Thank you for joining us for our second quarter and H1 FY 2027 earnings conference call. On call today, we have Mr. Rajeev Juneja, our Vice Chairman and Managing Director, Mr. Sheetal Arora, Chief Executive Officer and Whole Time Director, Mr. Arjun Juneja, Chief Operating Officer, Dr. Anil Koul, Group Chief Scientific Officer, Mr. Sudipta Roy, Senior President, Sales and Marketing, Mr. Ashutosh Dhawan, Global Chief Financial Officer, and Mr. Prakash Agarwal, President, Strategy and IR. We will begin today's call with Mr. Rajeev Juneja, who will provide an overview of the quarter, followed by key business updates from Mr. Sheetal Arora. Mr. Ashutosh Dhawan will then take us through the financial performance, after which we will open the floor for Q&A. Before we proceed, please note that certain statements made during today's call may be forward-looking in nature and are based on management's current expectations.
These statements are subject to risks and uncertainties that could cause actual results to differ materially. Mankind undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to the detailed disclaimer available in the investor presentation uploaded on our website earlier today. With that, I now hand over the call to Rajeev sir for his remarks.
Thank you, Arvind. A very good evening to all of you. Welcome to quarter two and H1 Financial Year 2027 Earnings Call. At Mankind, our strategy is centered around three priorities: strengthening our core business, scaling chronic and specialty therapies, and investing in future growth platforms. We made steady progress across each of these during the quarter, resulting in another period of strong operating performance. During the quarter, overall revenue increased to INR 4,338 crore, up 17% year-on-year, while EBITDA for the quarter increased by 27.2% to INR 1,175 crore, and EBITDA margin improved by 210 basis points year-on-year to 27.1%. BSV portfolio continued its 20% growth momentum for the second consecutive quarter, led by strong performance in both domestic and international markets.
Revenue from domestic business, excluding consumer healthcare, increased by 15.9% year-on-year to INR 3,428 crore in quarter two Financial Year 2027, driven by strong double-digit growth in both Mankind and BSV specialty business. Mankind's strong foundations, combined with disciplined execution over last few quarters, have resulted in outperforming to IPM in quarter two Financial Year 2027. According to IQVIA, our secondary sales grew by 15.7%, representing a 1.1 outperformance versus the IPM growth of 14.2%, excluding tirzepatide. This was largely driven by a 1.2x volume outperformance, continued strength in chronic therapies and strong recovery in key acute therapies led by gastro and vitamins.
Our initiatives across leadership and field changes, process optimization, focused product portfolio, doctors engagement, and extensive use of technology have resulted into improving volume growth trend from 0.5% growth in FY 2025 to 2.3% volume growth in FY 2026, 4.7% volume growth in first quarter this year to now outperforming IPM with a volume growth of 6.7% in quarter two. One of our key strategy priorities has been to increase the contribution of chronic therapies through focused initiatives including medical marketing, new product launches in license and selective brand acquisition. We have consistently outperformed the chronic market and strengthened our position in key therapies area. As a result, our chronic share, excluding BSV, expanded by 80 basis points year-on-year to 37.4%, led by 1.1x outperformance in cardio and anti-diabetes. Again, excluding tirzepatide, and a strong 1.9x outperformance in chronic respiratory during the quarter.
While we are expanding our recently launched multi-therapy mass market division, Vistar, we are also progressing towards the launch of new divisions in cardio, gastro, and dental therapies. These divisions will enhance focus on high-potential brands, improve specialist engagement to accelerate growth. Our consumer healthcare business delivered a revenue of INR 229 crore in quarter two 2027. Impacted by slower offtake in category for the industry and some regional impact in East and South. Despite softer growth, we gained market share in key brands like Manforce and Prega News. Our modern trade and e-commerce share increased to 18% from 12% a year ago, supported by 55% growth in that channel. Innovation and specializations continue to remain central to our long-term strategy, and we are steadily building differentiated science-led pipeline that complement our existing portfolio.
Market share our in-house pipeline asset, MKP11093, a best-in-class JAK inhibitor, has received funding from PRIP program by the government of India, a first for Mankind. Building on this journey, we recently announced our strategic acquisition of Armed Cell Therapeutics, providing us access to the next generation CAR T-cell therapy platform being developed by highly experienced founding team. We view this as an important step towards creating an innovation platform for future growth as we continue to strengthen our leadership across acute therapies, build scale in chronic and specialty segments, and selectively invest in innovation platforms. We remain confident in our ability to deliver sustainable growth and accelerate long-term value for patients and shareholders. Now, I invite Sheetal to walk you through more details on our business performance.
