NATCO Pharma (NATCOPHARM) Q4 24/25 earnings summary

Executive summary

• FY25 consolidated revenue reached INR 47,840 million, up 16% year-over-year, with net profit at INR 18,834 million, up 36% year-over-year, driven by strong pharma export formulations and domestic growth.

• Q4 FY25 revenue was INR 12,873 million, with PAT of INR 4,060 million, reflecting robust profitability.

• Strong cash position over INR 3,500 crore, with ongoing focus on R&D, potential acquisitions, and strategic investments in cell and gene therapy.

• Notable US product approvals for Bosentan and Everolimus tablets for oral suspension, and expansion into new subsidiaries in the UK, Indonesia, and Colombia.

• Board declared total dividends of INR 6 per share for FY25, reflecting confidence in ongoing performance.

Financial highlights

• FY25 consolidated revenue grew 16% year-over-year; net profit increased 36% year-over-year.

• Q4 FY25 revenue was INR 12,873 million, up from INR 10,683 million in Q4 FY24; Q4 PAT was INR 4,060 million, up from INR 3,863 million.

• FY25 EBITDA margin was 53.3%, up from 45.5% in FY24; PAT margin improved to 39.4%.

• R&D spend for FY25 was INR 373 crore (8.5% of standalone revenue), with similar or higher spend targeted for FY26.

• Cash and cash equivalents at FY25 year-end stood at INR 1,200 million, up from INR 704 million in FY24.

Outlook and guidance

• FY26 guidance anticipates a 20% decline in revenue and a 30% decline in profits due to U.S. pricing pressure, geopolitical uncertainties, and higher R&D expenses.

• First half of FY26 expected to be strong; second half projected to be weaker.

• Guidance does not factor in potential launches of Risdiplam and Semaglutide; successful launches could drive higher growth.

• Board approved and paid interim dividends throughout FY25.