Mankind Pharma Limited (NSE: MANKIND) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Unidentified Speaker
Abhishek Agarwal — Head Investor Relations
Rajeev Juneja — Vice Chairman and Managing Director
Sheetal Arora — Chief Executive Officer and Whole-time Director
Sudipta Roy — Senior President, Sales and Marketing
Arjun Juneja — Chief Operating Officer
Ashutosh Dhawan — Group Chief Financial Officer
Prakash Agarwal — President Strategy
Analysts:
Unidentified Participant
Chintan Sheth — Analyst
Rashmi Shetty — Analyst
Kunal Dhamesha — Analyst
Madhav Marda — Analyst
Neha Manpuria — Analyst
Nihar Mehta — Analyst
Bino — Analyst
Gaurav — Analyst
Tushar Manudhane — Analyst
Navani Naredi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Mankind Pharma Q1FY26 results earnings conference call. As a reminder, all participants line will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand over the conference over to Mr. Abhishek Agarwal from Mankind Pharma. Thank you. And over to you sir.
Abhishek Agarwal — Head Investor Relations
Thank you Pari. Good afternoon and a very warm welcome to our Q1FY26 earnings call. On the call today we have Mr. Rajiv Juneja, our Vice Chairman and Managing Director. Mr. Sheetal Arora, Chief Executive Officer and Whole Time Director. Mr. Arjun Jonesha, Chief Operating Officer. Mr. Sudipto Roy, Senior President Sales and Marketing. Mr. Ashutosh Dhawan, Chief Financial Officer. Mr. Prakash Agarwal, President Strategy. We will commence Today’s call with Mr. Rajiv Juneja who will provide a summary of our performance over the last quarter. Followed by. Will share detailed insight on our business performance. Mr. Ashutosh Dhawan will then give an overview of the financial highlight post which we’ll address any queries you may have. Please note that today’s discussion includes certain forward looking statements reflecting management’s expectations for future performance of the company. These estimates involve several risks and uncertainties and actual results may vary. Mankind does not undertake any obligation to publicly update any forward looking statement whether as a result of new information, future event or otherwise. For a detailed disclaimer please refer to our investor presentation uploaded on our website. Now I hand it over to Rajiv sir for his comments.
Rajeev Juneja — Vice Chairman and Managing Director
Thank you Bishik. A very good afternoon and welcome to our Quarter 126 earning call. We are pleased to report a healthy startup 26 with encouraging trends as overall revenue of 4126 increased to rupees 3570 crores registering a growth of 25% year on year with a EBITDA margin of 23.2. Domestic revenue grew by 19% year on year majorly driven by recovery in volume, consistent chronic outperformance and BSV consolidation. Mankind continued to consolidate its rank 4 by value with a market share of 4.9% up by 10 bits quarter on quarter and second by volume the market share of 6.2%.
Also we are seeing encouraging trends with 1.8 times volume growth to IPM led by outperformance in anti infective and respiratory segments. Our chronic share excluding BSV increased by 190bps year on year to 38.8% in quarter 126 as compared to 36.9 in quarter 125 driven by an outperformance of 1.4x to IPM. Chronic Growth OTC during the quarter revenue from OTC business increased by 15% year on year to rupees 237 crore. The continued secondary sales growth of our key consumer brands including Gasofast. The growth is 36% year on year. Man first condoms 18% growth year on year health OK 15% growth year on year dragon use 12% growth reflects strong brand positioning and increasing market penetration.
Further the modern trade and E commerce channel registered a growth of about 50% year on year resulting its share to increase to 11% from 9% in quarter 1 25. On the R and D front we are increasing our focus to strengthen our rnd pipeline alongside GPR119 for anti obesity and anti diabetes. Our pipeline includes candidates targeting autoimmune disease in novel anti microbial resistance molecule and a recombinant biosimilar in the IVF segment. Further details are available in RD section of our FY25 annual report released this month. BSG published a refresh study during the quarter which is a phase 3 non inferiority study comparing the efficacy, immunogenicity and safety of BSV Polygraph versus Inventors in International Journal of Infertility and Fetal Medicine making it an alternate treatment option in art.
Further, BSP was the first Indian biopharmaceutical company to participate in European Society of Human Reproduction and Embryology which is a global IVF platform to present BSC comprehensive IVF portfolio and clinical research strength. As we celebrate 30 years of our operations, we would like our shareholders to be part of this milestone. Therefore the Company’s board has approved and intrigued Dividend of Rupees one per share. We remain committed to strengthening our growth trajectory driven by our four pillars of growth supported through deeper doctor engagement, scaling key brands and execution excellence. Now I invite Sheetal to further share insights into our business performance.