Good evening, everyone. Thank you for joining us for Mankind Pharma's quarter two and H1 Financial Year 2027 Earnings Call. It is a pleasure to have you with us as we share our performance and key developments for the quarter. As our business continue to evolve, we are seeing the benefits of strategic choice made over the past few years. The quarter was marked by the strong operating momentum and continued advancement of our long-term priorities. Let me take you through the key developments. Our domestic business delivered another quarter of strong growth, with revenue increasing by 14.8% year-on-year to INR 3,657 crore. This was driven by 16% growth in Mankind core domestic ex-consumer and mid-teen growth in BSV domestic business, partially impacted by muted growth in consumer healthcare.
Importantly, we continue to outperform the IPM by 1.1 x, led by 1.1 x outperformance in chronic, with 19% year-on-year growth in cardiac and 16% growth in anti-diabetes. Recovery in acute continued with 1.1 x outperformance, driven by 26% year-on-year growth in vitamin and minerals and 19% growth in gastro. Further supported by key brands such as Gudcef, Pentagyn, and Dydroboon. Anti-infective continued to recover quarter-on-quarter with a growth of 5.4% in quarter two FY 2027 versus 3.6% in quarter one FY 2027. BSV business also delivers strong momentum with robust growth in key brands Humog 51%, Lonopin 45%, Anti-D 37%, and ASVS 45%. Another encouraging aspect is the increasing scale of our brand portfolio. We have added nine new brand families with sales over INR 50 crore, taking the total to 63 in March-September 2026 versus 54 in Financial Year 2026.
Four brand families with sales over INR 100 crore, taking the total to 26 from 22 during the same period. This reflects the continued productivity and scalability of our commercial engine. Additionally, we are seeing encouraging traction across our newer brands, including Monarom, Empagreat, Dinodude, Neuropen PFS, and Pentagyn . While still in the early stage of their life cycle, these brands strengthen our future growth pipeline and have the potential to evolve into meaningful scale over time.
Our focused effort to expand our presence in the hospital segment are gaining healthy traction. During the quarter, we saw a strong 23% year-on-year growth in hospital revenues. We see strong long-term growth potential in this segment through specialized engagement and targeted launches. Moving to our international business. Revenue for the quarter increased by 33% year-on-year to INR 680 crore, driven by strong growth in both Mankind International and BSV's brand specialty.
BSV continues to increase global adoption of its specialty portfolio across fertility, critical care, and women's health. Looking ahead, our priorities remain clear. Driving profitability growth at scale, increasing the contribution of chronic and specialty therapies, expanding our international footprint through our differentiated product portfolio, strengthening our innovation pipeline, and creating long-term value through disciplined execution. What gives me the greatest confidence is not our numbers, but our people. Every day, more than 27,000 colleagues across factories, R&D centers, offices, and the field carry forward our Mankind purpose. Their hunger to grow, humility to learn, honesty in action, and hard work remain our greatest competitive advantage. As we build the next Mankind, we will remain guided by the same values that have defined us since day one: integrity, humility, hard work, and an unwavering commitment to improving lives. Our journey continues with confidence, purpose, and optimism.
With that, I would now like to hand over the call to Ashutosh-ji , who will take you through the financial performance in greater detail. Thank you so much.
Thanks, Sheetal -ji. Good evening, everyone. I am delighted to have you all with us on our quarterly H1 FY 2027 earnings call. Let me give you a brief of financial highlights of our quarterly performance for quarter two FY 2027. Our revenue from operations during quarter two FY 2027 has increased by 17.3% year-on-year basis to INR 4,338 crore as compared to INR 3,697 crore in quarter two FY 2026, driven by strong growth in our base business as well as BSV specialty business. Our gross margins for the quarter has increased by 90 basis point year-on-year basis to 72.2% from 71.3% in quarter two FY 2026. This year-on-year increase is primarily driven by three factors. Firstly, the impact of sales price increase, which we have taken. Secondly, the favorable sales mix as our chronic contribution has increased by 80 basis point on a year-on-year basis.
