Natural Capsules Limited reported a consolidated net loss of ₹24.66 crores for the financial year ended March 31, 2026, on revenue from operations of ₹187.20 crores. The company attributed the loss to operational disruptions at its Puducherry plant and pre-commercial costs at its API manufacturing subsidiary. Management has provided guidance for FY27, targeting a consolidated revenue of ₹274 crores and a return to profitability at the consolidated level.

Financial Performance for FY26

For the full year FY26, consolidated revenue grew 11% year-on-year to ₹187.20 crores from ₹169.21 crores in FY25. However, profitability declined significantly. EBITDA was a loss of ₹1.56 crores, a decrease of 1,119 basis points compared to the previous year. Finance costs rose to ₹10.95 crores, and depreciation increased to ₹17.14 crores, resulting in a profit before tax loss of ₹27.92 crores. Total equity stood at ₹234.72 crores, while operating cash flow was positive at ₹10.92 crores.

In Q4 FY26, the company reported revenue of ₹58.45 crores, reflecting growth of 55% on a quarter-on-quarter basis and 30% on a year-on-year basis. EBITDA for the quarter recovered to ₹1.33 crores with margins at 2.28%, an improvement of 844 basis points sequentially. The loss after tax for the quarter was ₹4.98 crores.

Operational Updates and Guidance

The capsules business faced disruptions due to the temporary shutdown of the Puducherry plant, though deferred dispatches were cleared in Q4 FY26. The new HPMC line, increasing installed capacity to 25 billion capsules per annum, is ready for double zero capsule production, with revenue expected to commence in the second half of FY27 pending US market approvals.

Commercial API sales commenced at the Tumkur facility in Q4 FY26. The company executed a framework and contract manufacturing agreement with Fermbox Bio Private Limited to utilize spare fermentation capacity. For FY27, management provided the following revenue guidance:

Strategic Outlook

Management stated that restoring profitability is the primary financial target for FY27. The company is exploring fundraising options, including potential preferential allotments or rights issues, to support its balance sheet. Regulatory approvals, including WHO GMP and USFDA, are in progress and are expected to drive margin improvements in the API segment over the next 24 months.

Natural Capsules Limited reported a consolidated net loss of ₹24.66 crore for the financial year ended March 31, 2026, compared to a net profit of ₹0.62 crore in the previous year. The loss was primarily attributed to the API segment, which reported a loss before tax and interest of ₹31.33 crore, and pre-commercial costs at its subsidiary. For the quarter ended March 31, 2026, the company reported a net loss of ₹4.98 crore, while revenue from operations surged 55% to ₹58.45 crore, driven by the dispatch of deferred goods following the resumption of operations at the Puducherry plant. The company’s Board of Directors approved the audited financial results at a meeting held on May 27, 2026.

The standalone financial performance for the year shows a net profit of ₹11.21 crore, a 67.1% year-on-year increase. Revenue from operations rose 3.5% to ₹173.77 crore. Earnings per share (EPS) on a basic basis improved to ₹10.79 from ₹6.43 in the prior year.

Financial Performance (Consolidated)

Financial Performance (Standalone)

Operational Updates and Guidance

The Capsules segment remained profitable, reporting a profit before tax and interest of ₹20.82 crore. The company noted that the incremental HPMC line for double-zero capsules is ready, with revenue expected from the second half of FY27. On the API side, commercial sales commenced in Q4FY26. The subsidiary Natural Biogenex Private Limited executed agreements with Fermbox Bio Private Limited to utilise fermentation assets at the Tumkur facility, aiming to improve CDMO capabilities.

Management provided a revenue guidance of ₹274 crore for FY27, comprising ₹170 crore from gelatin capsules, ₹20 crore from HPMC capsules, ₹70 crore from API domestic sales, and ₹14 crore from the Fermbox contract. The company anticipates EBITDA margins of 18% for HPMC and 13% for gelatin capsules. Debt levels are expected to remain between ₹100 crore and ₹110 crore in FY27. The Board approved the re-appointment of Mr. Laxminarayan Moondra as Whole-Time Director for three years effective July 28, 2026, subject to shareholder approval.