Yes. Thank you very much. We will now begin with the question and answer session. Mr. Pankaj Tibrewal. Please announce your company name and proceed with your question.

Yes. Thank you. This is Pankaj Tibrewal from Ikigai Asset Manager. Am I audible?

Yes.

Yes, you are audible.

Okay. Just from an India business perspective, just wanted to get a sense that always, we have talked about India business growing at 1.2x to 1.3x the IPM growth. Last year was obviously not a great year. And this year also, the start has not been as great because the IPM itself, the market has been very, very strong. How do you foresee the remainin g 9 months for this year from an India growth perspective? And then I'll come to my second question on BSV. Thank you.

Pankaj, if you are asking about the India growth perspective, I will tell you that we have already returned to double-digit growth. And more importantly, the quality of growth has improved. If you see our Chronic portfolio, which is growing by 15.8%. Acute has also recovered to around 10.9%. And BSV is showing strong growth in first quarter of this year. Even the volume growth has improved to 4.7%, which was 2.3% in last financial year 2026. If looking at , to answer your question of 9 months looking ahead, we are confident of progressively outperforming IPM because our growth is being driven by structural levers, not short-term factor. The building blocks are in place. We are increasing our Chronic mix, where we are currently at about 40%, and see the potential to move towards 50% over the next 4 to 5 years. Second is we are scaling our hospital business where our market share is still significantly below our peers, giving us a long runway for growth. Third, we are launching new divisions with non- focus brands in existing business. And fourth, improving performance in underpenetrated state, where our market ranking is b elow our national standing, creating a meaningful opportunity to gain share. So these are the long-term growth drivers that should enable us to consistently gain market share and progressively outperform IPM.

So in terms of -- can we here -- from here on, expect Mankind to consistently outperform IPM with this field force change, everything we have done and all the long-term drivers we are talking about? Is it a fair expectation?

Yes, we will definitely grow double -digit, the measures we are taking, increasing our hospital penetration. The non -focus brands being promoted in new divisions etc. So definitely double - digit growth will come, in the times to come.

The second question is on BSV. I remember last year when we started, we spoke about 18%, 20% growth on BSV, whereas actual growth was about 5%, 6% and largely coming from export and domestic saw a decline. When you look at this year now, obviously, first quarter has started on a decent note. How do we see BSV growth panning out for this year?

So let me correct you, Pankaj. So last year, BSV growth was around early teens, well -spread across domestic and international. This quarter, the growth is around 21%. And we have given guidance of high double-digit growth, which is high teens.

And if we break that into domestic and export, how should we think about it?

Yes. So BSV domestic is around 17%, and international is around 25%.

Okay. That helps us. Thank you and wish you guys all the best. Thank you so much.

Thank you. Next is Rashmi Shetty. Rashmi, kindly announce your company name and proceed with your question.

Yes. Hi. Am I audible?

Yes, you are.

Yes, I'm from Dolat Capital. So one question on this net working capital. You mentioned that the inventory has been increased. And currently, the working capital is around 52 days. So at the end of the year also, it will remain elevated or it is expected to decline?

Yes. So we expect it to come down by the year-end because of some price advantages, et cetera. So the inventory levels are, I would say, slightly above the normal trends, what we used to maintain. So we can expect rationalization in the inventory levels in the coming quarters.

Okay. And this inventory level, which was high, was it because of high raw material prices, anything which you all have witnessed during the quarter?

So since we w ere sitting on a comfortable inventory level, so therefore, if you would have observed the gross margins are pretty healthy. And so they are at 72.8%. So the price increase impact has not flown into the financial because of the good inventory level. However, the next quarter or so, we may see a compression in the gross margins level because the prices of the commodities and the dollar, et cetera, has increased. Having said that, we would like to maintain the same guidance what we gave, the gross margins to be upward of 71% and the EBITDA guidance to be 25.5% to 26.5%.

Okay, which is taking into account even the impact coming from the high raw material prices?

Absolutely, yes.

Yes. And other inflationary cost?

Yes.

Okay. And on the Consumer Healthcare business, I'm seeing that some -- again, you all have given a very low growth of around 3.8% and you'll have discontinued some cash and carry

business. So if you can explain that in detai l, what exactly you all have done? And how should we look at this piece of business?

