Mankind Pharma Ltd reported Q2 FY27 numbers with revenue of Rs. 4,337.86 Cr (+17.33% YoY) and PAT growth of +37.67% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 26, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 4,337.86 Cr (+17.33% YoY) |
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| PAT (Q2) | Rs. 716.12 Cr (+37.67% YoY) |
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| EBITDA margin | 27.09% (+210 bps YoY) |
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| EPS (Q2) | Rs. 17.23 (+39.06% YoY) |
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| Market cap | Rs. 92,929.03 Cr |
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| CMP | Rs. 2,249.85 |
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Quarter Snapshot
Q2 FY27 delivered revenue growth of 17.33% YoY (vs +14.7% market), EBITDA margin of 27.09% above the guided 25.5%-26.5% band, and PAT-to-owners up 39.09%, with gross margin holding at 72.24% despite flagged input-cost pressure. Deleveraging to 0.68x net debt/EBITDA and 1.41x CFO/PAT conversion confirm execution quality. Watch items are the rising ETR (22.92%, guided to 25%-26%) and a mild HoH working-capital build.
Key Investment Insights
Key Positives
- Consolidated revenue grew 17.33% YoY to Rs.4,337.86 Cr, ahead of the Indian pharma market's +14.7% Q2 print
- PAT to equity holders grew 39.09% YoY to Rs.711.48 Cr; basic EPS +39.06% YoY to Rs.17.23
- EBITDA margin expanded ~210 bps YoY to 27.09%, above the guided 25.5%-26.5% FY27 band; H1 margin 26.71%
- Gross margin held at 72.24% (+97 bps YoY) despite management's pre-result warning of Q2 compression from commodity/dollar input costs
- Net debt/EBITDA improved to 0.68x from ~0.9x at June 2026, tracking toward the 0.5x FY27 target; total borrowings down to Rs.5,280.10 Cr from Rs.6,204.34 Cr
- H1 CFO of Rs.1,818.50 Cr at 1.41x PAT; H1 FCF Rs.1,406.47 Cr
- Subsidiary contribution to owners' PAT rose to 18.21% from ~10% a year ago (Rs.129.53 Cr vs Rs.51.71 Cr, +150.49%)
- Standalone revenue grew 19.27% YoY with operating margin of 30% vs 27% year-ago
Risk Factors
- Effective tax rate rose to 22.92% from 16.64% YoY on Sikkim exemption expiry; FY27 ETR guided at 25%-26%
- Working capital stretched: inventories built Rs.200.63 Cr HoH and trade receivables rose 26.0% HoH, faster than revenue; debtor days up to 44.41 from 38.16
- H1 capex at 4.92% of revenue trails the 6%-7% FY27 target, requiring Rs.530-687 Cr in H2
- Tax litigation remains: search-related assessment additions of Rs.1,908.66 Cr consolidated under appeal, though CIT(Appeals) deleted Rs.369.44 Cr for FY2013-14 to FY2016-17