MANKIND - Mankind Pharma Limited Share Price

Management provided a positive outlook for Mankind Pharma, highlighting a robust revenue growth trajectory. For Q3 FY26, overall revenue increased by 11.5% year-on-year, reaching INR 3,567 crores. In the first nine months of FY26, revenue grew 18.7% year-on-year to INR 10,835 crores with an adjusted EBITDA margin of 24.9%.

Key forward-looking points include:

1. Domestic business growth: The domestic sector recorded an 11.1% growth year-on-year, driven by a strong performance in chronic therapies, which grew 16.7% in cardio and 14.4% in antidiabetes.

2. Brand performance improvement: The number of INR 200 crore brand families increased from 11 to 13, and INR 50 crore brands rose from 49 to 51 within a year.

3. Digital transformation: Initiatives in digital transformation are expected to enhance organizational agility and efficiency, fostering sustainable growth.

4. Focus on chronic therapies: Mankind's chronic contribution improved to 36.7% of revenue, up 200 basis points year-on-year, with ambition to strengthen this further.

5. Market strategy: Despite challenges in acute segments, management expects gradual recovery through strategical market initiatives and stabilizing their workforce.

6. E-commerce and OTC growth: E-commerce channels reported over 40% growth, increasing their share of OTC sales, which management views as a significant opportunity.

In summary, Mankind Pharma's management expresses confidence in navigating challenges and achieving consistent long-term growth driven by strong operational and strategic initiatives.

Q1: "Sir, on the prescription side, where the industry growth itself is a bit slow at about 4% and as a part of acute therapy that forms a considerable portion for the Mankind portfolio. So how we sort of intend to grow in this therapy?"
A: I acknowledge the challenge in the anti-infectives segment. Our focus remains on building relationships and enhancing our teams' understanding and presence. While the anti-infectives have been muted, we expect gradual improvements as our teams stabilize and relationships mature in the coming quarters.

Q2: "On the therapy level, respiratory also, like compared to the industry, the growth has been bit soft at 7.6%. If you could call out any factors on this therapy?"
A: Our respiratory growth has faced challenges, particularly in cough therapy. However, we've seen strong performance in our inhaler portfolio. We're re-evaluating strategies within the cough segment, which should yield better results next quarter.

Q3: "The CFO to EBITDA ratio has become very strong. If you could highlight factors driving this and how sustainable this is going forward?"
A: The significant improvement in our CFO to EBITDA ratio, now at 93%, is due to optimized working capital and the effective realization of government receivables. While it's a strong quarter, we expect this ratio to normalize as we move forward.

Q4: "Can you split the export revenues between BSV and organic growth for us?"
A: In Q3, Mankind's exports' growth is attributed mainly to BSV consolidation. Organic growth has been mid-single digits while BSV is contributing significantly, surpassing previous performance metrics.

Q5: "What percentage of our field force, including managers, would be new to Mankind in recent months?"
A: Approximately 20%-25% of our field force is new, having joined within the last 12-15 months. This transition took time as our unique culture needed effective communication and integration for success, especially in our relationship-driven segments.