Natco Pharma Ltd
NATCOPHARM NSE
Natco Pharma Ltd
HealthcareNSE: NATCOPHARM BSE: 524816 Pharmaceuticals
Key Fundamentals
SmallcapPharmaceuticalsHealthcareMarket Cap
₹16,029 Cr
Volatility
Moderate
P/E Ratio
14.07
EBITDA
₹1,437 Cr
Return on Equity
24.74%
Debt to Equity
0.08
Book Value
₹514.83
EPS
₹91.37
52W High
₹1,226.8
52W Low
₹789
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
Log in to view Natco Pharma Ltd insights
62 extracted metrics + investor summaries across FY11–FY26.
Tapetide Score
Data-driven rating, 0–100. How it works →
Technical Indicators
Key Insights
Strengths
2- Company is almost debt free.
- Company has delivered good profit growth of 27.7% CAGR over last 5 years
Weaknesses
1- Tax rate seems low
Growth Rate
Revenue Growth
-14.75% ↘
Net Income Growth
-36.96% ↘
Cash Flow Change
40.05% ↗
ROE
4.30% ↗
ROCE
5.57% ↘
EBITDA Margin (Avg.)
-38.42% ↘
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoAI opinion · based on fundamentals
Risk medium
Natco Pharma is a nearly debt-free specialty pharmaceutical company with a market cap of ~₹16,964 crore trading at a PE of ~12x. FY2026 consolidated revenue declined to ₹4,376 crore (down ~8% YoY) and net profit fell to ₹1,419 crore (down ~25% YoY), primarily due to lower lenalidomide contributions, while the underlying base business continues to grow in double digits.
Bull Case 8
- Nearly debt-free balance sheet provides financial flexibility and low interest burden, with debt-to-equity effectively negligible
- Strong long-term profit CAGR of ~28% over 5 years and ~25% over 10 years demonstrates consistent earnings compounding ability
- Attractive valuation at PE of ~12x against a 5-year profit CAGR of 28%, implying a PEG ratio well below 1
- 3-year ROE of 23% and 5-year ROE of 19% indicate efficient capital deployment above cost of equity
- Domestic base business grew from ~₹107 crore/quarter historically to ₹136 crore in Q1 FY2027, reflecting double-digit organic growth aided by semaglutide launch
- EBITDA margin improved to 30.9% in Q1 FY2027 despite revenue decline, showing strong cost discipline and operating leverage
- Day-1 launch of semaglutide injection in India on patent expiry (March 2026) opens a large GLP-1 opportunity in the domestic market
- Compounded sales growth of 15% over 3, 5, and 10 years demonstrates a durable revenue growth engine beyond any single product
Bear Case 8
- FY2026 net profit declined 25% YoY to ₹1,419 crore from ₹1,883 crore, signaling earnings have peaked from the lenalidomide supercycle
- Q1 FY2027 revenue fell 43% YoY to ₹794 crore as lenalidomide volume caps expired and generic competition intensified in the US
- TTM sales growth is -21% and TTM profit growth is -33%, indicating a sharp near-term earnings deterioration
- Stock CAGR of just 3% over 1 year and -1% over 5 years shows prolonged underperformance relative to broader indices
- Dividend yield of only 0.53% offers limited income support during the earnings transition period
- High concentration risk: a single product (lenalidomide) drove a disproportionate share of peak revenue, and its decline is not yet fully offset by new launches
- Tax rate appears unusually low, meaning any normalization of tax obligations could compress reported earnings further
- Last-year ROE declined to 17% from a 3-year average of 23%, suggesting return on equity is trending downward as the high-margin US product fades
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 17h ago Headwinds 1
- Revenue drops 43% YoY in Q1 Aug 14
Consolidated revenue fell 43% YoY to ₹794.4 crore in Q1FY27, with net profit declining 57% to ₹206.5 crore, driven by lower Lenalidomide sales.
