Mankind Pharma Limited (MANKIND.NS) Earnings Call Transcript & Summary

Good afternoon, members. Welcome to the 34th Annual General Meeting of Mankind Pharma Limited being held through audio and video conferencing. [Operator Instructions] Please note, that as per the statutory requirements, the proceedings of AGM are being recorded, and the transcript thereof will be uploaded on the company's website within the statutory time frame. I now invite Mr. Ramesh Juneja, Executive Chairman of the company, to preside over the meeting and initiate the proceedings. Thank you, and over to you, sir.

Good afternoon, valued shareholders, stakeholders and members of Mankind Pharma family. It's a deep honor to invite all of you to the 34th Annual General Meeting of Mankind Pharma. Standing here today, as we mark 30 years of our journey, it makes me extremely proud and thankful. It's a milestone that speaks of our combined offers to create a healthier Bharat, and it is an absolute present to address all of you on behalf of the company. As verified by the company's secretary, the minimum quorum has been met and I hereby construe that meeting. Allow me to introduce the directors and key managerial personnel of the company present day. Mr. Rajeev Juneja, Vice Chairman and Managing Director of the company; Mr. Sheetal Arora, CEO and Whole Time Director and Chairman of the Risk Management Committee; Ms. Vijaya Sampath, Independent Director and Chairman of the Audit Committee; Mr. TP Oswal, Independent Director and Chairman of the Nomination and Revolution Committee and Stakeholders' Relationship Committee; Mr. Bharat Anand, Independent Director; Mr. Vivek Kalra, Independent Director; Mr. Satish Kumar Sharma, Whole Time Director; Mr. Ashutosh Dhawan, Global Chief Financial Officer; Mr. Hitesh Kumar Jain, Company Secretary and Compliance Officer. I would also like to express my sincere appreciation for Mr. Surendra Lunia, who has completed his tenure as an independent director of the company on 18th February 2025, for his valuable contribution to the journey of Mankind. We also have the auditors of the company joining the AGM. Mr. Vivek Jain, Director; S. R. Batliboi & Company LLP, Mr. Mohit Gupta, partner, Bhagi Bhardwaj Gaur & Company the joint statutory auditors of the company, Mr. Shailesh Dayal, Practicing Company Secretary and the Secretarial Auditor of the company for the financial year 2024-'25 and Mr. Manoj Kulshrestha, the cost auditor of the company. I would also like to inform the members that advocate Mohit Chaurasia has been appointed as the scrutinizer for scrutinizing the board for AGM. He is also attending the AGM through video conferencing. As per provisions, of the Company's Act 2013 and the circulars issued by the Ministry of Corporate Affairs and SEBI, the AGM is being conducted through video conferencing. We have tried our best to make it possible for all members to join in and vote on resolutions mentioned in the AGM notice. To enable the members to vote on the resolution outlined in the AGM notice, the company has provided an e-voting facilities through the NSDL platform. The remote e-voting commenced on Monday, 24th August 2025 at 9:00 a.m. IST and ended on Wednesday, 6th August 2025 at 5:00 p.m. IST. In case you have not exercised your voting right through the remote e-voting facilities, you are posted to do so. Voting so -- voting will remain open for 30 minutes after the conclusion of this AGM. The statutory documents and registers required to be placed at AGM are open for inspection electronically, the members who wish to inspect can write to us as the [email protected] and we will facilitate the inspection. Since the AGM is conducted through video conferencing, the option to appoint a proxy is not available for the AGM. And hence, proxy registration is not available for the inspection. The annual report containing the Board report, the auditor's report, financial statements, other reports, along with AGM notice have already been sent to the members at their registered e-mail ID. I hope all the members have received the annual report and AGM notice. With the permission of the members, I take them as read. Since there are no qualifications or observations in the statutory auditors or secondary auditor's report for the financial year ended on 31st March 2025, the said reports are also taken as read. My warm thanks to all our stakeholders for your confidence and support. Your faith in Mankind's vision has been inspired inspiration behalf of our success. And we intend to continue that faith as we embark on the next phase of the growth. Now may I invite Vice Chairman and Managing Director, Mr. Rajeev Juneja to speak to you. Over to you, Rajeev. Thank you.

