Natco Pharma Limited Earnings Summary — Q1 FY2027
Natco Pharma Q1 Revenue Dips on Lower Lenalidomide Contributions; Board Proposes ₹2000 Cr Fundraise
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 0.5% sequentially in Q1 FY2027.
- Revenue of ₹735 Cr is 44.7% lower year-on-year.
- Revenue has compounded at -15.3% annualised over the last 10 quarters.
- Net profit of ₹207 Cr is 57.0% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -24.3% annualised across the period.
- Operating margin stands at 25.4% in Q1 FY2027.
- Operating margin compressed by 1760 bps year-on-year.
- Over the last two years operating margin has contracted by 3369 bps.
- PBT margin is 25.2%.
- Expenses grew -27.6% against revenue growth of -44.7%.
- Operating profit of ₹187 Cr is 67.3% lower year-on-year.
- Operating leverage has been under pressure recently.
- 2 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 26/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Volatile | 735 | 739 | 647 | 1,363 | 1,329 | 1,221 | 475 | 1,371 | 1,363 | 1,068 |
| Expenses | Stable | 549 | 612 | 489 | 784 | 758 | 673 | 436 | 567 | 558 | 571 |
| Operating Profit | Volatile | 187 | 128 | 159 | 579 | 571 | 548 | 39 | 804 | 805 | 497 |
| Operating Margin | Volatile | 25.4% | 17.3% | 24.5% | 42.5% | 43.0% | 44.9% | 8.2% | 58.7% | 59.1% | 46.5% |
| Other Income | Volatile | 59 | 78 | 58 | 100 | 62 | 66 | 176 | 64 | 48 | 42 |
| Interest | Volatile | 13 | 11 | 10 | 13 | 3 | 10 | 4 | 4 | 5 | 6 |
| Depreciation | Improving | 47 | 50 | 46 | 52 | 58 | 98 | 47 | 46 | 44 | 56 |
| Profit Before Tax | Volatile | 186 | 144 | 161 | 614 | 572 | 506 | 164 | 818 | 804 | 478 |
| Tax | Volatile | 63 | -89 | 21 | 96 | 92 | 100 | 31 | 142 | 135 | 91 |
| Net Profit | Volatile | 207 | 268 | 152 | 518 | 481 | 407 | 133 | 677 | 669 | 386 |
| Net Margin | Stable | 28.1% | 36.3% | 23.4% | 38.0% | 36.2% | 33.3% | 28.0% | 49.4% | 49.1% | 36.2% |
Key Takeaways
- Consolidated revenue declined 42.9% YoY to ₹794.4 crore, primarily due to lower revenue from Lenalidomide compared to the prior year's quarter.
- Consolidated Net Profit fell significantly to ₹206.5 crore from ₹480.3 crore in Q1 FY26, following the revenue drop in high-margin international formulations.
- The International Formulations segment saw the steepest decline, falling from ₹1,120.9 crore to ₹477.1 crore YoY.
- Domestic Pharmaceutical Formulations showed resilience, growing to ₹136.4 crore from ₹107 crore in the same period last year.
- Natco increased its stake in associate company Adcock Ingram Holdings to 49% in July 2026, up from 35.75% held at the end of the quarter.
- The Board approved a massive fundraising plan of up to ₹2,000 crore through equity or other securities to support future growth initiatives.
- An interim dividend of ₹1.50 per share (75%) was declared with a record date of August 20, 2026.
Management Guidance
Management is focusing on mitigating concentration risks by diversifying into Crop Health Sciences and expanding its base pharmaceutical business. The recent increase in the Adcock Ingram stake and the ₹2,000 crore fundraise proposal indicate a pivot toward strategic acquisitions or significant expansion.
Sentiment Shift
Deteriorating
The sharp drop in quarterly profitability due to the normalization of Lenalidomide sales highlights the volatility of the company's niche-launch model, though domestic growth remains a silver lining.
Outlook
The company faces short-term revenue headwinds as high-margin generic windows normalize, but is actively positioning itself for a new growth cycle through significant capital raising and increased investment in its South African associate.
From the Annual Report (Key Quotes)
“Decline is largely attributable to lower Lenalidomide revenue in the current quarter which was partially offset by growth in the base business.”
“Evaluating and exploring raising of funds... up to an amount not exceeding ₹2000 Crores.”
“In July 2026, NATCO acquired additional 13.25% stake in Adcock Ingram Holding Limited taking the total holdings to 49%.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Natco Pharma Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.