Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Mankind Pharma Limited (NSE: MANKIND) Q4 2026 Earnings Call dated May. 20, 2026
Corporate Participants:
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:
Kunal Dhamesha — Analyst
Tushar Manudane — Analyst
Unidentified Participant
Sidharth Negandhi — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Mankind Pharma Ltd. Q4FY26 earnings 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. Please note that this meeting is being recorded. I now hand the conference over to Mr. Abhishek Agarwal from Mankind Pharma Limited. Thank you. And over to you sir.
Abhishek Agarwal — Head, Investor Relations
Good afternoon everyone. We welcome you to our fourth quarter NFY 26 earnings call. On call today we have Mr. Rajiv Jureja, our Vice Chairman and Managing Director Mr. Sheetal Arona Chief Executive Officer and whole time Director Mr. Arjun Juneja Chief Operating Officer Mr. Sudipta Roy, Senior President Sales and Marketing Mr. Ashudos Dhawan Global Chief Financial Officer and Mr. Prakash Agarwal President Strategy. We will begin today’s discussion with Rajiv Junengas providing quarterly and annual update followed by business insights from Mr.
Sheetal Arora. Thereafter Mr. Ashutosh Dhawan will provide a detailed overview of the financial performance before we move on to the Q and A session. Please note that statement made on these call that relates to future event or performance are forward looking in the nature and reflects management current expectations. These statements are subject to various risk and uncertainties. An actual result may differ materially and mankind does not undertake any obligation to update or revise these statements in the future.
A detailed disclaimer in this is included in the investor presentation uploaded on our website with Now I’ll hand over to Rajir sir for his remarks.
Mr. Rajeev Juneja — Vice Chairman & Managing Director
Thank you Abishek and a very good afternoon to all. Welcome to the quarter four and 26 financial year 26 earning call. In financial year 26 we made steady progress in strengthening our core business while continuing our strategic led growth. Our focus initiatives towards people, processes and technology supported by better execution, discipline and capability announcement are now translating into quarter on quarter performance improvement. In quarter four our overall revenue increased by 11.8% year on year to 3443 crore with adjusted EBITDA margin of 27.1%.
And for the full year 26 revenue increased by 17.0% year on year to 14,278 crore rupees with adjusted EBITDA margin of 25.4%. Domestic revenue excluding consumer healthcare increased by 12.9% in quarter four driven by double digit growth in mankind domestic business supported by robust growth in BSV Specialty business. For the financial year 2026 overall domestic revenue increased by 14.4% year on year. Moreover, I would like to highlight that our volume growth has increased to 2.3% in financial year 26 versus 0.5% last year.
LED by strategic initiatives undertaken in last few quarters. Mankind’s overall PCPM has also improved to rupees 7.2 lakh per month and in financial year 2026 from rupees 6.5 lakh in financial year 25. The secondary sales as per IQVR during the quarter was 8.7% versus 10.7% IPM excluding GLP1 primary due to strong performance in chronic growth supported by 14.7% in cardiac and 11.6% in anti diabetes. Muted growth in anti infective partially offset by quarter on quarter recovery in gastro, gyneco vitamins and Irma Mankind chronic share increased by 120 bips year on year to approximately 40% during the quarter and 190 bps to approximately 39% in full financial year 2026.
We expect this growth momentum to continue. We witness 1.1x outperformance to IPM in cardiac and 2.1% outperformance in to IPM in anti diabetic again x GLP1 in financial year 46. In financial 26 our brand portfolio continued to scale as a number of 200 crore brands increased to 13 from 11 in financial year 25 while rupees 50 crore brands increased to 54 from 49 in financial year 25. To further strengthen our specialty chronic portfolio during the during the quarter we acquired the brand from Roche, a renowned textbook brand of clonazopam brand used for neurological and psychiatric conditions including epilepsy and Caesar disorders.
BSV domestic specialty business witnessed strong double digit growth led by robust growth in mandate brand like entity Foligraph hmg. During the quarter our revenue from OTC business increased by 20% to rupees 213 crore. The growth was primarily driven by strong growth of 57% year on year in modern trade and e commerce channels. For the financial year 2026 revenue increased by 9% to Rupees 879 crore. The steady sequential improvement across brands, therapies and divisions strengthens our confidence in regaining our growth momentum as seen in the past.
As the industry landscape transforms, our strategic focus is now increasing towards specialty chronic therapies and R and D led innovation products. We continue to invest in and adopt best in class technologies enabling us to build a more resilient, differentiated and future ready organization for long term sustainable growth and we remain confident that in financial year 27. We will be much better here as compared to year 26 for all our businesses. Now I invite Sheetal to provide more details on our business performance.
Mr. Sheetal Arora — Chief Executive Officer & Whole-Time Director
Thank you for joining us For Mankind Farmers Quarter 4 and Financial Year 26 Earnings Call. It is a pleasure to connect with you all today. Financial year 26 has been a year of improving execution, disciplined growth and deeper integration across businesses. Our performance this quarter reflects not only healthy demand momentum but also the resilience of our business model, the strength of our brands and the commitment of our team across the organization. Let me begin with our domestic business in quarter four financial year 26, our domestic revenue grow 13.4% year on year to Rs 2,886 crore.
