NATCO Pharma announced its Q1 FY27 financial results, reporting consolidated total revenues of INR794.4 crores, a decrease from INR1,390.6 crores in the prior year’s quarter. Profit after tax stood at INR206.5 crores, down from INR269 crores in Q4 FY26. The company also highlighted its increased stake in Adcock Ingram Holdings to 49% and discussed future fundraising plans and product launches.
NATCO Pharma Reports Q1 FY27 Earnings
NATCO Pharma Limited has disclosed its financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), ending on August 14, 2026. The company reported consolidated total revenues of INR794.4 crores for the quarter. This represents a notable decrease compared to the INR1,390.6 crores recorded in the corresponding quarter of the previous year. The decline in revenue was primarily attributed to lower Lenalidomide revenue, although this was partially offset by double-digit growth in the company’s base business.
Financial Highlights
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), including other income, amounted to INR245.7 crores, with an EBITDA margin of 30.9%. Consolidated profit after tax for Q1 FY27 stood at INR206.5 crores. This compares to INR269 crores in quarter 4 of FY26, which had included a one-time benefit of INR115 crores from the remeasurement of deferred tax assets. On a normalized basis, excluding the one-time tax benefit from the prior year, consolidated profit after tax demonstrated a growth of 34% quarter-on-quarter.
Associate Company Performance
The company’s associate, Adcock Ingram Holdings Limited in South Africa, reported revenue of INR1,582.8 crores and profit after tax of INR242.2 crores for the quarter. NATCO’s share of profit from Adcock Ingram, based on its 35.75% holding as of June 30, 2026, was INR84.3 crores. In July 2026, NATCO acquired an additional stake of 13.25% in Adcock Ingram, increasing its total holding to 49%. This strategic move aims to strengthen its position in the South African market and enhance participation in Adcock Ingram’s performance.
Business Segment Performance
NATCO’s domestic formulation business revenue for the quarter was INR136 crores. The Brazil business showed significant growth, with revenue of INR178 crores, representing a growth of 180%. The company also provided insights into its Crop Health Sciences business, noting that while Q1 FY27 saw a loss, the expectation for the full year is to break even. Guidance for total sales was projected between INR33 billion and INR34 billion, with growth expected across multiple geographies, including Brazil, Canada, and the U.S.
Future Outlook and Fundraising
NATCO is planning a fundraising exercise of approximately INR2,000 crores. The company is evaluating various options, including QIP, rights issues, and other methods. The funds are intended for potential acquisitions and capacity expansion. Organic capex is expected to be around INR250 crores to INR300 crores annually. The company also discussed upcoming product launches, including a potential calendar ’27 launch for carfilzomib, subject to launch settlement with the innovator.
Investor Call Key Points
During the earnings call, management addressed questions on revenue breakdowns, seasonality in specific markets, the performance of the base business and semaglutide, cash reserves, and M&A opportunities. They emphasized a long-term strategy and a commitment to the South African market. The payback period for R&D expenses was highlighted, with an emphasis on long-term value creation, suggesting a 8-10 year cycle for high-return investments.
Source: BSE