See, Mankind, wherever we basically do any kind of a business, it should have a very strong foundation. So wherever we found that something has to be done, we have done that. I mean, cash and carry business was basically impacting the general trade. So we just stopped sales over there. But as a whole, market has been a bit softer. But on the second side, as far as the market share is concerned, Manforce Condom share has increased, Preganews share has increased, Gas -o-fast share has increased. So we see going forward with high-teen to double-digit growth in second quarter onwards. High single -digit to double-digit in second quarter onwards.

Okay. That is in the remaining 9 months you're expecting?

Correct.

Okay. And what about the debt levels, you know, we are expecting a complete repayment by FY28?

Yes.

Acquisition-related debt.

Acquisition related. Okay. That was -- yes. Okay. That is something -- that was the doubt. Thank you so much. That's it from my side.

Thank you. Next question is from Kunal Dhamesha. Kunal, kindly announce your company name and proceed with your question, please.

This is Kunal from Macquarie. First question for Ashutosh sir. On the cash EPS number that you are sharing of around INR19 for the quarter, that excludes the entire depreciation and amortization or just the acquisition-related amortization for BSV?

This is after all these adjustments. This is the reported EPS after adjustments of all the tax and depreciation amortization.

The full depreciation amortization has been taken out?

Yes, yes.

But sir, that's not the normal practice, the way large pharma does, right? They just remove the acquisition-related amortization to arrive at cash EPS.

Right. But if I just remove the acquisition -related amortization, let's say, BSV -related amortization, then what would be the cash EPS for the quar ter and keep the Mankind related depreciation and amortization still in the numbers?

Only the total depreciation is in the range of INR225 crores. And out of that, you can -- broadly 50% was allocated towards the acquisition -related depreciation. So we can do the calculation and share with you the numbers subsequently.

We can take this offline, yes.

Yes, because large pharma company only takes the acquisition -related amortization out when they calculate cash EPS . Yes. Second question on, let's say, with the launch of the GLP -1 molecules, and then we are kind of excluding tirzepatide when we kind of say that we are outperforming the Anti-Diabetes. So just from the covered market perspective, how would have we mov ed, let's say, from a 3 - year perspective, let's say, maybe FY22, what was the proportion of IPM we were -- was under our covered market versus what it would be now? I don't know. Has there been a meaningful change there, which is what is leading to this g ap between the IPM growth versus our growth? And what's the strategy to kind of come back to that covered market proportion that we earlier had?

So Kunal, if you see the molecules that we've been launching over the last 3 years, if you see Glizid, if you see the newer molecules on DPP-4, SGLT2, we are among the top 8, top 9 players. Historically, we were always in the older molecules. In the diabetes space, we have also launched insulin. So there's a lot of new initiative in terms of launches and being the top 7, top 8 players. Historically, we were not very big in Anti-Diabetes and if you see we have been outperforming Anti-Diabetes as a segment of 1.2x to 1.3x. Having said that, post GLP, et cetera, since we are very cautious of -- in terms of -- very strategic in terms of launching GLP, excluding that, we are still outperforming. But now GLP, since it's generic, we have taken that into base. We are just saying excluding Tirzepatide. So SGLT would have done better. So 1.2x to 1.3x, we hope that we'll come back to that overall covered market that we were doing.

And covered market, except for Tirzepatide, you don't think that there is meaningful change for us?

Yes, exactly.

Okay. And lastly, for Rajeev sir, what's driving the cautiousness around launching the GLP -1? We have always been aggressive in terms of new product launches, right? So why the conservatism here, let's say especially if you're doing well in some of the newer therapies of oral anti-diabetic like SGLT2 and DPP-4, why are we holding back?

When we have the advantage of launching some product in the first phase in the sense that, your first three, four companies are launching and we are one of those, we surely go all out. But somehow, when we saw that so many companies are launching, right now if you see I mean, more than 20 companies , 35-40 kind of brands are there, everythi ng is there, oral, inject able, single. So our thought was let this storm pass. Let's wait sideways and see what basically happens. And along with this, not only launching this, as a one molecule, launch it as a therapy, I mean . So that therapy approach we have taken, it’s not a cautious approach, it is a strategical approach actually. Why do you even put your resourc es in something which tomorrow is very, very competitive? That is the thought. And we are honestly, we are, to so me sense, we are quite right in that. So we are now working on it, we have launched two branch from two divisions, one in gynaec and one is this diabetic division along with protein, along with other supplements so that we can have, we can basically focus on the complete therapy instead of only this GLP.