More importantly, our organic growth excluding OTC stood at 10.1%, the highest level since the BSV acquisition. This growth was broad based driven by improving execution across improving execution across therapies, sustained momentum in chronic therapies and strong traction in BSE domestic portfolio. For financial year 26 domestic revenue increased 14.4% year on year to Rs 12,217 crore with organic growth of 8.6% excluding OTC. What gives us confidence going forward is that this growth is supported by improving prescription strength, healthy volume expansion and strong brand traction across multiple therapies rather than being dependent on any single product or category.
Let me share some key highlights for the quarter starting with our acute businesses. As per IQVR, our gastro portfolio outperformed the market growing 1.1 times the IPM growth rate. Flagship brands such as Pentagon delivered strong momentum outperforming IPM by 1.4 times. We are also encouraged by the continued leadership of Vona Pradhan which is now the number one PISCAI brand by both value and and volume in its category. In gynecology we delivered 10.8% year on year growth supported by 6% volume.
Our Dadoj strong portfolio grew by 20% year on year while our IVF portfolio maintained excellent momentum led by 52% growth in foligraph and 40% growth in HMG across other acute therapies as well we are seeing healthy momentum. Vitamins and Minerals therapy grew 12.5% year on year while brands such as Neurokind, RGPress and D3 must also delivered healthy performance coming to chronic therapies, an important long term growth driver for us in anti diabetes. Excluding gap one we outperform IPM by 1.6 times supported by 5% volume growth, improving our CVM rank to number four in cardiac we outperform IPM across all key molecules.
Telmikind has now become a rupees 750 plus crore brand for us while our brands in Rosa was 18 and Selena Dipin are among the fastest growing in their respective segments. One of the strongest indication of the sustainability of our business continues to be our prescription leadership. For the ninth consecutive year we maintained our leadership position with rank number one in prescription supported by 15.1% prescription share and 84.1% prescriber penetration. This reflects the trust we have built with doctors over decades supported by consistent quality affordability and strong field execution.
Moving to our international business, our export revenue for the quarter grew by 4% year on year to Rs. 557 crore primarily impacted by geopolitical headwinds. However, on full year basis our international business revenue increased by 35% year on year to Rs.2061 crore. Looking ahead we remain optimistic about the long term opportunities in international market. During the year both our Udaipur and Ambaraj facilities received EU GMP certification which will further strengthen our ability to expand into semi regulated markets.
As we move forward, our strategic priorities remain very clear to continue driving scale with profitability, to strengthen our presence in chronic and specialty therapies and most importantly to build future ready healthcare organization with long term sustainable growth. With that I would now like to hand over the call to Ashutuji who will take through the financial performance in greater detail. Thank you so much.
Ashutosh Dhawan — Chief Financial Officer
Thank you Sheetalji. A very good afternoon everyone. Thank you all for taking time out to join our Quarter 4 FY26 earnings call. Today I will be sharing detailed insight into our financial performance both for the quarter and as well as FY26. Our revenue from operations for quarter four FY26 has increased by 11.8% year on year basis to Rupees 3443 crores as compared to Rupees 3079 crores in Q4FY25. This was led by strong 13.4% growth in the domestic business. For FY26 our revenue grew by 17% year on year basis to Rupee 14278 crores visa vis Rupees 12207 crores.
In FY25 our gross margins for the quarter has increased by 60 basis point year on year basis to 72.2% from 71.6% in Q4FY25. This increase is majorly led by better sales mix as our chronic contribution has increased by 120 basis point on a year. On year basis for the full year our gross margin has marginally improved by 20 basis point to 71.6% as compared to 71.4% in FY25. Our adjusted EBITDA margin for the quarter has increased to 27.1% as compared to 23.1% in Q4FY25. This increase of 400 basis points is on account of 60% basis point increases in the gross margin 240 basis point benefit is from the operating leverage and moreover Q4.
Last year expenses had a higher base because of launch and relaunch of certain focused brands. Our reported EBITDA margin for the quarter is 26.4%. The difference between the reported and adjusted EBITDA margin is due to the true up impact of the new labor code adoption. For FY26 our adjusted EBITDA margin is 25.4% which is within our guidance range of 25% to 26%. This adjusted EBITDA margin is lower by 50 basis point as compared to last year which is primarily attributable to higher R and D spend.
The R D expenses for the quarter was rupees 103 crores which is at 3% of the sales and for the full year 2026 is 2.8% of the sales which was 2.2% in FY25. This 2.8% is in line with our guidance of 2.5% to 3% for the full year FY26. The finance cost for Q4 FY26 has declined to Rs 142 crores from rupees 157 crores in quarter 3 FY26. This reduction was primarily driven by full quarter impact of of repayment of the final tranche of commercial papers of rupees 1500 crores in Q3FY26. Along with this there were certain repayment of the bank borrowings during the quarter.
In Q4FY26 the depreciation and amortization expenses was broadly in line with at INR 223 crores as compared to rupees 231 crores in quarter 4 FY25 and if we look at the full year the depreciation and amortization expenses has increased to rupees 886 crores visa based rupees 621 crores in in FY25 which is primarily due to the full year impact of depreciation and amortization related to BSV assets. The effective tax rate for Q4FY26 was at 15.1% as compared to 16.8% EGR in Q4FY25. However, the effective tax rate for the full year FY25 is 16.9% as compared to 20.3% last year.
