NATCO Pharma (NATCOPHARM) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue reached INR 1,410.7 crore (INR 14,107 million), up 21.6% year-over-year, mainly driven by export formulations, while domestic pharma remained stable.

• Net profit rose 59% year-over-year to INR 668.5 crore (INR 6,685 million), with export business, especially Revlimid, as the primary growth driver.

• EBITDA for Q1FY25 was INR 8,529 million, with a margin of 60.5%.

• Basic and diluted EPS for Q1FY25 was INR 37.32 per share.

• Interim dividend of INR 3 per equity share declared for Q1 FY25.

Financial highlights

• Export formulation revenue was INR 1,210.1 crore (INR 12,101 million); domestic formulations INR 102.2 crore (INR 1,022 million); API INR 39.2 crore (INR 392 million); Crop Health INR 15.6 crore (INR 156 million).

• Total income for Q1 FY25 was INR 14,107 million, up from INR 11,602 million in Q1 FY24.

• PAT margin rose to 47.4% in Q1FY25, up from 36.2% in Q1FY24.

• Cash on books at quarter-end was approximately INR 2,000 crore, expected to reach INR 3,000 crore by year-end.

• Canada subsidiary achieved its highest turnover ever, with ROW business contributing INR 180 crore and PBT of INR 43 crore.

Outlook and guidance

• Management guides for at least 20% profit growth for FY25 over last year, with Q2 expected to perform similarly to Q1.

• Product pipeline includes 28 Para IVs in the US, with 13 approved (tentative or full), targeting major therapeutic areas such as anticoagulants, diabetes, cancer, and weight loss.

• Management remains conservative in guidance, citing market volatility and multiple moving parts.

• Beyond FY26, growth will depend on new product launches and successful filings, with semaglutide and other pipeline products highlighted as key future drivers.