Mankind Pharma’s OTC business faced headwinds in Q2 FY2026 due to prolonged monsoon disruptions and transitional challenges from GST 2.0 compliance. Despite the temporary setback, the company expects a rebound in the second half, supported by festive demand, rural recovery, and portfolio expansion.
Mankind Pharma Ltd, one of India’s leading pharmaceutical and consumer healthcare companies, reported a temporary slowdown in its Over-the-Counter (OTC) segment during Q2 FY2026. The decline was attributed to heavy rains across key markets and operational disruptions linked to GST 2.0 rollout, which impacted distribution and retail visibility.
The company confirmed that its core prescription business remained stable, while the OTC dip is expected to be short-lived. Management anticipates a strong recovery in H2, driven by seasonal demand, rural market normalization, and new product launches in personal care and wellness categories.
Mankind also faced a GST-related penalty of ₹2.27 crore due to discrepancies in filings from FY18–FY22, as per regulatory disclosures. The company is actively resolving compliance issues and reinforcing its audit protocols.
Key Highlights:
-
Q2 OTC Impact: Distribution hit by rains and GST transition
-
Penalty Update: ₹2.27 crore GST discrepancy flagged by Kolkata CGST
-
H2 Outlook: Recovery expected via festive demand and rural rebound
-
Strategic Focus: Compliance strengthening, portfolio diversification
-
Core Business: Prescription segment remains resilient
Mankind Pharma remains confident in its growth trajectory, with H2 expected to restore momentum across consumer verticals.
Sources: Economic Times Pharma, Deccan Herald, SAG Infotech