Sun Pharmaceutical Industries Ltd.
NSE: SUNPHARMA
Healthcare · Drug Manufacturers - Specialty & Generic
₹1,777.70 last close on 30 Oct 2026 +0.95%
Research updated
Natco Pharma Ltd.
NSE: NATCOPHARMHealthcareDrug Manufacturers - Specialty & Generic
- Last close
- ₹782.40
- Day change
- −₹5.15 (−0.65%)vs
- Market cap
- ₹14,434 crIndian rupees
- Research updated
- 2 reports
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About Natco Pharma
Natco Pharma Ltd. is a prominent pharmaceutical company based in India, specializing in the development and manufacture of generic drugs and active pharmaceutical ingredients (APIs). The company plays a crucial role in the healthcare sector by providing affordable and high-quality medicines across various therapeutic areas including oncology, cardiovascular, and analgesics. Its primary function is the production of pharmaceuticals that meet stringent international quality standards, making it a vital player in the generic drug industry both domestically and internationally. Natco Pharma is known for its extensive research and development capabilities, which have enabled the company to launch several first-to-market generics. With a strategic focus on cost-effective manufacturing and a commitment to innovation, Natco continues to expand its footprint in emerging and developed markets, contributing significantly to the accessibility of essential medications worldwide. The company also collaborates with numerous global pharmaceutical firms, enhancing its presence and influence within the competitive pharmaceutical landscape.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - Specialty & Generic
- Listing
- NSE: NATCOPHARM
- Next results
- Chief executive
- Mr. Rajeev Nannapaneni
- Employees
- 4,199
- Headquarters
- Hyderabad, India
- ISIN
- INE987B01026
- Website
- natcopharma.co.in
Public research · Report of
Business model & financial foundation
Natco Pharma (NSE: NATCOPHARM), Complex generic formulations, APIs and crop-health chemicals: revenue of ₹4,078 crore in FY26 (-7.9% on FY25), an EBITDA margin of 42.5%, net profit of ₹1,419 crore and net cash of ₹2,180 crore.
- Revenue, FY26 (₹ crore)
- 4,078
- consolidated
- Revenue growth, FY26
- -7.9%
- on FY25
- EBITDA margin, FY26
- 42.5%
- EBITDA (Company EBITDA including other income) / revenue
- Net profit, FY26 (₹ crore)
- 1,419
- to owners
- Return on equity, FY26
- 16.9%
- on average equity
- Net debt, FY26 (₹ crore)
- -2,180
- Borrowings plus leases less identified treasury liquidity
- Market capitalisation (₹ crore)
- 14,445
- at the close of 22 Oct 2026
Company profile
R&D-led manufacturer and commercialiser of niche finished formulations, APIs and agricultural chemicals. US patent challenges and partner profit sharing have produced unusually concentrated, temporary earnings, while domestic oncology and international subsidiaries support the underlying business. Adcock contributes associate profit below tax rather than consolidated sales.
| Item | Value |
|---|---|
| Legal name | NATCO Pharma Limited |
| Exchange and ticker | NSE: NATCOPHARM; BSE: 524816 |
| ISIN | INE987B01026 |
| CIN | L24230TG1981PLC003201 |
| Sector | Healthcare |
| Industry | Complex generic formulations, APIs and crop-health chemicals |
| Headquarters | Hyderabad, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | B S R and Co (since FY25) |
| Market capitalisation | ₹14,445 crore (22 Oct 2026) |
| Shares outstanding | 17.91 crore shares (FY26) |
| Price | ₹784.5 (close, 22 Oct 2026) |
| 52-week range | ₹779.0 - ₹1,227 (to 22 Oct 2026) |
| Website | https://www.natcopharma.co.in |
Corporate structure and shareholding
| Entity | Holding | Business |
|---|---|---|
| NATCO Pharma USA LLC | 100% | US development and generic formulations |
| NATCO Pharma Canada Inc. | 99.04% | Canada generic commercialisation |
| NatcoFarma do Brasil Ltda. | 100% | Brazil commercialisation |
| NATCO Pharma South Africa Proprietary Limited | 100% | Holding vehicle for associate Adcock |
| PT NATCO Lotus Farma | 100% | Indonesia generic formulations |
| NATCO Crop Health Sciences Limited | 100% | Proposed demerger recipient; scheme not effective at cut-off |
Adcock holding increased to49% on14July2026 (S92); equity accounting retained. Remaining wholly-owned regional entities and holding vehicles in FY26 AR p304; no parent above listed company established.
