Mankind Pharma Limited (NSE: MANKIND) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Unidentified Speaker
Abhishek Agarwal — Head, Investor Relations
Mr. Rajeev Juneja — Vice Chairman & Managing Director
Mr. Sheetal Arora — Chief Executive Officer & Whole-Time Director
Ashutosh Dhawan — Chief Financial Officer
Analysts:
Unidentified Participant
Tushar Manudane — Analyst
Chintan Sheth — Analyst
Kunal Dhamesha — Analyst
Neha Manpuria — Analyst
Sidharth Negandhi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Mankind Pharma Q3 and 9 month FY26 results conference call. As a reminder, all participant lines will be in the listen only mode and. There will be an opportunity for you. To ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Agarwal Head Investor Relations and. AVP Strategy at Mankind Pharma. Thank you. And over to you sir.
Abhishek Agarwal — Head, Investor Relations
Thanks Dorin. Good evening everyone and welcome to our third quarter and nine months FY26 earnings call. On the call today we have Mr. Rajiv Jhoneja, our Vice Chairman and Managing Director Mr. Sheetal Arora, Chief Executive Officer and Whole Time Director Mr. Arjun Jonesya, Chief Operating Officer Mr. Sudipta Roy, Senior President Sales and Marketing Mr. Ashutosh Dhawan, Global Chief Financial Officer and Mr. Prakash Agarwal, President Strategy. We will begin with Rajiv Jonejas providing quarterly overview followed by business Insights shared by Mr. Sheetal Arora. Mr. Ashutosh Dhawan will then share the detailed financial performance and after which we will move to the Q and A.
Please note that this call may include forward looking statements that represent management’s current expectations. These are subject to risk and uncertainties and actual results could differ materially. Mankind has no obligation to update or revise these statements going forward. For detailed disclaimer please refer to our investor presentation uploaded on our website. Now I hand it over to Rajiv sir for his comments. Over to you Rajiv sir.
Mr. Rajeev Juneja — Vice Chairman & Managing Director
Thank you. Yeah thank you Abhishek. And a very good evening to all. Welcome to quarter three nine months F26 earning call. In quarter three our overall revenue increased by 11.5% year on year to rupees 3567 crore with the adjusted EBITDA margin of 25.9% in nine months 26 Revenue increased by 18.7% year on year to Rs. 10,835 crore rupees with adjusted EBITDA margin of 24.9%. The past few months have been pivotal for the company as the disruptive changes undertaken have led to meaningful improvement in our workforce stability and teams gradually gaining maturity and confidence. Simultaneously we sharpened our focus on optimizing brand portfolio reinforcing our presence in core markets with an improved emphasis on key therapies and expanding our corporate hospital penetration.
These actions are now translating into Trends of gradual recovery in quarter three our domestic business recorded a year on year growth of 11.1% supported by improving volume growth in mankind’s domestic pharma business. Continued strong momentum in the chronic performance and strong growth from BSV Domestic portfolio in mankind’s overall PCPM has also improved to 7.2 lakh rupees as on 12-31-25 from rupees 6.5 lakh rupees as of 3-31-25 on a trailing twelve months basis. Further, our secondary sales during the quarter grew by 8.5% year on year. We continue to do well in our focus area of chronic therapies as we witnessed strong growth of 16.7% in cardio and 14.4% in anti diabetic in quarter three.
In nine months financial year 26 our chronic contribution increased by 200bps year on year to 36.7% in versus 34.7% last year. Primary led by continued outperformance of 1.22 IPM x GLP1. We outperformed IPM by 1.2 times 2 acts in cardio and 2.2 acts in antidiabetic x G&P1. While acute segment remains softer in quarter three, we expect gradual recovery from coming quarters driven by strategic initiatives undertaken in last few quarters. Our focus on building scale and maximizing reaching translated into strong brand performance during MAT December 25th. One of the chronic brand Glyzid which we acquired from panacea in 2022 is now rupees 200 crore rupees plus brand family growing at a CGR of 30%.
In total, four brand families crossed an important revenue milestone as the count of rupees 200 plus crore brands increased from 11 in financial year 25 to 13 and rupees 50 crore brands have also increased from 49 in 25 to 51 in MAT December 25. In parallel, our digital transformation initiatives are shaping a new age organization driven by enhancing agility and efficiency. These efforts combined with improving trends across the business strengthen our position to deliver sustainable long term growth. I now invite Sheetal to provide more details on our business performance.
Mr. Sheetal Arora — Chief Executive Officer & Whole-Time Director
Good evening everyone and thank you for joining us today. It’s a pleasure to welcome you all in quarter three and nine month financial year 26 earnings call let me begin with an update on our domestic business which continues to show steady and healthy momentum. In quarter three financial year 26 our domestic revenue grew 11.1% year on year to 3,046 crore supported by strong organic growth of 9.1% excluding OTC. For the first nine months of financial year 26, domestic revenues increased 14.8% to 9,331 crore with organic growth of 8.2% excluding OTC. I am particularly encouraged by the strong traction in our new launches during this quarter our inhaler portfolio including Symbicot and Combihole continue to grow at 30% delivering 1.3 times the growth of the IPM.
In Gastro. Vonalong recorded an impressive 86% year on year growth, significantly outperforming the IPM growth of 54% and achieved the number one rank in 9th month financial year 26. In cardio, Kranzlo has emerged as a number one brand in the branded generic category with strong 92% year on year growth. During the year so far we have introduced niche chronic therapies including ADVUD for chronic liver disorder, HER2P aptuzumab based biosimilar and two products in Neuro CNS segment, Aptroi and Serara. All these brands are seeing encouraging early traction. Moving to our OTC business, performance improved sequentially during the quarter.
