NATCO Pharma (NATCOPHARM) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue was INR 14,349 million, up 35.3% year-over-year, with net profit at INR 6,765 million, up 83%, driven by export formulations and stable domestic pharma business.

• EBITDA for Q2 FY25 was INR 8,681 million, with a margin of 60.5%.

• Board declared a second interim dividend of INR 1.50 per equity share for FY24/25.

• Management maintains 20% profitability growth guidance for FY25, expecting to outperform this target.

• Invested US $8 million in eGenesis, Inc., a biotech firm focused on xenotransplantation.

Financial highlights

• Q2 FY25 revenue: INR 14,349 million vs. INR 10,608 million in Q2 FY24 (35.3% growth).

• Net profit: INR 6,765 million vs. INR 3,690 million in Q2 FY24 (83% growth).

• EBITDA margin at 60.5% in Q2 FY25, up from 45.9% in Q2 FY24.

• Basic and diluted EPS increased to INR 37.81 from INR 20.60 year-over-year.

• Cash generated from operating activities for H1 FY25 was INR 11,370 million, up from INR 6,323 million in H1 FY24.

Outlook and guidance

• Management expects to exceed 20% profitability growth guidance for FY25, with strong export formulations and stable domestic market.

• December quarter (Q3) expected to be weaker than Q2 due to lower Revlimid quota and absence of one-off tenders.

• Domestic business expected to compound at 15%-20% over the next 2-3 years, with semaglutide launch as a key driver.

• Agro business targeted to break even by March 2026.