Natco Pharma Limited (NATCOPHARM)
Small CapPharma stocks · Small cap · NSE
Natco Pharma Limited is an Indian pharmaceutical company engaged in manufacturing and marketing of finished dosage formulations (domestic and exports), active pharmaceutical ingredients (APIs), and crop health science products. The company focuses on generic product development for regulated markets and invests in novel therapies.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Strong fundamentals, management trust is acceptable, but price trend argues for patience. Suitable for staggered entry or watchlist confirmation rather than aggressive buying.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100Rev -45% YoY · PAT -57% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹735 Cr | -44.7% | -0.5% |
| EBITDA | ₹186 Cr | -67.4% | +45.3% |
| Operating margin | 25.0% | -1800 bps | +800 bps |
| PAT | ₹206 Cr | -57.1% | -23.4% |
| PAT margin | 28.0% | -809 bps | -837 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q4FY26 consolidated revenue declined to INR 8,169 Mn (down 36.5% YoY), with EBITDA margin at 25.1% (vs 47.7% YoY). FY26 revenue was INR 43,759 Mn (down 8.5% YoY), with EBITDA margin at 39.6% (vs 53.3% YoY). PAT for Q4FY26 was INR 2,690 Mn, boosted by a one-time tax benefit. Export formulations saw a significant YoY decline.
The significant YoY decline in export formulations, which is the largest revenue segment, has led to a substantial drop in overall revenue and profitability for both Q4FY26 and FY26. While domestic formulations show growth and new products are launched, the core export business performance is concerning, putting the growth thesis under stress.
Revenue by Segment (FY26)
Latest issuer-disclosed distribution across 5 reported categories.
US Generic Launches
Multiple new generic launches in the US market, including Pomalidomide, Everolimus, and Bosentan.
Robust US Pipeline
Strong Para IV pipeline with over 20 FTFs (incl. Sole and Shared) for the US market.
Domestic Formulations Growth
Consistent double-digit YoY growth in the domestic formulations segment.
Strategic Investments in NCE/Cell & Gene Therapy
Investments in eGenesis, Cellogen Therapeutics, Stero Therapeutics, and NRC-2694 for future advanced therapies.
New Product Introductions
Recent launches of high-value generics in the US and India are expected to contribute to future revenue.
Diversified Pipeline
Extensive pipeline of Para IV products and investments in novel therapies provide long-term growth avenues.
Strategic Acquisition
Acquisition of a 35.75% stake in Adcock Ingram Holdings Limited, South Africa, expands international presence.
Declining Export Formulations
Significant YoY revenue decline in the largest segment, Pharma Export Formulations, impacting overall performance.
Margin Compression
Substantial contraction in EBITDA and PAT margins YoY, indicating pricing pressure or higher costs.
Overall Revenue Contraction
Total consolidated revenue declined YoY for both the quarter and the full fiscal year.
Regulatory Environment
Changes in regulatory norms could impact product approvals and market access.
Competition in Generics
Intense competition in the US generics market can lead to pricing erosion and impact profitability.
R&D Investment Risk
Investments in novel therapies (NCE, Cell & Gene Therapy) are long-term, high-risk ventures with uncertain returns.
Dependence on Key Products
Performance heavily reliant on successful launches and sustained sales of key generic products.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both YoY and QoQ comparisons are essential. YoY highlights the significant decline in export formulations and overall profitability against a strong prior year. QoQ shows sequential trends in revenue and margins.
Domestic Formulations Revenue
Q4FY26: INR 1,087 Mn (up 9.4% YoY); FY26: INR 4,409 Mn (up 10.2% YoY).
Pharma Export Formulations Revenue
Q4FY26: INR 5,396 Mn (down 48.7% YoY); FY26: INR 32,345 Mn (down 14.0% YoY).
EBITDA Margin
Q4FY26: 25.1% (vs 47.7% YoY); FY26: 39.6% (vs 53.3% YoY).
PAT Margin
Q4FY26: 32.9% (vs 31.5% YoY, includes one-time tax benefit); FY26: 32.4% (vs 39.4% YoY).
Xenotransplantation
eGenesis is committed to ending the global transplant shortage, with the first human transplant of a genetically engineered pig kidney done in March 2024.
CAR-T Therapy
Cellogen Therapeutics expects first human dosing for Leukemia to begin shortly in India, having received GMP manufacturing approvals.
Head and Neck Cancer Trial
Patient recruitment is in progress for the Phase 2 clinical trial of NRC-2694 in the US and India.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Export Formulations Revenue | Q4FY26 at INR 5,396 Mn (down 48.7% YoY) | Stabilization and growth in export formulations revenue. |
| EBITDA Margin | FY26 at 39.6% (down from 53.3% YoY) | Reversal of margin contraction and sustained improvement. |
| US Product Launch Contribution | Pomalidomide, Everolimus, Bosentan launched | Revenue contribution and market share capture from new US generic launches. |
| NCE/Cell & Gene Therapy Progress | Clinical trials ongoing/starting | Positive clinical trial results and further development milestones for advanced therapy investments. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
37Bearishfull bear SMA stack · SMA20 -6.4% / mo · RSI oversold · MACD − · near 52W low · sector +2.2pp vs Nifty (3M)
Technical chart
NATCOPHARMdaily · 1Y · AUTO-17.2%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 29. Wait for confirmation.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~6.8% over last month) — short-term momentum negative.
- RSI(14) at 29 — oversold zone; bounce conditions.
- MACD below signal but histogram contracting — bearish momentum easing.
- 32% off 52W high · 5% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 15.1% below the 30-week proxy without full trend alignment.
- The 30-week proxy changed +0.5% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 77 · DEEP VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 77 · DEEP VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
DEEP VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 71.2%.
- Growth contributes 23/25 to the score.
Main drags
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Quality is weaker at 9/20; verify the latest quarterly trend.
- Valuation is weaker at 23/30; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +6 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 42nd percentile of the scored universe and 31st percentile within Pharma. Main check: results consistency is weak at 5/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Pharma: 31st pctile, median 70 · Small: 47th pctile, median 66
125 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸8 years of positive FCF.
- ▸Debt/equity is 0.08.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -9.6%.
- ▸1/4 latest quarters had positive YoY revenue growth.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 13.00
- P/B
- 1.61
- EV/EBITDA
- 12.46
- Market Cap
- 14842.00Cr
Profitability
- ROE
- 16.90%
- ROCE
- 17.10%
- ROA
- 10.34%
- Dividend Y
- 0.60%
Growth (CAGR)
- Revenue 5Y
- 15.00%
- EPS 5Y
- 28.00%
- Revenue 3Y
- 15.00%
- EPS 3Y
- 26.00%
Balance Sheet
- Debt/Equity
- 0.08
- Interest Coverage
- 22.87×
- Altman Z
- 6.89
- Book Value
- 515.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 8/5
- OCF
- 1768.00 Cr
- EPS TTM
- 63.89
Shareholding
- Promoter Hold
- 49.41%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 9%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Pharma, ranked by similarity
Peers
Business-comparable names in Pharma, ranked by similarity
Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.