Mankind Pharma Q2 FY27 Results (NSE: MANKIND)
Signal: Margin expansion
The read
The key inflection is operating quality: revenue grew 19.3% YoY to ₹3,145.22 crore and EBITDA grew 32.5% to ₹932.69 crore, expanding EBITDA margin 296bps to 29.6%; however, the margin is down 169bps sequentially from 31.3%, so the recent margin recovery needs another quarter of confirmation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,145.22 Cr | +19.3% | +6.1% |
| EBIT | ₹812.5 Cr | +36.1% | |
| Net profit | ₹581.95 Cr | +26.6% | |
| EPS | ₹14.09 | +26.4% | |
| EBIT margin | 29.6% |
P&L walk
Revenue increased 19.3% YoY to ₹3,145.22 crore and 6.1% QoQ, gross margin expanded 121bps YoY to 74.1%, and EBITDA rose 32.5% to ₹932.69 crore as other expenses and finance costs grew slower than sales; PAT increased 26.6% to ₹581.95 crore.
Key positives
- Revenue rose 19.3% YoY to ₹3,145.22 crore, accelerating from ₹2,636.95 crore in the year-ago quarter and ₹2,964.05 crore sequentially.
- EBITDA grew 32.5% YoY to ₹932.69 crore versus revenue growth of 19.3%, a +13.2 percentage-point growth gap, with EBITDA margin expanding 296bps to 29.6%.
- Gross margin improved 121bps YoY to 74.1% as raw-materials, purchases and inventory change rose 14.0%, below the 19.3% revenue increase.
- H1 operating cash flow of ₹1,623.51 crore exceeded H1 PAT of ₹1,140.44 crore, supporting earnings quality.
Key concerns
- EBITDA margin declined 169bps sequentially from 31.3% to 29.6%, despite 6.1% QoQ revenue growth.
- Receivable days increased to 44.41 from 38.16 a year earlier, while inventory days increased to 150.35 from 148.29, indicating some working-capital intensity.
- Employee expense rose 18.4% YoY to ₹718.46 crore, broadly tracking revenue growth rather than providing a major fixed-cost benefit.
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