Sheetal Arora — Chief Executive Officer and Whole-time Director
A very good afternoon to everyone. We sincerely appreciate your presence as we present our quarter one financial year 26 performance. Over the past 30 years our purpose led growth has been rooted in delivering. Quality and affordable healthcare to all even. In the most underserved parts of the country, leaving a meaningful impact. Last year we took as an opportunity to strengthen our foundations enabling us to deliver consistent performance and pursue sustainable long term growth. About Domestic Business Our domestic business revenue in quarter one financial year 26 registered a healthy growth of 19% year on year driven by organic growth for the quarter of 10% year on year. Further supported by BSV consolidation. Our secondary sales increased 9.2% year on year as compared to 8.6% IPM growth led by 2.5% growth in sales volume and 14.7% growth in chronic therapy indicating an overall outperformance of 1.1 times of IPM.
Our key acute therapies like anti infective and respiratory outperform IPM by over 1.5 times and our chronic therapies continued to deliver an outperformance in this quarter as well, led by 1.5 times in cardiology and 1.5 times in anti diabetes. Our recent launch brand Crendelo is now ranked number one in newly launched brand by value and Bolalon is the number one prescription brand in their respective categories. While Nobiglar and Empagully Frozen brands continue to gain significant traction. Our inhaler portfolio including both Symbicod and Combiheal combined are now the fastest growing inhalers and are ranked among top 5 in the segment.
Our presence in metro and tier 1 cities also grew from 55% to 56% in Q1 financial year 26. About International Business Our revenue from international business increased to rupees 469 crore in quarter one financial year 26 up by 81% year on year growth year on year from rupees 259 crore in quarter one financial year 25 with single digit organic growth and BSE consolidation Regarding BSP updates on the BSE front, we are witnessing progress across our integration initiatives and are confident of delivering healthy performance this year onward. Additionally, we are also setting up a new biological facility to scale up and de risk operation at BSV’s Ambarna site and expanding its biological R and D facilities to strengthen our innovation capabilities.
As we move forward, we remain committed to building a people centric organization by fostering a culture of empathy and care. To realize this vision, we are consistently investing in strengthening patient and healthcare provider engagement through meaningful transparent interactions driving innovation with purpose focusing on accessibility, affordability and impact Continuous learning and development to empower our teams and partners. We feel honored by the trust placed in us by doctors, patients and people. This journey is not ours alone, it’s one of that we walk together guided by the gratitude and share process. Now I invite Ashutoji to provide a detailed insight into the financial performance.
Thank you so much.
Ashutosh Dhawan — Group Chief Financial Officer
Thank you Sheetaji. A warm welcome to all of you. It’s good to have you all with us today. I will now take you through Q1FY26 financial update our revenue from operations during quarter one FY26 has increased by 24.5% year on year basis to rupees 3570crores as compared to rupees 2868crores in Q1FY25 which is driven by growth in our base business and consolidation of PSE results. Our gross margins for the quarter declined by 130 basis point year on year basis to 70.5% from 71.8% in Q1 FY25 which is due to unfavorable sales mix and certain inventory related accruals taken in the current quarter for slow and non moving items.
During the quarter our reported EBITDA has increased to rupees 850 crores from rupees 675 crores which results in a growth of 25.8% year on year basis. The reported EBITDA margin for the quarter is at 23.8% which has increased by 20 basis point on year on year basis. If we compare reported EBITDA margins with last year’s adjusted EBITDA margins, there is a decline of 120 basis point from 25% in Q1FY25 to 23.8% in Q1FY26. This decline is in adjusted EBITDA margin of 2 basis point is primarily driven by reduction in gross margins. The R and D expenses for the quarter was rupees 79 crores, remains at 2.2% of sales and is higher than R and D spend of 1.7% of sales as incurred during Q1FY25.
The finance cost for Q1FY26 decreased to rupees 171 crores from rupees 191 crores in Q4FY25 which is on account of repayment of commercial papers amounting to rupees 500 crores in the current quarter. In Q1FY26 the depreciation and amortization expenses have increased to rupees 219 crores as compared to rupees 103 crores in Q1FY25 which is primarily driven by depreciation and amortization impact related to the effective tax rate from Q1FY26 was at 17.7% as compared to 16.8% in Q4FY25. The profit after tax for Q1FY26 has decreased by 17.4% year on year to rupees four hundred and forty five crores on account of higher finance cost and depreciation cost pursuant to BSV consolidation with diluted EPS of rupees 10.6 per share of rupees 1 pay during the quarter.
Cash EPS which is EPS adjusted for non cash items like depreciation and amortization has Slightly increased to Rupees 15.9 from Rupees 15.8 in Q1FY25. The net operating working capital days for the quarter on trading 12 months basis have decreased to 48 days as compared to 50 days in Q4FY25. The cash flow from operations has increased to rupees 840 crores as compared to rupees 546 crores in Q1FY25 which is on a year on year basis an increase of 54%. This is primarily on account of consolidation of PSV operating cash flows and improved working capital as well as realization of certain government receivables, et cetera.
