Natco Pharma Clears Agrochemicals Spin-Off With 1:1 Share Allocation

In the latest turn of events, Natco Pharma has announced a major restructuring move to sharpen its operational efficiency, maximise shareholder value and enable independent capital allocation for each vertical.

Currently, Natco Pharma operates across two main segments: pharmaceuticals and agrochemicals. The company has now decided to demerge its agrochemical division into a wholly owned subsidiary, Natco Crop Health Sciences Limited. Shareholders will receive shares in the resulting company in a 1:1 ratio.

As per the sources, the board approved the demerger on 24 March 2026.

Key Terms And Timeline Of The Demerger

The demerger will be done on a going concern basis. The business will move as it is, along with its assets, liabilities and operations. Shareholders will get one ₹2 share in the new company for every ₹2 share they hold in Natco Pharma.

The process will take time. The company has indicated October 2026 as a likely timeline, but that depends on approvals from the National Company Law Tribunal and other stakeholders.

Once it is completed, shareholders will hold around 80% in the new entity. Natco Pharma will retain the remaining 20%.

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Financial Performance And Market Reaction

Natco Pharma posted a net profit of nearly ₹151 crore for Q3 FY26. That marks about a 14% increase compared to last year.

The agrochemicals division reported a turnover of ₹60.62 crore as of 31 March 2025. This made up 1.48% of the company’s total turnover for the financial year.

After the news broke yesterday, Natco Pharma’s stock moved higher, touching nearly ₹948 with an intraday gain of 2.18%.

The momentum carried into today as well, with the stock ending at ₹971, up 2.24%.

The agrochemical business, however, forms just a minor portion of revenue. Little impact is expected on consolidated earnings for now.

Sources:

CNBC

The Hindu Business Line