OTC revenue grew 5.2% year on year in quarter three compared to the decline in quarter two. For ninth month financial year 26, OTC revenues increased 5.6%. Despite some softness in the general trade channel which we expect to improve in the coming quarters, our key OTC brands continue to perform well at the consumer. Level. Like secondary sales of Gasofast, man force and over news grew 33%, 8% and 36% respectively during quarter three. Modern trade and e commerce channel register over 40% growth increasing their contribution to 13% of OTC sales up from 10% last year. Coming to our international business, Export revenues grew 14% year on year to 521 crore in quarter three. This year for nine months financial year 26 exports increased 51% to 1503 crores. As part of our ongoing commitment to Global Quality Standard, our Udaipur facilities has received EU GMP certification, further strengthening our international capabilities. Turning to the BSE business, the portfolio delivered double digit growth in quarter three driven by strong performance across both domestic specialty and exports.
The restructured prescription portfolio which transitioned to mankind effective 1st of November 2025 has performed really well and for the 9th month financial year 26, the BSV prescription business has already surpassed financial year 25 sales. As we move forward, our focus remains firmly on disciplined execution and sustainable growth. The corrective actions we have taken are strengthening our foundation and we expect their import impact to become increasingly visible in the coming quarters over the next few years. With clear strategic priorities and strong portfolio, we remain confident in our ability to create long term value for our investors.
With that I will now hand over to Ashut Praji who will take you through the financial performance in detail. Thank you so much.
Ashutosh Dhawan — Chief Financial Officer
Yeah, thank you Sheetalji. Good evening everyone. I’m delighted to have you all with us on our Q3 and 9 months FY26 earnings call. As you are aware that BSV acquisition got completed in Q3FY25 last year. Therefore this quarter will have comparative figures including bsv. However, the same is on partial basis as BSV was consolidated for 69 days in Q3FY25 last year as compared to full quarter in Q3FY26. Accordingly, the gap between organic and inorganic has reduced significantly in this quarter and from the next quarter same will get normalized. Let me give you a brief of the financial highlights of our quarterly performance for quarter three FY26.
Our revenue from operations during quarter three FY26 has increased by 11.5% year on year basis to rupees 3567 crores as compared to rupees 3199 crores in Q3FY25. This is driven by 11.1% growth in domestic business and 14.1% growth in the export business year on year basis, our gross margins for the quarter has increased by 170 basis point year on year basis to 72.6% from 70.9% in Q3 FY25. This increase is combination of sales price increase effect, favorable sales mix and release of certain inventory related accruals which we made in Q1 FY26 as we were able to liquidate some of the slow and non moving stocks during the current quarter.
However, on YTD basis the gross margin for the nine months FY26 stands at 71.4% in line with the gross margin for the nine monthsFY25. Our adjusted EBITDA margin for the quarter is 25.9% as compared to 27.6% in Q3 FY25. This decline of one hundred and seventy basis point is largely attributable to increase in R and D cost by 70 basis point and the balance is due to higher employee cost. Accordingly, the adjusted EBITDA margin for 9 months FY26 is 24.9% which is closer to the lower end of our EBITDA guidance. Our reported EBITDA margin for the quarter is 22.9% which is lower by 300 basis point as compared to the adjusted EBITDA margin of 25.9% in Q3FY26.
This decrease is attributable to to exceptional items comprising of new labor Code adoption, stamp duty on slum sale of BSV branded generic business within the group and impairment of some non current surplus assets. The R and D expenses for the quarter was rupees one hundred two crores which is at 2.9% of the sales and the same is higher than the rnd spend of 2.2% of sales during Q3FY25. The R&D expense for Q3FY26 remains within the range of 2.5 to 3% of our guidance for the full year. The finance cost for Q3FY26 has decreased to 157 crores from Rupees 170 crore in Q2FY26.
This reduction is primarily driven by repayment of last tranche of commercial papers worth rupees 1500 crores in October 2025. In Q3FY26 the depreciation and amortization expenses have increased to rupees 223 crores as compared to rupees 187 crores in Q3FY25 which is primarily driven by full quarter impact of depreciation and amortization impact related to BSV assets. The current quarter depreciation and amortization expense is in line with with the previous quarter expense which was at rupees 222 crores. The consolidated effective tax rate for nine months FY26 was at 17.6% which is lower than the consolidated effective tax rate of 21.2% in nine months FY25.
The profit after tax for Q3FY26 has grown by 9.5% year on year basis to rupees four hundred and fourteen crores with PAT margin of 11.6% during the quarter as compared to 11.8% in Q3FY25 resulting in a drop of 20 basis point which is primarily due to the drop in the EBITDA margins partially offset by reduction in the finance cost. Our diluted EPS is rupees 9.9 per share of rupees 1 paid for the current quarter. The cash EPS which is EPS adjusted for non cash items like depreciation and amortization has increased during the quarter to rupees 15.6 from rupees 13.9 in quarter 3 FY25 which is an increase of 12.1% year on year basis.
The net operating working capital days for the quarter on trailing twelve months basis is at 51 days as compared to 52 days in the corresponding period. The working capital in value terms has decreased by rupees 110 crores between the current quarter and the previous quarter. During the nine months FY26 our CFO to EBITDA ratio has increased to 93% as compared to 68% in nine months FY25. This is primarily on account of improvement in the working capital as well as realization of certain government receivables. Our capex spend for 9 months FY26 was rupees 473 crores which is 4.4% of total revenue and the same is in line with our guidance of 4 to 5% of revenue in line with our prudent financial strategy.
