Natco Pharma share price
Share price of Natco Pharma hit a 10-week low of ₹937.10, falling 8 per cent on the BSE in Monday’s intra-day trade amid heavy volumes. The stock quoted at its lowest level since March 24, 2026.
In the past two trading days, the stock price of the drug company slipped 20 per cent after t reported a disappointing earnings for the quarter ended March 2026 (Q4FY26). It has corrected 24 per cent from its 52-week high of ₹1,226.10 touched on May 12, 2026. Prior to that, the market price of the company zoomed 49 per cent from its three-month low of ₹820.35 hit on March 3, 2026.
At 11:12 AM; Natco Pharma was quoting 7 per cent lower at ₹943.05, as compared to 0.27 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped an over six-fold with a combined 2.21 million equity shares changing hands on the NSE and BSE.
Natco Pharma – Q4 results
Natco’s consolidated total revenue declined 36.5 per cent year-on-year (YoY) (15.8 per cent quarter-on-quarter (QoQ)) to ₹816.90 crore. Gross margin contracted 52bps YoY (-37bps QoQ) to 79.1 per cent. EBITDA declined 72.5 per cent YoY to ₹160 crore, while the margin contracted 2561bps YoY (-319bps QoQ) to 21.3 per cent.
Adjusted for a one-off cost of ₹30 crore for inventory write-down and ₹115 crore related to transition to new tax regime, profit after tax (PAT) declined 63.6 per cent YoY (+15.8 per cent QoQ) to ₹180 crore, including the share of profits of ₹35.7 crore from associates (net of tax) pertaining to the Adcock acquisition.
Meanwhile, the overall profitability in FY26 was as per the management guidance of a possible 25-30 per cent dip on account of significant gRevlimid vacuum. FY27 guidance is further muted with Revenues of ₹3,400-3,500 crore (20-25 per cent de-growth) and a PAT of ₹700-750 crore (45-50 per cent de-growth) with a complete absence of gRevlimid and no major US launches, ICICI Securities said in a note.
The management however expects better FY28 with traction coming from Canada, Brazil and India besides some niche launches in the US which can translate into 15- 25 per cent PAT growth. The company has set its site on future blockbusters emanating from a US pipeline of 28 para-IVs with 20 FTFs which it expects to crystallize over the next 3-5 years beyond FY27. With a cash pile of ₹2,500 crore, the management has also expressed willingness for ex-India merger & acquisitions (M&As).
Natco Pharma – should you buy, hold or sell?
Analysts at ICICI Securities maintain a ‘HOLD’ rating on Natco Pharma with revised target price to ₹1,000, based on 18x FY28E EPS of core business and an NPV of ₹100/share for exclusive products.
Loss of exclusivity in gRevlimid took a toll on Natco’s Q4FY26 result, with revenue/EBITDA declining 39.5 per cent/77.7 per cent YoY, respectively. Adjusted PAT benefitted from share of profits related to Adcock Ingram, higher treasury income, semaglutide-related licensing income and one-time tax benefits.
The management has reiterated that FY27 could be a year of consolidation and a pickup in growth in FY28 will be on the back of new launches (including semaglutide in select markets) across the US, Canada and Brazil, contribution from Adcock, and future exclusivity opportunities, the brokerage firm said in the result update.
Analysts expect Natco Pharma’s domestic business to grow 10.6 per cent over FY26–28E driven by new launches. Exports (including profit share and subsidiaries) declined 48.7 per cent YoY (+28.0 per cent QoQ) to ₹540 crore. Natco continues to focus on limited-competition and complex opportunities, having completed 7-8 filings in FY26 while targeting another 8-9 filings in FY27. Natco is progressing towards the demerger of the agrochem business. Natco continues to strengthen its specialty and innovation pipeline through investments in peptides, oligonucleotides and cell therapies, the brokerage firm said. ============================================= Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.