Natco Pharma Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Natco Pharma Ltd filed with BSE on 18 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
NATCO Pharma reported consolidated revenue of INR794.4 crores for Q1 FY27, down from INR1,390.6 crores a year earlier, mainly due to lower Lenalidomide revenue partly offset by growth in the base business. EBITDA margin was 30.9%, and consolidated PAT was INR206.5 crores, aided by a strong contribution from associate Adcock Ingram driven by a flu season in South Africa. Management discussed a proposed fundraise of INR2,000 crores, an increased 49% stake in Adcock Ingram, and updates on the semaglutide, olaparib, carfilzomib and Crop Health Sciences businesses.
Numbers mentioned
Consolidated total revenue: INR794.4 crores (Q1 FY27)
p. 3
“The company recorded consolidated total revenues of INR794.4 crores in quarter 1 FY27 compared to INR1,390.6 crores in the corresponding quarter last year.”
Amit Parekh, page 3 of the filed PDF · View the filing
EBITDA: INR245.7 crores (Q1 FY27)
p. 3
“EBITDA, including other income for the quarter, stood at INR245.7 crores with EBITDA margin of 30.9%.”
Amit Parekh, page 3 of the filed PDF · View the filing
Consolidated profit after tax: INR206.5 crores (Q1 FY27)
p. 4
“Consolidated profit after tax stood at INR206.5 crores compared to INR269 crores in quarter 4 of FY26”
Amit Parekh, page 4 of the filed PDF · View the filing
Normalized PAT growth quarter-on-quarter: 34% (Q1 FY27 vs Q4 FY26)
p. 4
“On a normalized basis, excluding this onetime tax benefit in quarter 4 last year, consolidated PAT grew by 34% quarter-on-quarter.”
Amit Parekh, page 4 of the filed PDF · View the filing
Adcock Ingram revenue: INR1,582.8 crores (Q1 FY27)
p. 4
“With regards to our associate company, Adcock Ingram Holdings Limited, South Africa, revenue for the quarter stood at INR1,582.8 crores and profit after tax at INR242.2 crores.”
Amit Parekh, page 4 of the filed PDF · View the filing
NATCO's share of Adcock profit: INR84.3 crores (Q1 FY27)
p. 4
“NATCO's share of profit based on 35.75% holding as on 30th June 2026 was INR84.3 crores.”
Amit Parekh, page 4 of the filed PDF · View the filing
Domestic formulation business revenue: INR136 crores (Q1 FY27)
p. 4
“Our domestic formulation business revenue stood at INR136 crores.”
Amit Parekh, page 4 of the filed PDF · View the filing
Brazil business revenue growth: 180% (Q1 FY27)
p. 4
“Revenue from Brazil stood at INR178 crores, representing a growth of 180%.”
Amit Parekh, page 4 of the filed PDF · View the filing
Canada sales: around INR56 crores (Q1 FY27)
p. 4
“Canada sales for the quarter was around INR56 crores.”
Amit Parekh, page 4 of the filed PDF · View the filing
Net cash: around INR1,400 crores (current)
p. 5
“So you're right, our net cash as of today is around INR1,400 crores.”
Amit Parekh, page 5 of the filed PDF · View the filing
Investments over past year: almost INR3,000 crores (trailing 12 months)
p. 5
“Obviously, last one year, if you look at the kind of investments we have made, it's almost INR3,000 crores, primarily in Adcock.”
Amit Parekh, page 5 of the filed PDF · View the filing
Crop Health Sciences revenue: about INR40 crores (Q1 FY27)
p. 7
“See, last year, we did about INR138 crores total, and we are about INR40 crores in Q1.”
Rajesh Chebiyam, page 7 of the filed PDF · View the filing
Additional Adcock stake acquisition amount: INR1,060 crores (current)
p. 14
“I think we took a resolution, but I think the total amount we invested in that particular tranche was 13.25%, I think, INR1,060 crores.”
Rajeev Nannapaneni, page 14 of the filed PDF · View the filing
Domestic base business revenue: about INR130 crores (Q1 FY27)
p. 5
“I think that base business normally is about INR107 crores a quarter. I think this quarter it went to INR130 crores something.”
Rajeev Nannapaneni, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
PAT — INR750 crores · FY27
stated firmly by Amit Parekh
p. 12
“Our guidance still remains around INR750 crores. I am not changing the guidance.”
Amit Parekh, page 12 of the filed PDF · View the filing
Gross sales — INR3,300 crores to INR3,400 crores · FY27
stated firmly by Rajeev Nannapaneni
p. 7
“I will stick to the same guidance that we gave earlier in the year that we end the year with about INR750 crores and our gross sales will be between INR3,300 crores to INR3,400 crores in that region.”
Rajeev Nannapaneni, page 7 of the filed PDF · View the filing
Domestic business volume growth — 25% · FY27
stated as an aspiration by Rajeev Nannapaneni
p. 5
“I think this year, we expect that domestic will increase by about 25% in volumes alone.”
Rajeev Nannapaneni, page 5 of the filed PDF · View the filing
Crop Health Sciences EBITDA — breakeven · FY27
stated as an aspiration by Rajesh Chebiyam
p. 7
“our expectation for the year is to break even”
Rajesh Chebiyam, page 7 of the filed PDF · View the filing
Organic capex — INR250 crores to INR300 crores · annual
stated firmly by Amit Parekh
p. 11
“Organically, I think every year, we have around INR250 crores to INR300 crores of capex year-on-year.”
