Mankind Pharma stock surges 9% after strong Q2 results; Kotak sees big upside, other brokerages cautious

The stock had gained 4.5 percent in the previous session following the earnings announcement. The stock has risen 16.7 percent so far in 2026, outperforming the Nifty 50, which has declined 13.2 percent during the same period. Mankind Pharma's market capitalisation stood at approximately Rs 1.04 lakh crore. The rally also coincided with broader strength in pharmaceutical stocks, with the Nifty Pharma index advancing 1.7 percent.

Kotak Institutional Equities maintained its 'Buy' rating on Mankind Pharma with a target price of Rs 3,035, implying approximately 31 percent upside from Monday's closing price. Kotak expects Mankind Pharma to outperform the Indian pharmaceutical market (IPM) by 1.1-1.2 times over the next two quarters, supported by improving volumes. However, it flagged the over-the-counter (OTC) business as a key concern, with growth yet to recover.

JPMorgan maintained its 'Neutral' rating with a target price of Rs 2,700, saying that Mankind Pharma's Q2 revenue exceeded estimates by 3 percent, supported by Indian prescription medicines and exports. The brokerage said domestic growth of approximately 16 percent was encouraging, although its sustainability remained uncertain given the low base. The brokerage raised its EBITDA estimates by 3-4 percent but retained its Neutral stance, awaiting sustained domestic outperformance and clearer signs of consumer recovery.

Macquarie maintained its 'Underperform' rating with a target price of Rs 2,200. The brokerage said Mankind Pharma's second-quarter revenue, EBITDA and adjusted net profit exceeded its estimates by 3 percent, 4 percent and 12 percent, respectively. The EBITDA beat reflected stronger revenue, better gross margins, operating leverage and lower-than-expected research and development expenses. Bernstein maintained its 'Underweight' rating with a target price of Rs 2,057, implying approximately 11 percent downside from Monday's closing price.

The brokerage said the strong Q2 performance provided limited additional evidence to justify Mankind Pharma's premium valuation, particularly as the second quarter is historically stronger for the company. While domestic growth of 15.9 percent appeared healthy, Bernstein highlighted an uneven recovery across therapeutic segments. Bernstein cautioned against extrapolating the quarter's performance, citing seasonally stronger acute demand and an easier comparison base.

Mankind Pharma reported a 39.2 percent year-on-year increase in net profit to Rs 712 crore for the September quarter, while revenue rose 17.3 percent to Rs 4,338 crore. EBITDA increased 27.1 percent to Rs 1,171 crore, with the operating margin expanding by 210 basis points to 27 percent. Domestic revenue increased 14.8 percent to Rs 3,657 crore, while exports jumped 32.7 percent to Rs 681 crore.