Mankind Pharma Q1 FY27 Results (NSE: MANKIND)
Signal: Margin expansion
The read
Standalone performance shows strong YoY growth with significant EBITDA margin expansion driven by lower finance costs. Revenue grew 15.3% and PAT jumped 34.5%. However, QoQ margins declined from Q4's elevated levels, and the restated comparatives due to the BSV acquisition make YoY trends partly structural. The income tax litigation remains an overhang. Overall, a solid quarter with improving profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,964.05 Cr | 15.3% | 14.8% |
| EBIT | ₹851.52 Cr | 31.9% | |
| Net profit | ₹558.49 Cr | 34.5% | |
| EPS | ₹13.53 | 34.6% | |
| EBIT margin | 31.3% |
P&L walk
Strong YoY growth driven by revenue up 15.3% and EBITDA margin expansion of 468bps to 31.3%, aided by lower finance costs (down 260bps as % of revenue) and stable employee costs. QoQ margin declined from 35.6% in Q4FY26, but net profit growth remains robust at 34.5%.
Key positives
- Revenue up 15.3% YoY to ₹2,964 Cr.
- EBITDA margin expanded 468bps YoY to 31.3%.
- Net profit up 34.5% YoY to ₹558.5 Cr.
- EPS up 34.6% YoY to ₹13.53.
- Finance costs down 36.4% YoY, debt-equity ratio improved to 0.25.
Key concerns
- EBITDA margin declined 426bps QoQ from 35.6% in Q4FY26.
- QoQ net profit down 21.8% from ₹713.6 Cr in Q4 (though Q4 included exceptional items).
- Pending income tax litigation with ₹1,868.89 Cr in adjustments under appeal.
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