Mankind Pharma Q2 Results: Net Profit Surges 37.7% YoY to ₹716 Crore as Margins Expand

Key numbers

P/E Ratio	44.74Sector 44.59
Market Cap	₹91,390 CrLarge Cap
RSI	34.58Neutral Zone
Promoter Holding	72.62%Unpledged

Key highlights

• Consolidated revenue from operations grew 17.3% year-on-year to reach ₹4,338 crore
• Net profit for the quarter stood at ₹716 crore, marking a 37.7% increase over the previous year
• Operating margins expanded by 450 basis points to 21.0% compared to 16.5% in Q2 FY26
• Board approved the amalgamation of wholly owned subsidiaries Prolijune Lifesciences and Pavi Buildwell into Mankind Pharma
• Finance costs significantly reduced to ₹104.94 crore from ₹169.68 crore in the year-ago period

Operational Leverage Drives Profit Growth

Mankind Pharma's financial performance in the second quarter was characterized by strong top-line momentum and efficient cost management. Revenue from operations reached ₹4,338 crore, outperforming the sector's average revenue growth of 15.77%. This was translated into a substantial 37.7% rise in net profit, which hit ₹716 crore.

The company benefited from significant operational leverage, as evidenced by the expansion of its operating margin to 21.0%. Sequentially, profit after tax grew by 24.7% compared to the June 2026 quarter, reflecting consistent growth in the branded pharmaceutical segments and consumer health portfolio.

Strategic Consolidation of Subsidiaries

The Board of Directors has approved a major internal restructuring by greenlighting the amalgamation of two wholly owned subsidiaries, Prolijune Lifesciences and Pavi Buildwell, into Mankind Pharma Limited. This consolidation is intended to simplify the corporate structure, rationalise administrative costs, and create a more streamlined entity for future growth. Furthermore, the company noted the merger of Upakarma Ayurveda into Mankind Consumer Products.

These moves follow the recent strategic acquisition of Bharat Serums and Vaccines (BSV), which has been integrated as a common control business combination, impacting the restated comparatives for previous periods.

Expense and Segment Analysis

• Employee benefit expenses increased 15% year-on-year to ₹948.94 crore
• Raw material and component costs consumed reached ₹674.81 crore for the quarter
• Other income rose to ₹94.85 crore, providing a further boost to the bottom line
• The company reported a basic EPS of ₹17.23, up from ₹12.39 in the year-ago period
• Exceptional items for the previous year included ₹106.24 crore related to labor codes and BSV stamp duty

Market Valuation and Technical Position

Mankind Pharma currently trades at a P/E ratio of 44.74, largely in line with the industry average of 44.61. Despite the strong quarterly earnings, the stock has experienced an 11.5% decline over the past month, pushing its RSI to 34.58, which suggests the stock is nearing oversold territory. The company maintains a high promoter holding of 72.62% and a Piotroski score of 5, indicating moderate financial strength.

While the stock is 9% lower than its price a year ago, the current price of 2212.6 remains well above its three-year low of 1683.05.

What to watch next

• Earnings conference call and institutional investor meet scheduled for October 27, 2026
• Final statutory approvals from the National Company Law Tribunal for the approved mergers
• Management full-year FY27 guidance targets an EBITDA margin of 25.5% to 26.5%
• Expected repayment of acquisition-related debt by the fiscal year 2028

“The proposed Scheme of Amalgamation aims to simplify and rationalise the existing group structure by amalgamating the Transferor Companies with and into the Transferee Company, thereby reducing the number of legal entities within the Group and creating a more streamlined and efficient corporate structure.”

Mankind Pharma · financial snapshot

Share price	₹2212.6
Market capitalisation	₹91,390.36 Cr
Revenue (annual)	₹14,277.64 Cr
Net profit (annual)	₹1,912.93 Cr
Revenue (latest quarter)	₹4,030.59 Cr+17.07% vs previous quarter
Net profit (latest quarter)	₹568.06 Cr+2.47% vs previous quarter
P/E (TTM)	44.74×Sector 44.59×
Promoter holding	72.62%-0.01% QoQ
FII holding	9.37%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.