Mankind's profit rises 35%, but sequential margin drops 4.26 points
Year-on-year operating leverage and lower interest costs lifted profit, while a higher tax rate and faster sequential expense growth weighed on the quarter.
Filed 30 Jul 2026, 15:21 IST · Mankind Pharma Ltd (MANKIND)
Key takeaways
- Standalone net profit rose 35.31% year on year as operating profit grew 37.96% and interest expense fell 35.28%.
- Operating margin expanded 4.85 percentage points year on year but fell 4.26 percentage points sequentially as expenses grew 22.4%, ahead of revenue growth of 14.8%.
- The 31.33% operating margin was 4.57 percentage points above the 26.76% median for 18 healthcare peers that had reported.
Price around the results
Year-on-year operating leverage lifts standalone profit
Standalone revenue grew 16.63% year on year to Rs 2,964.05 cr, while expenses rose 8.95%, allowing operating profit to increase 37.96%. Lower interest expense, down 35.28%, further supported profit before tax, which grew 53.26%. Other income contributed only 4.49% of pre-tax profit and fell 47.12%, so the earnings increase was mainly operating-led.
Sequential margin reset follows faster cost growth
Revenue increased 14.8% sequentially, but expenses grew 22.4%, narrowing operating margin by 4.26 percentage points to 31.33%. Interest expense fell 24.21%, but the tax rate rose 16.74 percentage points, which helped drive net profit down 21.74% sequentially. The margin remains above the year-ago level by 4.85 percentage points, but the latest quarter breaks the improvement seen from 22.43% in Q4FY25 to 35.59% in Q4FY26.
Mankind remains above the reported healthcare peer median
Mankind's 31.33% operating margin was 4.57 percentage points above the 26.76% median among 18 healthcare companies that had reported the same quarter. Management said domestic revenue excluding Consumer Healthcare grew 11.0% year on year, while international revenue grew 29%.
Management points to chronic therapies and launches
Management said it is focused on increasing the contribution from chronic therapies and that strategic launches supported performance across its key portfolio. The company said it launched one product in the US during Q1FY27, taking total US launches to 49. Management also said disciplined execution is laying the foundation for long-term sustainable growth.
Recent results have more often led to declines
There is no current market reaction to assess yet. Across the last eight results, the stock rose after two and fell after six, with a median absolute move of 3.39%; the recent pattern therefore has been more negative than positive, but does not establish a response to this quarter.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,964 cr | ₹2,582 cr | +14.80% | +16.63% |
| Other income | ₹34 cr | ₹104 cr | -67.31% | -47.12% |
| Expenses | ₹2,035 cr | ₹1,663 cr | +22.40% | +8.95% |
| Operating profit | ₹929 cr | ₹919 cr | +1.06% | +37.96% |
| Operating margin (%) | 31.33% | 35.59% | — | — |
| Interest | ₹95 cr | ₹125 cr | -24.21% | -35.28% |
| Depreciation | ₹111 cr | ₹109 cr | +1.45% | +14.54% |
| Profit before tax | ₹757 cr | ₹788 cr | -3.99% | +53.26% |
| Tax | ₹198 cr | ₹74 cr | +166.24% | +144.85% |
| Net profit | ₹558 cr | ₹714 cr | -21.74% | +35.31% |
| EPS (₹) | ₹13.53 | ₹17.29 | -21.75% | +35.30% |
Operating margin of 31.33% compares with a Healthcare sector median of 26.76% across 18 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Domestic revenue excluding Consumer Healthcare increased 11.0% year over year in Q1FY27.
- International business revenue grew 29% year over year in Q1FY27.
Guidance & outlook
- The company says disciplined execution is laying the foundation for long-term sustainable growth.
- The company is focused on increasing its chronic contribution.
New products
- Mankind launched one new product in the US in Q1FY27, taking total US launches to 49.
New initiatives
- The company says strategic launches are supporting outperformance across its key portfolio.
Competition
- The company maintained the number-one rank for nine consecutive years with a 15.2% prescription share.
What to watch
- Whether operating margin holds above 31.33% after the sequential decline of 4.26 percentage points.
- Whether expense growth remains below the 22.4% sequential increase recorded this quarter.
- Whether domestic revenue excluding Consumer Healthcare stays around the 11.0% year-on-year growth reported in Q1FY27.