Therefore, in this quarter our CFO to EBITDA ratio has increased to 99% as compared to 81% in Q1FY25. Our capex spend during the quarter has increased moderately to rupees 127 crores in Q1FY26 as compared to rupees 125 crores in Q1FY25. The capex as a percentage of revenue is 3.6% which is lower than our guidance of 5% of revenue for FY26. In line with our prudent financial strategy, we continue to strengthen our balance sheet and have reduced our net debt position to rupees 5249 crores as of 30th June 25th resulting in further improving our net debt to ebitda ratio to 1.6x in Q1FY26 on trailing twelve months basis as compared to net debt to adjusted ebitda ratio of 1.8x in FY25.
With this we conclude our financial update and welcome any questions which you may have. And over to you Abhishek.
Abhishek Agarwal — Head Investor Relations
We can start the Q and A please.
Questions and Answers:
operator
Okay, thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Chintan Seth from Giric Capital. Please go ahead.
Chintan Sheth
Thank you for the opportunity. Question was on the Biophilia biosimilar plant which we are planning to set up to be. What is the process and timeline for that?
Rajeev Juneja
Yeah, thanks Chintan. So for the biosimilar facility. This is the facility which we started in Baroda largely to scale up as well as redis the operations of BSV the KTEX for phase one we are looking at around 150 to 200 crores. And it’s expected to close and completed by next end of next financial. Next year, calendar year.
Ashutosh Dhawan
So in FY26 the estimated cash outflow will be close to 100 crores for this facility.
Chintan Sheth
And this is included in the 5%.
Ashutosh Dhawan
It is part of that.
Chintan Sheth
And when I look at the interest cost sequentially has declined. But are we planning to further the course of the year how people look at cost.
Sheetal Arora
Okay. For the acquisition related debt repayment we have scheduled 2000 crore to be paid in FY26 out of which 500 has been paid in Q1 and the balance 1500 we are targeting to pay in 10-20-25. And the total interest cost towards this acquisition debt for this year would be in the range of 450 to 475 crores.
Chintan Sheth
In terms of voice is not very clear. If you can speak out.
Ashutosh Dhawan
Somehow it’s echoing. So I understand here there is a drop in the gross margin of loss 1.3% year on year basis and 1.1% is on a Q on Q basis. So inventory related recovery.
operator
So sorry to interrupt. The Mr. Chetan’s line has disconnected. So can we move to the next question?
Rajeev Juneja
Good.
operator
Okay, the next question is from the line of Rashmi from Dalet Capital. Please go ahead.
Rashmi Shetty
Yeah, thanks for the opportunity. Just again on the gross margin front could you be able to quantify how much percentage was from the inventory write off and whether you still maintain your EBITDA margin guidance of 25 to 26% for the full year on a consolidated basis.
Ashutosh Dhawan
So these are more driven from the accounting standpoint. The Inventory related accruals, et cetera. So difficult to give a specific number. However, it’s a common denominator both for YOY and Q and Q drop in the in the gross margin. In terms of guidance, we have maintained the guidance that our gross margins will be upward of 70% and even in this quarter quarter as well it’s upward of 70%. And we continue to maintain our EBITDA guidance of 25% to 26%. So we are not changing the guidance. Either for the CC or for the ebitda.
Rashmi Shetty
Okay, thanks for that. And other question is related to the dyed esterin facility. You know we had, you know most of the manufacturing is now done in house. So what is the capacity utilization over there? When are we targeting the export market and is it that KSM we are still souring outside or that is also manufactured in house only?
Rajeev Juneja
So for Dynastone facility the capacity utilization is approximately 60%. We are expecting approvals to start coming in from international markets by the end of this year. So once the approvals start coming in, this capacity utilization will start increasing. So most of the activities are in the last leg in terms of qualifications etc and in the next two months we’ll start producing the KSM also in house.
Rashmi Shetty
Okay. Okay, got it. And one more question related to your Peninsula portfolio. You know earlier used to mention how much growth and the sales run rate, you know quarterly it is doing. If you can give that information as well.
Rajeev Juneja
Felicia is growing 25% plus Canada growth. It’s in line with our commentary we gave last time. Continuously growing.
Rashmi Shetty
Okay. And one last question related to the a small clarification. You said domestic business organic growth was 10%. So this was. This is ex consumer health. You’re talking or you’re talking on the entire domestic business?
Ashutosh Dhawan
Entire domestic business including consumer healthcare. Entire business.
Rashmi Shetty
Okay. And on the export front organ, how much is the organic growth.
Rajeev Juneja
On the export fund? It’s single digits.
Rashmi Shetty
Mid single digit to high single digit.
Sheetal Arora
Single digit. Yes. Yeah.
Rashmi Shetty
Okay. Thank you. That’s it from my side.
Rashmi Shetty
Thank you. The next question is from the line of Kunal Dharmesha from Makwere. Please go ahead.
