any questions which you may have over to you, Bhakastri. We are open for questions.

Thank you very much. Yes, thank you very much. We will now begin with the question and answer session. Kindly announce your company name and then proceed with your question.

Allow us a moment, please.

Mr. Pankaj Tibriwal, please announce your company name and proceed with your question.

Yeah, thank you. This is Pankaj Tibriwal from IKKIGAI Asset Manager. Am I audible? Yes, you are audible. Okay. Just from an India business perspective, just wanted to get a sense that always we have talked about India business growing at 1.2 to 1.3 times the ITM growth. Last year was obviously not a great year. And this year also the start has not been as great because the IPM itself, the market has been very, very strong. How do you foresee the remaining nine months for this year from an India growth perspective? And then I'll come to my second question on PSV. Thank you.

If you are asking about the Indian growth perspective, I will tell you that we have already returned to WDG growth. And more importantly, the quality of growth has improved. If you see our chronic portfolio, which is growing by 15.8%, accrued has also recovered to around 10.9%. And BFB is showing strong growth in first quarter of this year. Even the volume growth has improved to 4.7%, which was 2.3% in last financial year 26. If looking ahead, two unfair questions of nine months looking ahead, We are confident of progressively outperforming IPM because our growth is being driven by structural levers, not short-term factors. The building blocks are in place. We are increasing our tonic mix, where we are currently at about 50% and see the potential to move towards 50% over the next 4-5 years. Second is, we are scaling our hospital business, where our market share is still significantly below our peers, giving us a long runway for growth. Third, we are launching a new focus division with non-focus brands in existing divisions, and fourth, improving performance in under-penetrated states, where our market ranking is below our national standards, creating a meaningful opportunity to gain share. So these are the long-term growth drivers that should enable us to consistently gain market share and progressively outperform. I hope so.

So, in terms of, can we hear from here on expect mankind to consistently outperform IPM with the field force change, everything we have done and all the long-term drivers we are talking about? Is it a fair expectation?

Yeah, we will definitely grow double-digit some measures we are taking, increasing our hospital penetration, the non-scroper trend will be promoted in duty. So, definitely double-digit growth will come.

Okay. The second question in on BSV, I remember last year when we started, we spoke about 18-20% growth on BSV, whereas actual growth was about 5-6% and largely coming from export and domestics on a decline. When you look at this year now, obviously, first quarter has started on a decent note. How do we see BSV growth spanning out for this year?

So, let me correct you Pankar. So, last year BSE growth was around the early teens, well spread across domestic and international. This quarter, the growth is around 21%. We have given guidance of high double digit growth, which is high teens.

And if we break that into domestic and export, how should we think about it?

Yeah, so BSE domestic is around 17%, and international is around 25%.

Okay. That helps us. Thank you and wish you guys all the best. Thank you so much.

Thank you. Next is Rashmi Shetty. Rashmi, kindly announce your company name and complete with your question.

Yeah. Hi. Am I audible?

Yes, you are.

Yeah, thanks for the opportunity. I'm from Dalit Capital. So, one question on this net working capital, you know, you mentioned that, you know, the inventory has been increased, and currently, the working capital is around 52 days. So, you know, at the end of the year, also, it will remain elevated, you know, or it is expected to decline.

Oh, yeah. So, we expected to come down by the year-end because of some price advantages, etc. So, the inventory levels are, I would say, slightly above the normal trends, what we used to maintain. So, we can expect rationalization in the inventory levels in the coming quarters.

Okay. And this inventory level, which was high, was it? Because of, you know, high raw material prices, anything which we all have witnessed during the quarter.

Since we were sitting on a comfortable inventory level, so therefore, if you would have observed, the gross margins are pretty healthy, and so they are at 72.8. So the price increase in impact has not flown into the financial because of the good inventory level. However, the next quarter or so, we may see a compression in the gross margins level because the prices of the commodities and the dollar, et cetera, has increased. Having said that, we would like to maintain the same guidance what we gave. The gross margins to be upward of 71% and the EBITDA guidance to be 25.5% to 26.5%.

Okay, which is taking into account even the impact coming from the high raw material prices.

Absolutely, yes.

