Natco Pharma Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Natco Pharma Ltd filed with BSE on 04 Jun 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 Rs 4,375.9 crores for FY26 versus Rs 4,784 crores last year, with net profit of Rs 1,418.5 crores against Rs 1,883.4 crores, as lenalidomide-related exclusivity revenue declined. Management guided to a decline in FY27 earnings to a base level of Rs 700-750 crores PAT on revenue of Rs 3,400-3,500 crores, citing the absence of major exclusivities in the coming year. The company discussed its semaglutide launch, South African associate Adcock Ingram, ongoing search for acquisitions, and plans to demerge its Crop Health Sciences business.
Numbers mentioned
Consolidated total revenue: INR4,375.9 crores (FY26)
p. 3
“NATCO recorded consolidated total revenue of INR4,375.9 crores for the year ended March 31, 2026, as against INR4,784 crores for the last year.”
Rajesh Chebiyam, page 3 of the filed PDF · View the filing
Consolidated net profit: INR1,418.5 crores (FY26)
p. 3
“The net profit for the period on a consolidated basis was INR1,418.5 crores as against INR1,883.4 crores last year.”
Rajesh Chebiyam, page 3 of the filed PDF · View the filing
Net revenue: INR816.9 crores (Q4 FY26)
p. 3
“For the fourth quarter, which ended March 31, 2026, the company recorded a net revenue of INR816.9 crores on a consolidated basis as against INR1,287.3 crores during fourth quarter of last year.”
Rajesh Chebiyam, page 3 of the filed PDF · View the filing
Consolidated profit: INR269 crores (Q4 FY26)
p. 3
“The profit for the fourth quarter on a consolidated basis was INR269 crores, including the share of profit of associates, as against INR406 crores same period last year.”
Rajesh Chebiyam, page 3 of the filed PDF · View the filing
Onetime tax benefit: INR115 crores (FY26)
p. 3
“Net profit for the quarter and financial year includes a onetime benefit of INR115 crores as the company has elected to move to the new tax regime from FY '26-'27 and has remeasured its deferred tax assets on MAT credit and other deferred tax assets/liabilities.”
Rajesh Chebiyam, page 3 of the filed PDF · View the filing
Adcock Ingram revenue: INR1,208.2 crores (Q4 FY26)
p. 3
“For the quarter, revenue from the associate company, Adcock Ingram Holdings Limited, South Africa was at INR1,208.2 crores and profit after tax was at INR102.5 crores.”
Rajesh Chebiyam, page 3 of the filed PDF · View the filing
NATCO's share of Adcock profit: INR35.7 crores (Q4 FY26)
p. 3
“NATCO's share of profit based on the current holding stood at INR35.7 crores.”
Rajesh Chebiyam, page 3 of the filed PDF · View the filing
Net cash: INR2,400 crores
p. 5
“Yes. So net cash would be around INR2,400 crores at a group level.”
Amit Parekh, page 5 of the filed PDF · View the filing
Full year subsidiary sales: INR 730 crores (FY26)
p. 6
“Just give me a moment. It's INR 730 crores.”
Amit Parekh, page 6 of the filed PDF · View the filing
R&D and engineering write-down expense: INR20 crores to INR30 crores (Q4 FY26)
p. 4
“Yes. So R&D and engineering write-down would be around INR20 crores to INR30 crores.”
Amit Parekh, page 4 of the filed PDF · View the filing
Crop Health Sciences sales: INR140 crores (FY26)
p. 11
“So yes. So in terms of sale, let's say, this year, we ended up close to INR140 crores, right?”
Rajesh Chebiyam, page 11 of the filed PDF · View the filing
Crop Health Sciences sales prior year: INR60 crores (FY25)
p. 11
“And as opposed to a declared number for last year was about INR60 crores.”
Rajesh Chebiyam, page 11 of the filed PDF · View the filing
Brazil sub turnover: INR257 crores (FY26)
p. 17
“I think our Brazil turnover of our sub this year was about INR257 crores, plus we have some billing directly from India.”
Rajeev Nannapaneni, page 17 of the filed PDF · View the filing
Canada revenue: INR229 crores (FY26)
p. 17
“Canada this year is INR229 crores.”
Rajeev Nannapaneni, page 17 of the filed PDF · View the filing
U.S. FDA filings: 7 to 8 filings (FY26)
p. 16
“I think we've done about 7 to 8 filings in the U.S.”
Rajeev Nannapaneni, page 16 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.
Consolidated revenue — INR3,400 crores to INR3,500 crores · FY27
stated conditionally by Rajeev Nannapaneni
p. 4
“Our expectation is, Rahul, that we should do about INR3,400 crores to INR3,500 crores of revenue.”