Kunal Dhamesha
Hi. Thank you for the opportunity. I think just continuing on previous participant question. If you could provide exact organic growth for our base business that would be great. At least for the next couple of quarters till we see the annualization of GSE business.
Rajeev Juneja
Kunal, we have given the numbers Sheetalji mentioned. The overall company growth organically is 10%. And if you look at domestic also 10% and international is single digit growth. So you can do the math.
Kunal Dhamesha
Profit perfect. And we are seeing that panacea portfolio grew 25 year on year which is, which is a very small portfolio. Right. 200 crore or something. But then after 10% then it would have still, you know, be part of meaningful growth. Is that the way to put it?
Rajeev Juneja
So it’s part of the overall business. We don’t call out panic as such because the brands are into various divisions now. So some parties in, you know, two, three divisions, so we stopped giving number. But some participant as we have given the direction. Some brands are going 30%, some brands are going single digits. So overall basis it remains a 25% plus growth. But overall it would be still very small part of the overall complete domestic business.
Kunal Dhamesha
Sure. And if you can also provide some color around the base business EBITDA margin excluding bse given that BSE has some form of seasonality, I believe second half is stronger. Right. And does has that led to some form of operating deleverage in this quarter which is kind of masking the base business EBITDA margin?
Ashutosh Dhawan
Yeah. So observation is correct. Base business mankind margins are operating margins are better this quarter versus BSE as BSE is more second obscured. And every quarter you’ll start seeing improvement in EBITDA margins for BSE also. And as far as mankind is concerned and OTC business concerned, there is a frontier of expenses also which happens typically in any domestic business. So this will actually lead to operating leverage in the upcoming quarters for the base business also.
Kunal Dhamesha
Perfect. Thank you.
Rajeev Juneja
Thank you.
operator
Thank you. The next question is from the line of Madhav from Fidelity. Please go ahead.
Madhav Marda
Yeah, good afternoon. Thank you so much for your time. Just one question. You know, in the past few quarters mankind has been facing some, you know, we’ve been changing our sales force and making a lot of, you know, large initiatives to improve our Salesforce efficiency, productivity, etc. Just wanted to understand where we are in that journey and by when do we expect mankind to come back to becoming the industry leading group player that we’ve been in the past decade. So do we expect that to start from quarter two? Is it going to take a bit more time before we start gaining share again? Thank you Madhav.
Rajeev Juneja
This process started approximately 12 months back and completed, almost completed, 99% in the month, month of March 2026, 2025. I’m sorry. Yeah. And now basically some changes happened in first quarter in the divisions, some happen in second, some in third and fourth. So it is done last year. And as you can see that for good number of quarters our growth was single digit. Now in the first quarter the growth is 10%. That itself talks about that changes are appearing and as time will pass, you’ll see better things will happen. Let me reiterate one more thing that whatever we have said in the past four or five things we said in the past, they have been done.
One, we said that QIP will happen. Certain things should be repeated. Actually it happened very fast. We said that our hotel business will be sold of Mahananda. It was done. We said that TTK prescription business will be shifted to mankind. It has been done. We also said that we will de risk and make one more factory biological manufacturing plant that will be completed next year. It is happening so fast. We also said that we will do expansion in R and D side. We also did that. One more thing. We said that that mankind would become catalyst in promoting BS3 brands, Antid, Snakebite, SVS, social messaging will start.
It has been done. So things are happening at a fast pace. One thing should be kept in mind. Everything happened in the month of November last year. So it’s only few months when BSE has come in our fold. You say that three, four, five months. And we have just now proper grip on bsc.
Madhav Marda
Absolutely, absolutely.
Rajeev Juneja
Reminding everybody I reminded these things.
Madhav Marda
No, that makes sense. I mean the reason I asked that is if you see the IPM data over the past decade, mankind has been the one company which has consistently gained share. And last year was obviously because of some initiatives internally and the acquisition for a few quarters that did not happen. So just wanted to clarify that, you know, now that we’re back on track.
Rajeev Juneja
That’s a good question. I mean you take the answer as well. Look at this volume growth. It is 1.8 times to IPM this time. I mean look at anti infective 1.6 times. Chronic in cardio side 1.5 times. In diabetes 1.6 times. So when you start making changes, it takes time. It’s a big organization. It has taken us approximately 12, 13 months. But now that whatever changes we did, fruits are appearing and as time will pass, we’ll come back to our own original pace. Mankind was in need of these changes. See, every organization goes through different phases.
I mean phase one was when we reached this particular level. Phase two is now we’re competing with best of the companies. So we need to change as for the time and any company who does not evolve, I’ve seen in my own carrier in 80s and 90s, if you just look at IPM those top 1020 companies are no more. Their top 20 companies they are faded somewhere. Because to change you need a courage. And we believe that whenever there is a demand you always keep one thing in mind. Long term, never the short term. You have never been a tactical, always be long term policy believer actually.
So since you asked this question, so I thought of just reading everything makes sense.
