Synopsis: The share of this company is in focus as the rising chronic mix to 40 percent and BSV-led specialty growth strengthen its 27.1 percent EBITDA margin profile and support long-term profitability.
The article outlines how shifting focus strengthens the position of this company, which is renowned for producing affordable prescription medications alongside highly popular over-the-counter (OTC) and consumer healthcare products.
With a market capitalization of Rs 98,087 crore, Mankind Pharma Ltd’s share is currently trading at Rs 2,375 per share, down by 0.24 percent from its previous close. The share of this company gave a return of 70 percent since its listing in 2023.
Jefferies on Mankind Pharma
Jefferies Financial Group maintains a “Buy” rating on Mankind Pharma Limited with a target price of Rs 3,000, implying 26.3 percent upside. The brokerage remains positive on improving domestic growth, strong BSV prospects, and long-term support from rising R&D investments.
Mankind Pharma Limited is expected to deliver double-digit growth in its India business, supported by a recovery in acute therapies and improving demand trends across key treatment areas. Jefferies notes that stronger execution and better volume growth are supporting overall performance visibility.
The chronic therapy portfolio continues to remain a stable growth driver, providing consistency in earnings even as acute segments recover. Wider market coverage and expanding distribution for BSV products are also expected to further strengthen domestic growth momentum over the medium term.
On the international front, BSV’s export business is projected to grow in the high-teen range, driven by deeper penetration in existing markets and expansion into new geographies. Continued investment in R&D is also expected to support future product launches and long-term growth opportunities.
Business Performance that supports growth outlook
Strong Domestic Growth Recovery: Mankind reported Q4 FY26 revenue growth of 11.8 percent YoY to Rs 3,443 crore, driven by a 13.4 percent YoY increase in domestic revenue to Rs 2,886 crore. Organic domestic growth excluding OTC stood at 10.1 percent, marking the highest level since the BSV acquisition.
Chronic and Specialty Portfolio Strengthening: The company continued to expand its chronic and specialty presence, with chronic therapies contributing around 40 percent of sales, up 120 bps YoY. Cardiac and anti-diabetes therapies grew 14.7 percent and 11.6 percent, respectively, while the acquisition of Rivotril and strong performance of BSV brands such as Anti-D, Foligraf, and HMG supported growth.
Leadership Driven by Strong Brands: Mankind maintained its position as the No. 1 prescribed pharmaceutical company for the ninth consecutive year, supported by 15.1 percent prescription share and 84.1 percent prescriber penetration. The number of brands with revenue above Rs 200 crore increased to 13 from 11, while brands above Rs 50 crore rose to 54 from 49 during FY26.
Higher Investments and BSV Integration Strategy: Mankind continued to invest in long-term growth drivers, with R&D spending at Rs 103 crore (3 percent of Q4 sales) and FY26 capex at Rs 737 crore (5.2 percent of revenue). The BSV acquisition continues to be a key strategic lever for specialty expansion, contributing to domestic growth acceleration, while management expects FY27 to be stronger than FY26 supported by chronic, specialty, and R&D-led initiatives.
Overall, Mankind Pharma’s shift toward a higher chronic therapy mix and expanding BSV-led specialty portfolio is supporting margin stability and long-term growth visibility. Strong domestic recovery, rising exports, and sustained investments in R&D further strengthen earnings momentum and improve the company’s profitability outlook.
About the Company
Mankind Pharma is a leading Indian multinational pharmaceutical and healthcare company headquartered in New Delhi. Founded in 1991, it is India’s 4th largest pharmaceutical company by value and 2nd by volume, manufacturing and marketing a wide array of generic medications, Over-The-Counter (OTC) products, and FMCG brands
Financial Highlights: The revenue from operations grew by 12 percent to Rs 3,443 crore in Q4 FY26 from Rs 3,079 crore in Q4 FY25, and EBIDT grew by 36 percent to Rs 930 crore in Q4 FY26 from Rs 683 crore in Q4 FY25. This was accompanied by a net profit growth of 34 percent to Rs 559 crore in Q4 FY26 from Rs 425 crore in Q4 FY25, resulting in an EPS growth of 32 percent to Rs 13.43 per share in Q4 FY26 from Rs 10.20 per share in Q4 FY25.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
