Shares of Mankind Pharma Ltd are drawing attention as the company’s increasing focus on chronic therapies and the contribution from BSV’s specialty portfolio continue to support profitability.
With a market capitalisation of ₹98,087 crore, the stock was trading at ₹2,375, down 0.24% from the previous close. Since its listing in 2023, the shares have delivered a return of about 70%.
Jefferies retains ‘Buy’
Jefferies Financial Group has maintained a ‘Buy’ rating on Mankind Pharma with a target price of ₹3,000. The target implies a potential upside of 26.3%.
The brokerage expects the company’s India business to post double-digit growth, aided by a recovery in acute therapies and improving demand across key treatment areas.
It also sees continued support from:
- Growth in chronic therapies.
- Expansion of the BSV portfolio.
- Rising investments in research and development.
- Improving execution and volume growth.
Jefferies expects BSV’s export business to grow in the high-teen range as the company deepens its presence in existing markets and enters new geographies.
Chronic therapies account for 40% of sales
Mankind continued to increase the share of chronic therapies in its business.
The segment contributed around 40% of sales in Q4 FY26, up 120 basis points year-on-year.
Among key therapies:
- Cardiac therapies grew 14.7%.
- Anti-diabetes therapies rose 11.6%.
The company also benefited from the acquisition of Rivotril and strong demand for BSV brands such as:
- Anti-D
- Foligraf
- HMG
Domestic business records strong growth
Revenue from the India business rose 13.4% year-on-year to ₹2,886 crore in Q4 FY26.
Organic domestic growth, excluding OTC products, stood at 10.1%, which the company said was the highest level since the BSV acquisition.
Overall revenue increased 11.8% to ₹3,443 crore during the quarter.
Brand strength remains intact
Mankind retained its position as the No. 1 prescribed pharmaceutical company for the ninth consecutive year.
Other metrics highlighted by the company include:
- 15.1% prescription share.
- 84.1% prescriber penetration.
- Brands with annual revenue above ₹200 crore increased to 13 from 11.
- Brands with revenue above ₹50 crore rose to 54 from 49 in FY26.
Investments continue
The company continued to spend on long-term growth initiatives.
Key numbers include:
- R&D spending: ₹103 crore in Q4 FY26.
- R&D as a percentage of quarterly sales: 3%.
- FY26 capital expenditure: ₹737 crore.
- Capex as a share of revenue: 5.2%.
Management expects FY27 to be stronger than FY26, supported by growth in chronic therapies, specialty products and investments in research.
Q4 earnings
Mankind Pharma reported:
- Revenue: ₹3,443 crore, up 12% from ₹3,079 crore.
- EBITDA: ₹930 crore, up 36% from ₹683 crore.
- EBITDA margin: 27.1%.
- Net profit: ₹559 crore, up 34% from ₹425 crore.
- EPS: ₹13.43, compared with ₹10.20 a year earlier.
About the company
Founded in 1991, Mankind Pharma is headquartered in New Delhi.
It is India’s fourth-largest pharmaceutical company by value and the second-largest by volume. The company manufactures and markets generic medicines, OTC products and FMCG brands.
TL;DR:
Jefferies has retained a ‘Buy’ rating on Mankind Pharma with a target price of ₹3,000. A higher contribution from chronic therapies and growth in BSV’s specialty portfolio helped lift the company’s Q4 FY26 EBITDA margin to 27.1%.
AI summary:
- Jefferies maintained a ‘Buy’ rating on Mankind Pharma.
- Chronic therapies contributed 40% of sales in Q4 FY26.
- Revenue rose 12% to ₹3,443 crore.
- EBITDA increased 36% to ₹930 crore, with margin at 27.1%.
- BSV’s specialty business and exports are expected to support future growth.
