NATCO Pharma Q2 Profit Falls About 61% to Rs 202.6 Crore
NATCO Pharma said lower Lenalidomide revenue pulled Q2 FY27 revenue down about 30% to Rs 1,019.4 crore from a year earlier.
Key Takeaways
- Q2 FY27 consolidated profit fell about 61% to Rs 202.6 crore from Rs 517.9 crore in Q2 FY26.
- Total revenue fell about 30% to Rs 1,019.4 crore; NATCO said lower Lenalidomide revenue was the main reason.
- International formulations revenue fell to Rs 668.4 crore, while domestic formulations rose to Rs 145.7 crore.
- NATCO raised its stake in South Africa's Adcock Ingram to 49% during the quarter.
- The board declared a second interim dividend of Rs 1.25 per share.
Table of Contents 5 sections
NATCO Pharma said on 13 November 2026 that its consolidated profit for the July to September quarter (Q2 FY27) fell about 61% to Rs 202.6 crore, from Rs 517.9 crore in the same quarter a year earlier (Q2 FY26). Consolidated total revenue fell about 30% to Rs 1,019.4 crore, from Rs 1,463.0 crore.
The Hyderabad-based drug maker said the year-on-year fall was largely due to lower Lenalidomide revenue, partly offset by growth in its base business, including subsidiaries. Against the previous quarter (Q1 FY27), total revenue rose from Rs 794.4 crore, which NATCO put down to a better showing in its international formulations business. The board declared a second interim dividend of Rs 1.25 per equity share of Rs 2 each for FY27.
NATCO Pharma Q2 FY27 at a glance
| Detail | Value |
|---|---|
| Results announced | 13 November 2026 |
| Quarter | July to September 2026 (Q2 FY27) |
| Consolidated profit (after share of associate) | Rs 202.6 crore, down about 61% from Rs 517.9 crore in Q2 FY26 |
| Consolidated total revenue | Rs 1,019.4 crore, down about 30% from Rs 1,463.0 crore in Q2 FY26 |
| Revenue from operations | Rs 967.3 crore, down about 29% from Rs 1,363 crore in Q2 FY26 |
| EBITDA before share of associate (includes other income) | Rs 310.0 crore, against Rs 679.2 crore in Q2 FY26 |
| EBITDA margin (same basis) | 30.4%, against 46.4% in Q2 FY26 |
| Earnings per share | Rs 11.31, against Rs 28.94 in Q2 FY26 |
| First-half (April to September) profit | Rs 409.1 crore, down about 59% from Rs 998.2 crore |
| Dividend | Second interim dividend of Rs 1.25 per share of Rs 2 each (62.5% of face value) |
NATCO Pharma's business segments in Q2 FY27
NATCO Pharma makes generic and branded medicines, specialty drugs, active pharmaceutical ingredients (API) and crop protection products. Its international formulations business, which includes profit share and subsidiaries, brought in Rs 668.4 crore in Q2 FY27, down about 41.4% from Rs 1,140.2 crore a year earlier.
Its other businesses grew. Domestic formulations revenue rose about 38.2% to Rs 145.7 crore from Rs 105.4 crore, API revenue rose about 13.7% to Rs 61.3 crore from Rs 53.9 crore, and crop health sciences revenue rose about 16.4% to Rs 61.0 crore from Rs 52.4 crore.
| When | What happened |
|---|---|
| Q2 FY26 (July to September 2025) | NATCO reported consolidated profit of Rs 517.9 crore |
| Q1 FY27 (April to June 2026) | Consolidated profit fell about 57% to Rs 206.5 crore from Rs 480.3 crore, as Lenalidomide sales weakened |
| Q2 FY27 (July to September 2026) | NATCO bought an additional 13.25% stake in Adcock Ingram Holdings, taking its holding to 49% |
| 13 November 2026 | NATCO reported Q2 FY27 profit of Rs 202.6 crore and declared a second interim dividend of Rs 1.25 per share |
NATCO's larger stake in South Africa's Adcock Ingram
During the quarter, NATCO acquired an additional 13.25% stake in Adcock Ingram Holdings, its associate company in South Africa, taking its total holding to 49%. NATCO said Adcock Ingram reported revenue of Rs 1,343.8 crore and profit after tax of Rs 80.5 crore for the quarter. NATCO's share of that profit, based on its 49% holding as of 30 September 2026, was Rs 29.2 crore after adjustments relating to the provisional purchase price allocation.
Where NATCO Pharma stands after Q2 FY27
NATCO's Q2 FY27 profit of Rs 202.6 crore was close to the Rs 206.5 crore it earned in Q1 FY27, taking first-half profit to Rs 409.1 crore. Revenue rose from the previous quarter to Rs 1,019.4 crore, while the company said lower Lenalidomide revenue kept it below last year's Rs 1,463.0 crore.
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