Mumbai — Natco Pharma reported a 57% year-over-year decline in consolidated net profit for the first quarter of fiscal 2027 as weaker sales of lenalidomide weighed heavily on its international business.
Net profit fell to Rs 206.5 crore in the April-June quarter from Rs 480.3 crore a year earlier, according to the company’s regulatory filing.
Revenue from operations declined 44.7% to Rs 735.2 crore from Rs 1,328.9 crore in the same period last year. Natco attributed much of the decline to lower sales of lenalidomide, its generic version of a cancer treatment, although growth in some core businesses helped offset part of the impact.
Operating earnings also weakened sharply. EBITDA fell 67.4% to Rs 186 crore from Rs 571 crore, while the EBITDA margin narrowed to 25.3% from 43% a year earlier.
The company reduced overall spending during the quarter, with total expenses falling to Rs 608.8 crore from Rs 818.7 crore in the year-ago period.
Natco’s domestic formulations business performed better, with revenue rising to Rs 136.4 crore from Rs 107 crore. Its international formulations business, however, saw revenue plunge to Rs 477.1 crore from Rs 1,120.9 crore.
Revenue from the active pharmaceutical ingredients business increased to Rs 66.7 crore from Rs 52.6 crore a year earlier.
Alongside the quarterly results, Natco Pharma’s board approved an interim dividend of Rs 1.50 per equity share.
The board also approved plans to raise up to Rs 2,000 crore through a qualified institutional placement and other permitted instruments, giving the drugmaker additional financial flexibility for future growth initiatives. (Source: IANS)
