NATCO Pharma Q1 FY27 Earnings Call: Brazil Surges 180%, Adcock Stake Rises to 49%; Company Plans ₹2,000 Crore Fundraise
NATCO Pharma Limited discussed its Q1 FY27 performance and business outlook during its earnings conference call held on August 14, 2026. The management highlighted strong growth in Brazil and domestic formulations, a larger contribution from South African associate Adcock Ingram, upcoming product launches, continued investment in R&D, and plans to raise ₹2,000 crore to support acquisitions, capex, and other strategic requirements.
NATCO Pharma Q1 FY27 Revenue Declines on Lower Lenalidomide Sales
NATCO Pharma reported consolidated total revenue of ₹794.4 crore in Q1 FY27, compared with ₹1,390.6 crore in Q1 of the previous year.
The sharp year-on-year decline was primarily due to lower revenue from Lenalidomide, while the company’s base business recorded double-digit growth.
EBITDA, including other income, stood at ₹245.7 crore, with an EBITDA margin of 30.9%. Management said the quarter-on-quarter improvement in margins was supported by the international and domestic businesses along with controlled operating costs.
Consolidated PAT came in at ₹206.5 crore.
The company pointed out that Q4 FY26 PAT had benefited from a one-time ₹115 crore tax benefit related to the remeasurement of deferred tax assets following the transition to the new tax regime. Excluding this exceptional benefit, Q1 FY27 PAT represented approximately 34% quarter-on-quarter growth.
Adcock Ingram Becomes an Increasingly Important Earnings Driver
One of the major developments for NATCO Pharma is its increased investment in South African pharmaceutical company Adcock Ingram Holdings Limited.
In July 2026, NATCO acquired an additional 13.25% stake, taking its total holding in Adcock Ingram to 49%.
During Q1 FY27, Adcock Ingram reported revenue of ₹1,582.8 crore and PAT of ₹242.2 crore. NATCO’s share of profit, based on its 35.75% holding as of June 30, 2026, was ₹84.3 crore.
Management cautioned investors against simply annualising the Q1 contribution because Adcock benefited from a strong flu season in South Africa. Nevertheless, the company sees the investment as strategically important for strengthening its earnings base and reducing volatility.
NATCO also said it has a first right of refusal should an opportunity arise to acquire additional shares from the other shareholder. However, management indicated that there is currently no immediate opportunity to increase its stake beyond 49%.
Brazil Business Grows 180%
Brazil emerged as one of NATCO Pharma’s strongest growth markets during the quarter.
Revenue from Brazil reached ₹178 crore, representing an impressive 180% growth.
According to management, the company’s oncology portfolio is a major driver of growth in Brazil. NATCO also expects additional meaningful launches in the market during FY27, subject to patent litigation.
The company expects Brazil to remain an important growth geography alongside India, Canada and the U.S.
Canada Revenue at ₹56 Crore
NATCO Pharma reported Canada revenue of approximately ₹56 crore during Q1 FY27.
Management explained that quarterly international sales can fluctuate because of product cycles, tenders and shipment schedules. Therefore, investors should focus on the broader annual business outlook rather than interpreting quarter-to-quarter movements in isolation.
Domestic Formulations Show Strong Momentum
NATCO’s domestic formulations business generated revenue of approximately ₹136 crore during Q1 FY27.
Management said the base domestic business, which typically generates around ₹107 crore per quarter, increased to approximately ₹130 crore during the quarter.
The company attributed part of the improvement to its semaglutide business, along with strong performance across oncology and other therapeutic segments.
NATCO expects domestic volumes to increase by approximately 25% during FY27.
Semaglutide Business Faces Intense Competition
Semaglutide remains an important opportunity for NATCO, but management acknowledged that competition in the Indian market is currently intense.
The company’s brand is generating approximately ₹2 crore per month, while additional third-party business contributed during the quarter but may not be repeatable at the same level.
Management said the product currently does not lose money but also does not generate significant profitability.
The company expects pricing and competitive conditions to stabilise over the coming months.
In South Africa, NATCO’s semaglutide dossier is still some distance away from approval. The company is also exploring third-party opportunities that could potentially accelerate its entry into the market.
For Canada and Brazil, NATCO said it has not yet filed its semaglutide dossier.
NATCO Plans ₹2,000 Crore Fundraise
One of the most important takeaways from the earnings call was NATCO Pharma’s plan to raise approximately ₹2,000 crore.
Management said the company’s current net cash position is around ₹1,400 crore, after significant investments over the past year.
Approximately ₹3,000 crore has been invested over the last year, primarily towards acquiring stakes in Adcock Ingram.
The proposed fundraising is being considered to provide funding for:
- Potential acquisitions and M&A
- Capital expenditure
- Short-term loan repayment
- Capacity expansion
- Other strategic opportunities
NATCO said it is evaluating multiple fundraising routes, including a QIP, rights issue and other options.
Management also indicated that it is evaluating at least two acquisition opportunities, including one significant opportunity outside India and another smaller opportunity within India.
Annual Capex Run Rate of ₹250–300 Crore
NATCO expects its organic capital expenditure to remain around ₹250 crore to ₹300 crore annually.
The company is also upgrading a plant associated with its upcoming carfilzomib opportunity. Management said the plant upgrade is expected to be completed by the end of the year and that the planned launch remains on track, although the company did not disclose the exact launch date.
Carfilzomib Launch Remains on Track
NATCO confirmed that its carfilzomib launch remains on track, although management did not disclose the exact launch date because of confidentiality considerations.
