NATCO Pharma (NATCOPHARM) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue for Q1 FY27 was INR 7,944 million, down from INR 13,906 million year-over-year, mainly due to lower Lenalidomide sales, partially offset by growth in the base business and strong international and domestic performance.

• EBITDA for the quarter was INR 2,457 million with a margin of 30.9%, showing improvement from the previous quarter.

• Profit after tax stood at INR 2,065 million, with normalized PAT growing 34% sequentially and a margin of 26%.

• Interim dividend of INR 1.50 per equity share declared for Q1 FY27.

• Increased stake in Adcock Ingram (South Africa) to 49%, with NATCO's share of profit at INR 843 million for the quarter.

Financial highlights

• Q1 FY27 consolidated revenue: INR 7,944 million, down from INR 13,906 million YoY.

• EBITDA: INR 2,457 million; EBITDA margin: 30.9%.

• PAT: INR 2,065 million; PAT margin: 26.0%.

• Earnings per share for Q1 FY27: INR 11.53.

• Total comprehensive income for Q1 FY27: INR 3,175 million.

Outlook and guidance

• Domestic business expected to grow 25% in volumes for the year.

• Crop Health Sciences aims to break even for the year, with Q2 expected to be significantly better due to seasonality.

• Full-year guidance for Crop Health Sciences: gross sales between INR 33-34 billion.

• The company is exploring raising funds up to INR 20,000 million through various equity and security instruments, subject to approvals.

• Two major launches planned in the U.S. market in the next financial year.