Natco Pharma credit ratings reaffirmed, signaling stability and strategic growth

On November 29, 2025, Natco Pharma Limited announced that ICRA Limited had reaffirmed its credit ratings. The Long-term/short-term Fund-based Working Capital Limits and Long Term/Short Term Non-fund Based Working Capital Limits were reaffirmed at [ICRA]AA (Stable)/[ICRA]A1+ for INR 930.00 crore and INR 120.00 crore respectively. The Long Term/Short Term Unallocated Limits and Long-term Fund Based Term Loan were reaffirmed/assigned for an enhanced amount of INR 300.00 crore and INR 400.00 crore, both at [ICRA]AA (Stable)/[ICRA]A1+. Commercial Paper was reaffirmed at [ICRA]A1+ for INR 400.00 crore.

These reaffirmations reflect Natco’s robust financial profile, strong liquidity, and a healthy portfolio of complex generics, underpinned by strong R&D capabilities. The company’s acquisition of a 35.75% stake in Adcock Ingram Holdings Limited (AIHL) for INR 2,000 crore in November 2025, funded through internal accruals and a INR 400 crore term loan, is a key strategic move. Despite this significant payout, Natco maintains a strong liquidity position with approximately INR 3,200 crore in cash and cash equivalents as of September 30, 2025.

The ratings also consider Natco's expanding presence in emerging markets and its focus on new product launches to mitigate competition-induced pricing pressure in domestic and US markets. While high product concentration in US formulations remains a challenge, the company's strong debt metrics and operational performance continue to support the stable outlook.