Madhav Marda
And so just the second question on the BSC growth, does that start coming back from FY26? Any guidance on BSC top line growth for this year? Thank you.
Rajeev Juneja
So for BSV we are maintaining guidance. So sales growth of 18 to 20% with margins that higher of 26 to 28%. If you see in terms of performance, just to give some color, international business continue to be at mid teen kind of growth. In the India business there were two parts so RX business we took a big corrective action. In Q4 sales were hardly anything and in Q1 we have started to see very strong growth. You can see some data from secondary iqa, it is high double digit growth. Also on the specialty side we are seeing good traction.
We had small changes, leadership changes and we have started to see good Q and Q growth. In the next quarter onwards I think we start seeing good YOY growth. Also there is some YOY growth but it is nominal at the moment. But the Q and Q is very strong and secondary traction is very strong.
Madhav Marda
Thank you.
operator
Thank you. Before we take the next question, we would like to remind participants, you may press Star and one to ask a question. The next question is from the line of Neha Manupuria from Bank of America. Please go ahead.
Neha Manpuria
Thanks for taking my question. Just to follow up on dsv, if I were to just do the math of the, you know, by excluding the organic growth, it seems like the DSV run rate hasn’t shown any improvement year on year basis. So would it be fair to assume that a lot of the steps we are taking will start reflecting in year on year growth in the subsequent quarters to achieve that 18 to 20% growth that you’re mentioning?
Rajeev Juneja
Your observation is right. So it is flattish kind of growth on an overall basis. But because we have taken some corrective actions and if you see BSE past trends of last two, three years, it’s most skewed towards second half. But at the same time every quarter you will start seeing improvements. So Q2 will be better than Q1, Q3 will be better than Q2 is our expectation and the performance which is delivered is as per our budget expectations. So we are online.
Neha Manpuria
Okay, so the flat year on year isn’t something that I need to be worried about to get to that 18 to 20% growth for the full year.
Rajeev Juneja
Some growth is there. We are not calling out the number but there is some growth especially in the international business and also in the specialties. So these two things. And anyways RX business if you have seen we have given a slump sale notification so that will happen. That will as communicated earlier and mentioned by Rajiv Ji this will be operated fully by the mankind office because the branded generic business. So these two assets if you look at it is high single digit growth even in this quarter.
Neha Manpuria
Okay, that is helpful. Sorry, go ahead.
Rajeev Juneja
You go ahead please.
Neha Manpuria
Okay, sorry about that. I think the second question that I wanted to ask was on the other expenses. It seems to have you know shot up pretty meaningfully versus the last 2/4 run rate which includes BSV. So just wanted to get some color on you know what’s driving this higher spend. Is it related to our organic business which is why we’ve seen growth come back versus you know the run rate because it’s seem to, you know including BSV which is flattish it suddenly seems to have increased pretty meaningfully quarter on quarter.
Ashutosh Dhawan
Well you are right May on your observation. If you take Q1FY 26 year on year basis there is a bump of 131 odd crores in the other expenses. Out of this 131 crore approximately 125 is coming from PSV and rest all is the inflationary adjustment. If you look at it quarter on quarter basis the jump is around 82 crores which is primarily driven because of increase in SMD expenses because they are front loaded. And PSV expense base has been constant in this quarter. So it’s more on the timing difference and the front loading of expenses that you are seeing a bump overall during the full year basis they will normalize.
Neha Manpuria
Okay, so it’s more front loading of expense and sorry one last thing. The inventory number in the gross margins we are not quantifying that.
Ashutosh Dhawan
We are not quantifying it at the moment. It’s a mix of inventory accrual plus some of the business mix change. So it’s a combination of two.
Neha Manpuria
And this inventory. Okay. And this inventory accrual, I mean the you know, slower non moving items. Was this related to the BSV portfolio? Would that be a right assumption?
Ashutosh Dhawan
Not exactly. It is. It has been across the board because the sales mix profile has changed. So that’s why.
Neha Manpuria
Okay, so it has been both.
Ashutosh Dhawan
Yeah.
operator
Okay, got it. Thank you so much.
Ashutosh Dhawan
Thank you.
operator
Thank you. The next question is from the line of Nihar Mehta from Bay Capital. Please go ahead.
Nihar Mehta
I just had one question on the OCF to EBITDA profile. So this quarter you have seen a significant jump. So wanted to know whether this is sustainable in the longer run 90 plus or should we go back to our 70 to 80% levels going forward? In the longer run.
Ashutosh Dhawan
Having it assumed around 80% plus level will be a fair assumption.
Nihar Mehta
Okay, thank you.
Ashutosh Dhawan
This quarter is 99% because some of the 1 of realization of receivables have happened. But 80% will be a fair assumption.
Nihar Mehta
Okay, thank you.
operator
Thank you. The next question is from the line of Bino from Elara Capital. Please go ahead.
