Mankind Pharma lifts margin to 27.01% as profit rises 31.74%
Costs grew slower than revenue year on year, while lower interest and tax rates supported profit despite weaker sequential revenue.
Filed 19 May 2026, 19:13 IST · after market close · Mankind Pharma Ltd (MANKIND)
Key takeaways
- Consolidated operating margin rose 4.82 percentage points year on year to 27.01% as expenses grew 4.88% against revenue growth of 11.81%.
- Net profit increased 31.74% year on year to Rs 559.42 cr, helped by a lower tax rate and a 25.61% decline in interest costs.
- Other income contributed 14.28% of pre-tax profit, making reported earnings partly dependent on non-operating income.
Price around the results
Margin expansion offsets a sequential revenue dip
Consolidated revenue fell 3.48% sequentially, but expenses declined faster at 5.09%, lifting operating margin by 1.24 percentage points. Year on year, revenue grew 11.81% while expenses rose 4.88%, producing a 4.82-percentage-point margin expansion. The company’s 27.01% operating margin was 3.63 percentage points above the 23.38% median among 48 Healthcare peers that had reported.
Lower interest and tax rates support profit quality
Interest costs fell 25.61% year on year and 9.83% sequentially, while the tax rate declined 1.64 percentage points year on year and 3.56 percentage points sequentially. Other income fell 62.89% year on year, but still accounted for 14.28% of pre-tax profit. That means the 31.74% year-on-year increase in net profit was supported by financing and tax benefits, alongside the operating improvement.
Operating margin reaches a fourth straight quarterly high
Operating margin has risen from 22.19% in Q4FY25 to 23.72%, 24.92%, 25.77% and now 27.01% across the reported quarters. Sequential profit before tax rose 29.50% and net profit rose 35.16%, despite the decline in revenue, as interest costs fell and the tax rate was lower. This makes the margin trend more notable than the quarter’s sequential revenue movement.
Management outlines a broader chronic and specialty portfolio
The presentation said management plans to raise chronic exposure through diabetes, respiratory, CNS and urology products, while increasing penetration in metros and Tier I cities through KOL engagement, hospital tie-ups and specialty launches. It also said the Panacea acquisition gives the company an entry into oncology and transplant businesses. The company said more than 240 DMF-grade product SKUs had been launched and flagged greater use of its BSV and Mankind R&D platforms for complex products; it also reported muted anti-infectives growth, partly offset by sequential recovery in Gastro, VMN and Derma.
Initial stock rise is unusual in direction, not size
The stock rose 3.66% in the first session after the results, close to its 3.39% median absolute move after the previous eight results. The direction was unusual: the stock had risen after only one of those eight results and fallen after seven. The gain had reversed to a 2.90% decline by day five, with a 4.12% relative decline, while first-day volume was 7.5 times normal.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,443 cr | ₹3,567 cr | -3.48% | +11.81% |
| Other income | ₹94 cr | ₹-31 cr | — | -62.89% |
| Expenses | ₹2,513 cr | ₹2,648 cr | -5.09% | +4.88% |
| Operating profit | ₹930 cr | ₹919 cr | +1.14% | +36.11% |
| Operating margin (%) | 27.01% | 25.77% | — | — |
| Interest | ₹142 cr | ₹157 cr | -9.83% | -25.61% |
| Depreciation | ₹223 cr | ₹223 cr | +0.22% | -3.37% |
| Profit before tax | ₹659 cr | ₹509 cr | +29.50% | +27.89% |
| Tax | ₹100 cr | ₹95 cr | +4.87% | +15.40% |
| Net profit | ₹559 cr | ₹414 cr | +35.16% | +31.74% |
| EPS (₹) | ₹13.44 | ₹9.90 | +35.76% | +31.89% |
Operating margin of 27.01% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.66% | +3.49% |
| Next session | +0.86% | — |
| 5 sessions | -2.90% | -4.12% |
| 15 sessions | -4.81% | — |
| 30 sessions | +1.44% | — |
Volume on the results session was 7.50× 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.
Guidance & outlook
- The company plans to increase chronic share through greater presence in diabetes, respiratory and new therapies such as CNS and urology.
- The company plans to increase penetration in metros and Tier I cities through KOL engagement, hospital tie-ups and specialty launches.
- The company plans to expand high-entry-barrier complex products through greater focus on the BSV and Mankind R&D platforms.
Expansion
- The company is entering the oncology and transplant businesses through the acquisition of Panacea.
- The company launched more than 240 DMF-grade product SKUs and plans alternative growth channels including modern trade.
New products
- The company launched more than 240 DMF-grade product SKUs.
Problems & risks
- Anti-infectives growth was muted, although Gastro, VMN and Derma showed sequential recovery.
What to watch
- Whether operating margin holds above 27.01% after its four-quarter upward run.
- Whether quarterly revenue recovers from Rs 3,442.93 cr after the 3.48% sequential decline.
- Whether other income remains a material contributor after accounting for 14.28% of pre-tax profit.