Shares of Natco Pharma Ltd experienced a sharp decline in Friday's late trading session, tumbling over 11% to a day's low of Rs 1,044.75. The pharmaceutical company's stock fall followed the announcement of its Q4 FY26 earnings, which revealed a substantial drop in both profit and revenue.
Q4 Earnings Decline and Revenue Slump
For the fourth quarter of the financial year 2026, Natco Pharma reported a consolidated net profit of Rs 269 crore. This represents a significant 34% year-on-year decrease compared to Rs 406 crore recorded in the corresponding quarter of the previous fiscal year (Q4 FY25). The company noted that this quarter's net profit included a one-time benefit of Rs 115 crore, stemming from its decision to adopt the new tax regime from FY26-27 and the subsequent re-measurement of deferred tax assets and liabilities.
Consolidated net revenue for the quarter also saw a substantial decline, coming in at Rs 816.9 crore, down from Rs 1,287.3 crore in Q4 FY25. The sharp fall in the stock price was accompanied by heavy trading volumes, with approximately 1.31 lakh shares changing hands on BSE, significantly higher than the two-week average volume of 41,000 shares. The counter's turnover stood at Rs 14.71 crore, placing the company's market capitalization at Rs 18,588.92 crore.
Full Year Performance and Associate Contribution
Looking at the full financial year ended March 31, 2026, Natco Pharma's consolidated total revenue stood at Rs 4,375.9 crore, a decrease from Rs 4,784.0 crore in the preceding year. Consolidated profit for FY26 was Rs 1,418.5 crore, down from Rs 1,883.4 crore in FY25.
The company also provided details regarding its associate, Adcock Ingram Holdings Ltd, based in South Africa. For the quarter, Adcock Ingram reported revenue of Rs 1,208.2 crore and a profit after tax (PAT) of Rs 102.5 crore. Natco Pharma's share of this profit, based on its current holding, amounted to Rs 35.7 crore.