Thank you, Ramesh. Good afternoon, respected shareholders, stakeholders and members of Mankind Pharma family. It's an honor to address you all at 34th AGM. This year, as we celebrate 30 years, we look back on how we have transformed from a marketing focus into a robust organization with in-house manufacturing, a strong consumer health care portfolio and cutting-edge R&D. We have become one of India's fastest-growing pharmaceutical companies, steadily expanding our reach to make quality medicines at affordable prices and accessible to all. It is this mission that keeps us growing. It keeps us grounded and inspired every day. None of this would have been possible without your support. I would like to express my deepest gratitude for your trust and encouragement. It's thanks to that support that we have achieved a revenue of INR 12,207 crores in financial year 2025 and a strong 19% growth with a healthy profit margin of 25.9%. These numbers reflect not just business success, but the strength of our shared vision. To stay ahead, we have taken some big steps this year. We have strengthened our leadership team, engagement with doctors and medical affair, with upskilling our workforce and speeding up our digital processes. All these efforts are helping us becoming more focused, efficient and future ready. We're also focusing more on high growth segment in chronic therapies like cardiovascular, diabetes, CNS and respiratory, to tackle the rise in lifestyle diseases. Our chronic therapy segment grew by 12%, with its share rising to 37% in financial year '25, consistently outpacing the IPM by 1.3 to 1.4x. Building on the successful launch of Neptaz in-licensed from Novartis. We have strengthened our portfolio this year as Novartis has placed their trust in us once again with Crenzlo, a novel product for lipid management. Additionally, our partnership with AstraZeneca for Symbicort reflects growing trust from global leaders and open doors for future collaborations. These efforts have positioned us amongst the Top 3 in CVM category, earning the confidence of prescribers and validating our commitment to science and quality. Our Consumer Healthcare business that we launched in 2007 has delivered a strong 15% year-on-year growth in financial year '24, '25. Driven by market-leading brands like Manforce condoms, Prega News, AcneStar and Unwanted-72. Recognizing that distinct nature and high growth potential of our OTC business, we established it as a separate entity with a dedicated team and focused strategies, thereby ensuring sustainable and high growth in the years ahead. New launches like Epic ThinX, Nimulid and Ova News have gained strong momentum, expanding our portfolio from sexual wellness and pregnancy to other consumer wellness categories. We have strengthened our VMN portfolio with Health Okay, advanced short pain and analgesics offerings through Nimulid, addressing digestive health with Gas-O-Fast in the antacid segment and build a strong presence in anti-acne category with AcneStar. One of the key milestones last year was our acquisition of Bharat Serums And Vaccines Limited. This move has strengthened our presence in high entry barrier, superspecialty therapies. BSV brings deep expertise in women health, fertility and critical care. It is -- it also has a strong IVF portfolio an advanced R&D tech platform and complex drug delivery systems. This aligns perfectly with our strategy to grow in complex therapies. Products like AntiD, Foligraf, Thymogam, ASVS face limited competition, giving us a competitive edge. This acquisition has consolidated our #4 rank by value in IPM. Looking ahead, our growth rests on 4 pillars, strong pillars, AHTD based business across multiple therapies, fast-growing specialty chronic, high potential consumer health care and BSV, high-entry barrier superspecialty business. We are evolving into R&D-led organization focused on innovation and excellence with a clear goal to become India's #1 pharmaceutical company. With your continued trust, I'm confident we will turn this vision into reality. Before I hand over to our CEO, Mr. Sheetal Arora, let me express my heart gratitude to all of you. Your partnership has been our backbone through these years. Thank you for standing by us. I will now hand over to our CEO, Mr. Sheetal Arora. Thank you.

Thank you, Rajeev. Good afternoon, and a warm welcome to all our shareholders. I'm truly grateful to have you with us for the Mankind Pharma's 34th AGM. When we look back at the past year, it's not the numbers that stand out. Yes, we crossed INR 12,207 crores in revenue. But what really moves me is the countless stories of trust and care, whether a doctor is choosing our medicine for its reliability or a mother buying our product because she trust its quality and affordability or an employee going the extra mile to serve a customer. These movements, these people define who we are. This year, those small studies became a part of something much bigger. We became India's second largest player by volume. But more than that, we become a brand trusted by crores of patients. Over 50 crores prescription written by 5 lakh doctors and 150 crore units of our products purchased by patients. They are the choices made every day by people who we trust. It is a result of our consistent focus on making high quality affordable health care available in every corner of Bharat. Another important milestone was the acquisition of Bharat Serums and Vaccine. This move strengthened our presence in high-impact categories such as women's health, fertility and critical care. With this integration in progress, we now have a stronger role in supporting a wider spectrum of patients, especially in IVF and other critical conditions. Today, we are the #1 player in gynecology with a 10.4% market share. And this is only the beginning. Our R&D capabilities have expanded to include recombinants, niche biological and complex delivery system. We are now better positioned to deepen our reach in India and expand into high-growth international markets. None of this would be possible without our amazing team. Every milestone we have crossed has been driven our people. Today, our workforce stands at over 27,000 employees. This year alone, we conducted more than 2,000 training sessions, raising a 43% increase from the previous year. We are not just binding team. We are shaping leaders who can adapt, respond and lead in an era of rapid change. As digital transformation and artificial intelligence reshape the business landscape, we are investing in tools that prepare our teams to thrive. Our culture is all about merit and inclusion, which is held together by a deep sense of responsibility. We are building exactly the kind of culture at Mankind. India's health profile is changing. Today, noncommunicable disease account for 53% of death in the country and 44% of disability adjusted life is lost. This shift demands series and sustain attention. As a purpose-driven company, we have expanded our focus on chronic therapies by offering high-quality medicines at affordable prices. Our chronic therapy share has grown from just 1% in 2004 to 37% this financial year. This year is expected to cross 40% in the near future, driven by sustained outperformance of 1.3 to 1.4x faster than the IPM. Behind this performance, like the focused expansion in therapies like anti-diabetes, including insulin and SGLT2 inhibitor, cardiovascular drugs like statins, heart failure treatment and respiratory care, including inhalers. We are also stepping up our investment in R&D to deliver smarter and more patient-friendly innovations. We want to make sure that as a health care evolves, our solution remains both advanced and accessible. We believe that no growth is meaningful unless it is responsible. That is why sustainability is central to our operations. We are reducing our environmental footprint by investing in greener manufacturing processes better packaging and resource conservation. Our actions are driven by the belief that business must always serve the society it thrives in. We have contributed to the communities we operate in through health care, education and livelihood initiative. This year, we have incorporated a wholly owned subsidiary, Kind Care Foundation. Through that, we have empowered over 3 lives across 14 states. Our health care initiative includes mobile medical bank, critical disease here and health care and supported 1,000 during Mahakumbh 2025. In education, we transformed around 400 government classrooms into smart classrooms, benefiting 60,000 students. We also deployed a mobile surgical unit for the Indian Army in Ladakh. These efforts reflect our belief that health care and education must reach where it is needed the most. As India's health care need grew more complex, the solution we built must grow more intelligent, inclusive, efficient, and we are prepared to lead the way. Our strategy is clear. We'll focus on strengthening chronic and specialty portfolios, scale up our consumer health care brands, invest in R&D and digital capabilities and build an agile inclusive and value-driven culture. Our growth give us the ability to serve more people, solve more problems and shape healthier Bharat. Together, let us build a healthier tomorrow driven by purpose and powered by our people. Now I invite our Global Chief Financial Officer, Mr. Ashutosh Dhawan to address the members. Over to you, Ashutosh. Thank you so much.