Yeah, and other inflationary costs. Yeah. Okay, and on the consumer healthcare business, you know, I'm seeing that some, again, you know, you all have given a very low growth of around 3.8% and you all have discontinued some cash and carry business. So, if you can explain that in detail, what exactly you all have done and how should we look at this piece of business?

See, mankind, whatever we basically do any kind of a business, it should have a very strong foundation. So wherever we found that something has to be done, we have done it, done that. I mean, cash and carry business was basically impacting the general trade. So we just stopped sales over there. But as a whole, marketing has made it softer. But on the second side, as far as the market share is concerned, man first condom share has increased, bragging share has increased, gasopause share has increased. So we see going forward with high T to double digit growth in second quarter onwards. High single digit, high single digit to double digit in second quarter onwards.

Okay, that is in the remaining nine months you're expecting. Okay, and what about the debt levels? You know, we are expecting a complete repayment by FI 28?

Yeah, acquisition related debt.

Acquisition related debt. Okay, that was, yeah, okay, that is something, you know, that was the doubt. Thank you so much.

That's it from myself. Thank you. Next question is from Kunal Damesha. Kunal, kindly announce your company name and proceed with your question, please.

Hi, this is Kunal here from McQuarrie. First question for Ashutosh on the cash EPS number that you were sharing of around 19 rupees for the quarter. That excludes the entire depreciation and amortization or just the acquisition related amortization for BASB?

Oh, this is after all these adjustments. This is a reported EPS. After adjustments of all the tax and depreciation amortization.

The full depreciation amortization has been taken out?

Yeah, yeah, yeah.

But that's not the normal practice the way large pharma does, right? They just remove the acquisition related amortization to arrive at cash EPS.

So, for the cash EPS, cash EPS is after depreciation, amortization and impairment expenses. The cash EPS is the cash portion.

Right, but if I just remove the acquisition related amortization, let us say ESV related amortization, then what would be the cash EPS for the quarter and keep the mankind related depreciation and amortization still in the numbers?

Only the total depreciation is in the range of 225 CR and out of that, you can broadly 50% towards allocated towards the acquisition-related depreciation. So, we can do the calculation and share with you the numbers subsequently.

Or we can take this offline here.

Yeah, because large pharma company only takes the acquisition-related amortization out when they calculate cash EPSO. Yeah. Second question on, you know, let's say with the launch of the GLP-1 molecules, you know, and then we are kind of excluding tisopatide when we kind of say that we are outperforming, you know, the anti-diabetes. So, just from the covered market perspective, how would have we moved, let's say, from a three-year perspective, let's say, maybe FY22, what was the proportion of IPM we were under our covered market versus what it would be now? I don't know, has there been a meaningful change there, which is what is leading to this gap between the IPM growth versus our growth? And, you know, what's the strategy to kind of, you know, come back to that covered market proportion that we earlier had.

So Kunal, if you see the molecules that we have been launching over the last three years, if you see Glyzade, if you see the newer molecules on BBP4, SGLG2, we are among the top eight, top nine players. Historically, we were always in the older molecules. In the diabetes field, we have also launched insulin. So there's a lot of new initiative in terms of launches and being the top 7, top 8 players. Historically, these are not very big in anti-diabetes. And if you see, we've been outperforming anti-diabetes as a segment of 1.2 to 1.3 times. Having said that both GLP, etc., since we are very cautious in terms of, you know, very strategic in terms of launching GLP, excluding that, we are still outperforming, but now GLP, since it's generate, we have taken that into base, we are just saying excluding Durser Patite, so FGLP, we would have done better. So, 1.2 to 1.3x, we hope that we will come back to that overall covered market that we were doing.

And covered market, except for Tizep Artaid, you don't think that there is a

meaningful change for us?

Yeah, exactly. Okay. And lastly, for Rajiv, sir, what's driving the cautiousness around launching the GLP-1? We have always been aggressive in terms of new product launches. So, why the conservatism here, we know less especially if you are doing well in some of the newer therapies of oral anti-diabetic like SGLT2 and DPP4, why are we holding that?