We continue to strengthen our balance sheet and have reduced our Net debt to Rupees 4294 crores as of 31st December 2025 resulting in the net debt to adjusted ebitda ratio of 1.3x in Q3FY26 on trailing twelve months basis which has improved as compared to net debt to adjusted ebitda ratio of 1.4x as on 30 September 2025. With this we conclude our financial update and welcome any questions which you may have. Over to you Abhishek.
Abhishek Agarwal — Head, Investor Relations
Thank you Ashutosh sir and thanks. Thanks Darwin. So Darwin, you can open the forum for Q and A.
Questions and Answers:
operator
Certainly sir. 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 please use handsets. While asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Tushar Manudane from Motilal Oswal Financial Services limited. Please go ahead.
Tushar Manudane
Thanks for the opportunity sir. On the prescription side where the industry growth itself is bit slow at about 4% and as a part of acute therapy that forms a considerable portion for the mankind portfolio. So you know how we sort of intend to grow in this therapy as such where the industry growth itself is struggling or what are the countermeasures so that the proportion of Anti infective reduces over a period of time so that we are able to outperform the industry on an overall portfolio level. That’s my question.
Mr. Sheetal Arora
Thank you so much for the question. If you see several of our therapies which are showing consistent growth quarter on quarter. If you see gynec have shown from quarter1.4% to 11.3% quarter3 gastro has grown from almost negligible growth to 7% even chronic segment has grown from every quarter has grown shown the growth of 12 to 15%. Even our inhalers like Simbicot combi hair is showing a growth of 30%. So however very rightly said performance in the MD segment for Manken has been relatively muted. So why? Because this category is pulled people and relationship driven when prescription typically ranging from three to five days.
So about team get settled and doctor relationship will become mature so that we expect consistent growth over the coming quarter. If you see overall the industry even the anti infective segment of IPM is not going great, doing great. So for us, yes definitely when the relationship will mature will mature then quarter on quarter you will see gradual improvement in our growth of NB infective segment.
Tushar Manudane
Got it sir. In fact from that perspective if you could like highlight what is the share of in licensed or the specialty portfolio now in the RXL combining all the therapies in V5 to sort of.
Ashutosh Dhawan
Tushar. As of now the the portion of specialty portfolio or the in license portfolio in particular quite negligible. It is less than 2% or so in the overall sales mix.
Mr. Sheetal Arora
So Tushar this one to this, this share is for in licensed portfolio. We have not specifically called out for specialty portfolio. This is for in license.
Tushar Manudane
Sure, sure, got it. And secondly on the therapy level respiratory also like compared to industry the growth has been bit soft at 7.6%. If you could call out any any factors from this therapy.
Unidentified Speaker
Yeah hi Tushar, this is Sudipta here in respiratory. As you rightly said though this is. Looking a little softer. But if you see as Sheetal sir. Has rightly said that our inhaler therapy has done pretty well. Even the new launches have done very well. Our slight gap has come in cuff. Therapy which we are you know again. Relooking into some of the strategies in cuff portfolio which will come in next quarter.
Tushar Manudane
And just lastly the CA4 to EBITDA ratio is very strong for FY26 compared to FY25. So Ashutosh sir, if you could highlight factors driving this and how sustainable this is going forward.
Ashutosh Dhawan
I understand you are asking about Sushar.
Abhishek Agarwal
Can you repeat your question once again please?
Tushar Manudane
CFO to EBITDA ratio has come very strong. I mean this has been the same for FY26 full year compared to FY25 in the range of like 90 to 93% which 80% in FY25.
Ashutosh Dhawan
Yeah. So historically if you see our EBITDA ratio, CFO to EBITDA ratio has been in the range of 75 odd percent or so in this particular quarter. It is high because of one is that we have been able to optimize on the working capital. So on a year on year basis. So that that has released. Second factor is because of the. Because we were able to realize some of the. The government receivables. So because of that also the cash flow has improved. And if you look at the tax element also that has also there is a drop in the value term.
So These are the three factors because of which you see a spike of 25% increase in the CFO to EBITDA ratio. But having said that it will taper down in the. In the near quarters. Yeah.
Tushar Manudane
Thank you sir. That’s it for me.
operator
Thank you. Our next question comes from the line of Chintan Sheth from Girig Capital. Please go ahead.
Chintan Sheth
Thank you for the opportunity. Am I audible.
operator
Sir? You are audible. You may proceed.
Chintan Sheth
Yeah, thank you. Thank you. On the interest cost saving, you know we have seen a sequential drop in. In almost 500 crore from September to December despite. You know we have paid almost 1500 crore of cities in October plus we have. We have the current quarter OCF has been pretty decent. The net debt figure looks a little high. If you can touch upon why is that, that will be helpful.
Ashutosh Dhawan
So if. If I’ve understood your question correctly you are trying to analyze that the interest cost drop is not commensurating with the drop of. Of the outstanding loan amount. Is that the question?
Chintan Sheth
Also the absolute net debt number also has not seen similar sequentially.
Ashutosh Dhawan
No. So see net net is. It’s okay because the debt has to be realized over a period. Because how the debt was structured was that the repayments were coming on a. On a six monthly basis. So that is why the net debt is improving. But the overall debt is not in. Because there is a. There is a time gap. There is a six months time gap. That’s why there is a. There is a lag in that.
