Natco Pharma's Q2 Earnings Take A Sharp Hit, Net Profit Crashes 61% To ₹202.6 Crore As Revenue Slumps 29%

Mumbai: Natco Pharma Limited reported a sharp decline in consolidated net profit for the second quarter of FY27, with earnings falling 60.8% year-on-year to ₹202.6 crore amid lower revenue.

The pharmaceutical company had posted a net profit of ₹517.9 crore during the corresponding quarter of the previous financial year.

Revenue Drops 29%

Natco Pharma's revenue from operations declined 29% to ₹967.3 crore during the September quarter, compared with ₹1,363 crore in Q2 FY26. The revenue contraction weighed heavily on the company's overall financial performance.

Despite weaker sales, total expenses declined to ₹776.2 crore from ₹849.3 crore in the year-ago period. This represents an 8.6% reduction in expenditure, although the decline was insufficient to offset the fall in revenue.

Half-Year Profit Falls 59%

Natco Pharma also reported weaker earnings for the first half of FY27. Consolidated net profit declined 59% to ₹409.1 crore during April-September 2026, compared with ₹998.2 crore in the corresponding period last year. The significant reduction in half-yearly earnings highlights the pressure on the company's profitability during the current financial year.

Additional Stake Acquisition

During the September quarter, Natco Pharma acquired an additional 13.25% stake in Adcock Ingram Holding Limited. The investment represents a further expansion of the company's holding in the business. However, the regulatory disclosure cited in the report did not specify the acquisition's financial impact on quarterly earnings.

Interim Dividend Announced

Despite the decline in profitability, Natco Pharma's board approved an interim dividend of ₹1.25 per equity share with a face value of ₹2. The dividend announcement came alongside the company's September-quarter financial results.

Natco Pharma Share Price

Shares of Natco Pharma ended Friday's trading session 0.22% lower at ₹807 apiece on the BSE. Investors will monitor revenue recovery, profitability trends and the company's business performance in the coming quarters.

Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.

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