When we have the advantage of launching some products, in the first phase, in the sense that the first three-four completes the launching, and we are one of those, we surely go all up. But somehow, when we saw that so many companies are launching, right now, you see, I mean, more than 20 companies, 35,000 brands are there, everything is there. So, our thought was, let this turn by. Let's wait, sideways, and see what basically happens. And along with this, not only launching this as in one molecule, launching as a therapy, I mean, we have, so, so that kind of approach we have taken, it's not a caution approach, it's a strategic approach, actually. Why do you put your distortion in something which tomorrow is very, very competitive? That was the thought, and we are honestly, we are, to some sense, we are quite right in that. So we are now working on, we have launched fans from two divisions, one is tiny, and one is this diabetes division, along with protein, along with other supplements. So that we can have, we can basically focus on the complete therapy instead of only this GLP.

Okay. I still, I mean, you know, don't get it because I still believe hypertension would be more competitive than GLP-1, right? But we are there in hypertensive therapy. So why the cautious approach? Since we have been always been aggressive and we have done well historically.

See, it's very cautious of growth, it's a stansical approach. And maybe let the time pass, let few quarters pass, you'll see that.

And just to give a data point to you, so 5 years back, fiscal 21, our covered market was only 56% and we were ranked 10 in anti-diabetes segment. If I see fiscal 26, our covered market has increased to 74% of the market. And we are ranked 7-0, and with a market share of 4.5%. So, there is a big change in the covered market, and our ranks have also improved by 3 positions.

And then this increase in covered market, shouldn't it have accelerated our growth vis-a-vis market?

Yeah, that's what we said. So, if you have these products and you are among the top 7 topic players, so you would have seen an accelerated growth with these HGNT2 and DPP4s as launches.

This is for anti-diabetes you are talking about, not for the medicine. Yeah, anti-diabetes. Okay, yes.

Our target in anti-diabetes is an increase of 56% to 74%. As you know, we launched Insulate, DPP4 and HGNT.

My question was more from overall market perspective, like overall, mankind's overall domestic formulation business perspective as to have we seen a different swing in terms of the covered market, which could also be one of the driver for us to be kind of missing on the IPM growth.

No, no. So, in terms of covered market, from the ITM perspective, we have added, for example, respiratory inhalation products, which was not there. If you see in the antilagency that I just mentioned, insulin, which was not there. Respiratory inhalers was not there. We have added that. Cardio, a lot of cholesterol lowering, lipid lowering profile products we have lost. So, there is a lot of increase in covered market. It is also with the focus of some of the in-licensing products. For example, recently we had a CNS revert from Roche. There is a lot of initiative in adding chronic as well as specialty products to increase our covered market.

If you are referring to new launches, so new launches have been softer as compared to IPM. If you look at Q1, the new introduction NI contribution is 2.8% as compared to IPM 4.1%. So if you are referring to these lower growth rates, so this is one of the contributor to that.

Okay. And IPM would include all the GLP ones? For the NI, do you think? Because yeah, that's happening last one. Okay. Okay. Okay. Thank you and all the best.

Thank you. Next question is from Neha Madpurya. Neha, kindly announce your company name and proceed with your question.

Yeah, thanks for taking my question. This is Neha from Bank of America. First, just an extension on the new product question. I think we'd mentioned last year that, you know, because of the change in EMR, et cetera, we weren't launching as many new products, which was one of the reasons for the lag. So now that things are normalized, you know, should we expect a higher launch momentum, excluding some of course, but a higher launch momentum and therefore that growth to narrow meaningfully going forward? Or do you think that takes time to play out? Do them totally care of the existence?

Yeah, so if you see today, our launches are very strategic. I think what Rajesh has told, we specifically launch limited products and individual products try to make it big. So if you see in recent launches, our bonaprasan has become number one, which is our bonalong. Even in case of anti-diabetics like empagliflozin, if you see today, it is within the top three brands of new launches. So whenever we are launching new brands, we are making it big. But yes, we are being selective in new launches, and that has been a very strategic move for us.

Understood. And my second question is on the gross margin. You mentioned gross margin tidings of, you know, 71 plus percent, I think, for the full year. You know, given where we are in the quarters, I understand there's some gross pressure from West Asia that we might see. But is there any reason for the conservatism besides the West Asia, you know, impact that we might see, particularly given, you know, the higher chronic mix that we're seeing versus last year?

Or react, yeah, in the old.