Bino
Hi, good afternoon all. I was looking at the depreciation and amortization expense for the quarter. It had come down from Q4 level from 231crore to about 219. Was there any change in the way amortization is done or is this the normal level?
Ashutosh Dhawan
There is no change as such. So what Happened was in Q4FY25 we have taken an impact of accelerated intangible depreciation wherein on some of the IT related intangibles we reduced the life. So because of that the Q4 depreciation was higher as compared to Q1.
Rajeev Juneja
You can assume the same run rate for this financial year.
Bino
The Q1 run rate. Right. Okay. And just tax rate you had earlier guided 21 to 22% for the full year. Do you maintain that guidance.
Ashutosh Dhawan
Tax rate? Yeah. So we would like to maintain 20 to 21% guidance from the ETR for this quarter it is 17.7% and 20% to 21%. We be a fair assumption for the year.
Bino
Got it. Thank you very much.
operator
Thank you. The next question is from the line of Gaurav from Antique. Please go ahead.
Gaurav
Yeah. Hi. Thank you and good afternoon. Just a clarification. First, the business acquisition that we’ve called out that is the movement of the TTK business to mankind, right?
Ashutosh Dhawan
Correct. Correct. Correct.
Gaurav
And seeing that the turnover of this business has declined from you know, 197 odd crores to almost 104 crores. 24 to 25. Any particular reason for the sharp contraction?
Rajeev Juneja
So Gaurav, we have called out in the last quarter that it was hardly any sales in the Q4 because we. Took some inventory related corrections. And now as we speak the growth has started. So if you can call out some of the numbers. For example, Osopan is growing at 30% plus epidosin is growing at 50% plus. As I mentioned secondary growth has started and we also able to see significant bounce back in the primary sales. However it remains you know little bit declined on a yoy basis because the first half of this teacher PKRX business was heavy. But on an overall year basis we’ll try and achieve growth on significant growth on a last year base.
Gaurav
Okay, okay. Okay. Second question on the India business. You know seeing in your presentation that the modern trade and E comm share has increased to 11% and you know that’s growing to you know almost 50%. So are we the first movers, you know in this trade channel and you know what would be the, you know the economics of this trade channel? You know margins would be higher or lower. And also you know is consumer health a big part of this modern trade and E Com today?
Sheetal Arora
Thanks Gaurav. So yes the share of OTC business and the business channel, modern trade and E commerce almost increased to 11%. But yes and you are right the margins is slightly on a lower side. But this is a stable business and we’ll continue to maintain our guidance, ebitda guidance of 18 to 20% and we are not the leader. There is still room to grow and increase our modern trade and e commerce share going forward.
Rajeev Juneja
Yeah. Under index in this channel. So I think this is very critical part of the growth apart from the. General trade
Sheetal Arora
and kind of products we have, we are seeing very good traction on these channels.
Gaurav
But most of this will be consumer health. Right. All your gaps.
Sheetal Arora
Yeah, this is consumer health. This 97% share we have mentioned for OTC. This is not performance.
Gaurav
Correct. Thanks. Thanks for that. The last question, you know we’ve seen your peers give more insights, you know into the dosage modalities and where they are in the development process for the glp. Would you mind sharing an update on your pipeline and where you are and which all modalities and indications are targeting.
Rajeev Juneja
On the GLP1 that you’re talking about? I mean we are talking about semaglutide and GLP where we will be launching when the patent expires. If that is a question. The other one which Rajiv Ji mentioned in his question speech was more regarding our R D pipeline that we are developing which is a GPR119 is a novel mode of action where we are targeting obesity. It is unlike GLP1 which are peptides and large molecules. This is a small molecule which is targeting the GPR119 cell in the body. So that Molecule as we speak is underway phase two trials in Australia.
So we should have some results in our hands by the end of this year.
Gaurav
And SEMA we would be targeting the oral and injectable spot. And when do we see the respective markets opening up?
Rajeev Juneja
As soon as the patent expires.
Gaurav
So the oral patent doesn’t expire in 2026 as well.
Rajeev Juneja
We do need to comment on the patent right now on the call but when the Genrex launch will be there. In the first day of launch.
Gaurav
Okay, all the rest I’ll turn back to you. Thank you.
operator
Thank you. The next before we take the next question, a reminder to participants if you wish to ask a question you may press star and 1. The next question is from the line of Tushar Manudani from Motilal Oswal Financial Services. Please go ahead.
Tushar Manudhane
Yeah I’m audible.
Rajeev Juneja
Yes.
operator
Yes. Are you audible?
Tushar Manudhane
Yeah. So with this rest on the field force with all you know, reset, strategic reset done now and so is there any scope to add miss now in FY26 or you’d want to see the improvement in productivity and then look at it in FY27.
Sheetal Arora
He had mentioned by Rajiv Ji in his previous commentary also that most of the correcting measures have been done. Almost done. So we did no scope to add. Mr. And all the things have been done. So now we will focus on increasing opportunity in this year.