The profit after tax for Q4FY26 grew by 30.4% year on year basis to rupees five hundred and fifty nine crores with PAT margins improving to 16.2% during the quarter as compared to 13.9% in Q4FY25 resulting in an increase of 230 basis point. This growth was primarily driven by stronger EBITDA margin and lower finance cost. However, in the last year FY25 we recorded higher other income on account of gain from monetization of our subsidiary Mananda Spa and Resorts. Our diluted EPS is rupees 13.4 per share of rupee 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 19.1 from rupees 15.9 in quarter four FY25 an increase of 0.5% year on year basis. For the full year FY26 PAT decreased marginally in value terms by 3.4% on year on year basis to rupees 1938 crores from rupees 2007 crores last year. The PAT margin for FY26 is 13.6% which has decreased by 280 basis point year on year basis from 16.4% to in FY25. This decline is primarily driven by higher finance cost and depreciation cost along with lower other income due to PSV acquisition which got consummated in October 2024.
The diluted EPS and cash EPS for FY26 were at Rupees 46.3 and Rupees 68.1 respectively. The net working capital days as at 31st March 2026 is 52 days as compared to 50 days as at 31st March 2025. In FY26 our CFO to EBITDA ratio has increased to 89% as compared to 80% in FY25. This is primarily driven by reduction in effective tax rate and working capital in value terms has remained constant as at 31st March 2026. Our capex spend in FY26 increased to rupees 737 crores remaining at 5.2% of the total revenue which is at the higher end of our guidance of 5% of revenue as highlighted by Rajiv ji.
In line with our enhanced focus on R D and specialized products, we are setting up a new best in class biotech facility in Vadodara. Accordingly, our Capex guidance for FY26 is expected to be in the range of 6% to 7% of FY27 revenue. In line with our prudent financial strategy. Our net debt is rupees 3932 crores as at 31st March 26th resulting in the net debt to adjusted EBITDA ratio of of 1.1x in Q4FY26. We remain on track to repay the acquisition related debt by FY28. 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 sir. We can open the forum for Q A.
Questions and Answers:
Operator
Thank you very much. We now begin with the question and answer session. Anyone who wishes to ask a question may click on the raise hand icon to ask your questions. Participants are requested to announce their company name before proceeding with their question. We’ll wait for a moment while the question queue assembles. First question is from the line of Kunal Damisha. Kindly announce your company name and proceed with your question. Can
Kunal Dhamesha
You hear me?
Operator
Yes, go ahead.
Kunal Dhamesha
Hi, this is Kunal from Macquarie Capital. Thanks. Thank you for the opportunity and congratulations on good set of numbers. First question for Rajiv sir on you know some of the disruption that we had witnessed in FY26, you know in in some of our teams and we had done a lot of hiring, you know and they were undergoing training etc. So where do you put progress on those aspects now do you think that the entire disruption is behind us and then we are like back to business as usual for our domestic business.
Mr. Rajeev Juneja
Kunal, thank you so much for this question. You have said in the past as well that whatever corrections were to be done are done now. We are on the path of recovery and as you can see in the fourth quarter and as you hold totally year performance of mankind it is the night track. So whatever see I mean we are basically acute heavy company. 40, 38 approximately sales come from chronic side. So whenever any kind of disruption happens, chronic does not get affected because of its own reason. Patient keeps taking it.
Only in the case of acute we got some hit. Now since people are properly placed, things are at the environments elsewhere Very right. So we see, I mean path to recovery, path to better growth performance better than the last year.
Kunal Dhamesha
Sure. And on that note sir, could you provide some outlook for top line growth for FY27 as well as the profitability outlook.
Mr. Rajeev Juneja
So I can see only one thing, that growth would be better. Top line growth would be better than the last year double digit. And also we’ll try to, I mean outperform the iqvr. That’s the aspiration actually. And as far as the bottom line is concerned, EBITDA is concerned that too would be better than this this year 26 we can expect, I mean the guidance has been given to 25.5 to 26.5 in the cat range of that
Kunal Dhamesha
For the EBITDA margin. Okay. And then lastly on you know, the GLP one, you know, segment. Right. That is, you know, because of that IPM is also witnessing a faster growth and I believe we were supposed to be launching RGLP1 uh, in the month of April or something. So where are we on that journey? And you know, with the initial market formation you would have seen, you know, what’s the base best positioning that you would kind of go ahead with in terms of product as well as the placement of the product.
Mr. Sheetal Arora
We continue to believe that GLP1 represent a very large and long, large long term opportunity for the Indian market. Our approach remains strategic and focus on long term value creation. We do not want to compromise on the profitability in an increasing grounded market. Along with the GLP1 we are also focusing on adjacent and supportive therapies such as vitamins and minerals, proteins and ga related products to build a stronger and more sustainable long term growth. So we always believe that profitability should be better because there is a matrix in the market right now of GLB1.
So we are focusing on GLP1. It’s a long term and a large opportunity for any Indian companies to ignore that. But we are also focusing on adjusting and supporting therapies like vitamins and minerals and protein which will going to grow better in the time to come.
Kunal Dhamesha
So sir, when will our launch be there on GLP1 front and then which all formats we are targeting?