Can you please repeat the question? I lost your last few words on that. Are you referring to the conservativeness on the loss margins part?

Yes, yes, sir. Yes, sir. Again, other than the West Asia crisis, any other reason for us to be conservative, given that, you know, our India growth is picking up, even within that, our chronic share is picking up. So, you know, it seems like the revenue mixes in our favor. So, as against the 72.5%, why is the 71% rising?

Yeah, so that's the only caveat we are putting. Because of the West Asia crisis, we are taking a conservative approach.

All right. Okay. So the only reason is West Asia. There's nothing else in that.

So, Neha, the overall EBITDA guidance has not changed. So, we, so that's a reliable guidance of 25.5 to 26.5.

All right, sir. Okay. Thank you so much. Thank you. Next question is from Dino Pathiparampir. Kindly announce your company name and go ahead with your question, please.

Hi, good evening. This is Bino from Elara.

Just one quick follow-up question. Recently, you had acquired this brand, Reward Thrill, from both.

How big is that, and what is the potential there?

So, Rivertree, if you see the IQR numbers, it is in the region of 20 to 30 crores, and we expect that, you know, it will give a lot of, you know, entry to a lot of specialists, because it's a, you know, textbook brand in terms of the molecule. So, we expect that the growth will start, but, you know, first... The entry to growth is important so that we are calling on the process and making progress with the specialist office.

Okay. Do you think it can potentially grow up to be a 100-200 crore brand? Is that the thought process behind your acquisition?

Aspiration is always there, but it will take time. I mean, we think CNS is a category that takes time as it's a very specialist portfolio. But the aspiration is to make a gold portfolio on the CNS side as well. You got it.

Thank you.

I will turn back to you.

Thank you. Next question is from... Give me a moment. Next question is from Ritika. Ritika, kindly announce your company name and go ahead with your question, please.

Myrthika, your line is on. Can you please unmute your line? You're on mute. Hrithika Agarwal, kindly unmute your audio and go ahead with your question, please. There is no response.

Our next, yes, it is from Siddharth Negandhi. Siddharth, please announce your company name and proceed with your question.

Hi, thanks for taking my question, and I'm glad to see green shoots of recovery. You know, there are certain actions that you mentioned last time that you were taking in terms of reorganization, in terms of focus. Could you give us some metrics around attrition and around, you know, share games or sort of, you know, outperforming certain therapies, sub-therapies that you've seen from that reorganization? To help us better understand that, yes, these are green shoots of recovery. That's question one. Second question is, while I understand that the cash and carry business was a dent on general trade, and that channel conflict is obvious, but if one were to stop with cash and carry business and there is a brand pull, one would see higher general trade sales, right? Why is it that you did not see that? Come back to higher general trade sales and, you know, instead had lower growth. Yeah, those were my two questions.

I'll take the first one in terms of what are the green shoes. So, first I'll take the acute results. So, if I just talk about gastro. From a minus 2.5% in Q2, we have seen sequential recovery to 6.9 in Q3, 9.2 in Q4 and now 13.6%. Vitamin FIC 5% moving to 8% in Q3, Q4 was 12.5 and now 19.3. Similarly, we have seen Rhinolide moving from 6.9 to now 12.7% in Q1. Ophthalmology, 6.2% in Q2 was moved to 14.9, 18.5 and now 17.5 in Q1. So across acute therapies, if you see, we have seen improvement. Our growth in acute therapy had gone down to 3.3% in Q2. We are now at par with the industry at 10.9%. So 60% of the portfolio still is acute for us. So now we are at par and that's why you've seen a double digit growth. For us, coming to chronic, cardiac has seen improvement from 14.5% in Q2 to now 19.4% in Q1. Similarly, you have seen anti-diabetes 11.4 moving all the way to 12.7. Respiratory, if you see, very strong growth continues in the chronic respiratory side 20% across the last four quarters. And chronic has moved up from 12.2% in Q2 of last year to now 15.8%. This overall has resulted in a 6.3% overall growth in Q2 to now 12.7% growth in Q1 of fiscal 27. So grain shoots both in acute and chronic we are able to see. And as Shitarji mentioned that every quarter we are trying to heal.

Got it. And any metric on the attrition side, whether that has improved, how are you seeing that play out after the reorg?

