Natco Pharma Ltd(NATCOPHARM)

NSE: NATCOPHARMBSE: 524816

₹ 793+0.10%refreshed 26 Oct, 03:30 pm ISTMarket cap: ₹ 15,556 crWebsite: www.natcopharma.co.inUpdated: 27 Oct 2026

About

Natco Pharma is a Hyderabad-based Indian pharmaceutical company that develops and sells generic formulations in India, the US, Brazil, Canada, and through its 49%-owned South African associate Adcock Ingram, with a focus on oncology, specialty, and complex generics. In FY26 the company reported consolidated revenue of INR 4,078.3 crores, primarily from pharmaceuticals (96.6% of segment revenue). Natco is known for its Para IV first-to-file strategy in the US, with over 20 first-to-file ANDAs in its pipeline as of Q1 FY27.^[1][2][3]

Business segments

Pharmaceuticals generated INR 3,940.1 crores in revenue (96.6% of total) with an EBIT margin of 39.3% in FY26, covering branded domestic, generic exports, API and international subsidiaries.^[2]
Agro Chemicals (Crop Health Sciences) contributed INR 138.2 crores in revenue (3.4% of total) with an EBIT loss of INR 19.8 crores (-14.3% margin) in FY26, up from INR 60.6 crores of revenue in FY25.^[2][4]
Pharmaceuticals' share of revenue fell 3.3 percentage points over FY2021-FY2026.^[2]

Products and therapeutic focus

The US pipeline holds 28 Para IV ANDAs (17 approved) and over 20 first-to-file positions as of Q1 FY27, including sole FTFs in carfilzomib, ibrutinib, idelalisib, olaparib and semaglutide.^[3]
Natco launched semaglutide multi-dose vials in India as the only generic in vial format; own brand running at ~INR 2 crores/month as of Q1 FY27.^[3]
Risdiplam (brand Everysdi) for Spinal Muscular Atrophy was launched in India in Q3 FY26, with Natco as the only generic in the market.^[5]
Natco launched the first generic carfilzomib in Brazil in Q2 FY26; a US carfilzomib launch is pending plant upgrade completion by end of CY2026.^[6]
Final FDA approval for Eribulin Mesylate Injection was received in Q1 FY27.^[3]

Operations and manufacturing

Natco operates four US FDA-regulated plants; as of Q4 FY26, three had received EIRs (Kothur, Mekaguda, Chennai) and the Vizag formulation plant inspection was pending.^[7]
The Kothur warning letter was resolved during FY26; Mekaguda received clearance; Chennai observations were classified as procedural as of Q3 FY26.^[5]
R&D spend was approximately 8% of sales in Q3 FY26; FY27 R&D is guided at 7 - 9% of revenue.^[5]

Key operating numbers

Domestic formulations revenue reached INR 136 crores in Q1 FY27, up from a base of ~INR 107 crores per quarter, aided by semaglutide and oncology.^[3]
Brazil subsidiary revenue was INR 178 crores in Q1 FY27, up 180% year-on-year, driven by the oncology portfolio.^[3]
Canada subsidiary revenue was ~INR 56 crores in Q1 FY27; full-year FY26 Canada revenue was INR 229 crores.^[3]
Crop Health Sciences revenue was INR 40.8 crores in Q1 FY27 (seasonally weak).^[3]
Consolidated revenue fell to INR 794.4 crores in Q1 FY27 from INR 1,390.6 crores in Q1 FY26, almost entirely due to the fall in lenalidomide (Revlimid) revenue, now described as negligible.^[3]

Customers and geographic reach

Natco earns revenues across five geographies - India, US, Brazil, Canada, and South Africa (via Adcock Ingram associate) - having diversified from near-total US dependence in prior years.^[7]
Adcock Ingram reported revenue of INR 1,582.8 crores in Q1 FY27; Natco's share of associate profit was INR 84.3 crores at the then 35.75% holding.^[3]
Three Natco product dossiers have been filed for registration via Adcock in South Africa; market entry is expected around 2028 given an 18 - 24 month registration timeline.^[3]

Expansion and capex

Organic capex is running at INR 250 - 300 crores per year on an ongoing basis, as guided in Q1 FY27.^[3]
Shareholders were asked in the FY26 annual report to approve raising up to ₹2,000 crore via QIP, rights, preferential or private placement for organic and inorganic growth, capex, R&D, working capital and loan repayment.^[8]
Management said in Q1 FY27 the equity fundraise is intended to fund two acquisition opportunities - one within India and one outside.^[3]
Two US exclusivity launches are planned in FY28; product names are undisclosed due to confidentiality agreements.^[3]
US ANDA filing target is 8 - 10 products per year with 2 - 3 FTFs per year, as of Q1 FY27.^[3]

Recent developments

On 23 Oct 2026 Natco approved the allotment of rights shares, raising paid-up equity capital from ₹35,82,19,740 to ₹39,23,35,904.^[9]
The rights issue offered up to 17,058,082 equity shares at INR 750 per share (up to INR 12,794 million), with record date October 1, 2026 and an issue period of October 12 - 22, 2026.^[10]
In July 2026, Natco acquired an additional 13.25% stake in Adcock Ingram, taking its holding to 49%; Adcock is privately held with only Natco and Bidvest as shareholders.^[3]
The Crop Health Sciences demerger has been delayed ~2 - 3 months from the prior December 2026 target to about March 2027, as the equity fundraise took priority.^[3]
Investee eGenesis has performed xenotransplants on 3 end-stage kidney disease patients, 2 with over 8 months of dialysis independence as of Q1 FY27; a 33-patient FDA-cleared trial is set to begin registration in early 2027.^[3]
Three interim dividends totalling ₹5.00 per share were paid for FY2025-26.^[8]

Market Cap

₹15,556 Cr

High / Low

₹1,216 / 774

Stock P/E

13.6

Price / Book

1.7

Book Value

₹515

EPS

₹72.3

No. of Shares

17.91 Cr

ROCE

17.6%

ROE

16.9%

OPM

34.9%

Debt / Equity

0.08

Sales

₹4,078 Cr

Net Profit

₹1,419 Cr

Promoter holding

49.4%

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Natco Pharma Ltd(NATCOPHARM)

About

Business segments

Products and therapeutic focus

Operations and manufacturing

Key operating numbers

Customers and geographic reach

Expansion and capex

Recent developments

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