Natco Pharma Q1 FY 2026-27 Results: Net Profit Falls 57% To Rs 207 Crore, Board Approves Interim Dividend
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Natco Pharma Q1 FY 2026-27 Results: Natco Pharma reported a weak set of numbers for the June quarter, with earnings declining across all key parameters due to lower sales of its generic cancer drug lenalidomide. The board also approved an interim dividend and a Rs 2,000 crore fundraising plan via QIP.
Natco Pharma Q1 FY 2026-27 Results: Pharmaceutical company Natco Pharma reported a 57% year-on-year decline in consolidated net profit to Rs 207 crore for the quarter ended June 30, 2026, compared with Rs 481 crore in the same quarter last year, hit by lower sales of its generic cancer treatment drug lenalidomide.
Revenue from operations fell 44.7% year-on-year to Rs 735 crore, from Rs 1,329 crore in the year-ago quarter. The decline was largely attributable to lower lenalidomide revenue during the quarter, partially offset by growth in the base business, the company said. Total expenses for the quarter were lower at Rs 608.8 crore, compared with Rs 818.7 crore a year earlier.
Operating performance also remained under pressure, with EBITDA declining 67.4% year-on-year to Rs 186 crore, from Rs 571 crore. EBITDA margin contracted sharply to 25.3% in Q1 FY27, from 43% a year ago.
Domestic pharmaceutical formulations revenue stood at Rs 136.4 crore, up from Rs 107 crore in the year-ago period. International formulations revenue, however, fell sharply to Rs 477.1 crore, against Rs 1,120.9 crore in the corresponding quarter last year. The Active Pharmaceutical Ingredients (API) segment posted revenue of Rs 66.7 crore, up from Rs 52.6 crore in the same period last year.
Natco Pharma Approves Interim Dividend, Fundraising Plan
The company's board approved an interim dividend of Rs 1.50 per share for FY27. The board also approved a proposal to raise up to Rs 2,000 crore through a qualified institutional placement (QIP) and/or other permitted instruments, subject to necessary approvals, with the fundraising aimed at strengthening the company's financial flexibility as it continues to invest in its business and growth opportunities.
Headquartered in Hyderabad, Natco Pharma is a multinational pharmaceutical company specialising in complex generics, active pharmaceutical ingredients and oncology medicines. Founded in 1981, the company also operates a Crop Health Sciences business and sells its products across more than 50 countries.
Natco Pharma Share Price
Shares of Natco Pharma fell sharply following the results. As of 3:31 pm on Friday, August 14, the stock was trading at Rs 907, down Rs 44.70 or 4.70%, with the market closed for the session.
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Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