Thirdly, there has been a favorable base effect as quarter two last year our gross margins were compressed due to GST 2.0 transitioning impact. Our reported EBITDA margin for the quarter has increased to 27.1% as compared to 25% in quarter two FY 2026. This increase of 210 basis point is primarily driven by three factors. 90 basis point increase is from gross margin expansion, reduced R&D expense by 40 basis point, and the balance 80 basis point benefit has come from operating leverage due to sales growth. The EBITDA margins for H1 FY 2027 is 26.7%, which has increased by 230 basis point year-on-year basis. The improvement is primarily due to increase in gross margins by 160 basis point, and the balance 70% benefit has come from operating leverage.
The R&D expenses for the quarter was INR 108 crore, which is at 2.5% of sales, and the same is lower than R&D spend of 2.9% of sales during quarter two FY 2026. This 2.5% is lower than our guidance of 3% for the full year FY 2027. The finance cost for quarter two FY 2027 has declined to INR 105 crore from INR 110 crore during Q1 FY 2027 as Q1 FY 2027 had a NCD repayment of INR 1,250 crore. In quarter two FY 2027, the depreciation and amortization expenses has increased to INR 236 crore as compared to INR 222 crore in quarter two FY 2026. This is in line with the asset capitalization undertaken during the period. The effective tax rate for H1 FY 2027 was at 24%, which has increased from 17.1% in H1 FY 2026.
The increase in effective tax rate is due to adoption of new tax regime this year following the expiry of the tax exemption period. The profit after tax for Q2 FY 2027 grew by 37.7% year-on-year basis to INR 716 crore, with PAT margins improving to 16.5% during the quarter as compared to 14.1% in Q2 FY 2026, resulting in an increase of 240 basis point. This growth was primarily driven by stronger EBITDA margin and lower finance cost, which has got partially offset because of increased ETR. Our diluted EPS is INR 17.2 per share of rupees one paid for the quarter. The cash EPS, which is EPS adjusted for non-cash items like depreciation and amortization, has increased during the quarter to INR 22.9 from INR 17.7 in Q2 FY 2026, an increase of 29.1% year-on-year basis.
The net operating working capital for the quarter on trailing 12 months basis has increased to 51 days as compared to 46 days in the corresponding period last year, mainly due to increased working capital. In H1 FY 2027, our cash flow from operations has increased to INR 1,819 crore as compared to INR 1,637 crore in H1 FY 2026, which is on a year-on-year basis an increase of 11.1%. In H1 FY 2027, our cash flow to EBITDA ratio has decreased to 81% as compared to 92% in H1 FY 2026. The drop of 11% in cash flow to EBITDA is due to increased working capital. Our CapEx spend during the quarter has increased to INR 214 crore as compared to INR 163 crore in Q2 FY 2026.
The CapEx as a percentage of revenue is 4.9% of the total revenue, which is lower than our guidance of 6%-7% of revenue for FY 2027. In line with our prudent financial strategy, we have reduced our net debt to INR 2,639 crore as on September 30, 2026, resulting in the net debt to adjusted EBITDA ratio of 0.6x in Q2 FY 2027 on a trailing 12 months basis. We remain on track to repay the acquisition-related debt by FY 2028. With this, we conclude our financial update and welcome any questions which you may have. Over to you, Prakash.
We are open for Q&A now.
Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. If you wish to ask a question, please use the raise hand feature available on the dashboard. We will wait for a moment while the question queue assembles. We will take a first question from Rashmmi Shetty. Kindly introduce yourself and go ahead with your question, please.
Yeah. So I am Rashmmi from Dolat Capital. Am I audible?
Yes, you are.
Yeah. Congratulations on good set of numbers, and thanks for the opportunity. Sir, what is driving your export business? Because when I am trying to adjust your numbers and splitting between your organic and inorganic growth, both seems to look strong this quarter. So what exactly is driving this, and how should we look for the entire year?
Thank you, Rashmmi. Rashmmi, we gave the guidance of 20% growth rate on a constant currency dollar basis for the export, and the actual growth is coming to upward of 30%, and the delta is driven because of the currency exchange benefit.
To add to it, our international business growth is driven by both BSV as well as Mankind, supported by strong performance in branded specialty products and new U.S. launches. So BSV grew by 34%, while Mankind U.S. and other international market grew by 29% and 37%, respectively.
We expect double-digit growth in international business in the Financial Year 2027.
Okay. And generally, you know, earlier, just o ne to two years before, U.S. was something a bigger contributor to the overall export market. We had reached around 70% - 75%. Do we still hold it, or are your other branded markets also equally contributing now?