Rajeev Nannapaneni, page 4 of the filed PDF · View the filing
PAT — INR700 crores to INR750 crores · FY27
stated conditionally by Rajeev Nannapaneni
p. 4
“Our PAT expectation is between INR700 crores to INR750 crores.”
Rajeev Nannapaneni, page 4 of the filed PDF · View the filing
Adcock Ingram (South Africa) revenue — $580 million to $600 million · FY27
stated conditionally by Rajeev Nannapaneni
p. 4
“And in addition to that, our South African associate firm should do, depending on the exchange rate, about $580 million to $600 million of revenue.”
Rajeev Nannapaneni, page 4 of the filed PDF · View the filing
Adcock Ingram (South Africa) PAT — $47 million to $48 million · FY27
stated conditionally by Rajeev Nannapaneni
p. 4
“And the PAT expectation of that is about $47 million to $48 million, again, subject to how the exchange rate moves and other war-related factors.”
Rajeev Nannapaneni, page 4 of the filed PDF · View the filing
Earnings growth — 15% to 25% per year · from FY28 onwards
stated as an aspiration by Rajeev Nannapaneni
p. 7
“I mean, I'll be better able to predict with time, but I think we see that our earnings should compound around 15% to 25% every year starting from '28.”
Rajeev Nannapaneni, page 7 of the filed PDF · View the filing
R&D expenditure — 7% to 9% · FY27
stated firmly by Rajeev Nannapaneni
p. 8
“In terms of like R&D expenditure next year, I think we expect to spend about 7% to 9%.”
Rajeev Nannapaneni, page 8 of the filed PDF · View the filing
Semaglutide annualized sales — INR75 crores to INR100 crores · annualized
stated as an aspiration by Rajeev Nannapaneni
p. 9
“I think we are thinking that we should be able to do about INR75 crores to INR100 crores annualized over the year.”
Rajeev Nannapaneni, page 9 of the filed PDF · View the filing
Tax rate — around 25% · FY27, FY28
stated firmly by Amit Parekh
p. 4
“So, including the surcharge, it would be around 25%.”
Amit Parekh, page 4 of the filed PDF · View the filing
Brazil sub revenue — INR55 million to INR60 million · FY27
stated as an aspiration by Rajeev Nannapaneni
p. 17
“So we are expecting that business should go to INR55 million to INR60 million this year.”
Rajeev Nannapaneni, page 17 of the filed PDF · View the filing
Canada revenue growth — 10% to 15% · FY27
stated as an aspiration by Rajeev Nannapaneni
p. 17
“Canada, we are expecting will grow around 10% to 15%.”
Rajeev Nannapaneni, page 17 of the filed PDF · View the filing
Cancer pipeline approval in Canada/Brazil — H2 FY27
stated firmly by Rajeev Nannapaneni
p. 17
“Yes. H2 of financial year '26, '27, we're expecting approval.”
Rajeev Nannapaneni, page 17 of the filed PDF · View the filing
Base revenue vs first-to-file profit contribution mix — base revenue 70% of profit, special products 25% to 30% · next 5 years
stated as an aspiration by Rajeev Nannapaneni
p. 18
“So per se, in an ideal world, I would want our base revenue to contribute 70% of our profit and the first to file or special product to contribute 25% to 30%.”
Rajeev Nannapaneni, page 18 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 said they were able to supply products despite challenges, but incurred higher freight costs from rerouting carriers.
Answered by Rajeev Nannapaneni
Asked by Candice Pereira: Whether the West Asia war impacted sales and shipments.
p. 4
“We were able to supply the product. We had some challenges, but we were able to supply.”
Rajeev Nannapaneni, page 4 of the filed PDF · View the filing
CFO attributed it to higher R&D expenses and a write-down in engineering spares.
Answered by Amit Parekh
Asked by Candice Pereira: Why other expenses were higher as a percentage of sales this quarter.
p. 4
“So yes, the other expenses largely this quarter, we had higher R&D expenses.”
Amit Parekh, page 4 of the filed PDF · View the filing
Management said the launch was competitive with multiple generics and had no meaningful earnings impact.
Answered by Rajeev Nannapaneni
Asked by Rahul Chaudhary: Whether the quarter included a substantial pomalidomide revenue bump.
p. 4
“I didn't see a bump honestly, Rahul. It's fairly competitive.”
Rajeev Nannapaneni, page 4 of the filed PDF · View the filing
Management pointed to the semaglutide vial launch and Brazil oncology launches as the main growth drivers.
Answered by Rajeev Nannapaneni
Asked by Sai Surendra: What are the key growth triggers for the coming year.
p. 5
“I think there are 2, 3 good triggers, Sai. I think one is semaglutide, we have launched.”
Rajeev Nannapaneni, page 5 of the filed PDF · View the filing
Management said they are evaluating a couple of transactions but have no update yet.
