NATCO Pharma (NATCOPHARM) Q3 24/25 earnings summary

Executive summary

• Consolidated Q3 FY25 revenue was INR 651.1 crore (INR 6,511 Mn), down from INR 795.6 crore (INR 7,956 Mn) year-over-year, with net profit at INR 132.4 crore (INR 1,324 Mn) versus INR 212.7 crore last year.

• EBITDA for Q3 FY25 stood at INR 2,151 Mn with a margin of 33%.

• Weak quarter attributed to absence of Revlimid sales, higher R&D expenses, and lower export formulation contribution.

• Management expects business to improve in coming quarters with new product allocations and launches.

• Third interim dividend of INR 1.5 per equity share declared for Q3 FY25.

Financial highlights

• Q3 FY25 revenue declined 18% year-over-year; net profit dropped 38% year-over-year.

• EBITDA margin was 33.0% for Q3 FY25, down from 38.3% year-over-year.

• PAT margin was 20.3% for Q3 FY25.

• Basic and diluted EPS for Q3 FY25 was INR 7.43, compared to INR 11.88 in Q3 FY24.

• Other income included a one-time pre-tax gain of INR 90 crore from land sale.

Outlook and guidance

• Management expects a strong rebound in the next quarters, driven by new product allocations and launches.

• Guidance for FY25 and FY26 is contingent on price erosion in Revlimid and market dynamics; no specific growth percentage provided.

• Earnings expected to drop significantly post-FY26 as Revlimid exclusivity wanes, with a potential 50-60% decline in FY27.

• Ongoing focus on expanding the U.S. product pipeline, with 28 Para IVs in the pipeline and 13 approved.