Natco Pharma posts strong Q2 FY26 results, eyes future growth

Natco Pharma Limited reported a consolidated total revenue of ₹1,463 crores for the quarter ended September 30, 2025, an increase from ₹1,434.9 crores in the same period last year. The company achieved an EBITDA of ₹679.2 crores, reflecting a healthy margin of 46.4%, with net profit for the period standing at ₹517.9 crores. The board of directors declared an interim dividend of ₹1.5 per equity share of ₹2.

Segmental revenue for Q2 FY26 included API at ₹53.9 crores, domestic formulations at ₹105.4 crores, and formulation exports (including profit share and subsidiaries) at ₹1,147 crores. Crop health sciences contributed ₹52.4 crores, while other operating and non-operating income was ₹104.3 crores. Substantial R&D expenses were incurred for bioequivalence and one-time employee bonuses. The company is targeting ₹135-₹150 crores in PAT per quarter from Q3 onwards, consolidating Adcock's profit.

Looking ahead, Natco Pharma anticipates strong growth in its domestic business, bolstered by new product launches like Risdiplam and the upcoming Semaglutide launch around March/April 2026. While the company expects increased competition for Lenalidomide in Q3 and Q4, its ROW business is performing well with new launches expected in the US in the coming years.