Answered by Rajeev Nannapaneni
Asked by Hrishikesh Patole: Status of the additional M&A target following the Adcock deal.
p. 6
“We are looking at a couple of transactions. Yes, sure.”
Rajeev Nannapaneni, page 6 of the filed PDF · View the filing
Management explained the acquisition provides scale and market presence that would be difficult to build organically.
Answered by Rajeev Nannapaneni
Asked by Udhaya Prakash: What NATCO gains strategically from the South African Adcock investment.
p. 7
“And in a competitive generic environment like ours, it's very difficult to grow organically.”
Rajeev Nannapaneni, page 7 of the filed PDF · View the filing
Management attributed the rise to R&D spend and an inventory write-down, and other income to licensing fees from the semaglutide India launch.
Answered by Rajeev Nannapaneni
Asked by Sudhanshu: What is driving the surge in other expenses and other income this quarter.
p. 8
“So typically, there's interest income, this PLI income and licensing fee when we do product licensing.”
Rajeev Nannapaneni, page 8 of the filed PDF · View the filing
Management described the launch as competitive, with the vial doing better than the pen and reaching a run rate of about Rs 2 crore a month for NATCO's own brand.
Answered by Rajeev Nannapaneni
Asked by Sudhanshu: How has the semaglutide vial launch performed versus expectations.
p. 9
“The run rate now, we are doing our brand is doing about INR2 crores a month.”
Rajeev Nannapaneni, page 9 of the filed PDF · View the filing
Management said the cash is better deployed toward acquisitions rather than a buyback at this time.
Answered by Rajeev Nannapaneni
Asked by Rahul Chaudhary: Whether the company would consider a share buyback given its cash position.
p. 12
“I mean. No. You asked me a straight question, I'll give you a straight answer. No.”
Rajeev Nannapaneni, page 12 of the filed PDF · View the filing
Management said three of four FDA facilities were inspected and cleared in 2025, with Vizag pending.
Answered by Rajeev Nannapaneni
Asked by Hrishikesh Patole: Update on the status of U.S. FDA plant inspections.
p. 14
“So all 3 got inspected, all 3 got cleared and we got EIRs.”
Rajeev Nannapaneni, page 14 of the filed PDF · View the filing
Management confirmed earnings will contract this year to Rs 700-750 crore PAT versus roughly Rs 1,400 crore previously.
Answered by Rajeev Nannapaneni
Asked by Aditya: Whether current high margins will contract or expand going forward.
p. 15
“So it's going to drop by half. So I think we will see a contraction for sure.”
Rajeev Nannapaneni, page 15 of the filed PDF · View the filing
Management said about 7-8 filings were made in the U.S. this year with plans for 8-9 more next year, targeting complex and first-to-file products.
Answered by Rajeev Nannapaneni
Asked by Nitin Agarwal: How many R&D filings were made this year and outlook for next year's filings.
p. 16
“I think we've done about 7 to 8 filings in the U.S. And good ones, we didn't hit any major first to files.”
Rajeev Nannapaneni, page 16 of the filed PDF · View the filing
Risks flagged
Decline in lenalidomide-related revenue impacting year-over-year comparison
p. 4
“there's an impact of Revlimid that there's a decline.”
Rajeev Nannapaneni, page 4 of the filed PDF · View the filing
Higher freight expenses due to rerouting shipments amid the Middle East conflict
p. 4
“there's been an increase in the freight expenses because we had to reroute from our traditional carriers, but we were able to manage.”
Rajeev Nannapaneni, page 4 of the filed PDF · View the filing
Rising input raw material costs for the agrichem business
p. 13
“So we have already seen 25% to 30% increase in the input raw materials.”
Rajesh Chebiyam, page 13 of the filed PDF · View the filing
Uncertain future pricing due to raw material cost increases in agrichem
p. 13
“But going forward, it is uncertain. I think there's likely increases of prices as well.”
Rajesh Chebiyam, page 13 of the filed PDF · View the filing
Competitive pressure reducing semaglutide pen market share
p. 9
“It's been a very competitive launch. I mean let me be honest with that.”
Rajeev Nannapaneni, page 9 of the filed PDF · View the filing
Absence of major exclusivities in FY27 leading to earnings decline
p. 5
“We don't have anything in '27. That's true.”
Rajeev Nannapaneni, page 5 of the filed PDF · View the filing
U.S. FDA plant inspection pending at Vizag facility
p. 14
“Vizag is a facility that has not had an inspection, I think nearly, I think I would say, a long time.”
Rajeev Nannapaneni, page 14 of the filed PDF · View the filing
High competition in U.S. generic filings reducing profitability of commodity products
p. 16
“I mean, especially if you're doing an NCE-1, chances are most products, you have 8 or 10 or 15 or 20 guys who file on day.”
Rajeev Nannapaneni, page 16 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.