Thank you, Sheetal. A very good afternoon, ladies and gentlemen. It's my privilege to once again address this Annual General Meeting being attended by our esteemed shareholders. On behalf of the entire management team, I would like to thank you for your continued trust and support as we complete another significant year in our journey of delivering superior quality health care at an affordable price to the people of Bharat. Financial year '25 has been a landmark year not only in terms of financial and operational performance, but also in terms of strategic transformation that positions us for a long-term sustainable growth. Let me give some financial highlights for financial year 2025. The company clocked its highest ever consolidated revenue of INR 12,207 crores at a growth of 19% year-on-year basis. Our adjusted EBITDA stood at INR 3,159 crores, growing 25% year-on-year, with adjusted EBITDA margins improving to 25.9% in up by 130 basis points on a year-on-year basis. This is in line with our stated guidance of 25% to 26% provided at the beginning of the year. Our gross margins for the year improved by 260 basis points, majorly on account of sales price increase effect, which has contributed 120 basis points and the balance 140 basis point is the combination of better sales mix as our chronic contribution has increased by 150 basis points on year-on-year basis as well as certain operational efficiencies have been achieved in our manufacturing processes. Our adjusted EBITDA margins improved by 130 basis points which is primarily driven by gross margin expansion of 260 basis points, a part of which has been offset by increase in expenses. Our profit after tax reached crores, up 3% year-on-year basis despite higher depreciation and finance costs related to BSV acquisition. Our cash flow from operations stood at INR 2,413 crores, out of which INR 531 crores was deployed towards capital expenditure. The cash flow from operations for the fiscal 2025 has shown a healthy cash flow to EBITDA ratio of 80% and diluted earnings per share of INR 49.1 and the cash EPS at INR 64.4. As part of our continued innovation in R&D, we have made notable strides in our R&D efforts. Our R&D expenses for the full year 2025 is 2.2% of the sales which was in line with our cadence of 2% to 2.5%. The net debt position is at INR 5,784 crores as at 31st March, '25 primarily due to funding of BSV acquisition. However, our balance sheet remains strong and resilient. We have been rated AA and stable by CRISIL and ICRA, and our net debt to adjusted EBITDA ratio is 1.8x as on 31st March 2025. Subsequent to the year-end, the net debt-to-EBITDA ratio has further reduced to 1.6x due to repayment of commercial papers amounting to INR 500 crores in quarter 1 FY '26. Now I would like to share with you some of the strategic highlights for financial year '25. In October '24, we completed 100% acquisition of BSV for INR 13,768 crores, a strategic milestone to further strengthen our presence in high-entry barrier super specialty therapies like fertility, women's health and critical care. To fund our acquisition and to preserve financial flexibility, we successfully raised INR 10,000 crores of debt, a mix of INR 5,000 crores from NCDs and INR 5,000 crores through commercial papers. In order to maintain financial discipline and to repay our debt, we successfully raised equity of INR 3,000 crores via QIP reinforcing our capital base. Additionally, we monetized a non-core asset, Mahananda Spa and Resorts Private Limited for a cash consideration of INR 562 crores on further strengthening our focus on core health care operations. In quarter 3 FY '25, we have completed the carving out of our consumer health care business into a wholly owned subsidiary, recognizing the differentiated nature and high growth potential of our OTC portfolio. Our strategy aimed at sharpening focus enhancing brand building capabilities and unlocking long-term value to improve governance streamline operations and to simplify our group structure we merged three of our wholly owned subsidiaries, namely Shree Jee Laboratories Private Limited, JPR Labs Private Limited and Jaspack Industries Private Limited with Mankind Pharma Limited. This integration supports operational synergies and aligns with our long-term goal of building a more agile and efficient organization. Looking ahead, we remain focused on execution, innovation and impact with our 4 pillars model of base business focusing on multi therapies specialty, chronic consumer health care and super specialty via BSV, we are now well positioned to serve diverse health care needs across Bharat and beyond. Our confidence is further bolstered by our deep distribution reach, strong prescription share, expanding R&D pipeline and our future ready workforce of close to 27,000 employees. With this, I thank you once again for your unwavering support and trust. Now I would request Mr. Hitesh Jain, the Company Secretary and Compliance Officer, to brief us all on the resolutions proposed in the AGM notice. After the briefing of the resolutions, we will open the floor to the members who have registered themselves to speak at the AGM. Thank you so much, and over to you, Hitesh.

