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

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.

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