NATCO Pharma (NATCOPHARM) Q4 25/26 earnings summary

Executive summary

• FY26 consolidated revenue was INR 4,375.9 crore, down from INR 4,784 crore year-over-year, with net profit at INR 1,418.5 crore, down from INR 1,883.4 crore.

• Q4 FY26 revenue was INR 816.9 crore, with net profit at INR 269 crore, both lower than Q4 FY25, and included a one-time tax benefit of INR 115 crore.

• FY26 revenue was driven by export formulations and new product launches in India and the US.

• Strategic acquisition of a 35.75% stake in Adcock Ingram Holdings Limited, South Africa, completed.

• Revenue and profit decline attributed to lower Revlimid sales, increased competition, and operational headwinds.

Financial highlights

• FY26 consolidated revenue: INR 4,375.9 crore; net profit: INR 1,418.5 crore; Q4 FY26 revenue: INR 816.9 crore; net profit: INR 269 crore.

• FY26 PAT margin: 32.4%; Q4FY26 PAT margin: 36.4%.

• FY26 reported EPS: INR 79.20; Q4FY26 EPS: INR 14.96.

• Net cash at group level: INR 2,400 crore; net cash generated from operating activities in FY26: INR 17,683 million.

• One-time tax benefit of INR 1,150 million in Q4FY26 from deferred tax asset remeasurement.

Outlook and guidance

• FY27 revenue expected at INR 3,400–3,500 crore; PAT expected at INR 700–750 crore.

• Focus on expanding product pipeline in the US with 28 Para IVs, over 20 FTFs, and 17 approvals.

• South African associate projected to contribute $580–600 million in revenue and $47–48 million in PAT.

• Tax rate for FY27 and FY28 expected at 25.1%; company has opted for the new 22% corporate tax regime effective FY27.

• Management expects 15–25% annual earnings growth from FY28 onward, driven by new launches and exclusivities.