The company expects the relevant plant upgrade to be completed by the end of 2026, supporting the planned launch timeline.
Olaparib Litigation Remains an Important Catalyst
NATCO also provided an update on its olaparib opportunity.
Management said litigation with the innovator is expected to progress over the coming months. Two key issues remain important: the trial outcome and determination of exclusivity.
The company did not provide a specific trial date during the call and avoided speculating about the outcome.
Two U.S. Launches Expected Next Financial Year
NATCO said it expects two U.S. launches during the next financial year, including products where the company intends to benefit from exclusivity.
The names of the products were not disclosed due to confidentiality agreements.
The company also continues to target approximately 8–10 ANDA filings annually, while its internal target for FTF opportunities is around 2–3 filings.
Management expects to deliver at least one or two FTF opportunities during the current year, in addition to the existing pipeline.
R&D Focused on Long-Term Opportunities
NATCO continues to maintain a long-term approach to research and development.
Management said approximately 70%–80% of R&D expenditure is directed towards opportunities expected to materialise between 2028 and 2035.
The company explained that products with longer development timelines can potentially generate substantially higher returns, although they also carry higher risks.
The company’s investment approach therefore remains focused on building a pipeline for the long term rather than concentrating only on near-term launches.
eGenesis Remains a Key Innovation Investment
Among NATCO’s innovation investments, management highlighted eGenesis as its most exciting and valuable asset.
The company said eGenesis has conducted transplants involving multiple patients, with two patients reportedly surviving for more than eight months with pig kidneys.
Management expects potentially significant updates from the asset over the coming months but did not provide a specific catalyst or timeline.
Crop Health Sciences Targets Break-Even in FY27
NATCO’s Crop Health Sciences business remained loss-making during Q1 FY27.
However, management expects the business to break even for the full year.
The business generated approximately ₹40 crore in revenue in Q1, compared with around ₹138 crore for the full previous year.
Management expects Q2 to be significantly stronger because it is typically the most important quarter for the agriculture business. Delayed rains and concerns around the El Niño phenomenon affected the start of the cropping season.
The company continues to target approximately ₹750 crore revenue from Crop Health Sciences over the year, while total gross sales guidance remains around ₹3,300 crore–₹3,400 crore.
Crop Health Portfolio Expands to Around 35 Products
NATCO’s Crop Health Sciences portfolio has expanded to approximately 35 products, including insecticides and fungicides.
Around eight products are CTPR-related, while the remainder are non-CTPR products.
Management indicated that CTPR-related products contribute approximately 30%–35% of revenue, although an exact revenue split was not disclosed.
The company highlighted Glanz, a fungicide brand with relatively limited competition, as one of the products performing well.
NATCO is also working on registrations across various international markets and expects an interesting portfolio of products in the next financial year.
Demerger May Be Delayed
NATCO’s Crop Health Sciences demerger remains active, but management indicated that the proposed fundraising could delay the process.
The earlier expectation was around December, but the company now indicated that the demerger could potentially move to around March.
NATCO Maintains ₹750 Crore PAT Guidance
Despite the strong Q1 contribution from Adcock Ingram, NATCO Pharma has not increased its FY27 PAT guidance.
Management reiterated its expectation of approximately ₹750 crore PAT for FY27.
The company specifically cautioned investors against annualising Adcock Ingram’s Q1 contribution because the South African business benefited from a strong flu season.
This makes the full-year guidance an important benchmark for investors tracking NATCO’s earnings trajectory.
Key Takeaways from NATCO Pharma Q1 FY27 Earnings Call
The earnings call highlighted several important developments:
- Q1 FY27 revenue stood at ₹794.4 crore.
- EBITDA was ₹245.7 crore, with a 30.9% margin.
- Consolidated PAT stood at ₹206.5 crore.
- Brazil revenue jumped 180% to ₹178 crore.
- Canada revenue stood at around ₹56 crore.
- Domestic formulations revenue reached ₹136 crore.
- NATCO increased its Adcock Ingram holding to 49%.
- Current net cash position is around ₹1,400 crore.
- The company is considering a ₹2,000 crore fundraising.
- Potential acquisitions are under evaluation in India and overseas.
- Organic capex is expected at ₹250–300 crore annually.
- Domestic volumes are expected to grow around 25% in FY27.
- Two U.S. launches are expected in the next financial year.
- Crop Health Sciences is targeting break-even for FY27.
- The company continues to target approximately ₹750 crore PAT for FY27.
Outlook for NATCO Pharma
NATCO Pharma enters the remainder of FY27 with a diversified set of growth opportunities. The company’s traditional dependence on a few high-value products is gradually being complemented by growth in domestic formulations, Brazil, Canada and its expanding participation in Adcock Ingram.
The increase in the Adcock Ingram stake to 49% gives NATCO greater exposure to the South African business, while the proposed ₹2,000 crore fundraising could provide additional financial flexibility for acquisitions and strategic investments.
At the same time, investors will closely track the company’s U.S. launches, semaglutide opportunity, carfilzomib launch, olaparib litigation, Crop Health Sciences turnaround and the progress of its long-term R&D pipeline.
Overall, management continues to focus on building a diversified pharmaceutical platform with multiple geographic and product-level growth drivers, rather than relying on a single blockbuster opportunity.
This article is based on NATCO Pharma’s Q1 FY27 earnings conference call held on August 14, 2026. The company’s comments regarding future launches, acquisitions, fundraising, earnings and business performance are forward-looking and subject to risks and uncertainties.