Natco Pharma's Q2 FY 2025-26 Quarterly Results

Result Summary

• Natco Pharma Ltd reported a 5.2% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 2.0%.
• Its expenses for the quarter were up by 3.7% QoQ and 37.7% YoY.
• The net profit increased 7.8% QoQ and decreased 23.4% YoY.
• The earnings per share (EPS) of Natco Pharma Ltd stood at 28.94 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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Company Overview

Natco Pharma Ltd is a leading player in the pharmaceutical industry, known for its focus on generic formulations and active pharmaceutical ingredients (APIs). The company operates primarily in the pharmaceutical sector and is recognized for its contributions to the development of affordable medication. Natco Pharma has been involved in the production of a wide range of pharmaceutical products, including those used for cancer treatment, central nervous system disorders, and cardiovascular diseases. Recently, the company has been active in expanding its product portfolio and increasing its presence in international markets. The company's efforts in innovation and expansion are complemented by strategic collaborations and investments in research and development.

Revenue

In the second quarter of the fiscal year 2026 (Q2FY26), Natco Pharma Ltd reported a total income of ₹1,463.00 crores. This represents a quarter-over-quarter (QoQ) increase of 5.2% from the previous quarter (Q1FY26), where the total income was ₹1,390.60 crores. Additionally, there was a year-over-year (YoY) growth of 2.0% compared to Q2FY25, when the total income was ₹1,434.90 crores. The steady increase in revenue reflects the company's ongoing efforts in enhancing its market presence and expanding its product offerings. The growth in revenue is a critical indicator of the company's performance and its ability to adapt to market demands.

Profitability

For Q2FY26, Natco Pharma Ltd achieved a profit before tax (PBT) of ₹613.70 crores, marking a QoQ increase of 7.3% from Q1FY26's PBT of ₹571.90 crores. However, this reflects a YoY decline of 25.0% from Q2FY25's PBT of ₹818.20 crores. The profit after tax (PAT) for Q2FY26 was ₹517.90 crores, which is a 7.8% increase QoQ compared to ₹480.30 crores in Q1FY26, but a decrease of 23.4% YoY from ₹676.50 crores in Q2FY25. Earnings per Share (EPS) followed a similar trend, with a QoQ increase of 7.8% from ₹26.84 in Q1FY26 to ₹28.94 in Q2FY26, while experiencing a YoY decline of 23.5% from ₹37.81 in Q2FY25. These figures highlight the company's capacity to sustain profitability over the quarters despite experiencing some challenges year-over-year.

Operating Metrics

The total expenses for Natco Pharma Ltd in Q2FY26 amounted to ₹849.30 crores, which represents a 3.7% increase QoQ from ₹818.70 crores in Q1FY26 and a significant YoY increase of 37.7% from ₹616.70 crores in Q2FY25. The tax expense for the quarter was ₹95.80 crores, showing a 4.6% QoQ increase from ₹91.60 crores in Q1FY26, yet a 32.4% YoY decrease from ₹141.70 crores in Q2FY25. These operating metrics indicate substantial changes in the company's cost structure and tax obligations over the measured periods, reflecting its operational adjustments and financial strategies. The company's ability to manage its expenses while maintaining profitability is a critical factor for its continued success in the competitive pharmaceutical industry.