Tushar Manudhane
And so just on BSV given that 18 to 20% growth in the coming nine months if you would just help this will be more exports driven or more domestic driven.
Rajeev Juneja
I think growth will come from both angles. So we already as I mentioned that there already growth seeing in secondary for domestic I gave you examples of RX but let me give you some examples of the specialty business. So the fertility business if you see FSH our folly graph is secondary growth is 35%. If you see Humar hookah wall are growing 10% plus ASVs which is the anti snake venom is also showing high double digit growth. So there is a good secondary traction and hence we are confident that primary will catch up. And international as highlighted earlier the growth expectation is upwards of 20% so we expect that overall if you do the maths we land up at around 18 to 20% and growth for the BSV as a whole.
Tushar Manudhane
And on this international aspect further like is it that the BSV already had registrations of the products in respect to geographies and now it is the time to scale up those or there will be sort of a period where registration has to happen and Then the growth sort of picks up.
Rajeev Juneja
It’s an ongoing process. The first, first objective is to increase the penetration in our core market. So there we are already seeing high double digit growth. The second objective is for existing products in newer markets also. So we are exploring as we speak we opened, you know, already board approval has come for Russia so we expecting couple of approvals so there can be good growth. So it’s a function of existing products in newer markets. At the same time there’s also some work going on newer products which will be, you know, starting with existing markets and then even looked evaluating for some of the higher semi regulated markets in future.
So there’s a multi pronged growth strategy which is being played out.
Tushar Manudhane
Got it. And just on this biologic facility, if you could also share, while you have shared the CAPEX amount to be spent. Just if you could elaborate on what capacity, whether it is drug, substance, drug product, both or if you could just elaborate on that aspect as well.
Rajeev Juneja
So this biologic facility would be divided into two phases. The first phase would be for drug substance and the second phase would be for drug products. And basically a risk mitigation strategy for the facility of bsv. And also this facility will help us drive business into some semi regulated and highly stringent international markets. So the facility is being built from that point of view.
Tushar Manudhane
So just conceptually on this like given that we have such strong marketing strength and subsequently for the international markets also and sourcing the products from, you know, and then subsequently further, you know, focusing on distribution as far as this biologics aspect is concerned within. So will that strategy be better off or you know, getting a hold on the manufacturing piece is, you know, sort of quite relevant. The perspective here is that given that CDMO biologics there has been a lot of subsidies which have come up, you know. So from that perspective it’s a good throw some light.
Rajeev Juneja
If you look at biologics, most of the people who are there in biologics are into mabs or certain recombinants. There are hardly very few players globally who are making recombinants for infertility. BSV’s recombinants are majorly into infertility where we are producing recombinant Yukog recombinant. FSH will also be the first generic globally. As Rajiv Ji mentioned that we are doing some research in our R and D where we will be producing Foliotropin Alpha which will be the only generic after Merck. So there are not many CDMO players available who are present in the biologics facility for the infertility space.
Having said that, there’s another product which is Anti D which is the first novel biologic which has come from the R and D of bsv. There is no product producer for it. So all the products which are coming from BSV are all either first time generics or novel products. So it is very important for us to have our own facility and our own R D and a full supply chain control over the manufacturing of these products.
Tushar Manudhane
And so this Anti D will require a dedicated facility.
Rajeev Juneja
No, it will, it will, it will be produced, it is currently being produced in Ambarnath but once PER is ready it will be produced in PER as well.
Tushar Manudhane
No, no, I mean to ask this capex of 150 to 200 crore. Will this be further product specific?
Rajeev Juneja
It’s including entity, it’s including all the biologic products of the.
Tushar Manudhane
Got you sir. This is wonderful. Thank you.
operator
Thank you very much. Thank you. The next question is from the line of Naveeni N from Naredi Investments. Please go ahead.
Navani Naredi
Hello. Am I audible?
Rajeev Juneja
Yeah, please go ahead.
Navani Naredi
Thanks for the opportunity. I just had one basic question. The reason behind the 17.4% YoY decline in net profit despite the strong top line growth. I know it’s, it might be on account of finance cost, increase in finance cost but like will we be able to increase the net profit margin again?
Ashutosh Dhawan
So it’s a factor of not only finance cost, it’s a factor of increased depreciation cost and then there used to be other income because there was surplus funds. So that has also become negative because of the tax. And as we highlighted that our, our endeavor is to clear all the debt by FY28. So in FY28 there will be interest burden and then slowly and gradually the pack is going to increase as we are going to liquidate our debt.
Navani Naredi
All right. All right. Thanks for the detailed explanation and all the best. Thank you.
Ashutosh Dhawan
But one thing we would like to highlight if you look at it on a cash EPS basis. So we have shown a slight improvement in cash CPs in this quarter.
