NATCOPHARM
Small CapNatco Pharma Limited
Pharma
Natco Pharma is an Indian pharmaceutical company manufacturing APIs, domestic formulations, and export formulations. It also operates a Crop Health Sciences division and strategically invests in novel therapies, including xenotransplantation, cell & gene therapy, and small-molecule inhibitors.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Strong fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -39% YoY · PAT -34% YoY · margin compression · +14% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹739 Cr | -39.5% | +14.2% |
| EBITDA | ₹128 Cr | -76.6% | -19.5% |
| Operating margin | 17.0% | -2800 bps | -800 bps |
| PAT | ₹269 Cr | -33.7% | +78.2% |
| PAT margin | 36.4% | +315 bps | +1306 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4FY26 revenue declined 36.5% YoY, with PAT boosted by a one-time tax benefit. Full-year FY26 revenue fell 8.5% YoY, and EBITDA margin contracted significantly to 39.6% from 53.3% in FY25, primarily due to a sharp decline in export formulations.
The core export formulations business experienced a substantial YoY revenue decline in Q4FY26 and FY26, leading to a significant drop in overall revenue and EBITDA margin. While new product launches and strategic investments in advanced therapies are positive, the underlying performance of the largest segment raises concerns about sustained growth and profitability. The reported PAT increase is largely due to a one-time tax adjustment.
Revenue Breakup by Segment (FY26)
Latest issuer-disclosed distribution across 5 reported categories.
New Product Launches (India)
Launched Semaglutide Multi Dose Vials and Risdiplam in the Indian market.
New Generic Launches (U.S.)
Launched Pomalidomide Capsules, Everolimus tablets 1 mg, and Bosentan tablets for oral suspension (TFOS), 32mg in the U.S. market.
Strategic Investments in Novel Therapies
Investments in eGenesis (xenotransplantation), Cellogen Therapeutics (cell & gene therapy), Stero Therapeutics (metabolic diseases), and NRC-2694 (small-molecule TKI).
International Acquisition
Culmination of a strategic acquisition of 35.75% stake in Adcock Ingram Holdings Limited, South Africa.
Tax Regime Change Benefit
Q4FY26 PAT includes a one-time benefit of INR 1,150 million due to election of new tax regime and remeasurement of deferred tax asset on MAT credit.
Investee Company Milestones
eGenesis, a xenotransplantation investee, performed the first human transplant of a genetically engineered pig kidney in March 2024.
Cell & Gene Therapy Approvals
Cellogen Therapeutics, an investee, received GMP manufacturing approvals in India for its advanced cellular engineering methods.
Decline in Export Formulations
Pharma Export Formulations revenue declined significantly by 48.7% YoY in Q4FY26 and 14% YoY for FY26.
Overall Revenue Contraction
Consolidated Total Revenue decreased by 36.5% YoY in Q4FY26 and 8.5% YoY for FY26.
EBITDA Margin Erosion
EBITDA margin contracted sharply from 47.7% in Q4FY25 to 25.1% in Q4FY26, and from 53.3% in FY25 to 39.6% in FY26.
Strategy Implementation
Ability to successfully implement the company's stated strategy and growth plans.
Regulatory Changes
Changes in regulatory norms applicable to the company's operations and product approvals.
Market & Competition Exposure
Exposure to market risks and competitive pressures in key pharmaceutical segments.
Technological Changes
Impact of rapid technological changes on product development and market relevance.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial to assess the significant decline in total revenue and EBITDA margin, particularly in the export formulations segment. QoQ comparison provides insight into sequential momentum, showing some revenue improvement but a decline in EBITDA margin.
Domestic Formulations Revenue
Q4FY26: INR 1,087 Mn (vs Q4FY25: 994 Mn); FY26: INR 4,409 Mn (vs FY25: 4,000 Mn).
Pharma Export Formulations Revenue
Q4FY26: INR 5,396 Mn (vs Q4FY25: 10,525 Mn); FY26: INR 32,345 Mn (vs FY25: 37,597 Mn).
EBITDA Margin
Q4FY26: 25.1% (vs Q4FY25: 47.7%); FY26: 39.6% (vs FY25: 53.3%).
PAT Margin
Q4FY26: 32.9% (vs Q4FY25: 31.5%); FY26: 32.4% (vs FY25: 39.4%). Q4FY26 PAT includes one-time tax benefit.
NCE Clinical Trial Progress
Phase 2 clinical trial for NRC-2694 (Head and Neck cancer) approved by US FDA, with patient recruitment ongoing in US and India.
Cell & Gene Therapy Dosing
First human dosing for Leukemia using Cellogen Therapeutics' CAR-T cell therapies will begin shortly in India.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Pharma Export Formulations Revenue | INR 32,345 Mn (FY26) | Reversal of the YoY decline and sustained growth in this key segment. |
| EBITDA Margin | 39.6% (FY26) | Stabilization and improvement from current contracted levels, indicating better operational efficiency. |
| NCE/Cell & Gene Therapy Progress | NRC-2694 Phase 2 recruitment, Cellogen human dosing imminent. | Advancement of clinical trials and clear timelines for commercialization of novel therapies. |
| Adcock Ingram Contribution | Share of profit of associate INR 466 Mn (FY26) | Increased and sustained contribution from the strategic acquisition to overall profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
53NeutralSMA20 +10.2% / mo · near 52W low
Technical chart
NATCOPHARMweekly · 5Y-21.1%Technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 31.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 rising (~9.3% over last month) — short-term momentum positive.
- RSI(14) at 31 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 29% off 52W high · 10% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
DEEP VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 73.9%.
- Growth contributes 23/25 to the score.
Main drags
- Quality is weaker at 8/20; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Balance sheet is weaker at 12/15; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 42nd percentile of the scored universe and 29th percentile within Pharma. Main check: results consistency is weak at 5/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Pharma: 29th pctile, median 70 · Small: 47th pctile, median 65
157 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸8 years of positive FCF.
- ▸Debt/equity is 0.08.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -9.6%.
- ▸1/4 latest quarters had positive YoY revenue growth.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 11.00
- P/B
- 1.69
- EV/EBITDA
- 9.90
- Market Cap
- 15548.00Cr
Profitability
- ROE
- 16.90%
- ROCE
- 17.10%
- ROA
- 12.80%
- Dividend Y
- 0.69%
Growth (CAGR)
- Revenue 5Y
- 15.00%
- EPS 5Y
- 28.00%
- Revenue 3Y
- 15.00%
- EPS 3Y
- 26.00%
Balance Sheet
- Debt/Equity
- 0.08
- Interest Coverage
- 38.81×
- Altman Z
- 7.29
- Book Value
- 515.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 8/5
- OCF
- 1768.00 Cr
- EPS TTM
- 79.20
Shareholding
- Promoter Hold
- 49.41%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 18%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.