NATCO Pharma (NATCOPHARM) Q1 26/27 earnings summary

Executive summary

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

• EBITDA for the quarter was INR 2,457 million with a margin of 30.9%, showing improvement from 25.1% in Q4 FY26 due to better international and domestic performance and controlled costs.

• Profit after tax (PAT) was INR 2,065 million, with a margin of 26%, compared to INR 4,803 million in Q1 FY26; normalized PAT grew 34% sequentially.

• Strong performance from associate Adcock Ingram (South Africa), with share of profit at INR 843 million; stake increased to 49% in July 2026.

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

Financial highlights

• Brazil revenue grew 180% year-over-year to INR 178 crores.

• Domestic formulation revenue was INR 1,364 million, with base business rising to INR 1,300 million, driven by semaglutide and oncology.

• Canada sales for the quarter were INR 56 crores.

• International formulations revenue was INR 4,771 million, with a quarter-on-quarter decline attributed to seasonality and product cycles.

• Earnings per share for Q1 FY27 was INR 11.53.

Outlook and guidance

• Domestic business expected to grow 25% in volumes for FY27.

• PAT guidance remains at INR 750 crores for FY27, with management cautioning against extrapolating Q1's seasonal profit bump.

• Crop Health Sciences expected to break even for the year, with Q2 anticipated as the strongest quarter.

• Full-year gross sales guidance is INR 33-34 billion.

• Pipeline includes 28 Para IVs in the US, with over 20 first-to-file opportunities and 17 products with tentative or full approval.