Natco Pharma FY26 profit falls 25%; Q4 EBITDA margin at 25.1%
Natco Pharma reported a 25% decline in FY26 consolidated net profit to ₹14,185 million, with total revenue decreasing to ₹43,759 million. Q4 net profit fell to ₹2,690 million, and EBITDA margin contracted to 25.1%. The company filed the earnings conference call transcript for Q4 FY25-26 held on May 29, 2026, under Regulation 30.
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Natco Pharma Limited reported a 25% decline in consolidated net profit to ₹14,185 million for the financial year ended March 31, 2026, compared to ₹18,834 million in the previous year. Total revenue for the year stood at ₹43,759 million, down from ₹47,840 million in FY25. The company's board approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 29, 2026. Following the results announcement, the company held an earnings conference call on May 29, 2026, to discuss the performance. The transcript of this call, filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is available on the company's website.
Quarterly Performance
For the fourth quarter ended March 31, 2026, Natco Pharma recorded a consolidated net profit of ₹2,690 million, a decline from ₹4,060 million in the corresponding quarter of the previous year. Revenue for the quarter stood at ₹8,169 million, compared to ₹12,873 million in Q4 FY25. EBITDA for the quarter came in at ₹2,054 million versus ₹6,144 million in the year-ago period, with the EBITDA margin contracting to 25.1% from 47.7% year-on-year. The financial results include a one-time deferred tax benefit of ₹1,150 million, recognized as the company elected to move to the new tax regime under Section 115BAA of the Income-tax Act, 1961, effective from FY26-27.
The company's associate, Adcock Ingram Holdings Limited, contributed to the quarterly performance, reporting revenue of ₹1,208.2 crore and a profit after tax of ₹102.5 crore. Natco Pharma's share of profit from the associate stood at ₹357 million for the quarter. The acquisition of a 35.75% equity stake in Adcock Ingram was completed on November 11, 2025, for a consideration of ZAR 3,873 million (INR 19,912 million), resulting in the recognition of goodwill of INR 6,494 million.
Key Financial Metrics
The following table summarizes the company's key consolidated financial metrics for FY26 versus FY25:
| Metric: | FY26 (₹ in millions) | FY25 (₹ in millions) | Change: |
|---|---|---|---|
| Total Income: | 43,759 | 47,840 | -9% |
| Profit for the Year: | 14,185 | 18,834 | -25% |
| Earnings per Share (Basic): | ₹79.20 | ₹105.26 | -25% |
The quarterly performance metrics are presented below:
| Metric: | Q4 FY26 | Q4 FY25 | Change: |
|---|---|---|---|
| Net Profit: | ₹2,690 Mn | ₹4,060 Mn | YoY decline |
| Revenue: | ₹8,169 Mn | ₹12,873 Mn | YoY decline |
| EBITDA: | ₹2,054 Mn | ₹6,144 Mn | YoY decline |
| EBITDA Margin: | 25.1% | 47.7% | YoY contraction |
Segment Performance
The pharmaceuticals segment remained the primary revenue driver, reporting segment revenue of ₹36,754 million for FY26, while the agro chemicals segment recorded revenue of ₹1,382 million. The agro chemicals segment reported a loss of ₹198 crore for the year. The company recognized an impairment loss of ₹500 million on property, plant, and equipment in the agro chemicals segment during the previous year.
Corporate Developments
The board approved a Scheme of Arrangement for the demerger of the agro chemicals business into NATCO Crop Health Sciences Limited, a newly incorporated wholly owned subsidiary. The scheme has been filed with relevant regulatory authorities for approval. Additionally, the board approved an interim dividend of ₹1.5 per equity share for the quarter ended December 31, 2025, bringing the total dividend for FY26 to ₹5 per equity share. The statutory auditors, B S R and Co, issued an unmodified opinion on the audited consolidated and standalone financial results. The company's total assets stood at ₹1,10,737 crore as of March 31, 2026, compared to ₹86,308 crore in the previous year.
Historical Stock Returns for Natco Pharma
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -13.60% | -12.14% | -6.79% | +15.08% | +15.62% | -5.45% |
How will the demerger of the agro chemicals business impact Natco Pharma's overall profitability and resource allocation in the next fiscal year?
What strategic benefits does Natco expect to derive from its stake in Adcock Ingram following the recent acquisition?
How will the transition to the new tax regime under Section 115BAA affect Natco's future tax liabilities and financial planning?
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