Thank you, sir. Good afternoon, ladies and gentlemen. Dear members, since this meeting is being held through audio and video conferencing and the resolutions provided in the notice have already been put to work through e-voting, there will be no proposing and seconding for the resolutions. Now I will read in brief the resolutions proposed in the AGM notice. Item #1, is an ordinary solution to receive, consider and adopt a, the stand-alone audited financial statements of the company for the financial year ended March 31, 2025 and the report of the Board of Directors and auditors thereon; b, the consolidated audited financial statements of the company for the financial year ended March 31, 2025 and the report of the auditors thereon. Item #2 is an ordinary resolution to appoint a director in place of Mr. Sheetal Arora DIN 00704292, who retires by rotation and being eligible offers himself for reappointment. Item #3 is an ordinary resolution for appointment of Messrs. Amit Gupta and Associates, Company Secretaries as the secretarial auditors of the company. Item #4 is an ordinary resolution for ratification of the remuneration of the cost auditors for the financial year 2025, '26. The text of the resolutions, along with the explanatory statement is provided in the AGM notice, circulated to the members. If any member wishes to know more details about the resolutions, the concern individual is requested to refer to the AGM notice. The company has allocated a definitive period for members to register themselves as speaker shareholders. Accordingly, the company has received a request from some members to register them as speakers at the AGM. We will open the floor for the speaker members to ask questions or express their views. Members may also note that the company reserves the right to limit the number of members asking questions or making suggestions depending upon the availability of the time. Moderator will call the name of members one by one, who have registered as speaker shareholders and unmute their mic to enable the person to speak. Before the members begin speaking, they are requested to turn on the video. And if for any reason, they are not able to join through video mode, the members can speak through the audio mode only. While speaking, we request the members to use headphones or earphones so that they are clearly audible and can minimize any noise in the background. The speaker members are also requested to ensure that the strength of WiFi connectivity is good, no other background applications are running and proper light is available to ensure a clear video. The members who need technical assistance during the AGM may reach out to NSDL via e-mail ID or the help line number provided in the AGM notice. If there is any connectivity problem at the speaker's end the moderator will mute the speaker and the next speaker will be invited to speak. We request the speaker members to kindly limit their speech, questions, clarifications to a maximum of 2 minutes so that all the speaker members will have fair time. To avoid repetition, the answer to all the questions will be provided towards the end. Now I request the moderator to open the floor for the speaker members. Thank you. Over to moderator.

Thank you, sir. Dear members, our floor is now open for the Q&A session. I now call upon our first speaker, Mr. Akhilendra Singh to speak. Mr. Singh, we have placed you in the meeting. We can hear you. Please proceed.

Yes. Good afternoon, everybody. I extend my heartfelt gratitude to our entire Board and management for great performance in such radical geopolitical situation where Mr. Trump has become Mr. Tariff and every second day, we are getting surprises. But I'm really very overwhelmed after listening Executive Chairman and Vice Chairman and CEO, CFO of the company who are navigating a company to the right direction for the growth and prosperity and their reason to become #1 is very near. Days are not very far. Since we have limited opportunity to meet therefore, I have a laundry list of questions. And these are, that how the company is going to face competition when the medicine has become like a common good which is available to everyone. My another question is what are the management views on generic and non generic medicine? Other question, do you have any plan to launch affordable price medicine for fast-growing diseases nowadays, every disease has become a common and after this, what are the company's plans for the greener practices, which is the main moto of ESG planning for the sustainable planet as well as better society. And what are your specific goal for ESG for better environment, society and governance. And what are the percentage of revenue from pharma sector and consumer health care sector and policy for maintaining growth momentum. With this, I would like to conclude, but without mentioning, I can't conclude the kind of cooperation I received from your secretarial team whenever I approach them, they listen me, they resolve my issue. I am really very delighted to have such a wonderful people over there. And thank you, sir, just waiting for my replies.

Thank you, Mr. Singh. We now invite our next speaker, Mr. Rahul Pandey, to speak. Sir, we have placed you in the meeting, kindly unmute your microphone to speak.

