Mankind Pharma Focuses on Debt Reduction and Strategic In-Licensing

Mankind Pharma, one of India's largest pharmaceutical companies, is currently prioritizing debt reduction and exploring strategic in-licensing opportunities rather than engaging in large mergers and acquisitions, according to CFO Ashutosh Dhawan. The company recently acquired Bharat Serums and Vaccines for Rs 14,000 crore, funded through a mix of debt and equity, and aims to be debt-free by FY28. Dhawan highlighted the diversification towards in-licensing partnerships in segments like oncology, GLP1, gastroenterology, gynaecology, and urology for future growth. The company's strategy on exports remains opportunistic, focusing on markets where they possess a cost advantage. Mankind Pharma's revenue grew by 19% to Rs 12,207 crore in FY25, with a net profit rise of 3.4%. The company targets a net-debt-to-EBITDA ratio of less than 2x, planning to be net-debt positive by FY28. Despite a challenging Indian Pharma Market (IPM) environment growing at around 8-10%, Mankind Pharma affirms a systematic approach towards balancing debt reduction, targeted growth, and technological investments.