Natco Pharma Q2 FY26 Earnings Results: Net Profit Falls 23% to ₹517.9 Crore on Higher Costs

Natco Pharma Ltd reported that its consolidated net profit for Q2 FY26 fell 23.44% to ₹517.9 crore. The company attributed the decline to higher R&D spending, increased costs related to bioequivalence studies, and a one-time employee bonus.

Last year, the company had posted a net profit of ₹676.5 crore during the same quarter.

Revenue Remains Nearly Flat

Natco Pharma’s consolidated revenue from operations in Q2 stood at ₹1,363 crore, slightly lower than ₹1,371.1 crore reported in the same quarter last year.

Expenses Rise Sharply

Total expenses increased significantly to ₹849.3 crore in Q2 FY26, compared to ₹616.7 crore a year ago. The rise came mainly from R&D costs and business-related provisions.

Performance Across Business Verticals

• Formulations export revenue dropped to ₹1,147 crore, down from ₹1,211.3 crore last year.
• The API (Active Pharmaceutical Ingredients) segment recorded revenue of ₹53.9 crore, up from ₹49.6 crore in the previous year.

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Dividend Announcement

The company announced a second interim dividend of ₹1.50 per equity share (face value ₹2 each) for FY 2025-26.

Natco Pharma Share Price Movement

Natco Pharma share price (NSE: NATCOPHARM) was trading at ₹816.55, down 1.16% on 14 November at 2:50 pm. During the day, the share touched a high of ₹830.00 and a low of ₹807.00, after opening at ₹827.90. Its 52-week high stands at ₹1,505.00, while the 52-week low is ₹726.80. Natco Pharma also pays a quarterly dividend of ₹1.25 per share. The company’s Q2 earnings call is scheduled at 4:30 pm IST today.

Conclusion

Natco Pharma’s Q2 performance was affected by rising costs and lower export revenue, resulting in a notable drop in profit. However, stable overall revenue and continued investment in R&D reflect the company's long-term growth focus.

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