So, you know, in the last one and half year, we had seen a lot of shuffling in terms of realignment, improving process. Improving, you know, traction in terms of doctor visits, etc. So, attrition and vacancies are now in control. It has dropped significantly. It has come back to the normal level. And you can see the results of sequential improvement because if attrition is high, then you can't see the improvement.

Got it. And some color on the consumer products business that I spoke about.

So, as you know, business, you are supposed to really understand that this market is very banning. So, general trade, slowly and gradually, is being, this e-commerce and water trade is taking the share of general trade. So, we cannot really even segregate that general trade is separate and this e-commerce is separate. Same as you will buy the same things. So, while we basically do corrective action in cash and carry, on the second side, our, Modern trade and consumer have really grown a lot. Earlier the share was, last year the share was 11%, now the share is 15%. So put it by a growth of 38%. So on one side the growth is bigger, on the second side we control certain things and that's the reason. Over I say the market has been a bit softer in consumer side. That's the reason for that. Again, the positive side of this means that man-posts share in condom category, prior news share, in pregnancy tests, yesophars,

and antacid have improved. Got it. Thank you and all the best.

Thank you. Our next question is from Ritika Agarwal. Ritika, can you announce your company name and proceed with your question? Yeah.

Hi. Thank you for taking my question. This is Ritika from ValueQuest. My question is an extension to earlier participants' question on semaglutide. So earlier, we were commenting that we will be in the first wave of launch, and we've also tied up. And even at that time, the understanding was there will be 20 to 30 players launching the drug. So what changed or maybe thought process or maybe what went wrong that we couldn't launch this drug?

So we never said that we were the first few companies to run this project. We could not launch in the first phase. And that's one reason we took a technical role. And in those, when this planning was happening, we were basically having a different, our focus was basically on correcting the overall company actually. So we thought, once we correct these things, then we launch the production. So at different times, we played different strategies, and that's why we then started launching.

I'd just like to add, because of huge competition, price drop was very significant, and since we are, you know, taking it from a partner, It doesn't make sense to do a price war. Rather, we have gone strategic. We are, you know, promoting through top-level TOS, and as Rajichi highlighted earlier that we are looking from a therapy approach. So if we just play with the price war, this will not be a profitable launch. And just additional information, as you mentioned, we have already launched this product into two segments. One is anti-diabetes, and the second one is Gainag. But, we expect that it will be a, you know, gradual take-off for us since it's a very hyper-competitive and there's a lot of price loss happening at the moment.

Sure. And anything on the export side, are we looking to launch this product?

No, no. We don't have an export strategy for us.

Okay. Sure.

That's it from me. Thank you so much. Thank you. We have a follow-up question from Rashmi Shetty. Rashmi, please proceed with your question.

Yeah, I'm audible, right?

Yes, you are.

Yeah. So, on the export business also, we have a very strong growth this quarter. So, what is driving this growth? And, you know, one, I think one reason you mentioned that the BSV has also grown strong, but XBSV also, it is looking pretty strong. So, you know, whether US is contributing significantly or any one-off opportunities, you know, have you benefited during the quarter?

So, as I mentioned the BSV being by 25% and also US has done well, we had couple of launches and if you see the currency is also held to the extent of 12 to 13%. So, put together it is you know as we it is in line with our guidance of hightings in the cost and currency terms.

So, Hightings, which you are talking about for both the businesses together, right? Mankind plus BSV?

That is correct.

Okay. And earlier, we used to talk related to one Optal product, you know, which used to contribute higher compared to the other products in the US. That was more of a one-off. Had it seen any competition and is it sitting in the base or it is still…

So, last year only it came into base.

It was last year in FI25 that was in base. So, that was in FI25 and that normalized in FI26.

Okay, got it. And one question to Prakash related to BSV. For this quarter and for FI26, out of the total BSV, the proportion of, you know, domestic business, And especially for FY26, I want to understand the proportion of domestic business to export ratio is high or it is lower.

Oh, so the ratio domestic to international is for last year, you were asking?

Yeah, for FY26.

Yeah, it's around 50-50 last year.

50-50. And this year also?

For financial events, we will be precise.

Okay, and this year also it is expected to be in that range.