Chintan Sheth
So. Sorry, I couldn’t understand. So September we have 47, 1400 crore of net debt. We repaid 1500 Karod in October. The number in December is 40 to 4300 odd crore. So there is a drop sequentially of 500 crore despite 1500 crore of repayment which we have seen plus the OCF we have generated. I assume that OCF were used for working capital and we have seen the working capital improvement sequentially. So as you mentioned 110 crore absolute, you know from September to December there is a drop in absolute working capital. So over there also we have not utilized much of the capital and capex number is also you know more or less in the band of under 200 crore.
So I’m trying to understand that we have not utilized the the capital anywhere. Working capital is low. Capex Incremental capex spend for the quarter is also under 200. Still the net debt number sequentially has not been reflective of the 1500 crore determination. Trying to understand the requirements.
Ashutosh Dhawan
Our apologies we are not able to hear you properly. I think there are multiple questions framed into this one single question. So. Yeah, so we can take them, we can take them offline these particular questions. We can break it and take it offline.
Chintan Sheth
Okay and if you can help me.
operator
Sorry to interrupt Chintan. Sorry to interrupt Chintan, you do have a lot of background disturbance on your line and you do sound a little muffled. May I request you to please check. The device mode you’re using.
Chintan Sheth
This is okay, this is audible now.
operator
Yes, this is much better so please go ahead.
Chintan Sheth
Thank you. Thank you. Under expert if you can split between BSV and organic growth for us that will be helpful.
operator
Members of the management, if you are. Speaking at the moment you are not audible.
Mr. Sheetal Arora
So basically the quality of voice we are not able to understand the questions properly. So request if you can repeat that whoever be asking the question they can use headphones instead of speakers. So yeah certainly.
Chintan Sheth
This is audible. This is audible. Yeah.
Mr. Sheetal Arora
This is audible.
Chintan Sheth
Yeah. So I was asking export revenue split, what’s the organic growth current quarter.
Ashutosh Dhawan
So in Sheetalji’s comment it is mentioned that the mankind exports is mid single digit and the remaining is from BSV consolidation.
Chintan Sheth
And lastly on the restructuring and the improvement we have, you know you, you are talking about it will still take more quarters or more months to recoup back to the IPM or above IPM growth for us or the process we have started on the corrective measures. How, how soon we expect or any guidance around that. Because last five months we have seen, you know we are lagging behind the IPM growth how soon we expect Them recovering back to the normal 1.2, 1.3 times IPM growth which traditionally man was delivering.
Mr. Rajeev Juneja
Shall I take this question? Yeah, please.
Unidentified Speaker
Yes, sir.
Mr. Rajeev Juneja
Yeah, yeah. See the point. Point basically is what I mean. You’re supposed to understand. We have gone for a major kind of a transformation in mankind. The last, I’ll say 12 to 15, 15 months time. Two, three things have happened. Try to understand. One, basically is what we started taking a transformation in the form of hiving of approximately 15, 20% field force raps and managers, leaders as well. And then hiring people. In this process, what basically happened? We overestimated our power of executing and making sure that the new people, those who join mankind, understand the culture of mankind.
We overestimated this and we did not understand properly and deeply. I should really confess it, the problems. Whenever any kind of happens and people are being asked that to leave some kind of insecurity creeps in people’s mind. So in this process, good people also went. So it has taken 12 to 15 months. So once you realize this fact that despite of taking actions, why the response is not coming, then you go even deeper down. And that made us more wiser in the form of that culture of mankind was not properly being understood by the people.
Because mankind is a very unique kind of organization. There are no targets. We believe only in daily sales. Please mind it daily sales, not weekly sales in the end of the month. We just want the total sales should not be more than 40% of sales done in first 21st. We are so rigid about these things. Rigid and rigid means rigid will not let anybody do. I’ll say more primary sales to meet the targets. Because there are no targets. We are always behind growth, right? And once you believe so much in hygiene and you bring new people and you bring transformation.
It takes time. So that basically is has taken time. And now we see in last couple of quarters that attrition which was happening has gone down drastically. Initially we asked people to leave. And during this process even good people left. Then we saw huge attrition. Because naturally insecurity creeped in people’s mind, happened in people’s mind. So when we went talk to people, brought everything transparently in front of everybody. And the new leadership. See, naturally new leadership also came. They came from different companies. And this time we took people from those companies. Those who are very good in the chambers and market of specialties.
Chronic side upper crust of the market, right? We’ve always been a bottom up kind of a company. So what basically happened? Even those people took time to Understand the culture. They came from Cipla, they came from Alkam, they came from Sun Pharma, they come every best company, right? So over there the culture is different. Culture is target, culture is other things. Good, they are good, we are good. This is not a point that we should say that our culture is good. But. But now everything has been understood. So now how the person should really see how we see everything. We see everything on 3, 4 basis. Whether our sales month after month is increasing or not increasing, that is what our quarter after quarter things are improving or not improving, number one, that is what we see.
At the same time we keep a very close eye on our daily sales. If daily sale is good, it is good because please understand, it’s a basic common sense. Because we have built this company with our own hands. Every department we have created ourselves, right? So we understand it very well. The simple logic is prescription is sale. That’s all. Rest, all is farce. Only prescription is sales. So we believe totally in that. So once you start building this kind of a culture which is totally unique, which is totally different, it has taken time. We honestly, we confess it very, very, I mean truly that we expect that we will be able to transform it in nine months time.
It has taken more time. I mean, we also feel, I mean a bit sorry that we should have really, I’ll say dived deeper in the initial phase, but don’t really, I mean we cannot change that now. Things are absolutely right on track, that I can assure you. And that’s one reason we are seeing our sales traction. See for example it was volume growth in first these nine months is 1.9% versus last year it was quite less. So right now if you just compare industry to industry, that would not be right. And I give you one more example.