I think the U.S. market and other branded markets are almost more or less equal now.
Okay.
We expect going forward, the other emerging markets to take over the U.S. market in terms of the contribution.
Okay. My next question is related to the EBITDA margin. This quarter we have achieved on the higher end of the guidance, that is around 27%. If you can split that, whether this expansion we are seeing mainly because of your higher ramp-up in the BSV segment, where the margin was around 28%, there we are seeing a big expansion in your operating margin, or it is your base portfolio, that is the Mankind portfolio?
It's a mixed bag of both the things, and we highlighted in our earlier calls also that BSV margin is approximating to the overall company margin. It's the overall growth which has been driving this. As we highlighted, that 0.7 is coming because of operating leverage in this number because of the higher sales growth.
So—
You have to account for the higher domestic growth. That is a high gross margin business and chronic contribution is also increasing. That is leading to that kind of margin drop-down.
Is it fair to assume that every year because of a good operating leverage and operating efficiency coming up, at least we should aim at 100 basis point expansion?
So fundamentally that—
Or do you think that 27%-28% is the peak level that we can achieve?
Fundamentally and directionally, what you are saying is correct, Rashmmi, and we will come up with a reliable guidance when we will come up for FY 2028 data point.
Okay.
But every bit of operating leverage should play a positive role in increasing the margins.
Okay, sir. Thank you so much. That really helps. Thank you. Our next question is from Neha Manpuria. Kindly introduce yourself and go ahead with your question, please.
Yeah, thank you for taking my question. This is Neha from Bank of America. Two questions from my side. First, on the India business. Sir, I think after the underperformance for the last few quarters, we had mentioned that it is aspiration to grow higher than the industry. Obviously, we have gotten there this quarter. Now, if you were to think about the India domestic, the Rx growth for Mankind, more near term and slightly more longer term, do you think you are confident that we should be able to sustain this higher than industry growth or do you think realistically it will still be in line with industry growth in the near term before we start outperforming more sustainably?
Thank you, Neha, for the question. Look at the legacy of Mankind. We have always beaten in the past a good number of years, not one year, for many decades, IPM by 1.3 - 1.4. Just look at the history and draw some kind of a conclusion. We have always said that we are in the process of making our foundation stronger, and we have done so. When what you say comes true, you feel very happy and very excited now. Next phase of Mankind will be. As Mr. Ashutosh told you, we will keep informing you what we expect in future, but we always believe that we should say less and do more. That is the philosophy of Mankind, and we want to continue on that. Again, I must tell you one thing, that focus has always been India.
We know India very well, so our focus is always domestic growth from where we are drawing maximum growth. In the past, we have said a number of times that we want our chronic share should increase from 39% - 50%. We stick to that. We want that we will be outperforming the IPM, absolutely. We have some planning for that. We will be doing much better in hospital side, chronic side, and we have identified certain states, where we have a ranking which is less than our right ranking. So we are just focusing over there and hope that we come to your expectations.
That is great, sir. My second question, Ashutosh -ji, is on the margins. I think we have guided to 25.5%-26.5% margins. We are obviously tracking ahead of that. I know seasonally this is a strong quarter. Is it fair to assume that there is a possibility of us probably being at the higher end of that margin range or probably higher than that? Also, how do I think about, given that we have a 70% stake in Armed Cell Therapeutics, the R&D spend there, would that also now start flowing through our P&L?
No, absolutely right, Neha . As far as the margin guidance is concerned, we would like to maintain the same guidance, 25.5% - 26.5%. As far as the R&D guidance was given 2.8% - 3% of the revenue. For this fiscal, we expect the R&D spend to be upper end of the guidance, which will be close to 3% of the revenue, with accounting for the impact of ACTx in the R&D.
How should we think about the I know you have an analyst meet tomorrow, but in terms of the spend that ACTx needs, the funding that we put, how long do you think that can sustain before it needs more capital to progress on the R&D? Just some color there.
The current commitment, whatever has been done, is to the extent of EUR 48 million.
Yes.
This is the business plan and the discussion. This is good up to fiscal year 2028.
Okay. This is helpful, sir. Thank you so much.
Thank you. Ladies and gentlemen, to ask a question, please use the raise hand feature available on the dashboard. Next question is from Simran Thakkar. Kindly introduce yourself and go ahead with the question, please.