Mr. Sheetal Arora
We already launched around a month ago.
Kunal Dhamesha
We are
Mr. Sheetal Arora
Targeting those endocrine chronologies.
Kunal Dhamesha
Endocrinology Dr. Okay, perfect. I have more question. I’ll join back the queue. Thank you and all the best.
Operator
Thank you. Next question is from the line of Tushar Manodani. Kindly proceed with your question and announce your company name.
Tushar Manudane
Yeah, myself Tushar from Motila Loshwal Financial Services. Again congratulations on good set of numbers. So just going forward, while you have highlighted on the growth guidance, would you also share the perspective in terms of what’s happening on the raw material cost side given the kind of sort of turmoil that’s happening because of this Middle east war issues and which could which might have impact on let’s say gross margins and EBITDA margins.
Mr. Rajeev Juneja
You cannot deny that some kind of a disruption is there as far as the raw raw materials are concerned, packaging metal is concerned, excipient concerned. But whatever precautions we had to take we have taken and hopefully whatever guidelines have been given, we try to just cover up will come up to that expectation. That’s a hope actually.
Tushar Manudane
Understood. So secondly on the consumer health side while FY25 was pretty strong but FY26 again the growth has moderated. Maybe fourth quarter particularly there was a low base effect so 20 growth. But having said that, FY26 again has been a moderate year for consumer health. Could you highlight any initiatives to revive or further sort of strengthen the growth in this end
Mr. Rajeev Juneja
Initiative in the form of that whenever something is wrong in mankind we just work on the basics, fundamentals and that we are continuously doing. And hopefully next year as well we will just give double digit growth in consumer division, better margins and better things will happen.
Tushar Manudane
Would this be backed by any new launches? Sort of this or would be more like line extension of the existing brand?
Mr. Rajeev Juneja
In OTC side it’s always the brand value. The strength of a brand in terms of revenue is more important. Whatever new launches will happen, they these launches will be extension of the present brands only. So no new launches right now because last year we launched two, three products. I mean they need to really come to a critical mass, some kind of human level of revenue. Then only we can think of launching more products.
Unidentified Participant
If I can add Tushar, the year was also impacted by Q2 GST too. So couple of basis points impacted there. And secondly there’s a lot of initiative as seen from the IR tech also that E commerce is growing at 50% plus so that is a very growing segment for the consumer. So there’s a lot of impetus in growing that segment as well.
Tushar Manudane
Understood. And lastly on exports while the INR terms growth has been 5% so if you could like I assume that in the constant currency the growth would have been further muted and if you could further break that down into exports of mankind and exports BSV and you know share like how we expect to revive this group
Unidentified Participant
So we are not breaking it down in terms of, you know, Mankind and BSP. It’s all one company now. Since Q4 is a full quarter presentation however we can give you some color that man can growth was better than BSP and BHP was partly impacted due to some of these countries where it has some exposure LATAM, RCIs and some leadership change in Philippines which is one of the largest market. So there was a little dip in the fourth quarter but next year we see revival. We are expecting high double digit growth in both these international business units,
Tushar Manudane
Broadly tender business and non tender business at least in the exports part. If you can give that breakup.
Unidentified Participant
No, we don’t call it out so we just focus on mandate brands and.
Tushar Manudane
Okay, got it. Thanks. Thanks a lot. That answers my question.
Operator
Thank you. Next question is from line of Harith Amid. Kindly announce your company name and proceed with your question.
Unidentified Participant
Hi, this is Harith from Avendus. My first question is on the chronic therapy performance that you disclosed. So while for the year we’ve indicated a 1.1x performance versus IPM for the fourth quarter it’s come in a bit lower at 0.9x. So are there any pressures that we’re seeing on the chronic side in certain therapies which is leading to a bit of softness in 4Q
Mr. Sheetal Arora
There is no pressure on chronic therapies because it’s a long term growth. We believe that chronic growth trajectory remains sustainable over the long term. See Indian continue to be remain a significantly under penetrating therapies like diabetes, obesity, cardiac care and respiratory. Because the way lifestyle diseases are increasing diagnosis level are also improving and healthcare awareness are also increasing. Plus insurance penetration is also gradually rising. So we are not chasing short term growth, we are investing franchisee and therapy that can compound sustainability for many years.
So we have, we have invest. We have. See around 20 years ago mankind was nothing in growing therapy. Now we are approximately 39% contribution comes from chronic therapy. So one or two quarter doesn’t make any difference in chronic therapy. Maybe it’s a. For a long term we have to see.
Unidentified Participant
Okay, got it sir. And then like you disclosed the 1.1x versus IPM for chronic therapies. What would that number be for acute therapies? And then you know for, for the quarter you’ve called out certain acute brands like Cefokind recording a very strong outperformance. So for acute therapy specifically how should we think about growth in FY27
Mr. Sheetal Arora
Acute therapy would be in the line of IPM growth. So last year we our acute growth was muted but this year it would be matching the ipm.
Unidentified Participant
Okay. And lastly on the, on the margins for the quarter at 27% this is probably the strongest that we’ve seen in the last few quarters. So and I can also see a very strong significant control on employee costs and other expenses. So what exactly is driving this and should we look at this 27 odd percent level of of EBITDA margins at the combined business level to sustain.