Our growth in chronic side is approximately continuously from last quarter on quarter increasing and in the range of approximately 14, 15%. Look at industry. Industry growth quarter on quarter was 9, 10%, 11% only. Last quarter, only third quarter it is showing 16%. So this basically is beyond my apprehension because chronic is not acute, chronic is not antibiotics, that some kind of epidemic came, some problem came and it really increased. There can be 10,000 reasons for that. So right now just focusing that relatively quarter after quarter, month after month, are we on a path of right improvement or not, strong right improvements or not? This is what we, and we, we are very confident that we’ll be doing much better.
Chintan Sheth
Great, sir. All the very best. Thank you for. Thank you for all the best. I’ll join back In.
operator
Thank you. Ladies and gentlemen, we request you to please use the handset mode when you’re asking your questions for optimum audio quality. Our next question comes from the line of Kunal Dha Misha from Macquari. Please go ahead.
Kunal Dhamesha
Hi, good evening. Thank you for the opportunity. First few clarity is have you shared the organic growth in the domestic prescription business for this quarter?
Ashutosh Dhawan
Yes Kunal, we have shared. We have shared for quarter three it’s 9% plus and for nine months it’s 8.2% excluding OTC.
Kunal Dhamesha
Hello. Hello, can you hear me? Hello
operator
sir, please go ahead. You’re audible.
Kunal Dhamesha
Yeah, yeah. Second clarity on the restatement of the revenue. So when I look at the quarter 3 FY25 revenue it’s been restated by about 3132 crore. Can you share what it is related to?
Ashutosh Dhawan
So restatement is. That is based. The restatement is on account of the.
Mr. Rajeev Juneja
The. The. So restatement is on account of Mahananda. As you know that we have sold Mahananda in the month of Feb. So we have reinstated all the financial statements for the past four few quarters to align with the. And give Apple to Apple comparison.
Kunal Dhamesha
Okay. And then lastly when I look at you know the BSV revenue we have suggested it’s growing at a double digit pace. But when I put the organic numbers and I adjust the Q3FY25 number by that adjustment of 62 days out of 91 days then it seems like BSV revenue seems to be flat to me in Quarter 3 FY26 on a year on year basis.
Ashutosh Dhawan
So I’ll give you some color on the BSV numbers. So Q3 has seen a very strong growth in BSV upwards of 20% plus overall.
Kunal Dhamesha
But numbers are not suggesting that
Ashutosh Dhawan
20%. Plus has been better than the international business.
Kunal Dhamesha
Can you share the total BSV revenue please? Because numbers are not aligning with what you’ve been sharing. It’s coming out to be around 395 crore for me. The BSV revenue for this quarter.
Kunal Dhamesha
So we can take this offline. I think the growth is 20% plus.
Mr. Rajeev Juneja
For BSV total including the RX business business. And we can share the number. There is no issue. So the growth, the absolute number is. 464 odd crores including RX and other businesses.
Kunal Dhamesha
Okay, I. I think we need to kind of touch base on this because my numbers are totally different. And lastly on the consumer business I see we have been sharing that the secondary sales growth has been very strong for most of our Key brands. But it doesn’t get reflected in the primary sales. Right. So there’s been a trend for the last three quarters wherein all our secondary sales has been growing 15% upwards. But in our nine month primary sales growth is only around five and half percent. So what explains this gap?
Mr. Rajeev Juneja
If you just look at our OTC slide, the second quarter was approximately minus growth because of this GST and all other things. On the second side this third quarter our growth in E commerce business is upward of 30 40%. In modern trade is upward of 30 40%. And at some of the places we have put breaks and that basically is the reason the growth has not come. There’s some business called cash and carry and that in that business what happens people, those who buy instead of selling in the. I’ll say that to the consumer, they were selling to our own customers.
So that basically was creating a kind of rate cuts in the market that we just taken a. I mean hard stance on that without taking any, any other thing in mind in mankind. Again I, I must reiterate, hygiene is very, very important. We don’t want to really, I mean inflate the sales and tomorrow it really comes. That’s a major reason for that. Otherwise if you look at the secondary side, it’s better.
Kunal Dhamesha
But sir, at some point secondary sales should match up to the primary sales, right? So for the last quarter, you know we have been seeing double digit secondary sales growth but then primary is not coming up.
Mr. Rajeev Juneja
See last 3/4 or 4/4 what we have done, we have taken plenty of transformation. I mean maybe, I mean we have mentioned in the past that from few thousand stockies we reduce down to. We reduce down the number of stockists those would be responsible for doing our OTC business. That’s also one of the major reason that this kind of reflection is coming. But health of the organization is always a secondary and that we’re doing. Soon you will see upward improvements in OTC that we can assure you.
Kunal Dhamesha
Sure sir. And lastly
Ashutosh Dhawan
on the the last quarter. You need to look at differently because of GST impact there was a discount. So because of that also the primary sale got a got, got impacted. So that is why the mismatch between. And secondly as Rajiv ji has highlighted that once you increase the portion, the non GT portion which is the. The other components, modern trade and quick commerce etc. So, so there also the revenue recognition is at a lower rate because, because of the, because of the accounting policy. So. So that’s another reason why you see a subdued primary sales. So these Are the two factors why there is a reconciling? These two numbers are not reconciling.
Mr. Rajeev Juneja
Let me add one more thing. I mean, let me add one more thing here. I mean these good questions really, I mean steer our mind as well. Made us more, give us more resolve to act faster that you can take in account.
Kunal Dhamesha
Sure, sir, sure. And. And lastly one for Ashutosh.
Unidentified Speaker
If you compare the brands also for quarter two and quarter three. So some of the brands are common which is showing strong secondary growth and some of the brands are different also.
