Natco Pharma Q1 Profit Dives 57% Amid Revenue Slump

Natco Pharma witnessed a sharp decline in its Q1 FY27 financial performance, with consolidated net profit plummeting 57% year-on-year to Rs 207 crore. Revenue from operations also fell significantly by 44.7% to Rs 735 crore compared to the previous year.

Q1 Financial Overview

• Net Profit: Down 57% YoY to Rs 207 crore from Rs 481 crore in Q1 FY26.
• Revenue from Operations: Decreased 44.7% YoY to Rs 735 crore from Rs 1,329 crore in Q1 FY26.
• EBITDA: Declined 67.4% YoY to Rs 186 crore from Rs 571 crore in Q1 FY26.

This substantial operating pressure led to a significant contraction in the company’s EBITDA margin. The margin decreased to 25.3% in Q1 FY27, a notable drop from 43% reported in the same quarter last year.

Board Approves Dividend and QIP

Despite the challenging financial results, Natco Pharma’s board of directors approved an interim dividend of Rs 1.50 per share for the current fiscal year, FY27.

The board also sanctioned a strategic plan to raise up to Rs 2,000 crore. This capital will be secured through a qualified institutional placement (QIP) or other permitted instruments, aiming to enhance financial flexibility for business investments and future growth opportunities.

Company Overview

Founded in 1981 and headquartered in Hyderabad, Natco Pharma operates as a multinational pharmaceutical company. It specializes in complex generics, active pharmaceutical ingredients (APIs), and oncology medicines, alongside a Crop Health Sciences division.

The company maintains a global presence, distributing its diverse product portfolio across more than 50 countries worldwide.

These financial outcomes highlight a difficult quarter for Natco Pharma, even as the company moves to secure future growth through capital raising and shareholder returns.