Ashutosh Dhawan
Let me start with the EBITDA margin guidance so that Rajiv Ji has given that it’s it will be better than the this year and we are expecting to be 25.5% to 26.5% for the for FY 2027 and this year the performance has been better. Approximately 400 basis point is there which is a mix of one is the GC has been better. 60 basis point is coming. Plus the operating leverage as we called out in the that has also played a role that we have been able to control and then there has been certain reversal or the waiver of the, of the, of the commission.
So that has also contributed to to this. So that’s why the margin improvement has been there on a year on year basis. In addition to that, if we look at coupon last year there was a bit of a bulge in that because certain BSV related brands were relaunched, repackaged and plus we also launched mpam so there were certain launch and relaunch related expenses which were there.
Unidentified Participant
Okay, got it. Sir, thanks for taking my question.
Operator
Thank you. Next question is from the line of Siddharth.
Sidharth Negandhi
Hi, thank you for taking my question. Congratulations on a good quarter. Just wanted to understand and follow up to Harith’s question. There is a quarter on quarter significant decline in employee expenses. Is that on account of certain manpower rationalization and on a sustained basis how should one think of that? Secondly, on the GLP1 launch, are you, are you looking to launch both pens and vials and what about the oral format and and in continuation of that GLP1? Right. What kind of an impact have you seen on your base diabetes business and how do you see that play out going forward in context of GLP1s doing the way they are?
Yeah, those were the questions.
Mr. Rajeev Juneja
Let me answer you for the GLP1. So there’s a mad rush in the market. Every company is launching and if at this particular time you launch, you’ll be lost somewhere. So we’ve always been a contrarian kind of organization. We always think what others are doing we should not do in this competitive market. We have launched our GLP panel and we are not in a hurry to launch oil. We are not in a hurry to cut down the prices. What we’re doing we are basically working on the adjacent therapies like vitamins, minerals, proteins side because ultimately a company which would be selling the complete portfolio will be having a better advantage.
So our approach is bit different than the rest of the people actually. So if you launch in 50 people’s or 50 people 5050100 kind of a competitive market will end up losing will not be even noticed. Had we had the advantage of launching this product first one or two months in advance then it was all right, not now we have launched our pen and we basically are building it slowly and gradually. Let this strong get passed. Let people burn their own things that will come and next to your question is for
Ashutosh Dhawan
Yeah so this is so regarding the employee cost. So so there are two question one is the quarter on quarter drop and the sustainability aspect. So so so before commenting on quarter on quarter sequential drop let me draw you to the to the whole year number. If you see the full year perform or the full year employee cost FY25 and 26 in percentage basis to the overall revenue we are almost flat 22.1 22.1. Value wise there is increase of 491 crores on our overall for the full year performance which is partly because of BSV because last year BSV was for 159 days.
This year it’s for the full year impact is there if you normalize that so then you will there is a 10% increase in the employee cost year on year basis. Having said that coming to the quarter on quarter sequential drop in the employee expense there is a 9% drop sequentially. So which is comprising of 1. There is a 3.5% drop in the revenue so that’s one that’s also there is a normal saving in the employee cost on account of incentive plus there is a true up has been there both put together contributing close to 55 and a half percent drop and the balance 3 and a half percent drop is coming on account of the waiver of the director fees or the commission fee.
So because of these two reasons you are seeing a sequential drop in the employee cost on overall basis on a normalized basis annualized basis. So there is a 10% increase in the employee cost if we normalize it for bsv. Yeah
Abhishek Agarwal
Right. And
Sidharth Negandhi
And sir if you could just help understand the impact on the base diabetes therapies after after GLP1 space diabetes or base cardiology Therapies because we’re clearly seeing x of GLP1. The growth in diabetes seems to be, you know, more mid single digits like so is is there any impact that you’re seeing on ground and how do you see that going forward?
Unidentified Participant
Siddharth, to answer this, I think scientifically if you see in last few months there has not been a direct impact on the primary anti diabetic and cardiac therapy and it is too early to say also that the therapy regimen will change. So even the customers feedback and all other feedbacks also are saying that it is too early to say but what we have seen is it is not impacted much in terms of primary diabetic and anti and cardiac therapies.
Sidharth Negandhi
Got it. Thank you.
Operator
Thank you. Next question is from the line of Kunal Randaria. Kindly announce your company name and proceed with your question.
Unidentified Participant
Hi, good afternoon sir. Kunal Randir from Access Capital, Sheetal Ji mentioned a few brands like Telmakind, Dytrobone doing extremely well. So good to hear that. But some of your other bigger brands like Moxikind, Amlokine, Good self, Good Safe are not really showing growth. So my question is I would like to understand some of the moving parts of your growth guidance in India. So does it mean are you assuming that some of these brands will show better growth or should we expect higher price hikes maybe closer to the 10%, you know, range that is allowed or will it be new products driven?
So some more color would be helpful. Sir,
Mr. Sheetal Arora
Last year because of some corrective action and because there was a less performance of acute, our acute growth of muted. But we are encouraged by the sequential improvement we started witnessing from Q2. If you see Q2 onwards, Q2, Q3, Q4, we are growing quarter on quarter. The recovery trajectory is already visible across several therapies and give us confidence for financial year 27. At the same time we are consciously improving the quality of a growth. When I say quality of our growth it means your higher contribution chronic now it’s almost 39% specialty business.