Positives 3
- Olaparib tentative FDA approval Jul 21
Received tentative U.S. FDA approval for Olaparib tablets (100 mg/150 mg), bioequivalent to AstraZeneca's Lynparza with ~USD 1.4 billion in U.S. annual sales. Alembic Pharmaceuticals to distribute.
- ₹20 billion fund raise approved Aug 14
Board approved raising up to ₹20 billion through equity or other securities, subject to regulatory approvals.
- ₹1.50 interim dividend declared Aug 14
Declared ₹1.50 per share interim dividend for FY27 (75% on ₹2 face value), record date August 20 with payment from August 26.
Neutral 2
- Investor meet in Mumbai Aug 16
Hosting investor meet on August 19 organized by Nuvama Wealth and ICICI Securities; no unpublished price-sensitive information to be shared.
- Q1FY27 earnings call scheduled Aug 11
Earnings call held August 14 at 17:30 IST to discuss unaudited Q1FY27 results for quarter ended June 30, 2026.
TL;DR: Natco Pharma faces a significant near-term earnings headwind with Q1FY27 revenue down 43% and profit down 57% due to declining Lenalidomide sales. However, the Olaparib tentative approval opens a large future revenue opportunity (~USD 1.4B U.S. market), and the ₹20 billion fund raise signals growth ambitions. The trend is deteriorating on current earnings but the pipeline and capital plans point to a potential recovery as new products launch.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,140 | 1,031 | 759 | 1,068 | 1,363 | 1,371 | 475 | 1,221 | 1,329 | 1,363 | 647 | 739 | 735 |
| Expenses | 612 | 573 | 490 | 571 | 558 | 567 | 436 | 673 | 758 | 784 | 489 | 612 | 549 |
| Operating Profit | 528 | 458 | 268 | 497 | 805 | 804 | 39 | 548 | 571 | 579 | 159 | 128 | 186 |
| OPM % | 46% | 44% | 35% | 47% | 59% | 59% | 8% | 45% | 43% | 42% | 25% | 17% | 25% |
| Other Income | 20 | 29 | 37 | 42 | 48 | 64 | 176 | 66 | 62 | 100 | 58 | 78 | 59 |
| Interest | 4 | 4 | 5 | 6 | 5 | 4 | 4 | 10 | 3 | 13 | 10 | 11 | 13 |
| Depreciation | 44 | 44 | 44 | 56 | 44 | 46 | 47 | 98 | 58 | 52 | 46 | 50 | 47 |
| PBT | 500 | 440 | 256 | 478 | 804 | 818 | 164 | 506 | 572 | 614 | 161 | 144 | 186 |
| Tax % | 16% | 16% | 17% | 19% | 17% | 17% | 19% | 20% | 16% | 16% | 13% | -62% | 34% |
| Net Profit | 420 | 369 | 213 | 386 | 668 | 676 | 132 | 406 | 480 | 518 | 151 | 269 | 206 |
| EPS in Rs | 23.47 | 20.6 | 11.88 | 21.57 | 37.32 | 37.81 | 7.43 | 22.7 | 26.84 | 28.94 | 8.46 | 14.96 | 11.53 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 825 | 1,042 | 2,020 | 2,185 | 2,094 | 1,915 | 2,052 | 1,945 | 2,707 | 3,999 | 4,430 | 4,078 | 3,485 |
| Expenses | 615 | 777 | 1,337 | 1,256 | 1,300 | 1,332 | 1,446 | 1,681 | 1,772 | 2,245 | 2,234 | 2,642 | 2,433 |
| Operating Profit | 210 | 266 | 683 | 928 | 795 | 583 | 606 | 264 | 936 | 1,754 | 2,196 | 1,436 | 1,052 |
| OPM % | 25% | 25% | 34% | 42% | 38% | 30% | 30% | 14% | 35% | 44% | 50% | 35% | 30% |
| Other Income | 0 | 12 | 14 | 40 | 130 | 107 | 104 | 99 | 105 | 126 | 354 | 298 | 295 |
| Interest | 32 | 23 | 18 | 15 | 19 | 22 | 13 | 18 | 14 | 19 | 24 | 37 | 46 |