Amit Parekh, page 11 of the filed PDF · View the filing
NATCO products launch in Adcock/South Africa — around 2028
stated conditionally by Rajeev Nannapaneni
p. 11
“We feel that NATCO's products might come into the market maybe around '28, I think, would be a reason.”
Rajeev Nannapaneni, page 11 of the filed PDF · View the filing
ANDA filings — 8 to 10 ANDAs a year
stated as an aspiration by Rajeev Nannapaneni
p. 11
“I think we have an internal target of doing about 8 to 10 ANDAs a year.”
Rajeev Nannapaneni, page 11 of the filed PDF · View the filing
FTF filings — 2 to 3
stated as an aspiration by Rajeev Nannapaneni
p. 11
“FTF, I think, we target about 2 to 3.”
Rajeev Nannapaneni, page 11 of the filed PDF · View the filing
U.S. exclusivity launches — two launches · next financial year
stated firmly by Rajeev Nannapaneni
p. 15
“But yes, we have two launches in the next financial year.”
Rajeev Nannapaneni, page 15 of the filed PDF · View the filing
Crop Health Sciences demerger timeline — around March
stated conditionally by Rajesh Chebiyam
p. 10
“So it could probably delay by about 2 to 3 months. Yes, I think probably instead of December, it could be about March.”
Rajesh Chebiyam, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the profit increase to a seasonal flu season boosting Adcock's earnings, not to the Indian business.
Answered by Rajeev Nannapaneni
Asked by Vamsi: What explains the constant currency decline in Adcock and export revenue quarter-on-quarter?
p. 4
“I think the increase in the profit didn't come from the Indian company, it came from the associate.”
Rajeev Nannapaneni, page 4 of the filed PDF · View the filing
CFO said the company is evaluating acquisition and M&A opportunities and wants to have cash ready.
Answered by Amit Parekh
Asked by Vamsi: Why is the company raising INR2,000 crores given cash on hand?
p. 5
“We have some short-term loans to pay off and some capital expenditure. But at this juncture, we are also looking at a couple of very interesting opportunities of acquisitions and some kind of an M&A opportunity.”
Amit Parekh, page 5 of the filed PDF · View the filing
Management said last year's quarter had unusually high R&D and legal costs, and the current level should not be treated as a stable run rate.
Answered by Amit Parekh
Asked by Kunal Randeria: Why did other expenses decline sharply and is this the new run rate?
p. 6
“Current quarter is slightly lower, and this cannot be the run rate. There will be a little bit higher spend going forward.”
Amit Parekh, page 6 of the filed PDF · View the filing
Management said there was a loss this quarter due to seasonal delays but expects the year to break even.
Answered by Rajesh Chebiyam
Asked by Rashmi Shetty: Has the Crop Health Sciences (Agro) business broken even?
p. 7
“So basically, for the quarter, there was a loss, right? But the goal and our expectation for the year is to break even.”
Rajesh Chebiyam, page 7 of the filed PDF · View the filing
Management confirmed the launch remains on track though the exact date is confidential.
Answered by Rajeev Nannapaneni
Asked by Abhigyan Srivastav: Is carfilzomib launch on track for calendar 2027?
p. 8
“I cannot confirm the date, but yes, the launch is on track.”
Rajeev Nannapaneni, page 8 of the filed PDF · View the filing
Management said the product does not lose money but also does not generate significant profit yet.
Answered by Rajeev Nannapaneni
Asked by Tanya Chaudhary: Is semaglutide currently profitable?
p. 10
“As of now, it doesn't lose money, but it doesn't make much money either.”
Rajeev Nannapaneni, page 10 of the filed PDF · View the filing
Management reaffirmed the INR750 crore guidance, cautioning against annualizing the seasonal Adcock bump.
Answered by Amit Parekh
Asked by Vamsi: Does the PAT guidance of INR750 crores still hold given Adcock's strong quarter?
p. 12
“Wait. Don't annualize it. It is a seasonal bump because it was a flu season. Our guidance still remains around INR750 crores. I am not changing the guidance.”
Amit Parekh, page 12 of the filed PDF · View the filing
Management said there is currently no opportunity to increase the stake beyond 49% since the other shareholder wants to hold on to its 51%.
Answered by Rajeev Nannapaneni
Asked by Santosh: Could NATCO increase its Adcock stake further in future?
p. 12
“I think as of now Bidvest now wants to hold on to the 51%. So there's no opportunity yet, but we have a first right of refusal.”
Rajeev Nannapaneni, page 12 of the filed PDF · View the filing
Management said the dossier has not been filed in either market.
Answered by Rajeev Nannapaneni
Asked by Hrishikesh Patole: What is the status of semaglutide dossiers in Canada and Brazil?
p. 14
“We are not filing. And the status is minus. We have not filed also. So I think our dossier is not being filed.”
Rajeev Nannapaneni, page 14 of the filed PDF · View the filing
Risks flagged
El Nino-related rain delays affecting the cropping season and Crop Health Sciences revenue
p. 7
“there has been the El Nino fear and delay in rains”
Rajesh Chebiyam, page 7 of the filed PDF · View the filing
Intense competition and pricing pressure in the semaglutide market
p. 9
“The market is cutthroat. I think this is what we always said in our earlier calls as well.”
Rajeev Nannapaneni, page 9 of the filed PDF · View the filing
Litigation encumbering part of the company's land bank
p. 12
“there's always, I would say, 15%, 20% of our land is tied up in litigation and it's all frivolous in nature”
Rajeev Nannapaneni, page 12 of the filed PDF · View the filing
Unresolved olaparib patent litigation and exclusivity determination
p. 8
“We have some arguments that has not been determined yet.”
Rajeev Nannapaneni, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.