Kunal Dhamesha
But I think Man Force and Gasofast are the key brand. Anyways, the last question is on the impairment we have taken. So the last question for Ashutosha on the impairment of that 13 crore charge that you have taken related to BSV’s Hyderabad facility. So what has changed between let’s say our purchase price allocation exercise to now which has led to this impairment being taken now?
Ashutosh Dhawan
So.
Okay, that’s a good question, Kunal. So. So this was a land which was there in the BSV books. Okay. And since we are building up the facility at Vadodara, so therefore this particular piece of land has been classified as a surplus land. So therefore we are, we are in the process of returning it back to the authorities, this land. So because it in order to monetize this asset and returning it back. So whatever is the difference between the realizable value and the book value that has been recorded as the impairment cost for this.
Kunal Dhamesha
Okay, thank you and all the best.
operator
Thank you. Our next question comes from the line of Neha Manpuria from Bank of America. Please go ahead.
Neha Manpuria
Thanks for taking my question. While I got the background in terms of, you know, what led to the deterioration and how we’re seeing an improvement. Just wanted to get a sense, you know, do you think we get back to higher than industry growth, let’s say in 12 months time, 18 months time, based on, you know, what you’re seeing on the ground, how soon do you think we can get to, let’s say in line with industry growth or better than industry growth, do you think this would be a much more longer process or you know, just trying to get a sense based on.
Given that you’ve done so much work on the ground.
Mr. Rajeev Juneja
Neha, hopefully I mean all things are done because see we’ve always seen, I mean more growth than the industry always been like that. We’re so used to it that when it did not come it gave us a surprise and rather shock. And once you basically go through that kind of a Phase you go yourself, check everything, recheck it. And you do a bit of micromanagement as well. In the sense that why it is not happening, why these things are there and when and once you start seeing it. We found out the reasons and started acting faster.
And the answer I gave you in the past as well. I mean just few minutes back as well. Then, then, then we are seeing attraction is right. See to build a right kind of organization. Because this is our only thing we do 24, 7, 365 days. We think about mankind only. And we just believe in the strongest of the foundation. That it should be daily sales. Hygiene should be amazing. Whatever we speak should be really. I mean should be true. We should not give overestimation to people. We’ve always been conservative. For the first time we saw that and got surprised why it happened.
But what we see right now confidently things are really on a right track. The kind of. I’ll say the pulse. The kind of feel we want in mankind. We are having that see what basically has happened. So when this transformation happened, the transformation happened in raps first lines and in top line as well. And when top line came from different companies. They are able people, talented people, amazing people. We need those people. But there is a huge difference in culture of mankind. And I can tell you honestly with the rest of the industry. No targets daily sales last week sales should not happen.
Who does it? Nobody does it. So we are a different company. I mean most of the pharma companies do what they have different style. This style is good. But our style is very unique. Right? In one division 1700 people versus any other pharma company would be having 300, 400 people. Having 30, 40 brands. Right. In one division versus I mean 4, 5 or maximum 10 brands working. So our working is totally different. 5 lakh plus doctors coverage. Deepest coverage. There’s a formula that 20% results come from 80%. 80% comes from 20%. But we don’t. We didn’t follow that. Our 70% sales come from 70% doctors. That kind of a philosophy we have always followed. Never followed anything. Whatever everybody is doing. So once you start working in this kind of a organization it takes time to explain to everybody as well.
But honestly we are very confident things will improve things. Things have really come to you. Right? Right. Right. I’ll say that stage actually which are giving us comfort and confidence.
Neha Manpuria
Understood sir.
Ashutosh Dhawan
If I can add to Rajiv sir point what is said one thing I would like to add that if you see the stability in the team in Every quarter team is becoming more stable. Attrition has gone down that give us a full confidence that in a quarter going forward, every quarter things will going to improve. And mankind would be back to its original manframe.
Neha Manpuria
Got it sir. Prakash, this 464 crore BSC cover that you gave for the quarter, would this number be higher? Quarter on quarter? Flattest quarter on quarter. What would be your sense of what would be this number for second quarter?
Ashutosh Dhawan
So we are giving growth numbers.
So Q1, BSV grew mid to high single digit. Q2 was mid to high single digit. And Q3 it is upwards of 20%. So overall in nine months it’s about you know, double digit early teens overall.
Neha Manpuria
Okay, got you. And the 9.1% organic growth that we mentioned for mankind, domestics or 9 odd percent. That does not include the TTK portfolio that we have moved. Right. Or does that include the TTK portfolio that has been moved to man?
Ashutosh Dhawan
So it happened during the quarter when we are given BSV guidance we have included the rx but however 9% would have an element of few days coming into man.
Abhishek Agarwal
Nine percent include TTK portfolio, mankind, bse, both. So basically this nine percent if you’re talking about it’s only mankind excluding TTK portfolio, excluding otc.
Neha Manpuria
Sorry Abhishek, I lost you. But no worries, I can take that offline.
Abhishek Agarwal
So basically let me repeat what I’m saying. 9.1% includes only mankind. It does not include OTC. Does not include BSP portfolio, it does not include TTK portfolio.
Neha Manpuria
Okay, got it. Okay, thanks for clarifying that. And my last question is on the consumer health business. You know the. The stockings that we have reduced etc. Would that mean that our sales have been reset lower for the next few quarters? Like this is the new base that we should build in for the.
You know, for the OTC business. And how should we look at growth, you know in the next year then for the OTC business?
Abhishek Agarwal
Yeah. Would you like to take outlook for OTC for.