We are number one in human healthcare and differentiate therapies rather than depending on a seasonal acute spike which may come in one quarter, then next year it may not come. So we believe that financially at 27 would be a very strong year for us driven by multiple factors. First is normalization in acute portfolio after the softer performance scenes during financial year 27. Second is sustained momentum in chronic therapies where we continue to outperform IPM across all segment across the key segment, cardiac, diabetes, respiratory and third is increasing Contribution from specialty and different products including opportunities like GLP1 and related related therapy.
So overall we see a healthy balance between recovery and acute and strengthening in chronic and specialty business which give us a confidence that definitely next year financial year 27 we will be at least doing double digit growth and aspiration. Like Rajiv said, aspiration is always better to do than the market. As you see the history of MANKIND in last 30 years we have always outperformed market. That’s why we have become youngest company to come on fourth rank in 30 years. So expiration is always there and we are recovering in not, you know, even in chronic but acute therapy is also coming back.
Unidentified Participant
That, that’s. Yeah, I. I got my question but any price hikes would be like what you have taken normally in the last few years. Oh, you have taken normal prices in line with the industry. I can just go so IBM numbers if you like. Just give me one second. Yeah. So for the year our price hike as per IQ 4.2 industry is around 4.4. So we are in line with the industry price hike. Sure. Thanks Prakash. Just one more question if I can. Your modern trade is growing. Growing very well. I think 50% plus this quarter.
Last quarter it was around 40% or so if I remember correctly. So just wondering how long can such, you know, growth trajectory continue and then what you know, going forward, maybe what should be a normalized growth trajectory. So can you repeat the question? Did you say modern trade for RX business or no, you mentioned. Right, I think it was mentioned. 57% growth in modern trade. It might be part of it on the OTC piece. Right. But again, you know, how. How much can it continue? How long can it continue grow but grew at 40% last quarter also
Mr. Rajeev Juneja
On a smaller base. This kind of a growth, I mean was expected in the past. Our base was very, very small. We are just working on this and hopefully better growth, double digit growth. I mean high teens growth would be there but we don’t expect, I mean 50, 60% growth.
Abhishek Agarwal
So high
Mr. Rajeev Juneja
Teens would be there.
Abhishek Agarwal
So Kunal, if you refer FY25, the share of E. Com and modern trade was close to 9% this year it has increased to 13%. So there’s little more headroom where we can increase this salience from E Comm and modern trade.
Unidentified Participant
Got it, Got it. Thank you very much. I have a few more questions. I’ll join back. Thank you.
Operator
Thank you. Participants, you may click on the reason icon. Next question is from Makran. Kindly proceed with your question and also announce Your company name.
Unidentified Participant
Hello, Am I audible?
Operator
Yes, go ahead.
Unidentified Participant
Yeah, hi, thanks. Congratulations on good set of numbers. My question has been answered. Thank you.
Operator
Thank you very much. Our next follow up question is from the line of Harid. Kindly announce your company name and proceed with your question.
Unidentified Participant
Thanks for the opportunity again. So specifically on the specialty side of BSV we’ve called out very strong growth in a couple of brands like Polygraph and hng. So trying to understand what is the sustainable growth for these brands. And then from the two NTD brands that we have Antid and Row clone. So within the overall NTD category what is the market share that we have? Because the way I understand you know a large part of the market is still with the polychronal versions. So just trying to understand the addressable opportunity for the two brands that we have and the potential market share for us in in this segment is an innovative product with 100 market share in India.
This is the, you know PSV is the only product to the RH negative mothers and that’s why it is one of the biggest brand in more than 200 crore plus of brand sale that we can. In the past two years with Mankind coming in, the number of state coverage also increased. It used to be 1012 states which used to cover in terms of you know prescribing doctors of the state hospitals also now the number is 15 plus. We’ve added two more hospital last year which is Tamil Nadu and one. So we are seeing strong traction in this.
If you see secondary is growing in mid teens and we expect that we’ll continue to grow and expand the awareness program because since it’s an innovative product you need to have more awareness. Not many people know about it. So that’s the activity which mankind is also helping. We had campaigns of Amitabh Bachchan and a lot of other doctor campaigns that has happened and in India in terms of penetration about 5% is the number of, you know, women which face this issue. So the market is huge Prakash.
The polychronal versions will still be dominating the market. Right. So and then you know I understand our aspiration to grow the market share. So I’m just trying to understand what, what exactly is the addressable market. So to our understanding recombinant is a much superior product and that’s why the share gain is 100%. Polyclonal was there as per our understanding in the market five years back but currently it is not there. We can come back to you and do a one on one on this but our understanding is we have full market share on India markets.
Understood. Thanks for that.
Operator
Thank you. Next question is from the line of Alankar Garude. Kindly announce your company name and proceed with your question.
Unidentified Participant
Hi, thank you for the opportunity. This is Alankar Garude from Kotak Institutional Equities. So firstly, while you explained the points on staff cost as well as HGA in general, can you take us through the cost optimization initiatives taken over the last few quarters and how will you ensure that these do not impact your growth prospects over the medium to long term.