| Depreciation | 47 | 51 | 54 | 66 | 81 | 100 | 117 | 143 | 164 | 187 | 235 | 207 | 196 |
| PBT | 132 | 204 | 624 | 887 | 825 | 569 | 580 | 202 | 862 | 1,674 | 2,291 | 1,491 | 1,104 |
| Tax % | 1% | 24% | 22% | 22% | 22% | 19% | 24% | 16% | 17% | 17% | 18% | 8% | — |
| Net Profit | 130 | 156 | 485 | 695 | 642 | 458 | 442 | 170 | 715 | 1,388 | 1,883 | 1,418 | 1,145 |
| EPS in Rs | 8.1 | 9.02 | 27.88 | 37.74 | 35.24 | 25.31 | 24.18 | 9.31 | 39.18 | 77.51 | 105 | 79.2 | 63.89 |
| Div. Payout % | 12% | 14% | 24% | 22% | 18% | 27% | 22% | 48% | 14% | 12% | 6% | 6% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 33 | 35 | 35 | 37 | 36 | 36 | 36 | 36 | 36 | 36 | 36 | 36 |
| Reserves | 813 | 1,261 | 1,614 | 3,035 | 3,452 | 3,737 | 4,085 | 4,227 | 4,837 | 5,817 | 7,571 | 9,185 |
| Borrowings | 312 | 113 | 222 | 173 | 386 | 316 | 268 | 416 | 167 | 371 | 279 | 714 |
| Other Liabilities | 226 | 413 | 446 | 470 | 428 | 498 | 403 | 430 | 617 | 682 | 744 | 1,139 |
| Total Liabilities | 1,384 | 1,822 | 2,318 | 3,715 | 4,303 | 4,588 | 4,792 | 5,109 | 5,657 | 6,906 | 8,631 | 11,074 |
| Fixed Assets | 710 | 710 | 833 | 1,019 | 1,227 | 1,584 | 2,023 | 2,312 | 2,427 | 2,491 | 2,698 | 2,803 |
| CWIP | 129 | 212 | 336 | 480 | 638 | 518 | 223 | 130 | 64 | 137 | 225 | 294 |
| Investments | 2 | 22 | 32 | 76 | 169 | 112 | 304 | 308 | 392 | 539 | 474 | 3,127 |
| Other Assets | 543 | 878 | 1,116 | 2,140 | 2,270 | 2,373 | 2,242 | 2,360 | 2,774 | 3,739 | 5,234 | 4,850 |
| Total Assets | 1,384 | 1,822 | 2,318 | 3,715 | 4,303 | 4,588 | 4,792 | 5,109 | 5,657 | 6,906 | 8,631 | 11,074 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 93 | 112 | 346 | 464 | 669 | 417 | 299 | 46 | 849 | 1,212 | 1,697 | 1,768 |
| Investing | -120 | -176 | -299 | -1,116 | -611 | -175 | -107 | 4 | -465 | -1,026 | -1,436 | -2,082 |
| Financing | 29 | 154 | -48 | 651 | -51 | -251 | -186 | 35 | -363 | -247 | -211 | 298 |
| Net Cash Flow | 2 | 90 | -1 | -2 | 7 | -8 | 6 | 85 | 21 | -62 | 50 | -16 |
| Free Cash Flow | -25 | -44 | 66 | 57 | 225 | 81 | 92 | -142 | 674 | 855 | 1,300 | 1,379 |
| CFO/OP | 55 | 60 | 69 | 72 | 107 | 90 | 71 | 36 | 110 | 85 | 94 | 151 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 85 | 92 | 86 | 106 | 88 | 105 | 73 | 116 | 115 | 109 | 103 | 79 |
| Inventory Days | 331 | 482 | 213 | 389 | 545 | 534 | 570 | 496 | 432 | 357 | 405 | 480 |
| Days Payable | 189 | 372 | 160 | 239 | 224 | 244 | 104 | 105 | 153 | 120 | 145 | 216 |
| Cash Conversion Cycle | 228 | 202 | 138 | 257 | 410 | 395 | 539 | 507 | 394 | 345 | 362 | 343 |
| Working Capital Days | 25 | 97 | 71 | 215 | 207 | 295 | 246 | 256 | 198 | 151 | 151 | 163 |
| ROCE % | 17% | 18% | 39% | 35% | 23% | 14% | 13% | 4% | 18% | 30% | 33% | 17% |
Documents
1
Compliances-Certificate under Reg. 74 (5) of SEBI (DP) Regulations, 2018
8 Apr - Regulation 74(5) certificate submitted for quarter ended March 31, 2026. 8 Apr - Regulation 74(5) certificate submitted for quarter ended March 31, 2026.