Mr. Rajeev Juneja
Yeah, yeah. I. I gave, I gave my answer. I gave my answer. I gave the answer that see in last couple of quarters a lot of things we have undertaken. PSP is one, consumer is one. Total mankind is one lot of things we have done all in last 15 months time. And don’t forget that we took them in BSP few in the month of November only. So in consumer side we took many transformative actions. That number of stocks were reduced. Then we see, then we saw that it’s unlike prescription kind of a thing. It’s only depends upon the demand.
So there’s a, somewhere part of push and some part of pull. Both sides are there. Then you make sure that it should be right. It should not become imbalance. Imbalance that you end up putting more primary sales and secondary sale is less. So during this total process we got certain success in E commerce a lot, in this modern trade a lot. Then we saw one thing that this cash and carry kind of a business was there that we stopped. So we see all the things have been done. I’ve explained you that. And we hope that going forward next year, double digit growth.
Good. Double digit growth will be there.
Neha Manpuria
All right, thank you so much sir.
Ashutosh Dhawan
I said if you look at the. The 5.2% growth looks muted because, because last year the, the last quarter grew by 30%. So it’s a base effect as well. That’s why this is looking a bit muted. And the quarter prior was impacted because of monsoons and GST2 impact. So we are hopeful that going forward we are on the path of recovery for this business.
Neha Manpuria
Thank you so much, sir.
operator
Thank you. Our next question comes from the line of Siddharth Nagandi from Chanakya Wealth Creation. Please go ahead.
Sidharth Negandhi
Hi sir. Thank you. I think there’s been a fairly good understanding on, you know, what transformation has happened on the people front. If I would, if I would ask on how do you see the product portfolio to supplement this, right? You, you highlighted about how you outpaced XGLP1 growth. But then GLP1 is a reality of the future, right? And therefore in terms of the impact that GLP1 has had on your own existing portfolio, if you could share some color on that and your own plans on launching GLP1s. That was question number one. Question number two, on the acute side of the portfolio, are you seeing the growth being impacted more by trade generics or by loss of share to sort of other IPM players, how are you seeing that? That’s question number two.
Question number three, you spoke about E commerce and modern trade growing about 30, 40% in OTC. You know, certain quick commerce players have highlighted the fact that sexual wellness for them has grown, you know, multiple sort of upwards of 100% within this. If you could give some color, you know, on how your growth has been and how the share look like for you. And then fourth, you mentioned about the NSV for quick commerce and modern trade being lower than gt. How does the EBITDA profile in that case case compared to GT and therefore how should we think about profitability for that business as these channels Sort of gain more salience.
Mr. Rajeev Juneja
Yeah, I can take few lot of questions. So the first one was on glp. So it’s a currently innovative market and we are on track for a day one launch. It would be around you know March. Somewhere around March end. So we are on track and we. Expect to be a participant in the launch in day one. So that’s your first question. On the acute side you talked about the impact of you know, trade generics, etc. I think first of all the impact is our internal corrective action that we are taking and that’s why the growth. Has been muted than the market. As Sheetalji in the opening also said. That there’s already some, you know recovery that you have seen in gynac and gastro. So apart from cardiac which has been. Consistently outperforming ipm we are now seeing good recovery in gynac and gastro also. Only anti infective is the area where we are still underperforming there as you know that is a space where there is a lot of work going on. We have increased the GP penetration which we had lost due to the team know reject that happened. So this will also eventually come back. And that’s why you know we have full confidence that we’ll be able to outperform IPM going forward. Might take little time but we are. On track with that. From a trade generic side I think market is much bigger. It caters to a certain population, we cater to the prescription market and there we expect that you know healthy market. Growth of 8 to 10, 10% is. Possible and going forward we like to our you know endeavor is to outperform that. From a E com empty side I think NSP is generally lower given that you know, the quick commerce keeps their margin etc. But we can’t give you a specific on margins and growth of sexual wellness. We don’t give product wise breakup overall we expect that Q4 you would see. Start seeing double digit growth. And for the guidance for next year we’ll come back to you on Q4.
Sidharth Negandhi
Sure. So just to follow up on that, you can take the last two questions please.
operator
Certainly sir. Our next question is from the line of Kunal Rand area from Access Capital. Please go ahead.
Unidentified Participant
Appreciate Rajiv Ji’s you know, explanation on what things went wrong and how you know you’re kind of rectifying it. So it clearly seems looking at the. Therapy growth that it’s not a systemic issue. So I’m just wondering how come this came out in the first place. Number One and number two, are there. External factors in play also or maybe like something like trade generation, starting a business, Something like.
Mr. Rajeev Juneja
So I should answer this Prakash. The question basically is what that External, external, external impacts. Right.
Unidentified Participant
External factor, sir,
Mr. Rajeev Juneja
is there and was there. Yeah, yeah. It, trade generic was there and is there and would be there, there’s no doubt about that. But being a dynamic kind of a company, we should really take these things in stride. The point basically we explained to you is that still approximately 60% or 61% business of man comes from acute side. It depends upon relationship with people, doctors, all sort of things are there. That is the only thing in mankind.
We feel nothing else. I mean as far as this question answer is concerned.
Unidentified Participant
Sure. So I understand. That’s why what I didn’t understand, pardon my ignorance here is see a cardiac and diabetes is doing extremely well. Right. So the cultural issue that you spoke. Of obviously doesn’t seem to be in those divisions. So how come it came in from the acute division especially when you don’t give aggressive targets.
