Financial Performance Highlights

Q2 FY27 Financial Results:

  • Revenue from operations: ₹4,338 crores, up 17.3% YoY (vs ₹3,697 crores in Q2 FY26)
  • EBITDA: ₹1,175 crores, up 27.2% YoY
  • EBITDA margin: 27.1%, improved 210 bps YoY (vs 25.0% in Q2 FY26)
  • Gross margin: 72.2%, improved 90 bps YoY (vs 71.3% in Q2 FY26)
  • PAT: ₹716 crores, up 37.7% YoY
  • PAT margin: 16.5%, improved 240 bps YoY (vs 14.1% in Q2 FY26)
  • Diluted EPS: ₹17.2 per share (face value ₹1)
  • Cash EPS: ₹22.9 per share, up 29.1% YoY

H1 FY27 Financial Results:

  • EBITDA margin: 26.7%, improved 230 bps YoY
  • Cash flow from operations: ₹1,819 crores, up 11.1% YoY
  • Cash flow to EBITDA ratio: 81% (vs 92% in H1 FY26)
  • Effective tax rate: 24% (vs 17.1% in H1 FY26 due to adoption of new tax regime)

Operational Performance

Domestic Business:

  • Domestic revenue ex-consumer healthcare: ₹3,428 crores, up 15.9% YoY
  • Total domestic business revenue: ₹3,657 crores, up 14.8% YoY
  • Secondary sales growth: 15.7% (outperforming IPM growth of 14.2% excluding tirzepatide)
  • Volume growth: 6.2% in Q2 FY27 (improved from 0.5% in FY25, 2.3% in FY26, 4.7% in Q1 FY27)
  • Chronic share excluding BSV: 37.4%, expanded 80 bps YoY
  • Hospital segment growth: 23% YoY

Business Segments Performance:

  • BSV portfolio: Continued 20%+ growth for second consecutive quarter
  • Chronic therapies: 1.1x outperformance in cardio and antidiabetes (excluding tirzepatide), 1.9x outperformance in chronic respiratory
  • Acute therapies: Strong recovery with 26% YoY growth in vitamin/mineral, 19% growth in gastro
  • Anti-infective: 5.4% growth in Q2 vs 3.6% in Q1
  • Consumer healthcare: ₹229 crores revenue, impacted by slower industry offtake and regional impacts in East/South

International Business:

  • Revenue: ₹680 crores, up 33% YoY
  • BSV international growth: 34%
  • Mankind US growth: 29%
  • Other international markets growth: 37%

Strategic Developments

Product Portfolio:

  • 63 brand families with sales over ₹50 crores (vs 54 in FY26)
  • 26 brand families with sales over ₹100 crores (vs 22 in FY26)
  • New brands showing traction: Vonalong, Empagreat, Dynaduo, Nurokind HS PFS, Pantakind Raft
  • BSV key brand performances: Humog (51% growth), Lonopin (45%), Anti-D (37%), ASVS (45%)

Innovation Pipeline:

  • In-house pipeline asset MKP11093 (JAK Inhibitor) received funding under PRIP program by Government of India
  • Strategic acquisition of Armed Cell Therapeutics for access to CAR-T cell therapy platform
  • Current commitment: 48 Million Euros, sufficient funding until FY28

Capital Structure & Debt:

  • Net debt: ₹2,639 crores as of September 30, 2026
  • Net debt to adjusted EBITDA ratio: 0.6x (trailing 12-month basis)
  • On track to repay acquisition-related debt by FY28
  • Finance cost: ₹105 crores in Q2 (down from ₹110 crores in Q1 due to NCD repayment of ₹1,250 crores)

Capital Expenditure:

  • CAPEX spent: ₹214 crores in H1 FY27 (vs ₹163 crores in Q2 FY26)
  • CAPEX as % of revenue: 4.9% (below guidance of 6-7% for FY27)

Working Capital:

  • Net operating working capital: 51 days (trailing 12-month) vs 46 days in corresponding period last year

Regulatory & Tax Matters

Tax Litigation:

  • Received favorable order from Commissioner of Appeals
  • Overall exposure reduced by approximately ₹300 crores
  • Accounting provisions and financial impact fully accounted for in books

Marketing Practices:

  • Company prepared for UCPMP guidelines and potential statutory changes
  • No expected material financial impact from regulatory changes

Guidance & Outlook

FY27 Guidance Maintained:

  • EBITDA margin: 25.5-26.5%
  • R&D spend: Upper end of 2.8-3% guidance (including ACTx impact)
  • Export growth: 20% constant currency dollar basis (actual growth higher due to currency benefits)

Consumer Healthcare:

  • Expected single-digit growth for FY27
  • E-commerce share increased to 18% from 12% a year ago
  • E-commerce channel growth: 55%

Future Expectations:

  • Aim to outperform IPM growth consistently
  • Target chronic share increase to 50% from current 39%
  • Field force productivity improvement: ₹7.4 lakhs per MR (trailing 12-month) vs ₹7 lakhs last year
  • MR addition guidance: 7% increase for FY27

Management Commentary

Company emphasized three strategic priorities: strengthening core business, scaling chronic and specialty therapies, and investing in future growth platforms. Expressed confidence in sustaining outperformance versus IPM and accelerating long-term value creation.