Natco Pharma LimitedPharmaceuticals & HealthcareNATCOPHARM
Q1 FY27 concall · earnings callNatco Pharma Limited
Strong profit growth driven by a bumper flu season in the associate Adcock Ingram and double-digit growth in the base business.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue | ₹794.4 Cr | — | |
| EBITDA Margin | 30.9% | — | |
| Consolidated PAT | ₹206.5 Cr | — | |
| Adcock Ingram Revenue | ₹1,582.8 Cr | — | |
| NATCO Share of Adcock Profit | ₹84.3 Cr | — | |
| Domestic Formulation Revenue | ₹136 Cr | — | |
| Brazil Revenue | ₹178 Cr | 180% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹474.80 Cr-37.4% YoY-65.4% QoQ | ₹132.40 Cr-37.8% YoY-80.4% QoQ | ₹7.43-37.5% YoY-80.3% QoQ |
| Q2 FY25 | ₹1,371.10 Cr+32.9% YoY+0.6% QoQ | ₹676.50 Cr+83.3% YoY+1.2% QoQ | ₹37.81+83.5% YoY+1.3% QoQ |
| Q1 FY25 | ₹1,362.60 Cr+19.5% YoY+27.5% QoQ | ₹668.50 Cr+59.1% YoY+73.1% QoQ | ₹37.32+60.4% YoY+73.1% QoQ |
| Q4 FY24 | ₹1,068.30 Cr+19% YoY+40.8% QoQ | ₹386.30 Cr+40.1% YoY+81.6% QoQ | ₹21.56+42.7% YoY+81.5% QoQ |
| Q3 FY24 | ₹758.60 Cr+54% YoY-26.4% QoQ | ₹212.70 Cr+241.4% YoY-42.4% QoQ | ₹11.88+248.4% YoY-42.3% QoQ |
TL;DR
- Consolidated revenue declined year-on-year due to lower Lenalidomide sales, but base business grew double digits.
- EBITDA margin improved QoQ to 30.9%, and PAT grew 34% QoQ on a normalized basis.
- Profit was significantly boosted by NATCO's 35.75% share of Adcock Ingram's profit at INR84.3 crores, due to a strong flu season.
- Brazil business revenue grew 180% to INR178 crores, and domestic sales grew, partly driven by semaglutide.
- The company plans a fundraise of ~INR2000 crores for potential acquisitions and to maintain strategic cash reserves.
Said on the call
“I think the longer you wait, the bigger the returns, and higher the risk, bigger the returns. I think you always have to think of this business in an 8 to 10 year cycle, not in a 2, 3 year cycle.”
From the Q&A
| Topic | What management said |
|---|---|
| Revenue Breakdown and Seasonality | Management attributed the QoQ decline in export formulations to product cycles and seasonality, not a specific geography, and noted Adcock's profit was unusually high due to a strong flu season. |
| Domestic Growth and Semaglutide | Domestic base business grew from ~INR107 crores to ~INR130 crores, partly driven by semaglutide, which is doing ~INR2 crores per month but faces intense competition and currently has minimal profitability. |
| Fundraise Rationale | The planned ~INR2000 crore fundraise is for potential acquisitions (both in and outside India), paying off short-term loans, and capex, as the current net cash is ~INR1400 crores after recent Adcock investments. |
| Adcock Stake and Synergies | NATCO increased its stake in Adcock to 49% and sees synergies in R&D and pipeline sourcing, with NATCO products expected to launch in South Africa around 2028 after registrations. |
| Crop Health Sciences | The Crop Health business reported a loss in Q1 due to delayed rains but aims to breakeven for the year, with Q2 expected to be significantly better. |
| PAT Guidance | Management reiterated the full-year PAT guidance of ~INR750 crores, cautioning against annualizing Adcock's Q1 profit as it included a seasonal flu bump. |
| Pipeline and Launches | Carfilzomib launch is on track for calendar 2027. The company targets 8-10 ANDAs and 2-3 FTFs annually, with two exclusivity launches planned in the US for the next financial year. |
Guidance
- Full-year PAT guidance of around INR750 crores.
- Expect domestic business volumes to increase by about 25% this year.
- Aim for Crop Health Sciences business to breakeven for the year.
- Target 8 to 10 ANDA filings and 2 to 3 FTFs annually.
- Expect to launch two products with exclusivity in the US in the next financial year.
- Annual organic capex run rate is around INR250 crores to INR300 crores.
Source
Summary written from the transcript filed by Natco Pharma Limited for the call held on 14 Aug 2026; published 22 Aug 2026, 19:50 IST.
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