Natco Pharma’s shares fell following a 57% drop in June-quarter profits driven by weaker lenalidomide sales, with the company planning to raise up to Rs 2,000 crore to counteract ongoing export pressures and earnings volatility.
Natco Pharma’s shares fell in Friday trading after the company reported a steep drop in June-quarter earnings, with profit hurt by weaker lenalidomide sales even as some parts of its core business held up. According to the company’s filing, consolidated net profit for the quarter ended 30 June 2026 fell 57% from a year earlier to Rs 206.5 crore, while revenue from operations dropped 45% to Rs 735.2 crore. Natco said the decline was mainly due to lower lenalidomide revenue, partly offset by growth in its base business. Moneycontrol had reported a similar pressure on the stock after Natco’s previous quarterly update, which also showed a sharp earnings pullback.
The latest numbers suggest the weakness was concentrated in exports-linked formulations. ICICI Direct’s breakdown of the quarter said revenue from export formulations fell 49% to Rs 539 crore, while domestic formulations rose about 9% to Rs 108.7 crore. The same analysis showed active pharmaceutical ingredients revenue increased 38% to Rs 63.9 crore and crop protection revenue reached Rs 22.6 crore, indicating that some smaller lines continued to expand even as the main drag from lenalidomide overshadowed the results.
Alongside the earnings update, Natco declared an interim dividend of Rs 1.50 per equity share of Rs 2 face value, equal to a 75% payout on face value. The company fixed 20 August 2026 as the record date, with payment due to begin on 26 August. Natco also said it plans to raise up to Rs 2,000 crore through one or more permitted routes, including a public issue, preferential allotment, rights issue or other securities, subject to approvals.
The results add to a difficult run for the drugmaker after a weaker preceding quarter. Moneycontrol reported that Natco’s net profit fell 34% year on year to Rs 268 crore in the quarter before the latest update, when revenue slipped 39.5% and EBITDA, or earnings before interest, tax, depreciation and amortisation, fell sharply. For investors, the key question now is whether growth in the base business can meaningfully offset the loss of high-margin lenalidomide revenue in coming quarters.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