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 49.48% | 49.42% | 49.42% | 49.39% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | |
| Foreign institutions | 15.16% | 17.37% | 16.99% | |
| Domestic institutions | 5.39% | 5.46% | 5.62% | |
| of which mutual funds | 1.60% | 1.72% | 1.92% | |
| Retail | 21.99% | 20.13% | 20.16% | |
| Other | 7.98% | 7.62% | 7.81% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Natco is an R&D-led supplier of niche generic formulations, APIs and crop-health chemicals. US partner profit share and patent challenges drove the historical lenalidomide windfall; that contribution became negligible after broad generic availability. The current earnings base comprises domestic specialty/oncology formulations, international formulations (including Brazil and Canada), APIs, crop health and equity-accounted Adcock Ingram profit. Adcock is a 49% associate, so it contributes below PBT rather than to revenue.
| Segment | revenue, FY26 (₹ crore) | Share | segment result, FY26 (₹ crore) | Share | assets, FY26 (₹ crore) | Share |
|---|---|---|---|---|---|---|
| Pharmaceuticals statutory; result before finance/associate, not EBITDA | 3,940 | 96.6% | 1,547 | 101.3% | 9,676 | 97.0% |
| Agro chemicals statutory; result before finance not EBITDA | 138.2 | 3.4% | -19.8 | -1.3% | 302.2 | 3.0% |
Segments as the company reports them (consolidated); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| Dr Reddy's Laboratories (DRREDDY) | |
| Cipla (CIPLA) | India branded formulations and complex US products; steadier earnings mix. |
| Aurobindo Pharma (AUROPHARMA) | US generics and manufacturing economics; greater scale and lower concentration. |
| Lupin (LUPIN) | Complex US generics, respiratory and domestic brands; product-cycle comparison. |
| Zydus Lifesciences (ZYDUSLIFE) | US patent challenges and Indian brands; pipeline and capital-allocation comparison. |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 1,905 | 2,697 | 3,999 | 4,430 | 4,078 |
| Cost of revenue (vendor classification) * | 681.5 | 745.5 | 862.5 | 865.3 | 922.0 |
| Other operating costs (vendor classification) * | 531.6 | 515.8 | 841.6 | 748.3 | 1,001 |
| EBITDA (vendor classification) * | 334.0 | 1,036 | 1,880 | 2,458 | 1,749 |
| Operating EBIT excluding other income | 215.4 | 871.4 | 1,565 | 1,961 | 1,230 |
| Finance costs | 13.2 | 9.50 | 19.2 | 23.9 | 36.7 |
| PBT before net-of-tax associate profit | 202.2 | 861.9 | 1,674 | 2,291 | 1,491 |
| Total current and deferred tax expense | 32.2 | 146.6 | 285.2 | 408.0 | 118.9 |
| Total consolidated PAT after associates before NCI | 170.0 | 715.3 | 1,388 | 1,883 | 1,419 |
| Diluted EPS attributable to owners (₹) | 9.32 | 39.18 | 77.34 | 105.3 | 79.20 |
| Cost of materials consumed | 522.5 | 536.2 | 593.5 | ||
| Purchases of stock-in-trade | 151.4 | 166.1 | 203.2 | ||
| Signed change in finished goods/WIP/stock-in-trade | 42.7 | -12.5 | -106.2 | ||
| Materials plus purchases plus signed inventory change | 716.6 | 689.8 | 690.5 | ||
| Employee benefits expense | 525.0 | 594.5 | 687.2 | ||
| Other expenses | 1,006 | 949.2 | 1,264 | ||
| Company EBITDA including other income | 1,880 | 2,551 | 1,734 | ||
| Operating EBITDA excluding other income | 1,751 | 2,196 | 1,437 | ||
| Other income | 128.1 | 354.5 | 297.6 | ||
| Depreciation, amortisation and impairment | 186.8 | 235.2 | 206.6 | ||
| Signed separately presented exceptional items | 0.00 | 0.00 | 0.00 | ||
| Current tax | 316.5 | 437.6 | 303.5 | ||
| Signed deferred tax expense/(credit) | -31.3 | -29.6 | -184.6 | ||