Thank you so much for the opportunity. My name is Simran from the Beas Capital. My question goes like this.
We cannot hear you. Can you please speak up?
Sure. Am I audible now?
Much better. Thank you.
Okay. My question goes like this, sir. Given the Supreme Court mandated committee on the marketing practices and the January 29th, 2027 hearing, how is the company strengthening its marketing compliance framework and governance? How do you see the regulatory direction for the industry altogether? That is my question one.
Thank you, Simran. This whole UCPMP guideline is not something which has come to light right now. This has been there since three to four years. However, this has been voluntary in nature, and also there is some sort of statute which is there from the Department of Pharmaceuticals. But now, with this whole Supreme Court ruling, the government wants it to have more statutory powers. However, if I talk about from Mankind's perspective, we have been preparing for it, not just since last three, four years, but since the last seven to eight years. We are all geared up and I think, even if whatever the committee recommends, whatever guidelines they come up with, we are fully geared up to comply with it.
Understand, sir. Sir, on the second thing, on the tax litigation front, the annual report review of 2026, wherein INR 1,609 crore of disallowance under Section 37 (1). If that holds up, how do you see the tax plus interest going there and the contingency liability that we have created for?
Okay. Thanks, Simran, for the question. As far as the tax demand is concerned. We are pleased to inform you that we have received a favorable order from the Commissioner of Appeals. Wherein they have quashed the four years in the order, favorable order has been passed. The overall exposure has been brought down from the old level by 300 odd crore rupees. Having said that, whatever is there, the accounting provision as well as the financial or the payout, everything has been accounted for in the books of account. Because of this particular tax litigation, we don't expect anything to change on the financial metrics or the financial parameters of the company.
Understand, sir. Thank you so much.
Thank you. Before we take the next question, would like to remind participants, to ask a question, please use the Raise Hand feature available on the dashboard. Next question is from Makarand Bhosekar. Kindly introduce yourself and go ahead with the question, please.
Hi, my name is Makarand. I am from Nirmiti Investment Advisors. I was just curious about that we have seen quite a weaker monsoon in many parts of country this year. Has this impacted any negatively?
Yeah. Hi, Makarand. We have seen our growth trend in last quarter. It has not been based on anti-infective, if you see. Seasonality and monsoon affects more or less anti-infective and acute part, but our growth has been dominated by chronic part mostly, and to some extent, gastro and multivitamins, which is not dependent on season. Though there has been some impact, but it is not too much because our contribution to chronic, semi-chronic portfolio in terms of growth was much higher.
Okay. Thank you.
Thank you. Next question is from Rahul Jeewani. Please introduce yourself and go ahead with the question, please.
Hi, sir. Thanks for taking my question. This is Rahul Jeewani from IIFL. Sir, on the India Rx business, obviously, this quarter's growth was partly aided by the lower base of last year. So, India Rx grew 16% for us and last year, same quarter, the business had grown 5%. So, if I look at on a two-year CAGR basis, our India Rx growth is still around 11%, which is slightly below industry growth, given that IPM is now growing at around 12%, 13%. Where do you think we are still lacking versus market? Is it largely the acute business which is, let's say, still growing slower for us, which is leading to our growth being below industry?
Rahul, very good question, but let me explain you that if you just look at last year, this quarter was having the highest sales. But even then, I say that, yes, whatever you are saying is right, but look at the growth of Mankind is 15 point some percent is the growth this quarter. And this is not the end of the growth. We feel that going forward, we'll be doing better. That's the kind of a confidence we carry in our head. Because whatever corrections were supposed to happen, they have happened. They are the past. Going forward, quarter after quarter and year after year, you'll see the new Mankind, better Mankind, the same kind of a Mankind which used to perform a few years back. That's kind of what we carry in our head now. And continuously, if you just look at our volume-wise growth.
Just look at this Q2 2026, our volume growth, that basically is the right metrics. Our growth was minus 0.5%. Q3 last year, it was 1.5%. Q4 last year, it was 2%. This year, first quarter, the volume growth is 4.7%. Q2, our volume growth is 6.2%. Apart from this, just look at the performance of new products. How we basically see our own performance in a very, very good way on two, three fronts. One, what is the PCPM? Productivity. What is the growth? What is the jump in the sales? The most important, the volume growth and the launches of new products. That basically talks about that fundamentally, company is doing better. This is how we basically operate. On all fronts, we are seeing consistently we are improving and hope that we will keep surprising the market in future.