Ashutosh Dhawan
Multiple initiatives which has been taken. If we talk about all the on the employee cost, I think that’s what you are referring to. And so so there has been incentive, rationalization, alignment plus the span of control and all those things. It’s a long topic to be discussed. And secondly, long story short, what our endeavor is that the employee cost should be in the vicinity of 22% of the sales plus minus 0.5% here and there. But by and large if you see on the long term trajectory our endeavor is to maintain employee cost both fixed variable all put together in the range of 22% of the overall sales.
I think that satisfies your question. Yeah
Unidentified Participant
Sir, even on hd I mean you spoke about the high base because of the launches in the previous quarter, but even then I mean there has been a pretty good. We’ve seen that moderate quite a bit. So anything we have done on the HD front as well, which you would like to call out. And yeah, I mean if you can also help elaborate on the point on growth impact from a more medium to long term standpoint, any impact at all which could potentially happen because of some of these initiatives.
Ashutosh Dhawan
See if you, if you specifically talk about the SGND or the S and D, the SND is more heavy loaded in the H1. So if you see historically also the it’s the expenses are front loaded in the on the SND expenses. Plus it’s a mix of discretionary normally barring the last quarter last year as we have called out that there were certain launches and relaunches because of that there was a bit of a bulge. But historically also if you see Q4 has been softer with regard to the S and D expenses and if you, if you specifically talk about if you let’s say from last year to this year that’s where if you see FY26 the overall other expense view expenses in FY26 is 3424 crore.
So which is 24% of the overall sales. This I’m talking the full year number and if you compare it to last year FY25 the reflected number is 3008. 8 crore. Out of this 130 odd crore were the one off expenses which were attributable to the BSV integration and plus some donation which was given the earlier part in Q1. And so if you normalize this it makes it 23.6%. So the comparison is between 24% and 23.6%. So that delta of 0.4% is mainly because of increased R and D spend. So long story short, the effort is to maintain the cost structures, not to tinker it too much.
And the overall Other expense is 24%. Visa is 23.6% last year. The Delta is on account of increased R D spend which we called out earlier.
Unidentified Participant
Got it, got it. Ashutosh Ji the second question is on BSV’s international business, apart from the impacts you called out in Latam CIS Philippines, can you lay out the plans to drive growth more from a three to four year standpoint? Yeah, surely. So there’s a lot of initiative going in the last, you know, since the acquisition there’s a lot of awareness programs. First let me take some domestic initiatives. There’s a lot of awareness programs in terms of coverage, in terms of increasing doctor prescriptions for you know, the key products like ntid which is a, you know, we believe there could be a huge potential and 15 plus states have now been covered.
The second is increase in the gynec coverage. So when we acquired it was 32000 plus. Now it is 37000 plus. So there’s a significant increase in the gynec coverage and that’s how you can see that especially the woman healthcare and fertility program products are doing so well. We now cover 90% of the IVF centers, more than 3,000 centers. There’s a lot of initiative for these IVF products like polygraphs which is seen a 40% plus kind of growth which is the fastest growing, much faster in the market.
And there’s a lot of clinical work getting done in terms of studies like we mentioned in the past that follygraph we have done refresh studies antid, we have done rhythm studies. Now we have another product for Allergy which is doing extremely well for rush studies. So there’s a lot of clinical work getting done, increase in coverage getting done, increase in awareness getting done. This is more for, for the domestic business. In the international business we just started scratching the surface.
There’s a lot of scope in Terms of branding the existing products as we mentioned to each of these markets from starting with you know row one to all the way to row three markets focus is incrementally on women, healthcare and IVF where we are seeing strong traction. Secondly also we are expanding our GTA markets. So Philippines, Malaysia and Africa are the key GTM markets where we are expanding. And this year we expect that there will be good launches in few of these semi regulated markets for the key products.
So that’s why we feel that you know it should the growth in an international business should be high teens to 20%. Got it. Just to summarize there Prakash, even Rajiv ji it’s been almost two years since we acquired bsv. Would you. Would you like to say that the acquisition both on the domestic as well as on the international front has played out more or less in sync with your expectations back then?
Mr. Rajeev Juneja
Siemen, whenever you acquire something there are always certain kind of hiccups. But BSV as your has always been a very very important kind of acquisition for maritime it has given us something which we did not have difficult products, complex products, biological products. So we are very happy with that number one. Number second basically is what when we brought the leadership chain in domestic side the response is very good and whatever problems we saw due to different reasons in Philippine side we changed the leadership.
Otherwise geopolitical disturbances. So we see, I mean it’s a very very good fit in mankind and going forward we expect a lot from BSV cycle.
Unidentified Participant
Got it. And one final question. With your permission you approved an investment of up to 500 crores in one of your subsidiaries mankind Medicare. Currently this entity is into droppers. So what is the game plan here?
Ashutosh Dhawan
So medicare is basically the manufacturing arm of mankind. And so this investment is towards setting up of best in class Madodra biotech facility.
Unidentified Participant
Okay, got it. Yeah. Sorry, go on sir.
Ashutosh Dhawan
No, so that’s the reason that because next year or in the face manner we are spending money in this Madodra plant biotech plant. So this is approval is towards incurring the capex in the coming year.
Unidentified Participant
Okay. So more or less this 500 crores is entirely for that biotech facility. Okay sir, that’s it from my side. Thank you.
