Natco Pharma Q4 Results: Stock falls 8% as revenue drops 40%, margin shrinks

Natco Pharma reported a sharp decline in fourth-quarter earnings, with revenue, operating profit and margins falling year-on-year during the March quarter.The company posted a 34% decline in net profit to ₹269 crore for Q4FY26, compared with ₹406.6 crore a year ago. Revenue fell 39.5% year-on-year to ₹739 crore from ₹1,221 crore, while EBITDA declined 77% to ₹127.5 crore.

Operating margin contracted sharply to 17.2% from 45% in the year-ago quarter.
Natco Pharma said net profit for the quarter and financial year included a one-time benefit of ₹115 crore after the company elected to move to the new tax regime from FY27 and remeasured deferred tax assets on MAT credit and other deferred tax assets and liabilities.The formulations export business, including profit share and subsidiaries, remained the company’s largest revenue contributor, generating ₹539.6 crore during the quarter and ₹3,234.5 crore for the full year. Domestic formulations revenue stood at ₹108.7 crore for the quarter, while API revenue came in at ₹63.9 crore.

The Crop Health Sciences business contributed ₹22.6 crore during the quarter, while other operating and non-operating income stood at ₹82.1 crore.

Following the earnings announcement, shares of Natco Pharma fell sharply and touched an intraday low of ₹1,060, down over 9% on the NSE.