Sure, sir. On a sustainable basis over the medium term, do you think that our India portfolio can clock this consistent 11%-12% kind of a growth trajectory?
We feel that we will outperform IPM, IQVIA, whatever is that. Indian pharma market, we will definitely outperform that.
Any—
Rahul, all I would like to add here, in terms of the corrective action, if you see, there is a huge improvement in the leadership and the field force. The team has stabilized. There was some small disruption in the last six, eight quarters. Those have been stabilized in the last three, four quarters, and you started seeing some improvement with Rajeev-j i highlighted that the volume kept on improving. This momentum has picked up both in chronic as well as acute. That is why we are able to see broad-based growth. That is why we have able to now outperform IPM, which we believe that we will continue to do so for the foreseeable period.
Sure, Prakash. Are we giving out any quantitative number in terms of the outperformance which we are targeting versus the IPM? In the past, our outperformance have been 1.2x versus the IPM.
I think, Rahul, two points I want to mention. One is, this quarter also, we have been outperforming the market. Traditionally, what even Rajeev sir has told that we have been 1.3x, 1.4x earlier. This is a phase where there is some unpredictability in terms of IPM growth also. If you see today, we cannot say that what kind of growth of IPM will be there for next two, three quarters. But in terms of outperforming the market, it would be around 1.1 - 1.2, which we can see next two quarters. In addition to that, I think one point needs to be added here because quarter two, when you were talking about, Rahul, last year, the basic key metrics is like cardio, diabeto, or even for that matter, vitamins and gastro.
Our Mankind's performance was still more than the market, even in quarter two last year. Comparing that, we are still doing better in those key metrics for our success.
Sure, sir. On the chronic side, can you talk about your GLP-1 strategy? Because obviously there, we were trailing competition in terms of market share. So, what's your thought process in terms of scaling up on the semaglutide opportunity in India?
Rahul, we mentioned in the past as well that we said that let the competitors become a bit calmer and sensible, and we will start working on it. The working has been started. We are entering this market very strategically. Launched one in cardio-diabeto, one in gynecs, and going forward, you will see the response.
Sure, sir. That is it from my side. I will join back the queue. Thank you.
Thank you. We have a follow-up question from Niharika Agarwal. Please introduce yourself and go ahead with the question, please.
Hello, this is Niharika Agarwal from Nirmal Bang. Thank you for the opportunity. I wanted to understand a little bit on the field force productivity. We approximately have 63 brands now, correct, that give over INR 500 million of sales versus 54 in FY 2026. I was looking more towards how much of the growth is coming from scaling existing brands versus addition of new brands, and is the sales productivity per MR improving or is the growth coming more from higher selling costs?
If you see, the bigger brands get bigger, especially in the chronic side, and the idea for the company is always to bring in more INR 50 crore-INR 100 crore brands, because that is what drives growth. At the same time, if you see, we have been talking about addition and introduction of new divisions. For that, we need to hire more people. It is an ongoing process. It is a mix of both older brands and scaling of newer brands. If you see our field force productivity, last year was around INR 7 lakhs, and quarter two ending trailing 12 months is about INR 7.4 lakhs. Despite hiring more people, given the growth, we have been able to improve our MR.
Okay. Thank you. And on the chronic mix versus—
Okay.
We are seeing sustained growth in chronic space but the chronic share remains below the IPM, right? What is the realistic ceiling for us for the chronic mix over the next one year and would reaching it improve margins for us as well?
Niharika, Q2 base actually is always higher, that's why chronic is looking 37%. Last year we closed around 38.5%, 39%. Our goal and ambition is to add 100 basis points -200 basis points every year and our four to five-year ambition is to touch 50%.
Okay. Thank you. Thank you. Next question is from Bansi Desai. Please introduce yourself and go ahead with the question, please.
Yes, thank you. This is Bansi Desai from JP Morgan. My first question is on BSV. Sir, you highlighted a very strong growth for some of our brands. If you can help us understand what has driven this strong growth. I recall that some of these brands especially like Anti-D, for instance, had very low penetration levels in India. So over the last few quarters, I am sure you would have taken measures to improve access penetration. So if you can throw some color on that side as well as to where we are and what is the potential of growth for some of the key brands that you mentioned.
