- Natco Pharma's shares fell 4.7% after reporting sharp revenue and profit declines for Q1FY27
- Consolidated net profit dropped 57% YoY to Rs 207 crore from Rs 481 crore in Q1FY26
- Revenue declined 44.7% YoY to Rs 735 crore, and EBITDA fell 67.4% YoY to Rs 186 crore
Shares of Natco Pharma ended nearly 5% lower on Friday after the pharmaceutical company reported a sharp decline in revenue, profit and operating earnings for the June quarter of FY27.
The stock closed at Rs 907 on the NSE, down Rs 44.70, or 4.70%, from its previous close of Rs 951.70. The selling intensified in the afternoon session, with the shares falling from around Rs 948 at 2:10 PM to Rs 891 by 2:20 PM.
The stock later recovered some losses but remained firmly in the red at the close.
Natco Pharma reported a 57% year-on-year (YoY) decline in consolidated net profit to Rs 207 crore in Q1FY27, compared with Rs 481 crore in the year-ago quarter.
Revenue from operations fell 44.7% YoY to Rs 735 crore from Rs 1,329 crore in Q1FY26. The company's operating performance also weakened sharply, with EBITDA declining 67.4% YoY to Rs 186 crore from Rs 571 crore.
ALSO READ: Natco Pharma Q1 Result: Profit Falls 57% YoY To Rs 207 Crore; Revenue Down 45% YoY
As a result, EBITDA margin contracted to 25.3% in Q1FY27 from 43% a year earlier, pointing to significant pressure on operating profitability. Lower sales of its generic cancer drug lenalidomide also weighed on quarterly earnings.
Natco Pharma Dividend
Despite the weak earnings, Natco Pharma's board approved an interim dividend of Rs 1.50 per share for FY27.
The board also approved a proposal to raise up to Rs 2,000 crore through a qualified institutional placement (QIP) and/or other permitted instruments, subject to necessary approvals.
The proposed fundraising is intended to strengthen the company's financial flexibility as it invests in its business and growth opportunities.
ALSO READ: Natco Pharma Shares Gain After US FDA Tentative Approval for Generic Cancer Drug
Natco Pharma Stock Performance
Natco Pharma opened Friday's session at Rs 951.70 and touched an intraday high of Rs 964.85 before sliding to a low of Rs 886.35. The stock's 52-week high stands at Rs 1,226.80, while its 52-week low is Rs 789.
The Hyderabad-headquartered pharmaceutical company specialises in complex generics, active pharmaceutical ingredients and oncology medicines.
Founded in 1981, Natco Pharma also operates a Crop Health Sciences business and sells products across more than 50 countries.
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