Similar range, plus minus 2%.

Okay, got it. Thank you.

Thank you so much.

Thank you.

For any questions, participants may please use the raise hand option available on their screen.

To ask a question, please use the raise hand option available on your screen. We have a question from Gaurav Bhama.

Kindly announce your company name and proceed with your question.

Yeah. Hi, sir. Good morning. Gaurav Bhama, this side from JN Financial. Am I audible?

Please go ahead.

Yes, I just wanted to double

check what was the guidance given for consumer healthcare, took you onwards? We have said the high single digit to double digit.

Thank you.

Thank you. Next is Shiresh Savarma. Kindly announce your company name and proceed with your question. Shereesh.

I'm audible, hello.

Yes, please go ahead.

Hi, I'm Shereesh. I'm from Bernstein. I have two questions. Firstly, if I may not have understood properly, can you explain what has been the recent scenario of BH3 and what exactly are we doing to integrate it properly? And secondly, on the IPM guidance of domestic, you guys guided around early teens. So do you expect the IPM to also grow at that rate or will you be growing above IPM?

Let me take your second question first.

So, as per our guidance, in the last call, we said that we expect sequential recovery and expect foliar to be double-digit growth, expect chronic to be better, and also expect recovery in the acute business, which we were able to demonstrate in Q1 also. Coming to BSV, in terms of business planning, if you see. We've always maintained that it would be run as an independent operationally both in the domestic and international. We have tweaked in terms of a little bit on the management side, wherever required. We have, you know, added in terms of a biotech facility. We have enhanced the R&D biotech facility. So those are the small changes which we have done for mankind. But VSE has run independently by professionals. There is a lot of initiative that has been taken both in domestic and international business. We highlighted that there is a lot of demand creation that is happening for large brands since these are specialist brands like Antidy, Polygraph. Gainet coverage has increased from 33,000 in fiscal 25 to now 37,000. There is a lot of IMBF related programs that has been activated. We have more than 80% coverage in the IMBF category, which is seeing a very strong growth of 35% plus. And also there is a lot of clinical work going on in terms of its key products. In terms of clinical trials of expanding market reach for polygraph, which is FSH, NTID, which is reserve studies, and also some of the anti-allergy products, UstoGlobe brush studies. So there's a lot of scientific work going on in terms of expanding the domestic business. In international business, we are seeing, you know, increasing penetration in the existing markets. Plus, we are seeing some of the new approvals in large markets like Russia, FSH. We recently got approval. We also expected FSH approval in a couple of new markets. And there's a lot of initiative going on in terms of newer products in the existing markets. That's why we've given a guidance of high-team throughput.

Got it. That's very helpful. Just one double click on my previous question. About the acute, so chronic I understand, but in the acute segment, can you specify why did we not do that well as we used to, and how are we going to change things in the upcoming years or quarters?

We have mentioned a number of times about this, that our 60% visitors come from the acute side. In acute, relationship and face value really matters. And maybe I mean, 18 months back, we did deep correction, removed approximately, and a good number of people removed, and changed to new people. There is a kind of a belief that recovery should be on a strong formation. Recovery happens gradually. Anything happens all of a sudden very fast, we don't believe that. So you can see quarter by quarter, things are really improving, and you're quite happy with our performance. We don't expect, I mean, mankind always believes that prescription is safe. That's all. Our policies are like this, that last week's sales should not be there, I mean, first week's sales would be very good. So we believe in all those processes. So, and what we basically have said We never said in last couple of quarters that we'll be beating the IPM. We said that we'll have this kind of a growth. Our forecast for this year is that double-digit growth would be here. We'll be having this EBITDA of 25.5% to 26.6%. And aspiration is to come back to where we were a few years back. For a good number of years, it basically has beaten IPM to 1.7x, a good number of years, 1.3 to 1.4 times. So once you have this kind of a traffic on, you want to come back to that side. It takes time. You're not in a hurry. But we feel that as every quarter would pass, things will improve. And things are on track. Look at from the volume-wise, new product-wise, as it will.

Got it. Thank you.

I now hand the conference over to the management for closing comments. Over to you, sir.

Thank you. For any further queries or clarifications, please reach out to us on investor.relations at mankindpharma.com. Have a nice day.

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.