Good afternoon, Chairman and other Board members, fellow shareholders and distinguished guests. I am Rahul Pandey, a small shareholder of Mankind Pharma Limited. First of all, I would like to thank the management for giving me this opportunity to speak on this platform. I firmly believe that our company is in strong and capable hands, and I am confident we will continue to perform the better in future. Sir, my question is to the management is, if the company is affected due to increased geopolitical disturbance in many parts of the world. And if yes, what specific international markets have been disruptions and how Mankind mitigate those. I would like to extend my heartfelt applause for your strong leadership for steering the company forward bit out with outstanding performance. I also want to sincerely appreciate the management team for their hard work and dedication in the enhancing shareholders' value. Sir, I am confident that with your vision and determination you will continue to lead our company to even greater heights. Further sir, on the backdrop of recent developments about U.S. imposing stricter tariffs on imports, especially from Asian countries has Mankind Pharma assessed any direct or indirect exposure or operation in the U.S.A. All the best, sir. And thank you very much. I would like to reply my answer. Thank you.

Thank you, sir. Our next speaker is Mr. Manoj Kumar Gupta. Mr. Gupta we can see you.

Good afternoon, respected Chairman, Board of Directors, fellow shareholders. My name is Manoj Kumar Gupta. I've joined this meeting from my residence City of Joy, Kolkata. I feel proud to be shareholder of Mankind. First of all, sir, thanks to you and your team. [Foreign Language] Thanks to you and your team for the excellent results of the company for the year ended '24, '25. And thanks to the company secretary and his team to help us to join this meeting through VC, especially Mr. Rahul, who always keep in touch with the investors after got the name of registration and speakers. And sir, I've already sent my five5 questions to your secretarial department kindly try to respond to that questions. And my two questions are that is there any direct or indirect impact will come on our company through the vision tariff imposed by the U.S. [Foreign Language] if continued to innovate more products in the company to flourish the name of country in world wide. And is there a direct indirect impact through in Bangladesh or Turkey on our company, sir? And fulfill the vision of our visionary Prime Minister to export with the take of Make In India by Mankind to fulfill that vision and keep continue the VC meeting so that we can -- you are in Delhi, we are in Kolkata so that we can talk to you directly. [Foreign Language]. With this, I thank to you, sir. Thank you.

Thank you, sir. Our next speaker is Ms. Shruti Gupta. Ma'am, I request you to unmute your microphone and speak.

Respected Chairman, sir, esteemed members of the Board and fellow shareholders, good afternoon to all of you. I'm Shruti Gupta from Delhi. First and foremost, I would like to sincerely thank the company's Secretary and his team for providing the annual report on time. The report is transparent and fully compliant with all corporate governance requirements. Respected chairman Sir, I would like to inquire about the company's capital expenditure plans, including how investments will be located across manufacturing industry, research and development, digital transformation and integration initiatives while maintaining flexibility in response to evolving business conditions. With that, I conclude my speech and extending my best wishes to the Chairman sir, the Board and most importantly, to all the employees for continued success in the periods ahead. Thank you very much for your kind attention.

Thank you so much, ma'am. Our next speaker is Mr. Manish Tiwari. Mr. Tiwari, kindly unmute microphone to speak.

Hello, sir. My name is Manish Tiwari, and I am shareholder of your esteemed organization Mankind Pharma Limited. And I am truly grateful and thankful to all of you for maintaining such a stands good corporate governance standard. Sir, my question is that since Mankind Pharma acquired Bharat Serum and Vaccine. So how has the Bharat Serum and Vaccine being integrated into the Mankind ecosystem? And what have been the major benefits of this acquisition particularly in terms of strengthening the government's health portfolio and expanding the company's international presence? Okay. Thank you, sir, my question is only this.

Thank you. Thank you, sir. We've also received prerecorded video messages from Ford members. First video is of Mr. Jaideep Bakshi from Kolkata. Can we have the video, please?

Good afternoon, Chairman, MD, Board of Directors, myself Jaideep Bakshi connecting from the city of Kolkata. First of all, I convey my thanks to our company secretarial department for giving me an opportunity to express my deal maintaining good investor friendly relationship with the shareholders and also presenting a detailed and informative annual report. Sir your initial speech was very much informative. Just want to know what is the percentage of margin generative from the pharma sector and also on the consumer health front. And what is the company's plan to manage this input cost and also maintain our margins among this global volatility, which is passing on. Sir, what is our expansion plans on Specialty segment and also thoughts on our new acquisitions and how are we placed from our peers? And what is our thoughts on sustainability, manufacturing process and sourcing of raw materials, kindly share some it. And regarding the digital technology implementation, for new product development, also through our R&D team kindly share some thoughts. And what is our impact on our supply chain for smooth operation regarding this digital technology. Also share views on the shelf life expiry items and what is our thoughts on waste management policy and also on green energy, kindly share some thoughts. I have supported all the decisions and which our company grow to greater heights with the trust of all the players associated with our organization. Thank you, sir, for giving me an opportunity.

