Natco Pharma reported consolidated total revenue of Rs 1,463 crores for Q2 FY26, compared to Rs 1,434.9 crores in Q2 FY25. The company’s EBITDA stood at Rs 679.2 crores with a margin of 46.4%. Net profit for the period was Rs 517.9 crores. Substantial R&D expenses were incurred during the quarter due to bioequivalence studies and employee bonuses. An interim dividend of Rs 1.5 per equity share was declared.
Financial Performance
Natco Pharma announced its financial results for the second quarter of fiscal year 2026. Key highlights include:
- Total Revenue: Rs 1,463 crores (Q2 FY26) vs. Rs 1,434.9 crores (Q2 FY25)
- EBITDA: Rs 679.2 crores with a 46.4% margin
- Net Profit: Rs 517.9 crores
Segmental Revenue Breakdown (Q2 FY26)
- API: Rs 53.9 crores
- Domestic Formulations: Rs 105.4 crores
- Formulation Exports (including profit share and subsidiaries): Rs 1,147 crores
- Crop Health Sciences: Rs 52.4 crores
- Other Operating & Non-Operating Income: Rs 104.3 crores
Key Developments
The company incurred substantial R&D expenses related to bioequivalence studies and one-time employee bonuses during the quarter.
The board of directors has declared an interim dividend of Rs 1.5 per equity share.
Future Outlook
Natco anticipates increased competition in the coming quarters and does not expect significant revenue from Lenalidomide. The Crop Health Sciences business has grown to approximately Rs 52 crores this quarter and is close to EBITDA positive. Natco is targeting the demerger and separate listing of this business for 2026.
The company expects revenue in the range of Rs 750 to 800 crores per quarter and PAT to be around Rs 135 to 150 crores for the next six months, excluding substantial contribution from Lenalidomide.
Strategic Investments
Natco has various investments in areas like cell therapy and eGenesis (kidney transplant). Following the Adcock acquisition, Natco plans to focus on different investment options and aims to add a pipeline to the asset, licensing products from partners.
Source: BSE