| PAT attributable to owners | 1,388 | 1,885 | 1,419 | ||
| Signed PAT attributable to non-controlling interests | 0.00 | -2.00 | 0.00 | ||
| Signed share of associate profit net of tax | 0.00 | 0.00 | 46.6 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity including NCI | 4,264 | 4,874 | 5,853 | 7,612 | 9,221 |
| Current and noncurrent borrowings excluding leases | 432.0 | 176.1 | 363.2 | 273.1 | 706.4 |
| Cash and cash equivalents only | 111.1 | 131.9 | 70.4 | 120.0 | 198.9 |
| Trade receivables | 620.6 | 856.1 | 1,189 | 1,247 | 881.2 |
| Inventories | 762.0 | 742.9 | 700.5 | 765.8 | 908.5 |
| Trade payables MSME plus other creditors | 161.8 | 263.8 | 235.5 | 274.9 | 409.3 |
| Net PPE including embedded ROU excluding intangibles | 55.6 | 45.0 | 2,298 | 2,432 | 2,545 |
| Capital work-in-progress excluding capital advances | 129.5 | 64.3 | 137.3 | 225.4 | 293.7 |
| Total assets | 5,109 | 5,657 | 6,906 | 8,631 | 11,074 |
| Equity attributable to owners | 5,853 | 7,607 | 9,221 | ||
| Current and noncurrent lease liabilities | 8.00 | 6.30 | 7.50 | ||
| Other bank balances including unpaid dividends | 882.5 | 2,056 | 1,352 | ||
| Current financial investments before liquidity exclusions | 443.5 | 320.8 | 578.2 | ||
| Noncurrent financial investments excluding associate | 95.9 | 152.8 | 273.2 | ||
| Identified treasury liquidity excluding strategic stakes | 1,770 | 2,937 | 2,894 | ||
| Borrowings plus leases less identified treasury liquidity | -1,399 | -2,658 | -2,180 | ||
| Other intangible assets excluding goodwill | 137.1 | 208.7 | 194.3 | ||
| Associate investment accounted for using equity method | 0.00 | 0.00 | 2,276 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net cash generated from operating activities after tax | -58.2 | 792.2 | 1,212 | 1,697 | 1,768 |
| Free cash flow (vendor definition) * | -196.2 | 643.5 | 852.9 | 1,185 | 1,377 |
| Cash dividends paid signed negative outflow | -82.2 | -100.4 | -170.8 | -107.8 | -90.2 |
| Gross PPE and intangible cash purchases positive outflow | -179.0 | -115.8 | 358.7 | 511.6 | 391.1 |
| Cash purchases PPE including capital advances positive | 339.4 | 401.1 | 388.3 | ||
| Cash acquisitions intangibles positive expenditure | 19.3 | 110.5 | 2.80 | ||
| PPE and intangible cash sale proceeds | 2.00 | 115.1 | 1.40 | ||
| CFO less gross PPE and intangible purchases | 852.9 | 1,185 | 1,377 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Diluted weighted average shares | 18.24 | 18.26 | 17.95 | 17.91 | 17.91 |
| Closing issued ordinary shares | 17.91 | 17.91 | 17.91 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 1,371 | 474.8 | 1,221 | 1,329 | 1,363 | 647.3 | 739.1 | 735.2 |
| Cost of revenue (vendor classification) * | 177.6 | 82.8 | 424.7 | 233.0 | 169.7 | 133.1 | 154.7 | 147.5 |
| Other operating costs (vendor classification) * | 237.7 | 211.6 | -361.3 | 355.9 | 413.8 | 196.1 | 298.3 | 221.9 |
| EBITDA (vendor classification) * | 868.1 | 215.1 | 607.5 | 632.7 | 679.2 | 216.8 | 205.4 | 245.7 |
| Operating EBIT excluding other income | 758.5 | -8.20 | 449.8 | 513.4 | 526.8 | 112.5 | 77.2 | 139.4 |
| Finance costs | 4.10 | 4.40 | 10.2 | 3.20 | 13.1 | 9.50 | 10.9 | 13.0 |
| PBT before net-of-tax associates | 818.2 | 163.7 | 505.9 | 571.9 | 613.7 | 161.1 | 144.1 | 185.6 |
| Current plus signed deferred tax expense | 141.7 | 31.3 | 99.9 | 91.6 | 95.8 | 20.7 | -89.2 | 63.4 |
| Total consolidated PAT after associates before NCI | 676.5 | 132.4 | 406.0 | 480.3 | 517.9 | 151.3 | 269.0 | 206.5 |
| Diluted EPS attributable to owners (₹) | 37.81 | 7.43 | 22.70 | 26.84 | 28.94 | 8.46 | 14.96 | 11.53 |