Okay. I still, I mean, don't get it because, I still believe hypertension would be more competitive than GLP-1, right? But we are there in hypertensive therapy. So why the cautious approach since we have been always been aggressive and we have done well historically?

See, it's not a cautious approach, it's a strategical approach. And maybe let the time pass, let few quarters pass, you'll see that.

And, Kunal, just to give a data point to you. So five years back, Fiscal '21, our covered market was only 56%, and we were ranked 10 in anti-diabetes segment. If I see Fiscal '26, our covered market has increased to 74% of the market, and we are ranked 7 , and with a market share of 4.5%. So there is a big change in the covered market and our ranks have also improved by three positions.

And then this increase in covered market shouldn't it have accelerated our growth vis -a-vis market?

Yes, that's what we said. So if you have these products and you are among the top 7, top 8 players, so you would have seen an accelerated growth with the se SGLT2 and DPP -4 as launches.

This is for anti-diabetic you're talking about, not for the Mankind?

Yes. Yeah, yeah anti-diabetic.

Okay, okay. Yes. So I understood that it’s...

Overall market in anti-diabetes has increased from 56% to 74%. As you know, we l aunched insulin, DPP-4 and SGLT.

Okay. My question was more from overall market perspective, like overall , Mankind's overall domestic formulation business perspective as to have we seen a different swing in terms of the

covered market, which could also be one of the driver for us to b e kind of missing on the IPM growth?

No, no. So in terms of covered market, from the IPM perspective, we have added, for example, respiratory inhalation product, which was not there. If you see in the anti-diabetes, as I just mentioned in it insulins which was not there. Respiratory inhalers which was not there we have added that. Cardio, a lot of cholesterol -lowering, lipid -lowering pro file products we have launched. So there's a lot of increase in covered market. It is also, with the focus of some of the in-licensing products. For example, recently we had a CNS Rivotril from Roche. So there's a lot of initiative in adding Chronic as well as specialty products to increase our covered market.

If you are referring to new launches, new launches have been softer as compared to IPM. If you look at Q1, the new introduction, NI contribution is 2.8% as compared to IPM 4.1%. So if you are referring to these lower growth rates, so this is one of the contributor to that.

Okay. Okay. And IPM would include all the GLP -1s for the ir NI do you think? Because yes, that has happened in the last one.

Correct. 4.1% is including GLP.

Okay. Okay. Thank you and all the best.

Thank you. Next question is from Neha Manpuria. Neha kindly announce your company name and proceed with your question.

Yes. Thanks for taking my questions. This is Neha from Bank of America. First, just an extension on the new product question. I think we had mentioned last year that beca use of the change in the MR, etcetera, we weren't launching as many new products, which was one of the reasons for the lag. So now that things are normalized, should we expect a higher launch momentum, excluding some of course, but higher launch momentum and therefore, that growth to narrow meaningfully going forward? Or do you think that takes time to play out?

Sudipta, can you take this, please?

Yes. So if you see today, our launches are very strategic, I think what Rajeev sir has told. We specifically launch limited products and individual products try to make it big. So if you see in recent launches, our Vonoprazan has become number 1, which is our Vonalong. Even in case of anti-diabetes like Empagliflozin, if you see today, it is within the top three brands of new launches. So wherever we are launching new brands, we are making it big. But yes, we are being selective in new launches, and that has been a very strategic move for us.

Understood. And my second question is on the gross margin. Ashutosh sir, you mentioned gross margin guidance of 71-plus percent, I think, for the full year. Given where we are in the quarter, I understand there's some cost pressure from West Asia that we might see. But any reason for the conservatism besides the West Asia price impact that we might see, particularly given the higher Chronic mix that we are seeing versus last year?

Sorry can you, can you please repeat the question? I lost your last few words on that, please. Are you referring to the conservativeness on the gross margins part?

Yes, yes sir. Yes, sir. I mean other than the West Asia crisis, any other reason for us to be conservative given that our India growth is picking up. Even within that, our Chronic share is picking up. So it seems like the revenue mix is in our favo ur. So as against the 72.5%, why the 71% guidance?

Yes. So that's the only caveat we are putting because of the West Asia crisis. So we are taking a conservative approach.

All right. Okay. So the only reason is that and nothing else in that?

So Neha, the overall EBITDA guidance has not changed. So we, so that's a reliable guidance of 25.5% to 26.5%.

All right sir. Okay. Thank you so much.

Thank you. Next question is from Bino Pathiparampil. Kindly announce your company name and go ahead with your question please.

Hi, good evening. This is Bino from Elara. Just one quick follow-up question. Recently, you had acquired this brand Rivotril from Roche. How big is that and what is the potential there?

So Rivotril, if you see the IQVIA numbers, it is in the region of INR20 crores to INR30 crores. And we expect that it will give lot of entry to a lot of specialists because it's a textbook brand in terms of the molecule. So we expect that the growth will start, but first, the entry to doctors is important so that we are pouring on the process and making progress in terms of meeting with the specialist doctors.

Okay. So you think it ca n potentially grow up to be INR100 crores, INR 200 crores brand? Is that the thought process behind your acquisition?

Aspiration is always there, but it will take time. I mean these things, CNS, is the category takes time as it's a very specialist portfolio. But aspiration is to make a gold portfolio on the CNS side as well.

Thank you. Next question is from , give me a moment. Next question is from Ritika. Ritika, kindly announce your company name and go ahead with your question please. Ritika, your line is, can you please unmute your line? You're on mute. Ritika Agarwal, kindly unmute your audio and go ahead with your question, please. There is no response.

Can we take the next one.

Our next yes. It is from Sidharth Negandhi. Sidharth, please announce your company name and proceed with your question.

Hi, thanks for taking my question. And glad to see green shoots of recovery. There were certain actions that you mentioned last time that you were taking in terms of reorganization, in terms of focus. Could you give us some metrics around attrition and around share gains or sort of outperforming certain therapies, sub-therapies that you've seen from that reorganization to help us better understand that, yes, these are green shoots of recovery. That's question 1. Second question is, while I understand that the cash and carry business was a dent on general trade and that chan nel conflict is obvious. But if one were to stop the cash and carry business and there is a brand pull, one would see higher general trade sales. Why is it that you did not see that come back through higher general trade sales and instead had l ower growth? Yes, those were my two questions.

I'll take the first one. In terms of what are the green shoots. So first, I'll take the acute business. So if I just talk about Gastro from a -2.5% in Q2, we have seen sequential recovery to 6.9% in Q3, 9.2% in Q4, and now 13.6%. Vitamin, if I see 5% moving to 8% in Q3, Q4 was 12.5% and now 19.3%. Similarly, we have seen Gynaec moving from 6.9% to now 12.7% in Q1. Ophthalmology 6.2% in Q2 has moved to 14.9%, 18.5%, and now 17.5% in Q1. So across Acute therapies, if you see, we have seen improvement. Our growth in acute therapy had gone down to 3.3% in Q2. We are now at par with the industry at 10.9%. So 60% of the portfolio still is acute for us. So now we are at par, and that's why you've see n a double -digit growth for us. Coming to Chronic, Cardiac, we have seen improvement from 14.5% in Q2 to now 19.4% in Q1. Similarly, you have seen anti-diabetes 11.4% moving all the way to 12.7%. Respiratory, if you see very strong growth continues in the Chronic Respiratory side, 20% plus across the last four quarters. And Chronic has moved up from 12.2% in Q2 of last year to now 15.8%. This overall has resulted in a 6.3% overall growth in Q2 to now 12.7% growth in Q1 of Fiscal '27. So green shoots both in Acute and Chronic we are able to see. And as Sheetal ji mentioned that every quarter, we are trying to improve.

Got it. And any metric on the attrition side, whether that has improved? How are you seeing that play out after the re-org?

So in the last 1.5 years, we have seen a lot of shuffling in terms of realignment, improving process, improving traction in terms of doctor visits, etcetera. So attrition and vacancies are now

in control. It has dropped significantly. It ha s come back to the normal level . And you can see the results of sequential improvement because if attrition is higher, then you can't see the improvement.

Got it. And some colour on the consumer products business that I spoke of?

So consumer business, you are supposed to really understand that this market is very dynamic. So general trade slowly and gradually is being this e-commerce and modern trade is taking share of general trade. So we can't really even segregate that general trade is separate and e-commerce is separate. The same consumer buys same things. So while we, basically, took corrective action in cash and carry, on the second side, our modern trade and e-commerce have really grown a lot. Earlier, the share was , last year, the share was 11%. Now the share is 15%, supported by a growth of 38%. So on one side, the growth is there, on the second side, we control certain things, and that's the reason. Overall if I say the market has been a bit softer in consumer side. That's the reason for that. But again, the positive side basically is that Manforce's share in condom category, Prega News's share in pregnancy test, Gas-O-Fast in antacid have improved.

Got it. Thank you. And all the best.

Thank you. Our next question is from Ritika Agarwal. Ritika, kindly announce your company name and proceed with your question?

Yeah. Hi, thank you for taking my question. This is Ritika from ValueQuest. My question is an extension to earlier participant's question on Semaglutide. So earlier, we were commenting that we will be in the first wave of launch and we've also tied up. And even at that time, the understanding was there will be 20 to 30 players launching the drug. So what changed or maybe thought process or maybe what went wrong that we couldn't launch this drug?

So I mean, we never said that we were the first few companies to launch this product. We could not launch in the first phase. And that's one reason we took a strategical call. And in those, where this planning was happening, we were basically having a different , our focus was basically on correcting the overall company actually. The attr ition was high, our enforced attrition was done. We corrected a lot of things in the company. So we thought once we correct these things, then we launch the product. So at different times, we create different strategies, and that's how we started launching Semaglutide a bit late.

I just like to add because of huge competition price drop was very significant. And since we are taking it from a partner, it doesn't make sense to do a price war. Rather we have gone strategic. We are promoting through top-level KOLs. And as Rajeev ji, highlighted earlier that we are looking more from a therapy approach. So if we just play with the price war, this will not be a profitable launch. And just an additional information, as we mentioned, we have already launched this product into two segments. One is

anti-diabetes and the second one is Gynaec. But we expect that it will be a gradual take off for us since it's a very hypercompetitive and there's a lot of price war happening at the moment.

Sure. And anything on the export side, are we looking to launch this product?

No, no. We don't have an export strategy.

Okay. Sure. That’s it from me. Thank you so much.

Thank you. We have a follow -up question from Rashmi Shetty. Rashmi, please proceed with your question.

Yes. I'm audible, right?

Yes, you are.

Yes. So on the export business also, we have a very strong growth this quarter. So what is driving this growth? And one , I think one reason you mentioned that the BS V has also grown strong. But ex-BSV also, it is looking pretty strong. So whether U.S. is contributing significantly or any one-off opportunities have we benefited during the quarter?

So as I mentioned, B SV increased by 25%. And also U.S. has done well. We had a couple of launches. And if you see the currency has also held to the extent of 12% to 13%. So put together, it is in line with our guidance of high teens in the constant currency terms.

So high teens, which you are talking about for both the businesses together, right, Mankind plus BSV?

That is correct.

Okay. And earlier, we used to talk related to one Ophthal product, which used to contribute higher compared to the other products in the U.S. that was more of a one -off. Has it seen any competition, and is it sitting in the base or it is still...

Right. So last year only it came into base.

It was last to last year. In FY25, that was in base. So that was, the bulge was in FY25 and that normalized in FY26.

Okay. Got it. And one question to Prakash related to BSV. For this quarter and for FY26, out of the total BSV, the proportion of domestic business , especially for FY26, I want to understand the proportion of domestic business to export ratio is high or it is lower?

So the ratio of domestic to international is, for last year, you are asking?

Yes, for FY26.

Last year.

50-50. And this year also?

51 to be precise. Yes.

Okay. And this year also, it is expected to be in that range?

Similar range, plus/minus 2%.

Okay. Got it. Thank you. Thank you so much.

Thank you.

We have a question from Gourav Bhama. Kindly announce your company name and proceed with your question.

Yeah. Hi sir, good morning. Gourav Bhama this side from JM Financial. Am I audible?

Yes, go ahead.

Yes, I just wanted to double check what was the guidance given for Consumer Healthcare 2Q onwards?

We have said high single-digit to double-digit.

Thank you.

Thank you. Next is Shirsh Sawarna. Kindly announce your company name and proceed with your question. Shirsh?

Am I audible? Hello?

Yes. Please go head.

Hi, I'm Shirsh. I am from Bernstein. I have two questions. Firstly, can you , if I may not have understood properly, can you explain what has been the recent scenario of BSV and how is, like what exactly are we doing to integrate it properly? And secondly, on the IPM guidance of domestic, you guys guided of around early teens. So do you expect the IPM to also grow at that rate? Or will you be growing above IPM?

Let me take your second question first. So as per our guidance in the last call, we said that we expect sequential recovery and expect full year to be double-digit growth. Expect Chronic to be better and also expect recovery in the Acute business, which we were able to demonstrate in Q1 also. Coming to BSV, in terms of business side, if you see, we've always maintained that it would be run as an independent operationally, both in the domestic and international. We have tweaked

in terms of a little bit on the management side, wherever required. We have added in terms of a biotech facility. We have enhanced the R&D biotech facility. So tho se are the small changes which we have done from Mankind, but BSV as run independently by professionals. There is a lot of initiatives that has been taken both in domestic and international business. We highlighted that there is a lot of demand creation that is happening for large brands and these are specialist brands like Anti-D, Foligraf others. Gynaec coverage has increased from 33,000 in Fiscal ' 25 to now 37,000. There's a lot of IVF - related programs that has been activated. We have more than 80% coverage in the IVF category, which is seeing a very strong growth of 35% plus. And also, there's a lot of clinical work going on in terms of its key products, in terms of clinical trials of expanding market reach for Foligraf, which is FSH, Anti-D, which is Rhythm study and also some of the anti-allergy products, Histoglob studies. So there's a lot of , so scientific work going on in terms of expanding the domestic business. In International business, we are seeing increasing penetration in the existing markets. Plus we are seeing some of the new approvals in large markets like Russia. FSH, we recently got approval. We're also expecting FSH approval in a couple of new markets. And there's a lot of initiatives going on in terms of newer products in the existing markets. That's why we've given a guidance of high-teen growth.

Got it. That's very helpful. Just one double click on my previous question. About the Acute , so Chronic, I understand. But in the Acute segment, can you like specify why are we, why did we not do that well as we used to? And how are we like going to change things in the upco ming years or quarters?

We have mentioned a number of times about this, that our 60% business comes from the Acute side. In Acute, relationship and face value really matters. And maybe, I mean, 18-months back, we did deep correction, removed approximately a good number of people we removed and changed the new people. That’s why the recovery is there. And whenever, I mean, there is a kind of a belief that recovery should be on a strong foundation, recovery happens gradually. Anything happens a ll of a sudden, very fast, we don't believe in that. So you can see quarter-by-quarter, things are really improving, and we are quite happy with our performance. We don't expect , I mean, Mankind always believes that prescription is sales. That's all. Our policies are like this that last week sales should not be there. Normally first week sales will be very good. So we believe in all those processes. So and whatever we basically have said that we never said in last couple of quarters that we'll be beating the IPM. We said that we'll have this kind of a growth. Our forecast even this year is double-digit growth would be there. We'll be having this EBITDA of 25.5% to 26.6%. And aspiration is to come

back to where we were a few years back. For a good number of years, we basically have beaten IPM to 1.7x, a good number of years, 1.3x to 1.4x. So once you have this kind of a track record, you want to come back to that side. It takes time. We are not in a hurry, but we feel that as every quarter would pass, things wi ll improve. And things are on track. Look at from the volume-wise, new product-wise, as a whole.

Got it. Thank you.

Thank you. I now hand the conference over to the management for closing comments. Over to you sir.

Thank you. 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. This transcript has some minor edits to enhance the understanding and readability and does not purport to be a verbatim record of the proc eedings. Since it is a transcription, it may contain transcription errors. The Company takes no responsibility of such errors, alth ough an effort has been made to ensure a high level of accuracy.