Natco Pharma shares crash 15% after weak Q4 results; net profit tanks 34% YoY

Shares of Natco Pharma tumbled as much as 15% to a low of Rs 1,001 before closing at Rs 1,o09 on the BSE on Friday after the company reported a sharp 40% decrease in net profit to Rs 269 crore in Q4 from Rs 406 crore posted in the same quarter last year.

The company’s revenue from operations came in at Rs 817 crore, down 36.5% from Rs 1,827 crore posted in the corresponding quarter of the previous financial year.

Net profit for the quarter and the full financial year included a one-time benefit of Rs 115 crore after the company opted to shift to the new tax regime from FY27 and re-measured its deferred tax assets related to MAT credit and other deferred tax assets and liabilities, it said in a regulatory filing on May 29.

For the full year, Natco Pharma reported consolidated total revenue of Rs 4,375.9 crore for the financial year ended March 31, 2026, compared with Rs 4,784 crore reported in the previous financial year. The company’s consolidated net profit for the year stood at Rs 1,418.5 crore, lower than Rs 1,883.4 crore recorded last year.

EBITDA for the quarter declined 77% to Rs 127.5 crore, while operating margin contracted sharply to 17.2% from 45% in the corresponding quarter last year.

During Q4 FY26, the formulations export business, including profit share and subsidiaries, remained the largest contributor with revenue of Rs 539.6 crore. Domestic formulations contributed Rs 108.7 crore, while the Active Pharmaceutical Ingredients (API) segment reported revenue of Rs 63.9 crore. The Crop Health Sciences (CHS) business contributed Rs 22.6 crore during the quarter. Other operating and non-operating income stood at Rs 82.1 crore.

For the full year FY26, formulations exports, including profit share and subsidiaries, generated revenue of Rs 3,234.5 crore. The domestic formulations business contributed Rs 440.9 crore, while the API segment reported revenue of Rs 234.7 crore. Crop Health Sciences revenue stood at Rs 138.2 crore, while other operating and non-operating income came in at Rs 327.5 crore for the year.