Thank you, Mr. Bakshi. The second video is of Mr. Ajay Khurana from Delhi. Can we have the audio visual, please?

Respected Chairman, sir, esteemed Board of Directors and my co-shareholders. A very good afternoon from myself and my co-shareholder Pradeep Suchi. Sir, first of all, I would like to thank you for giving me an opportunity to share my thoughts on this virtual platform, which is the need of the hour, this is not pn India, this is pan world. Every shareholder, every stakeholder, rather, who wants to share their thoughts or views or even have some comments to offer. They can do it anywhere in the world, not from India, anywhere in the world. Secondly, sir, as a shareholder, sir, we allude to you for your continuous dedication, sincerity and devotion, which leads to our company to high rise. So we will hope, sir, this will grow day by day in new heights, sir, they will touch and raised by leap and bounds. And third, sir, as a shareholder, what we expect from us are a good dividend and at appropriate time of when some appropirate time comes, bonus, rather sir, our market share is also good, sir and that is controlled by many factors, no doubt. But we appreciate your sincere efforts, sir, so that -- and rates is good and dividend is also expected to be sometime very good, sir. And -- but we want to kindly consider our request a bonus at appropriate time, sir. And last but not least, sir, I would like to thank you, our company secretary, Hitesh and his entire team, sir, to enable me to join me in this virtual platform to share my thoughts with you, sir. Thank you very much, sir. God bless you all. Thank you.

Thank you, Mr. Khurana. The next video message is from Mr. Suresh Bhutani from Delhi. Can we have the audiovisual, please?

My name is Suresh Bhutani from New Delhi. My question to the management team is, can you provide clarify on the company's capital allocation policy going forward, particularly in terms of investment in R&D, dividend payout and debt management?

Thank you, Mr. Bhutani. The last video message is from Mr. Adepa Gundluru from Hyderabad. Can we have the video, please?

Chairman, sir, Board of Directors and my Company Secretary scrutinizers, auditors and my fellow shareholders, Namaste, myself Adepa Gundluru, attending this AGM from Hyderabad. Chairman sir, your speech is very wonderful. I received the annual report well in advance on the full information in this annual report. Thank you for the transparency governance. Thank you for rewards and financial performance. Here, my question, sir, what is the material cost and what is the R&D investment in this financial year? And another question is any working on biosimilars or specialty drugs, I would like to know the Chairman. And the -- any plans for the international footprint. Please throw some information about this. With this, I support all the reservation strongly support all the annual report. Please conduct the VC, we can able to attend anywhere global. Chairman sir, we have faith on the board, trust on the board. Go ahead take [indiscernible]. I wish all the best, I pray God to give the wisdom, strength and happiness. Thank you so much for giving me this opportunity.

Thank you so much to all our speakers. The management will provide answers to your questions shortly. Meanwhile, let's take a look at some of the audio visuals of Mankind Pharma. [Presentation]

Now I request the management to answer the questions raised by our members. Over to you, Ashutosh, sir.

Sure. Thanks. So we have received a large number of diverse questions. Some of them have been through e-mail as well as speaker shareholders as well. We appreciate the quality of the questions being asked. Some of the questions are overlapping or repetitive in nature. So what we have, we have consolidated and categorized these questions in order to provide a comprehensive view, all the questions which are our strategic geopolitical nature, focusing on pharma and consumer health care business as well as a view on the bonus share will be getting addressed by our Vice Chairman and Managing Director, Mr. Rajeev Juneja. The questions related to near-term business performance, operational strategy and BSV integration will be taken up by our Chief Executive Officer, Mr. Sheetal Arora. I will be addressing the queries related to environmental, social and governance and financials related. With this, I now -- I would like to invite Mr. Rajeev Juneja to address the questions pertaining to the company's strategic outlook. Over to you, Rajeev.