| Cost of materials consumed | 143.2 | 72.7 | 169.0 | 180.6 | 174.9 | 135.2 | 102.8 | 157.8 |
| Purchases of stock-in-trade | 53.7 | 39.1 | 40.8 | 37.3 | 72.6 | 55.8 | 37.5 | 27.8 |
| Signed inventory change finished goods/WIP/traded | -19.3 | -29.0 | 39.4 | 15.1 | -77.8 | -57.9 | 14.4 | -38.1 |
| Materials plus purchases plus signed inventory change | 177.6 | 82.8 | 249.2 | 233.0 | 169.7 | 133.1 | 154.7 | 147.5 |
| Employee benefits expense | 151.5 | 141.6 | 159.4 | 169.0 | 200.3 | 159.4 | 158.5 | 179.3 |
| Other expenses | 237.7 | 211.6 | 264.3 | 355.9 | 413.8 | 196.1 | 298.3 | 221.9 |
| Company-basis EBITDA including other income | 868.1 | 215.1 | 614.4 | 632.7 | 679.2 | 216.8 | 205.4 | 245.7 |
| Operating EBITDA excluding other income | 804.3 | 38.8 | 548.1 | 571.0 | 579.2 | 158.7 | 127.6 | 186.5 |
| Other income | 63.8 | 176.3 | 66.3 | 61.7 | 100.0 | 58.1 | 77.8 | 59.2 |
| Depreciation amortisation and impairment | 45.8 | 47.0 | 98.3 | 57.6 | 52.4 | 46.2 | 50.4 | 47.1 |
| Signed separately presented exceptional contribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current tax expense | 154.1 | 33.5 | 106.4 | 115.7 | 140.4 | 31.3 | 16.1 | 48.8 |
| Signed deferred tax expense/(credit) | -12.4 | -2.20 | -6.50 | -24.1 | -44.6 | -10.6 | -105.3 | 14.6 |
| PAT attributable to owners | 677.3 | 133.0 | 406.6 | 480.7 | 518.4 | 151.5 | 267.9 | 206.5 |
| Signed PAT attributable to NCI | -0.80 | -0.60 | -0.60 | -0.40 | -0.50 | -0.20 | 1.10 | 0.00 |
| Signed associate profit net of tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 10.9 | 35.7 | 84.3 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 12.7% | 41.6% | 48.3% | 10.8% | -7.9% |
| EBITDA margin | 47.0% | 57.6% | 42.5% | ||
| Net margin | 34.7% | 42.6% | 34.8% | ||
| Return on equity | 25.9% | 28.0% | 16.9% | ||
| Return on capital employed | 4.7% | 17.9% | 27.8% | 27.8% | 13.8% |
| Return on assets | 22.1% | 24.3% | 14.4% | ||
| Net debt (₹ crore) | -1,399 | -2,658 | -2,180 | ||
| Net debt / EBITDA | -0.74x | -1.04x | -1.26x | ||
| Interest cover | 16.3x | 91.7x | 81.5x | 82.0x | 33.5x |
| Asset turnover | 0.38x | 0.50x | 0.64x | 0.57x | 0.41x |
| Receivable days | 119 | 116 | 109 | 103 | 79 |
| Inventory days (on revenue) | 146 | 101 | 64 | 63 | 81 |
| Payable days (on revenue) | 31 | 36 | 21 | 23 | 37 |
| Cash conversion | 0.87x | 0.90x | 1.25x | ||
| Capex intensity | 9.4% | 4.3% | 9.0% | 11.5% | 9.6% |
| Free cash flow (₹ crore) | -237.2 | 676.4 | 852.9 | 1,185 | 1,377 |
| Dividend payout | 12.3% | 5.7% | 6.4% | ||
| EPS, diluted (₹) | 9.32 | 39.18 | 77.34 | 105.3 | 79.20 |
| Book value per share (₹) | 233.8 | 267.0 | 326.1 | 425.0 | 514.8 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (Company EBITDA including other income) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Borrowings plus leases less identified treasury liquidity; negative is net cash.
- Net debt / EBITDA: net debt / EBITDA (Company EBITDA including other income).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS attributable to owners).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 2, information to 22 Oct 2026); market data at the close of 22 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Natco Pharma includes
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The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Natco Pharma
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Prices are the last close on the NSE, 30 Oct 2026. Research from Mool’s report of 22 Oct 2026; page updated 2 Nov 2026.
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