Mankind's margin improves year on year but slips for a second quarter
Standalone revenue growth outpaced expenses year on year, but sequential cost growth was faster; management said OTC growth was muted in Q2.
Filed 26 Oct 2026, 15:07 IST · Mankind Pharma Ltd (MANKIND)
Key takeaways
- Standalone revenue grew 20.56% year on year, while operating margin expanded 3.08 percentage points to 29.65%.
- Sequentially, expenses grew 8.7% against 6.11% revenue growth, narrowing operating margin by 1.68 percentage points.
- Net profit rose 26.81% year on year despite a 13.2 percentage-point increase in the tax rate to 25.73%.
Price around the results
Domestic specialty businesses drove the revenue increase
Standalone revenue rose 20.56% year on year and 6.11% sequentially. Management said domestic revenue excluding consumer healthcare increased 15.9% year on year, led by double-digit growth in the Mankind and BSV specialty businesses. The company also said secondary sales grew 15.7% in Q2FY27 against 14.2% for IPM, while OTC growth was muted.
Sequential margin pressure followed faster cost growth
Expenses grew 8.7% sequentially, faster than the 6.11% increase in revenue, reducing operating margin by 1.68 percentage points to 29.65%. Year on year, the opposite pattern held: revenue grew 20.56% against 15.5% expense growth, lifting margin by 3.08 percentage points. This was the second consecutive quarterly decline in operating margin, from 35.59% in Q4FY26 to 31.33% in Q1FY27 and 29.65% in Q2FY27.
Higher tax rate limited the conversion of pre-tax profit
Pre-tax profit grew 49.36% year on year, helped by a 40.39% decline in interest expense, but net profit grew 26.81% as the tax rate rose 13.2 percentage points to 25.73%. Other income contributed 7.51% of pre-tax profit, so it was a noticeable but not dominant part of earnings. Sequentially, lower interest expense of 7.59% and a 0.45 percentage-point tax-rate reduction supported the 4.2% increase in net profit.
Margin remains above the reported healthcare peer median
Mankind's 29.65% operating margin was 6.93 percentage points above the 22.72% median for the eight healthcare peers that had reported the quarter. Management said the company has retained the number-one rank for nine years, with 15.2% prescription share and 84.4% prescriber penetration. It also said the company is undertaking a Double Materiality Assessment.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,145 cr | ₹2,964 cr | +6.11% | +20.56% |
| Other income | ₹59 cr | ₹34 cr | +73.23% | -24.26% |
| Expenses | ₹2,213 cr | ₹2,035 cr | +8.70% | +15.50% |
| Operating profit | ₹933 cr | ₹929 cr | +0.44% | +34.55% |
| Operating margin (%) | 29.65% | 31.33% | — | — |
| Interest | ₹88 cr | ₹95 cr | -7.59% | -40.39% |
| Depreciation | ₹120 cr | ₹111 cr | +8.26% | +21.37% |
| Profit before tax | ₹784 cr | ₹757 cr | +3.57% | +49.36% |
| Tax | ₹202 cr | ₹198 cr | +1.80% | +206.77% |
| Net profit | ₹582 cr | ₹558 cr | +4.20% | +26.81% |
| EPS (₹) | ₹14.09 | ₹13.53 | +4.14% | +26.71% |
Operating margin of 29.65% compares with a Healthcare sector median of 22.72% across 8 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.49% | +3.81% |
Volume on the results session was 1.65× its 20-day average.
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 15.9% year on year, driven by double-digit growth in Mankind and BSV specialty businesses.
- Secondary sales grew 15.7% in Q2 FY27 versus 14.2% for IPM, indicating 1.1x outperformance.
New initiatives
- The company is undertaking a Double Materiality Assessment.
Competition
- The company says it has maintained the number-one rank for nine years, with 15.2% prescription share and 84.4% prescriber penetration.
Problems & risks
- OTC witnessed muted growth in Q2.
What to watch
- Whether operating margin stabilises after the 1.68 percentage-point sequential decline from 31.33%.
- Whether expenses grow slower than revenue after rising 8.7% sequentially against 6.11% revenue growth.
- Whether domestic revenue excluding consumer healthcare maintains the 15.9% year-on-year growth reported for Q2FY27.