NATCO Pharma (NATCOPHARM) Q2 25/26 earnings summary

Executive summary

• Consolidated total revenue for Q2FY26 was INR 1,463 crores (INR 14,630 Mn), up from INR 1,434.9 crores year-over-year, with net profit at INR 517.9 crores and EPS of INR 28.94.

• EBITDA reached INR 679.2 crores with a margin of 46.4%.

• Substantial R&D expenses and a one-time employee bonus impacted quarterly results.

• Interim dividend of INR 1.5 per equity share declared for Q2FY26.

• The company maintains a robust US product pipeline, including 30 Para IVs and over 20 FTFs, with 13 approved products.

Financial highlights

• Pharma export formulations revenue was INR 1,147 crores (INR 11,470 Mn), and domestic formulations revenue was INR 105.4 crores (INR 1,054 Mn) for Q2FY26.

• Total income for H1FY26 was INR 28,536 million, with net profit for H1FY26 at INR 9,982 million.

• PAT margin for Q2FY26 was 35.4%.

• Net cash as of 30th Sept 2025 was INR 39,030 Mn.

• Guidance for H2: quarterly revenue of INR 750-800 crores and PAT of INR 135-150 crores; FY26 PAT guidance: INR 1,275-1,300 crores.

Outlook and guidance

• Revlimid (lenalidomide) revenue expected to decline sharply due to increased competition; not budgeting significant future revenue from this product.

• Domestic business expected to remain stable, with semaglutide launch anticipated in March/April 2026.

• Base business projected to grow 10%-15% annually; major profit jumps expected in years with exclusivity launches.

• Crop health sciences business to be de-merged and listed separately by 2026, aiming to unlock value and provide operational flexibility.

• The company is advancing its US product pipeline, focusing on key Para IV and FTF opportunities and investing in NCE, cell, and gene therapy.