2
Closure of Trading Window
31 Mar - Trading window closed Apr 1, 2026 until 48 hours after FY2026 results declaration. 31 Mar - Trading window closed Apr 1, 2026 until 48 hours after FY2026 results declaration.
4
Board Meeting Outcome for Outcome Of Board Meeting Held On 24Th March, 2026
24 Mar - Approved demerger of Agrochemicals into Natco Crop Health; 1:1 share issuance; Appointed Date 1 Oct 2026; resulting co to list. 24 Mar - Approved demerger of Agrochemicals into Natco Crop Health; 1:1 share issuance; Appointed Date 1 Oct 2026; resulting co to list.
5
Announcement under Regulation 30 (LODR)-Scheme of Arrangement
24 Mar - Board approved demerger of Agrochemicals to Natco Crop Health Sciences; 1:1 shares; Appointed Date Oct 1, 2026. 24 Mar - Board approved demerger of Agrochemicals to Natco Crop Health Sciences; 1:1 shares; Appointed Date Oct 1, 2026.
Frequently Asked Questions about Natco Pharma Ltd
What does Natco Pharma Ltd do?
NATCO Pharma Limited (NATCO) is a vertically integrated, research and development focused pharmaceutical company engaged in developing, manufacturing, and marketing complex products for niche therapeutic areas. [1]
NATCO has established its presence in all three business segments viz. finished do...
Where is Natco Pharma Ltd (NATCOPHARM) listed?
Natco Pharma Ltd is listed on the Indian stock exchanges. It is listed on NSE: NATCOPHARM and BSE: 524816. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Natco Pharma Ltd belong to?
Natco Pharma Ltd operates in the Healthcare sector within the Pharmaceuticals industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Natco Pharma Ltd?
Natco Pharma Ltd has a market capitalisation of approximately ₹16028.54 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Natco Pharma Ltd?
The Price-to-Earnings (PE) ratio of Natco Pharma Ltd is 14.07. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Natco Pharma Ltd?
Over the past 52 weeks, Natco Pharma Ltd has traded between a low of ₹789 and a high of ₹1,226.8. This range helps investors understand the stock's price volatility and recent trading levels.
Does Natco Pharma Ltd pay dividends?
Yes, Natco Pharma Ltd has a dividend yield of 0.17%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Natco Pharma Ltd?
Natco Pharma Ltd has a Return on Equity (ROE) of 24.74%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Natco Pharma Ltd on Tapetide?
On Tapetide, you can view Natco Pharma Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.
Company Information
NATCO Pharma Limited (NATCO) is a vertically integrated, research and development focused pharmaceutical company engaged in developing, manufacturing, and marketing complex products for niche therapeutic areas. [1] NATCO has established its presence in all three business segments viz. finished dosage formulations (“FDF”), active pharmaceutical ingredients (“APIs”), Contract Manufacturing Business.[2]
Website natcopharma.co.in
CEO Mr. Venkaiah Chowdary Nannapaneni M. Pharm, MS.
Employees 4,199
Listed 1995-12-27
Face Value ₹ 2
Issued Size 17,91,09,870