CALCULATE YOUR SIP RETURNS

Natco Pharma Share Price Jumps 5% as USFDA Gives Hyderabad Facility VAI Status

Written by: Kusum KumariUpdated on: 18 Sept 2025, 8:58 pm IST
Natco Pharma share price rose 5% after the USFDA classified its Hyderabad plant as VAI, signalling only minor issues with no regulatory hurdles.
Natco Pharma Share Price
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Natco Pharma’s share price (NSE: NATCOPHARM) surged nearly 5% to ₹896.95 after the USFDA classified its Hyderabad-based Kothur facility as “Voluntary Action Indicated” (VAI). This status means only minor issues were found, which the company can address voluntarily, with no impact on approvals or ongoing operations.

Natco Pharma Share Price Performance

At 2:20 PM, the stock traded at ₹884.5, up 3.2% from the previous day’s close of ₹857.25. It has recovered about 18% from its 52-week low of ₹726.8 but remains down 38% year-to-date. The company’s market value currently stands at ₹15,831.5 crore.

Details of the Inspection

The inspection was conducted between June 9 and June 19, 2025, resulting in 7 observations on Form 483. The company stated these were procedural matters and assured it would address them fully.

Natco Pharma Overview

Natco Pharma manufactures and distributes generic and branded drugs, specialty pharmaceuticals, APIs, and crop protection products.

Natco Pharma Q1 FY26 Financial Performance

For April–June 2025 (Q1FY26), consolidated net profit fell 28% to ₹480.3 crore from ₹668.5 crore last year. Revenue dropped slightly by 1.4% to ₹1,390.6 crore. EBITDA also declined 32% to ₹519 crore.

  • Formulation exports slipped to ₹1,126.5 crore from ₹1,210.1 crore.
  • API revenue grew to ₹52.6 crore.
  • Domestic formulations rose to ₹107 crore.
  • Crop Health Sciences revenue increased to ₹34.7 crore.

Also Read: Dividends & Bonus Issue This Week (Sept 15–19, 2025)!

Conclusion

The USFDA’s VAI classification is a relief for Natco Pharma as it confirms no major compliance issues at its Hyderabad facility. While short-term financials show pressure, the clearance boosts investor confidence in the company’s long-term prospects.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Sep 18, 2025, 3:28 PM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers