Natco Pharma Q1 FY27 Earnings Call Transcript Released
Natco Pharma's Q1 FY27 consolidated revenues were ₹794.4 crores. EBITDA was ₹245.7 crores with a 30.9% margin. Profit after tax stood at ₹206.5 crores. Adcock Ingram's profit share was ₹84.3 crores, with Natco increasing its stake to 49%. Brazil revenue grew 180% to ₹178 crores. The company plans a ₹2,000 crore fundraise for acquisitions.
The announcement provides an update on financial performance, strategic initiatives like stake acquisition in Adcock Ingram and planned fundraise, and future outlook. These are material events for investors, impacting the company's strategic direction and financial outlook.
The announcement is a transcript of an earnings call, which is a routine disclosure. While it contains financial performance details, there are no significant positive or negative surprises that would strongly sway the sentiment.
Natco Pharma Limited has released the transcript of its earnings conference call for the first quarter of FY27, which was held on August 14, 2026. The call featured management including Mr. Rajeev Nannapaneni (Vice Chairman & CEO), Mr. Amit Parekh (CFO), and Mr. Rajesh Chebiyam (EVP, Crop Health Science).
During the call, consolidated total revenues for Q1 FY27 were reported at ₹794.4 crores, a decrease from ₹1,390.6 crores in the corresponding quarter of the previous year. This decline was primarily attributed to lower Lenalidomide revenue, partially offset by double-digit growth in the base business. EBITDA for the quarter stood at ₹245.7 crores, with an EBITDA margin of 30.9%. Consolidated profit after tax was ₹206.5 crores. Normalized PAT, excluding a one-time tax benefit in the prior year's Q4, showed a 34% quarter-on-quarter growth.
The company's associate, Adcock Ingram Holdings Limited, reported revenues of ₹1,582.8 crores and profit after tax of ₹242.2 crores for the quarter. Natco's share of profit from Adcock was ₹84.3 crores, with a recent acquisition of an additional 13.25% stake increasing Natco's total holding to 49%.
Domestic formulation business revenue was ₹136 crores, and Brazil business revenue showed significant growth at ₹178 crores, a 180% increase. Canada sales were around ₹56 crores.
Management discussed various aspects including R&D spending, international formulation business, Crop Health Sciences business (aiming to break even for the year with ₹138 crores revenue in FY26 and ₹40 crores in Q1 FY27), and potential future fundraises. The company is exploring opportunities for acquisitions and M&A, with a planned fundraise of ₹2,000 crores.
Upcoming launches in the US market are planned for FY28 and FY29, with two launches expected in the next financial year. Discussions also touched upon the status of carfilzomib and olaparib litigation, with carfilzomib launch on track and olaparib trial scheduled in the coming months. The demerger of the Crop Health Science business is anticipated to be delayed by 2-3 months, possibly moving to March from December.
Regarding the Adcock investment, management expressed commitment to South Africa and the potential for increasing their stake further, subject to opportunities and pricing. The company is also evaluating various fundraising options including QIP and rights issues.
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