Mr. Rajeev Juneja
So again, again, again, understand the point. Point basically is what when you are dealing in acute side, you bring daily prescription. In chronic side one is there, it’s yours, you keep working. I mean whatever new prescriptions you generate that really adds to your growth. That’s the answer actually. I mean we could have expected more growth in chronic as well. So we’re not happy with 15% growth as well. So it’s always been continuous hammering, continuous reminders to the customers. It’s like this only.
And plus in chronic side, lot of our brands have become quite big and big becomes bigger in chronic very fast. Again, let me, let me add one more thing. If I talk about the anti infractive side, our maximum sales come from oral therapies, oral side in industry it is Approximately, I mean 60% oral, 40% I’ll say injectable, that’s another thing.
Unidentified Participant
Right.
Mr. Rajeev Juneja
Thank you.
Unidentified Participant
Thank you. Just one more if I can. So we have a fantastic last three, four years in export growth this quarter. You mentioned some mixed engagement growth so I’m assuming it’s in rupee terms. So in dollar terms I think there. Would have been a decline. I guess. So will this continue because of the base or you expect that to recover Maybe in the coming quarters.
Abhishek Agarwal
See Kunal, we have already always maintain our stand that wherever we go we go with a complex niche molecule which are difficult to manufacture. If you see last year our US sales and growth was mainly opportunity based because of one eyedrop was there. So and in row we are in the process of sending the dossier to different countries. The commercialization will happen after a couple of years. Maybe 28, 29. So our main focus will remain in domestic.
Still 85% in us. Whenever any opportunity will come, definitely we’re going to go for that. But we won’t compromise on EBITDA and we will go for a niche, niche complex molecule in rw. It will take another three, four years. So our focus was domestic and will remain domestic.
Ashutosh Dhawan
With our guidance what we gave for the year.
Unidentified Participant
Sure, sure. Thank you. Thank you.
Mr. Rajeev Juneja
I hope it’s clear to you. So the current participant is left the queue.
Abhishek Agarwal
Sir, you take the last question.
operator
We will. Yes, we have the last question from the line of diresh from White Oak. Please go ahead. Yeah.
Unidentified Participant
Thank you for the opportunity. So this transformation thing, I think we started about a year back at the same time as the BSE acquisition. So now one year out since we started this. What? And you can give me approximate number also like what percentage of our field force including managers and all would be, you know, new to mankind. Meaning they joined new in these last 12 months. And what percentage of our client facing field force is old which is aware of the mankind culture that you talked about in the call today as well.
Ashutosh Dhawan
Approximately 20 to 25% is new. Yes. You know 20% in
Mr. Rajeev Juneja
cluding all new managers. And field force, it is overall around 20%. This 20% also it’s not at one go. So you know it. It happened in phases. So it is not about one year. We are having a 20% new people. So it is in phases.
Unidentified Participant
Only 20% is new to the culture. Why is the impact so much? Why is it taking so much time? Normal attrition in the industry is quite high. So 20% new to culture is not that big a number. Why is it taking so much time to get to the rhythm of mankind is now I’m not able to understand.
Mr. Rajeev Juneja
See, I think Rajiv sir has already told.
See, our 60% business is more of acute. And within the 60% also it is more of GP dominated. Right. So in GP cases of business our relations, personal relationship with the people matters a lot. So any when the faces change that. You know relations and the impact also goes away. So that created a lot of impact. Especially in our deep interiors and our deep reaches. So I think what you are asking that why 20% is giving so much of impact. This is one of the reason. Because one is our portfolio was dominated by acute and major support was coming from gps.
Ashutosh Dhawan
And one thing I would like to add that Raiji, we have done so many things in last one year or so maybe BFB acquisition, restructuring of OTC then correction in mankind Pharma and mankind was very strong in UP and is very strong in up.
The little attrition happened in UP and because of that it took little time where the PCPM was huge in some part of up, some district of up. So that’s why so many things have happened simultaneously at the same time in last 16, 18 months. But now if you see the quarter on quarter going forward every quarter as anti infective will grow the things will be much better.
Unidentified Participant
All right, so looking forward to that. On an year on year basis. So you know like around 15, 18 months has been involved in this strategic measure. Basically 20%, you can say part was impacted in last financial year and part of which is impacted in this financial year.
So broadly a slightly bigger number which you can say is a new feed force.
Mr. Rajeev Juneja
Okay, Abhishek, let me answer in a different manner. Abhishek, let me answer. Can I answer in different different manner?
Unidentified Participant
Yes sir, I’m listening.
Mr. Rajeev Juneja
See, it’s all, all matter of heart only. I mean for example, if in your office 20 people are being asked to leave systematically what kind of energy would be there in total team? Just think about that. That’s the right answer. So it’s not only numbers that matters. Whatever numbers are left, what kind of a heart and mind they’re giving in the work that also matters a lot. And we are always that kind of organization because where energy is everything.
So don’t look only numbers. Numbers, right. See the force behind numbers. If, if 80% people start giving hundred percent kind of their energy or 1 10% kind of energy, wonders can be done. If same 80% only 80% people start giving half of their energy because they’re, they’re also insecure. They also need some kind of a reassurance. So understand that from that perspective we think from that line only.
Unidentified Participant
Understood.
Mr. Rajeev Juneja
Thank you.
operator
Thank you ladies and gentlemen. We will take that as a last question for today. I would now like to hand the. Conference over to the management for closing comments. Over to you gentlemen.
Mr. Rajeev Juneja
Thank you Darwin and thank you everyone. And for any further queries or clarification, please feel free to write to us on investor.relationsankindpharma.com thank you and stay happy, stay healthy.
operator
Thank you on behalf of Mankind Pharma Ltd. And that concludes this conference. Thank you all for joining us. You may now disconnect your lines.