Natco Pharma Q4 Results: Profit rises 5%, revenue up 16% YoY; warns of FY26 headwinds

Natco Pharma posted a 5% YoY increase in Q4 profit to ₹406 crore, with revenue rising 16%. The company flagged potential FY26 challenges due to US pricing pressures and global uncertainties.

By Sheersh Kapoor May 28, 2025, 4:54:36 PM IST (Published)

Natco Pharma Q4 Results: Profit rises 5%, revenue up 16% YoY; warns of FY26 headwinds

Natco Pharma Limited reported a consolidated net profit of ₹406 crore for the quarter ending March 31, 2025, up 5% year-on-year from ₹386.3 crore in the same period last year. Revenue for the quarter grew 16% to ₹1,287.3 crore compared to ₹1,110.3 crore in Q4 FY24.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter stood at ₹548 crore, up 10.2% YoY, while operating margins came in at 44.89%, slightly lower than 46.55% in the year-ago quarter.

The quarter included an impairment charge of ₹50 crore in the Crop Health Science division and a ₹25 crore chargeback adjustment in the company’s US subsidiary, alongside increased R&D spending.

For the full year FY25, Natco reported its highest-ever revenue and profit. Consolidated revenue rose 16% to ₹4,784 crore, while net profit surged 36% to ₹1,883.4 crore.

Despite the strong annual performance, the company cautioned investors about a challenging outlook for FY26, with an estimated 20% dip in revenue and a 30% decline in profits.

Also Read: Finolex Cables Q4 Results: Revenue up 14% YoY, margin dips; ₹8 dividend declared

The guidance reflects expected pricing pressures in its key US business, geopolitical headwinds, and elevated research and development expenses.

As of March 31, 2025, Natco maintained a robust cash position of over ₹3,000 crore. Shares of Natco Pharma closed 1.78% lower at ₹862.45 on the Bombay Stock Exchange (BSE) ahead of the results announcement.

Stockgram