In Week of Mar 28, 2026, Natco Pharma Ltd (Pharma - Formulators) is outperforming Nifty 500 with +19.3% relative strength. Fundamentals: Strong. On a 6-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 (ended December 31, 2025) earnings • Updated Feb 22, 2026
What: Adding ~₹35-40 cr PAT quarterly with minimal amortization
Impact: +₹140 Cr revenue
“Back of our hand, I mean if you assume that this is a steady state number and they're able to repeat the numbers, we'll be adding about 35 to 40 crores of PAT to our balance sheet every quarter from Adcock.”
What: Domestic business expected to grow >20% this year
Impact: +₹450 Cr revenue
“I think we have shown that in the last three, four years we have done a lot of work to sort of diversify our profit base. So now you're seeing more diversified profit base and bring more stability in earnings.”
What: New product launches in US market over next 12 months
Impact: +₹300 Cr revenue
“We have very good launches coming up in the U.S. in the next 12 months.”
Earnings deceleration risks from management commentary
Trigger: Pipeline launches delayed
Impact: -200 bps margin impact
Management view: In fact there's been literally no rev limit this quarter. We had zero development this quarter and these numbers are with zero development, which is a good thing.
Monitor: US product launches
Trigger: Bidvest rejects offer
Impact: -100 bps margin impact
Management view: We want to increase our shareholding in Adcock, but obviously subject to Bidvest willing to consider our request.
Monitor: Adcock Ingram stake announcement
Key quotes from recent conference calls
“Back of our hand, I mean if you assume that this is a steady state number and they're able to repeat the numbers, we'll be adding about 35 to 40 crores of PAT to our balance sheet every quarter from Adcock. — Rajeev Nannapaneni”
“I think we have shown that in the last three, four years we have done a lot of work to sort of diversify our profit base. So now you're seeing more diversified profit base and bring more stability in earnings. — Rajeev Nannapaneni”
“We have very good launches coming up in the U.S. in the next 12 months. — Rajeev Nannapaneni”
“I think we should do about 4200 to 4300. 4300 crores is what my expectation is going forward. — Rajeev Nannapaneni”
Forward-looking targets from management for FY26
Revenue Growth Target
12%
Implied PAT Growth
20%
OPM Guidance
30%
Key Milestones
• Adcock Ingram profit consolidation
• Semaglutide domestic growth
• US market launches
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +36% | +32% | Stable |
| PAT (Net Profit) | +14% | +80% | Stable |
| OPM | 25.0% | +1700 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Natco Pharma Ltd's latest quarterly results (Dec 2025) show
Natco Pharma Ltd's profit is growing with an stable trend.
Natco Pharma Ltd's revenue growth trend is stable.
Natco Pharma Ltd's operating margin is volatile.
Natco Pharma Ltd's long-term compounding rates
Natco Pharma Ltd's earnings growth is stable with weakening on a sequential basis.
Natco Pharma Ltd's trailing twelve month (TTM) performance
Natco Pharma Ltd appears significantly undervalued based on our fair value analysis.
Natco Pharma Ltd's current PE ratio is 11.3x.
Natco Pharma Ltd's current PE is 11.3x.
Natco Pharma Ltd's price-to-book ratio is 2.0x.
Natco Pharma Ltd is rated Strong with a fundamental score of 60.4/100. This score is calculated from objective financial metrics
Natco Pharma Ltd has a debt-to-equity ratio of N/A.
Natco Pharma Ltd's return ratios over recent years
Natco Pharma Ltd's operating cash flow is positive (FY2025).
Natco Pharma Ltd's current dividend yield is 0.61%.
Natco Pharma Ltd's shareholding pattern (Dec 2025)
Natco Pharma Ltd's promoter holding has remained stable recently.
Natco Pharma Ltd has been outperforming Nifty 500 for 6 consecutive weeks, indicating building momentum.
Natco Pharma Ltd is an established outperformer with 6 weeks of consecutive Nifty 500 outperformance.
Natco Pharma Ltd has 3 key growth catalysts identified from recent earnings analysis
Natco Pharma Ltd has 2 key risks worth monitoring
In Q3 FY26 (ended December 31, 2025), Natco Pharma Ltd's management highlighted
Natco Pharma Ltd's management has provided the following forward guidance for FY26
Based on quantitative research signals, here is why Natco Pharma Ltd may be worth studying
Natco Pharma Ltd investment thesis summary:
Natco Pharma Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