The first question we have received is on the company's expansion plan towards specialty segment and new acquisitions. We are consistently focusing on expanding into specialty and super specialty segments. In 2020, we launched our chronic base division based out of Mumbai, which are currently growing at 25-plus year-on-year. As part of our strategy, we are also actively working on the in-licensing of novel products from leading MNCs like AstraZeneca, where we have exclusive distribution rights for Symbicort. Building on the successful launch of Neptaz in-license from Novartis, we have been entrusted once again with another product from Novartis called Crenzlo. Our Other partnerships are with Takeda and Biocon for monapuzone and Nobeglar. With the acquisition of BSV, we have expanded into high-entry barrier portfolio. This acquisition also brings in specialty R&D technology, platform, which adds capabilities in recombinants, niche biologics, novel drug delivery systems and immunoglobulins. The second question is how the organization faces competition on what are our core competence. The Indian pharma market is highly competitive with no single company holding a double-digit market share. However, the top 10 companies together hold a 45% market share in IPM. Our ability to stand out comes from our strong focus on the quality, affordability and accessibility in terms of quality, about 75% of our products are manufactured in-house, which ensures better quality control. We spend approximately 4% to 5% of our revenue on CapEx, most of which is directed towards upgrading our manufacturing and R&D facilities to continuously deliver high-quality medicines at affordable prices. We have a large field force of over 17,700 people supported by 13,000 stockists and over 5 lakh doctors. This enables a wide reach across India, extending beyond metros and Tier 1 cities. On the affordability front, our products are typically 15% to 20% more affordable, which makes a significant difference for patients. Number three, we will move on to the third question, which is on the impact of global geopolitical disturbances. On the company's business, how the company is addressing this. Mankind is primarily a domestic focus company with around 87% of our revenue coming from Indian market. The BSV business has a 50% international share, but it does not have a presence in the U.S. market. With BSV, now a part of our portfolio, our products are being supplied to over 50 countries globally, and we have a well-diversified international presence with limited dependence on any one country. Because of this, we are not expecting any significant disruption due to geopolitical tensions. Additionally, our U.S. business contributes only a very small portion to our overall revenue. So we do not expect a significant impact on the higher tariffs imposed by the U.S. Fourth question is whether the company has any plan to issue bonus shares. This year, we have completed 30 years of our operations and announced a dividend of INR 1 per share. the Board will decide in a matter of bonus share as well at an appropriate time in line with the company's long-term strategic and financial objectives. Moving on, our fifth question, which is on our update on outlook of the Consumer Healthcare business. Our Consumer Healthcare business recorded a strong 15% growth in financial year '25. And we are confident of continuing on a similar growth path in coming years. We believe this segment holds significant long-term potential and have taken steps to further strengthen our focus on it. To enable sharper execution and focused growth, we have recently carved out this business into a new wholly owned subsidiary. This will give it a -- give the flexibility and dedicated attention, it needs to scale further. While we have expanded our portfolio beyond sexual wellness and pregnancy care into a broader consumer wellness segment. Our recent launches, Epic ThinX, Nimulid and Ova News have received encouraging consumer response, and we are gaining strong traction. At the same time, we're continuing to strengthen our leadership in established brands such as Manforce, Prega News and Gas-O-Fast. With growing portfolio, rising consumer demand and a focused execution, we are confident in our ability to drive long-term sustainable growth in the consumer health care. Now I hand over to CEO, Sheetal to answer the next set of questions on near-term business and operational strategy and update on BSV's integration.

Let me answer the first question, on the key strategy for the remaining 3 quarters of financial year '25, '26 and our plans. For this, we aim to consolidate our market share in new products launches like insulin, inhaler and empagliflozin, et cetera. This will be supported by deeper penetration in the CVM segment, where we have grown from 62% in financial year '21 to 72% in financial year '25, driven by our volume focused growth and scaling of key brands. Not only this, we are also focused on increasing the share of chronic therapies, which have grown from 28% in financial year '18 to 39% in quarter 1 financial year '26. For this, our efforts include expanding our presence in chronic areas like diabetes with product like empagliflozin and insulin and respiratory care through inhalers. Not only this, we are also expanding into new therapies like CNS and urology. Our Consumer Healthcare business will also see further growth by building our strong brand equity adopting new distribution model and moving select products from prescription to OTC. For BSV, we believe products have huge potential and initially, we will be focusing on deepening market penetration of existing brands. We are also allocating higher investment in R&D and upgrading our R&D facilities to support innovation and future pipeline development. So next question is on the update on BSV integration and how it has helped in expanding our global footprint. For that, my answer would be the integration of BSV to Mankind Pharma is progressing very well. The transition of our TTK that is prescription business under Mankind umbrella is currently underway. This integration will enhance operational synergies and enable stronger alignment across our therapy focused verticals. Not only this, we have also strengthened our leadership in women's health care specialty which is expected to improve doctor engagement, expand market penetration and drive higher medical affordability and overall operational efficiency. In the case of BSV prescription portfolio, we have successfully renegotiated terms with the existing manufacturer on favorable grounds. With BSV, our international footprint has grown with export now contributing 13% of revenue in financial year '25, up from 9% in financial year '24. Further, we have initiated the process of setting up a new biological manufacturing facility to derisk operations in Ambernath and support future growth. To answer your next question, question number 3, is on the future pipeline projects currently under consideration or development. We are increasing our focus on building a strong R&D pipeline. Our GPR119 molecule targeting anti-obesity and anti-diabetes, has progressed to Phase II clinical trials. We have also novel antimicrobial resistant AMR molecule in a Phase I clinical trials and a recombinant biosimilar in the IVF segment that is currently in the preclinical stage. Additionally, our pipeline includes candidates targeting autoimmune diseases. We have entered into a partnership with Innovent Biologicals (sic) [ Biologics ] to bring sintilimab a PD-1 immunotherapy to the Indian market. This will help provide access to advanced cancer treatment. These initiatives reflect our commitment to innovation, improving patient outcomes and transforming health care. Next question is on our launch of affordable price medicine to address fast-growing diseases. Yes, most of our products across the portfolio are affordable priced. For example, we have recently launched empagliflozin at INR 6 per pill compared to the innovator brand, priced at INR 55, making our product 9x more affordable and this is a key medicine in the fast-growing type 2 diabetes space, and it reflects our focus on affordability and accessibility. I would like to request our Global CFO, Ashutosh, to provide update on ESG and response to finance-related questions. Thank you.