Thanks, Bansi. Growth for the Mankind brands has always been strong for the last four quarters, upwards of 20%, 25%. Some of these top three brands which we spoke has been 30%-40%. This is being driven by many initiatives. One is the demand creation, especially for innovative product like Anti-D where you have to have lot of awareness programs that we have been driving. Secondly, we have also increased the gynec coverage over the last 18-24 months from 33,000 to now 37,000. Also we have been expanding our IVF coverage especially into the IVF clinics like Indira IVF and the chains. Also what is different about BSV portfolio is a lot of clinical work is getting done for their key brands, especially Anti-D, Foligraf, and even Histoglob which is a recently introduced product in the PFS space.
So there is a lot of clinical work which gets done where lot of doctor involvement is there and lot of awareness programs are there. So those things are leading to growth in the Mankind brands, which is upwards of 30%.
So there is no element of low base here, right? For the last four, six quarters, we have seen good growth, but we expect this kind of momentum to continue.
We hope so.
Okay. My second question is, while we have done well on an overall basis in India, Rx portfolio, this is coming on despite the fact that our anti-infective probably is still lagging behind IPM. I noticed some of the key brands like Moxikind, Cefakind are still probably either declining or growing at a very low pace. If you can comment if the primary numbers are also suggesting the same and if not what are the measures that we are taking to revive growth in the anti-infective segment?
Bansi, when you are talking about anti-infectives, we can see there is a progressive trend from quarter to quarter starting from last year, say quarter three to quarter four to quarter one and quarter two this year. There has been a progressive trend for all antibiotics including Moxikind-CV, Cefakind, Gudcef. In fact, Gudcef is even doing better than the market also in this quarter. There are a lot of antibiotics which are coming into trend. Considering the strategic part what you are saying is that we are rebuilding our mass specialty, especially when we talk about antibiotic, the impact comes from mass specialties more for Mankind. We have been rebuilding this specialty for antibiotics. Simultaneously, we are also building consultant backups for these antibiotics, say, surgeons and even for that matter, ENTs also.
Also in the antibiotic space, we are launching or we have launched also some of the good antibiotics which are giving a very good result.
All right. Shall we expect even this segment to come at par compared to IPM or in fact even go beyond that in terms of growth?
In coming quarters, probably it will match the IPM growth in anti-infectives and probably yes, of course we are looking to do better than the IPM when the contribution from new products also will come into anti-infectives.
All right. Thank you.
Thank you. Next question is from Rashmmi Shetty. Please introduce yourself and go ahead with the question, please.
Yeah. Thanks for the opportunity again. Just on the consumer business, if you can explain what is the impact that we have seen in east and south, and what should we expect for the full year. Are we sticking to the guidance of high single digit to low double digit growth for consumer health business?
Rashmmi, as far as I should really confess you that we are unhappy with our own performance in consumer business. Very frankly, I am talking to you. Very honestly, I am talking to you. The kind of transforming changes we brought a few years back in Mankind, the same kind of changes you will see in next few months in consumer side. Having said this, some positive side to consumer is that we have taken better share in Manforce and Prega News, we have share has increased, number one. Number second basically is what? Our e-commerce is growing very fast, 100% growth. It is now contributing around 15% in the total sales. Trust is more towards e-commerce. But yes, we are not happy and we hope that next three months or six months, and next year especially, this will come on right track.
Right now, this year, we expect that growth will be in single digit.
That would be high single digit or it would be low single digit?
That can be.
Okay.
High single digit.
Okay. But we should expect that it should recover back in FY 2028.
Absolutely, 100%.
Okay. Sir, this e-commerce segment, whatever sales we do, that becomes the part of the consumer business segment or it is a part of domestic portfolio, that is your Rx portfolio?
Consumer. Mainly consumer. I am just answering your question, what question you asked about consumer side. I am just replying to that question only, and I said that consumer business, quick commerce, e-commerce is doing fantastic and if right now growth is 100%, we expect and hoping that it can increase further.
Okay. Yeah. Thank you.
Thank you. Next question is from Umesh Laddha. Kindly introduce yourself and go ahead with the question, please. Umesh, kindly unmute your connection.
Can we go to the next question?
Yes, Umesh. We can hear you.
Yeah. Hi. My first question is that earlier we were almost 10% under indexed to IPM versus now we are 8%. Which factors have narrowed this gap down? Also on the hospital presence, we are increasing our hospital presence. Is it more centered again towards Tier one and Metros or it is on a broad-based level?
