At a Glance
Mankind Pharma dropped its Q1 FY26 earnings with the precision of a surgeon and the drama of a Netflix finale. Revenue surged to ₹3,570 crore (+24.5% YoY) while PAT stood at ₹445 crore (down 17.6% YoY). EPS came in at ₹10.6, translating into an eye-watering P/E of 56×. The company announced an interim dividend of ₹1/share and unveiled the ₹1,000 crore acquisition of BSV’s women’s health portfolio—because why settle for being India’s No.1 in prescriptions when you can also dominate fertility clinics?
Introduction
Mankind Pharma is the youngest pharma giant in India’s IPM top 5. From contraceptives (hello, Manforce) to chronic therapies, this company has built an empire selling everything from pills to pleasure. Unlike stodgy peers, Mankind is aggressive in branding and acquisitions. However, at ₹2,567/share, the stock is trading like it just cured cancer.
The Q1 results show strong revenue growth but a profit dip thanks to high interest and depreciation from its expanding capex spree. Investors are split: Is this a growth juggernaut or an overvalued prescription?
Business Model (WTF Do They Even Do?)
Mankind develops, manufactures, and markets pharma formulations across acute (anti-infectives) and chronic (cardio, diabetes) therapies. It also has a Consumer Healthcare arm (OTC products like Prega News, Manforce, Gas-O-Fast).
Revenue mix:
- Prescription Pharma: ~85%
- OTC Brands: ~10%
- Exports: Minimal but growing
The model thrives on strong doctor connect and brand-driven consumer products. Downside? Heavy reliance on Indian markets (85% domestic) and aggressive marketing spends.
Financials Overview
Q1 FY26 Highlights (₹ Cr):
- Revenue: 3,570 (+24.5% YoY)
- EBITDA: 847
- PAT: 445 (-17.6% YoY)
- EPS: ₹10.6
Annualized EPS = ₹10.6 × 4 = ₹42.4
Fresh P/E = ₹2,567 / ₹42.4 ≈ 60.5 (richly valued).
Margins remained stable at 24%, but higher interest (₹171 Cr) from debt ballooning to ₹8,511 Cr is eating into profits.
Valuation
Fair Value via three lenses:
- P/E Method: Apply a sector multiple 35 × EPS ₹42.4 = ₹1,484
- EV/EBITDA: FY26E EBITDA ₹3,400 Cr × 18 = ₹61,200 Cr → FV ₹1,900/share
- DCF: Growth 15%, discount 10% → FV ≈ ₹2,100
Fair Value Range: ₹1,900–₹2,100
Current ₹2,567 means the market is pricing in future miracles.
What’s Cooking – News, Triggers, Drama
- BSV Women’s Health Portfolio Acquisition (₹1,000 Cr): Expands into high-margin fertility products.
- ₹1 Interim Dividend: A small sweetener.
- Debt Spike: Borrowings at ₹8,511 Cr—watch leverage.
- Global Expansion: Eyeing US generics, a risky but lucrative play.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 27,652 |
| Liabilities | 4,808 |
| Net Worth | 14,332 |
| Borrowings | 8,511 |
Auditor Quip: “From zero debt to ₹8,500 Cr in three years—Mankind is clearly living its ‘Go Big or Go Home’ strategy.”
Cash Flow – Sab Number Game Hai
| (₹ Cr) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Ops | 1,813 | 2,152 | 2,413 |
| Investing | -1,052 | -2,081 | -12,624 |
| Financing | -740 | 5 | 10,233 |
Commentary: Heavy capex and acquisitions funded via debt. Operating cash strong but overshadowed by investment outflows.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 14.7% |
| ROCE | 16.0% |
| P/E | 60.5 (fresh) |
| PAT Margin | 12.5% |
| D/E | 0.6 |
Verdict: “Sexy growth story, but stress creeping in from debt.”
P&L Breakdown – Show Me the Money
| (₹ Cr) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Revenue | 8,749 | 10,260 | 12,207 |
| EBITDA | 1,902 | 2,517 | 3,026 |
| PAT | 1,310 | 1,942 | 2,011 |
Commentary: Strong topline CAGR 16%, profits slowing due to interest and depreciation.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Sun Pharma | 53,777 | 11,463 | 35 |
| Dr Reddy’s Labs | 33,520 | 5,657 | 19 |
| Torrent Pharma | 11,835 | 2,019 | 63 |
| Mankind Pharma | 12,925 | 1,913 | 60.5 |
Roast: “Peers with global scale trade at half the P/E. Mankind trades like it’s Apple.”
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 72.7% (stable)
- FII Holding: 13.1% (growing)
- DII Holding: 11.5%
- Public Holding: 2.7%
Promoters in control, FIIs increasing stake—bullish sign.
EduInvesting Verdict™
Mankind Pharma is a rare mix: aggressive, fast-growing, brand-heavy, and now acquisition-hungry. However, the stock’s P/E implies perfection. With rising debt, shrinking profit growth, and fierce competition, the risk-reward isn’t as mouth-watering as its consumer ads.
SWOT:
- Strength: Strong brands, leadership in IPM, high domestic growth.
- Weakness: High valuation, rising debt.
- Opportunity: Women’s health expansion, global entry.
- Threat: Regulatory risks, competition from big pharma.
Final Thought:
At ₹2,567, Mankind is priced for excellence. Investors betting here are counting on continued double-digit growth and smooth integration of acquisitions. If it delivers, this stock can scale new highs; if not, prepare for a prescription of reality.
Written by EduInvesting Team | 31 July 2025
SEO Tags: Mankind Pharma, Pharmaceuticals, Q1 FY26, Women’s Health Acquisition