Operator
Thank you.
Unidentified Participant
We’ll take the last two questions please.
Operator
Next question is from the line of Ala Katyar. Kindly announce your company name and proceed with your question.
Unidentified Participant
Hi, I’m Alka from Morgan Stanley. Thank you for the opportunity and congratulation on good set of numbers. So most of my question has Already been answered. If you can just highlight on the debt repayment plan. So are we on track? Like you know what we have guided earlier or how should we look for 27 and 28?
Ashutosh Dhawan
Yeah, definitely we are pretty much on track. The last payment was done in April 20261215 and the next payment is coming due on in October same amount 1250 and next year 2500 crore is to be rebate. So we are on track. And we have given a guidance also that for FY27 the net debt to EBIT adjusted EBITDA to net debt ratio will be 0.5x. So we are on track.
Unidentified Participant
Okay, thank you. And sir, also if you can repeat the EBITDA margin guidance for this year.
Ashutosh Dhawan
So the guidance is 26.5%. That’s what is the guidance. But having caveated with all the geopolitical situation, market condition. But the guidance will be better than the last year and it is 25.5 to 26.5%.
Unidentified Participant
Okay, thank you so much sir. All the best.
Ashutosh Dhawan
Thank you.
Operator
Thank you.
Ashutosh Dhawan
Last question please.
Operator
We take the last question from the line of Bharat Shah. Kindly announce your company name and proceed with your question.
Unidentified Participant
Yeah. From BCS Capital Ideas limited. First of all congratulations Rajiv ji. Finally we are seeing the performance that we have come to ascribe with mankind always. So congratulations to you and Shitalji and the team. There were basically two broad questions I wanted to understand. One got partially answered earlier but I’ll repeat it. We acquired BSP at a point of time where prima facie from variety of points of view it appeared whether we overpaid and whether it is going to deliver and whether it is really delivered or it has under delivered.
In other words, sum total of the benefits. Whether it is exceeding the kind of challenges and difficulties such a large acquisition poses and whether it is played out as we thought from a strategic point of view. Secondly, the entire manpower churning to bring the energy and to bring the same level of aggression that mankind has been known in the past to pursue long term strategy but in a very focused aggressive manner. Whether all the changes, despite all the attenuations in between, is it really played out exactly as you desired or there is still a work in progress?
Mr. Rajeev Juneja
It’s a very interesting question. But I tell you there’s a difference. When you run very company is being run by promoters versus professionals. Promoters always see everything in long term. We are never much impacted by quarter on quarter or volatility of low points. You always see that what this whatever entity we acquire would Give us benefits in terms of our long term growth. What advantages would be there? Keeping that in mind, we basically acquired Bala Serum and again I want to reiterate, whenever you basically take any organization, when you basically acquire any organization, it takes some time.
We are just 18, 19 months old in this and now things have been properly streamlined. Whether it’s a domestic, whether it’s an international side, all is being done and we hope to see good growth. We don’t want to just overstate, but we’ll definitely say we don’t want to. We just want to surprise everybody. That’s the kind of mindset we have got one answer for the acquisition. The second basically answer is whatever you plan in a office, whatever you do, some kind of a mismatch is always there and you always understand this.
So it be expected that we will be able to, I mean change the picture in shortest possible time. It did not happen. It took us more more time. But now all the things are done and tested and as you can see this year we the company is in a healthy state of growth. And we feel that whatever numbers have been projected to you, bottom line, top line, we definitely aspire to cover those. Thank you so much.
Unidentified Participant
Fantastic. You know the RIT platform is what is the. You know what it completes kind also because a lot of products which are under development which you will see long term investor. It’s all will come over three to five years. A lot of development happening on that space. No, that goes without saying. I before mankind got listed and after it has been listed. I’ve observed mankind for number of years and I’ve always admired the tenacity and the reason to play for long run rather than play for 30, 20 kind of a match at the same time not losing focus on achieving results and aggression to get what is due.
So it is. It has always been long term reason and terrific attention to the ground to execute well repeatedly time after time. So this is what you have said is in sync with that. Just one question for Mr. Dhawan. The expected tax rate for the current year will be last year it has been 17% and year prior to that has been about 20%. So what is the likely ashutosh the tax rate for the current year?
Ashutosh Dhawan
Sir, this year for FY27 the expected tax rate will be in the range of 25% to 26% because the exemption what we have been enjoying FY26 has been the last year. That’s why our effective tax rate has been in the range of 15 to 16%. So next year it is going to get increased to 25 to 26%.
Unidentified Participant
Sure. Thank you. And once again, hearty congratulations. Rajiv Sheetalji. And all the very best.
Ashutosh Dhawan
Thank you, sir. Thank you, sir. Thank you, sir.
Unidentified Participant
Thank
Ashutosh Dhawan
You.
Operator
Thank you very much. And I’ll hand the conference over to the management for closing comments.
Unidentified Participant
Yeah. Thank you everybody for attending the call. For any further queries or clarification request, please reach out to us or email us on investor.relationsankindpharma.com have a nice day. Thank you. Thank you.
Operator
Thank you very much on behalf of mankind. Pharma. That concludes this meeting. Thank you for joining us. And you may now disconnect your lines. Thank you.