We under-index to Metros?
To IPM.
Yeah.
Yeah, which is again under indexing to Metros and Tier one.
Yeah. We were over-indexing Tier two, Tier six cities and we—
Sorry to interrupt, sir. Your audio is coming from a distant.
Yeah. Am I audible now?
Yes. Please go ahead.
Okay. No. If I understood the question correctly, it is about, over index in the Tier two to Tier six cities versus under index in Metro and Tier one. Is that right?
Yeah. Are hospital expansion strategies catered towards Tier one and Metros, or it is on the broad base?
Hospital strategy is clearly broad-based because hospital in general are growing rapidly, be it Metros, Tier one or Tier two cities. Since we started from small towns and then progressed from Tier two to Tier six cities and now to Metro and Tier one also. So the over-indexing is there, but at the same time, we are growing reasonably well in the Metros and Tier one cities also. So it is overall broad-based growth across fronts.
Okay, got it. Sir, secondly, on the MR addition guidance, any guidance for FY 2028, 2029 from the present levels?
For 2028, 2029, we will get back next year. This year we have said about 7% increase. We are on track with that.
Okay, sir. That is it. Thank you.
Thank you. Next question is from Alankar Garude. Please introduce yourself and go ahead with the question, please.
Hi. Thank you for the opportunity. This is Alankar Garude from Kotak Institutional Equities. I have another question on OTC, more or less in continuation with the previous participant. See, growth has been sluggish for the company for almost four years now in OTC. More importantly, we have not seen any major new brand breaking out of the OTC segment for quite some time now. Raju, with the transformative changes you spoke about, can we expect more larger new brands coming out from this segment over the next few years?
Well, let me correct you, Alankar. When you say the growth of last couple of years is muted. No, that is not there. The CAGR is much better than what you are mentioning right now. It is double-digit class. Number one. Number second is what? If you just look at the kitty of consumer healthcare, Gas-O-Fast is one product which is really doing very good. Because you are supposed to understand the dynamics of consumer business. The success rate in consumer business when you launch a new product is in single digit. That means what? More than 90% products when you launch new get failed.
So, what strategy we have adopted, that when we see some product becomes OTC in our prescription side, we try to move it to and give it to consumer business. Look at the example of our HealthOK. This is one example. AcneStar is another example.
In the same way, we have some products in our mind, which we feel that in future will be shifted to consumer side. But before that, we just want to build a very robust leadership team in next couple of months. Because everything revolves around people, actually. If you have right leaders, things start happening. So much is happening in new age business, we want to come in that line as well.
Just to give data, this quarter 25%, last year we were 10%.
Yeah. Got your point, sir, as well as Prakash. But yeah, okay. Hopefully we will see a much better performance going forward as far as OTC is concerned. The other question was on international. You spoke about emerging markets doing well and the contribution from emerging will grow henceforth as well, and maybe U.S. will come down. So just wanted to understand which are the key markets that are doing well for the company and also your approach. So do you have your own MRs in these markets or these are largely through the partnership route?
Thanks, Alankar, for that question. When we said about international, that ROW emerging market, that includes BSV contribution. As you know, BSV is more of an emerging market branded specialty play, which is spread across four key clusters. The first one is the ASEAN cluster, where Philippines is a larger market. Second is the MENA Africa cluster. Third is the RCIS, and fourth is the LATAM cluster. Across these markets, our idea is to increase penetration of the existing products, also increase growth from the existing products entering some newer markets.
Got it. And final one, with your permission, on ACTx. What is the game plan here post FY 2028, once the funding runs out? Are you keen to invest further to pursue the R&D programs or you would prefer a partnership approach or maybe a combination of both?
I think, Alankar, we are open to all sorts of ideas. By the time we reach FY 2028 and if we have good results coming out of the clinical trials that we will embark upon, I think we are open in terms of partnerships or maybe ourselves funding the programs. Depends how the results come out.
When are those expected, Arjun?
We expect over the next two years.
Two years. Okay. That is it from my side. Thank you.
Thank you. I now hand the conference over to management for closing comments. Over to you.
Yeah. Thank you everybody. For any further queries or clarifications, please reach out to us on investor.relations@mankindpharma.com. Have a nice day.
Thank you, members of the management team. On behalf of Mankind Pharma, that concludes this meeting. Thank you for joining us and you may now exit the meeting.