Thank you, Sheetal. So the first question is on the internal and external challenges and opportunities that the company foresees and what is the strategy to navigate the same. So one of the key challenge we continue to navigate is the volatility in API prices, which can influence our input costs and margins. Additionally, we are under-indexed in the Specialty segment which presents a strategic gap. We are actively addressing this through the BSV acquisition integration, along with select in-licensing partnerships with the leading multinational companies. At the same time, we see compelling opportunities ahead. Our expansion from mass market into chronic and super specialty therapies positions us well for the long-term growth as these segments are among the fastest-growing in the industry. Furthermore, we are leveraging BSV's R&D expertise complemented by Mankind's own research capabilities to build a stronger innovation pipeline and enhance our product development strategy. The second question is around company's plan to manage cost pressures and maintain margins amid global volatility. Our adjusted EBITDA margin increased from 24.6% in FY '24 to 25.9% in financial year '25 reflecting our operational strength, while global markets remained volatile. We are closely monitoring the developments with 87% of our revenue coming from domestic markets we are relatively insulated and better positioned to manage the global risk. To address the cost pressures and protect our margins, we are focusing on operational efficiency, optimizing the supply chain and using technology to optimize on the costs. We follow a frugal and disciplined approach we continue to maintain our guidance of 70% gross margin with 25% and 26% EBITDA margin. One question was around the material cost for last year, material cost was 28.6%. And the other question was with regard to the margins of the OTC business. So we reported 19% EBITDA margin for the OTC business, which contributes close to 7%, 7% in the overall consolidated turnover. However, the overall EBITDA margin for the financial year was 25.9%. The next question is on ESG and what are the efforts the company is taking on the ESG front. In FY 2025, we made significant progress in our sustainability journey, we remain committed to carbon-neutral operations by 2030, achieving a 73% reduction in the carbon emissions in FY '25. We are on track for 100% renewable power by 2030 with 92% already achieved, and we have attained plastic neutrality as per EPR requirements, this year, we transitioned 9% of our logistics fleet to green fuel and 15% of our procurement now comes from environmental responsible vendors. Our adoption of DOC based replenishment model has also reduced excess stock, waste and emission. Additionally, we aim for a 50% reduction in groundwater intensity by 2030. Our efforts have earned us a committed batch in EcoVadis ESG assessment. We are proud of the progress we have made and excited for the sustainable future we have -- we are building together. Another question was on the shelf life management. So we are complying with the waste management rules. The last question was around the capital expenditure program planned for near to medium term. The company is considering new expansion plans in the near future. In FY '25, we incurred around INR 530 crore as CapEx, which is approximately 4.3% of our revenue Out of this, 60% was spent on upgrading our manufacturing and R&D facilities with over 15% was allocated towards strengthening the digital infrastructure. We are actively upgrading our manufacturing operations, both operationally and digitally and are investing in advanced technologies. We are also continuously investing in digital transformation to improve both quality and productivity. In FY '26, we plan to allocate around 5% of our revenue towards CapEx. We are also setting up a new biologics facility for BSV products in Vadodara to derisk Ambernath operations. Additionally, we are upgrading our R&D facility to make it best in the class. And for this, we have increased our R&D allocation from 2.2% in FY '25 to 2.5% to 3% in FY '26. Another question was on the capital allocation policy and debt. The capital allocation policy in terms of prioritization is first is growing the organic business. Second is repayment of debt. And if any surpluses are being made available, and that will be used for the purpose of dividend distribution. For the debt, we have a plan by FY '26 to be 1.2x our net debt-to-EBITDA ratio for FY '27, 0.5x and to repay all the debt by FY '28. With this, we think that we have answered most of the questions raised by the members. In case any question is left unanswered, I would request members to write to us. The e-mail ID is available in the AGM notice. Dear members, we have received unprecedented response from the members for registration as speaker. Due to time constraints, we could not allow -- we could allow a limited number of speakers at this AGM. However, should you have any questions or suggestions you are most welcome to write to us. We will be happy to look at them and answer them in due course. Now I would request the Ramesh to take over and conduct the proceedings.

Thank you very much, Ashutosh. With this, I would like to thank all the members for attending the AGM. As mentioned earlier, the e-voting facility will remain open to the members for the next 30 minutes. The members who have not yet voted are requested to cast their votes. On behalf of Board, Mr. Ashutosh Dhawan, Global Chief Financial Officer; Mr. Hitesh Jain, the Company Secretary and Compliance Officer are authorized to receive the scrutinized report and announce the voting results in the compliance with the statutory provisions. The resolution outlined in the notice will be deemed to be passed today subject to receiving the requisite number of votes, the voting results along with Scrutinizer's consolidated report will be declared and hosted on the company's website and the website of NSDL with 2 working days and shall also be filed with the stock exchange, subject to voting I declare the proceedings of AGM has concluded. Once again, I thank you all for participating in the AGM and pray for your safety and good health. Thank you very much.