Navani Naredi
Yeah, that I saw. So it’s good. But I was just concerned about whether going ahead we will be able to maintain like we will be able to increase the net profit or not. So that was my question but it has been answered. Thank you.
operator
Thank you. Participants, to ask a question please press star and one on your touchstone phone. The next question is from the line of Siddharth N. Gandhi from Chanakya Wealth Creation. Please go ahead.
Unidentified Participant
Questions first one, the growth in Gyne has while you know, chronic growth has been very, very good and really, really kudos to the team for that. Growth in Gyne has been trailed IPM and that is obviously a big one considering both PSV has a massive grainy portfolio as well as Dydro in and the other products in mankind. Right. So any specific headwinds that you are seeing there and how should we look at that growth? That’s question number one. Question number two is on the anti diabetic portfolio currently growth clearly is very strong ahead of ITM.
But post GLP1 genericization how do you see the impact on that base business?
Rajeev Juneja
So answering your first question, yes your observation is correct that we have slowed down a bit in guinea but the major impact has come from dydrogesterone and Dydroboone mostly. But if you see quarter to quarter there is a steady upward movement for even diadromone. So we have seen some kind of strategic intervention. What we have taken has given us results especially you know mankind has been very strong at the bottom of the pyramid of you know, our ACB pyramid where we have lost a bit initially but then we recovered in last three quarters and there is a positive trend.
If you see quarter to quarter. So year on year basis, definitely even being a number one player in this space we will be doing well and that confidence is coming in quarter one performance in fact and Hydrobool also will have a significant growth in quarter two. Coming to the next question I think Siddharth though anti diabetic as you said, mankind has been doing quite well and even with our older brands we are in a very good space. Our mature brands also are doing well, better than the market and coming to the newer therapies. Once these newer therapies come to the market we have seen traditionally also that the old molecules doesn’t go away.
So you know there are positions still for sulfonylurea, there are positions still for other molecules. So we have, we are present in all the segments of anti diabetics. So even if suppose something comes up, we will be strong in those segments as well as we will be maintaining our position in the older segments. So if you consider the market change, considering a new molecule molecule comes into anti diabetic, we have seen earlier also that the older molecules also sustain. So in those spaces also man can be outperform those anti diabetic segments I hope.
Unidentified Participant
Yes, got it. Just wanted actually to understand your guidance in terms of how those older segments may end up facing any Headwinds in terms of growth. The next question that I had was on the consumer healthcare business where while there has been very, very strong growth, you’ve seen a sharp decline of 2% in EBITDA margins. And I’m assuming that’s because of the sales mix where the contraceptives have grown ahead of pregnancy. Just wanted to understand in terms of overall growth continuing at 15% do we see a path back to 20%? Margins.
Rajeev Juneja
Don’T go by one quarter. We always talk about the annual growth. Whatever projections have been given would be achieved. And the first quarter, the first half is always a bit more aggressive as far as the spending is concerned. So naturally you see that EBITDA margin has gone down. But we have always said in the past as well that we’ll maintain the EBITDA margin but at the same time top line growth is our number one priority.
Unidentified Participant
Got it? Yeah, sorry. Go ahead sir, go ahead. On the growth on anti diabetic if you can base business growth headwinds if you can give some color.
Ashutosh Dhawan
So as you, as I said like there are certain categories like sulfuria if you see or maybe the other categories of old anti diabetics it is not flat, it will not be a flat therapy because even when you know empagliflozin or maybe dapagliplozin when they have also been launched, it has not impacted so much on the existing therapy. So if you see the over overall anti diabetes space there are different categories of HCG where these molecules are still steady. So mankind as you know has been strong in most of the, most of the specialties. So in this case also wherever the therapy goes, suppose it goes top to bottom, then we will be also very steady at the bottom space.
So I don’t think there will be a significant impact in terms of overall in anti.
Rajeev Juneja
Let me give an example of that. We took this glycid from panacea growing at 25% it’s old molecule. So every molecule has its own kind of importance in doctor’s mind and different kind of patients require different kind of medicines. When AMPA came people said DAPA will go away. But you look at this DAPA site, the growth is 20%. So plus because a lot of new patients are coming in diabetic side. So more patients are being diagnosed, more population is coming, universe is becoming bigger. So every medicine has a different thing. It does not make it make a point that some new will come and wipe out, wipe out the older molecules.
It doesn’t happen like this.
Unidentified Participant
Thank you. That’s useful. Thank you. And all the best.
Rajeev Juneja
Thank you. We can close the call.
operator
Thank you. Ladies and gentlemen. As there are no further questions, I now hand over the conference to management for closing comments.
Rajeev Juneja
Thank you. Thank you for all questions and for any further queries. Clarification. You can write to us on investor relationsankindpharma.com thank you. Have a nice day. Stay healthy. Thank you.
operator
Thank you on behalf of mankind. Pharma concludes this conference. Thank you for joining us. And now you may disconnect your lines.