Natco Pharma Ltd. reported slower-than-expected earnings growth in the final quarter of FY25 as it prepares for a turbulent new year due to Trump’s tariff policies.
Consolidated net profit rose 5.3% to Rs 407 crore in the January-March quarter, compared to Rs 386 crore, according to financial results released on Wednesday. The bottom line is far lower than Bloomberg analysts’ consensus estimate of Rs 587 crore.
For the full year, profit jumped 36% to Rs 1,883 crore from Rs 1,388.3 crore in FY24.
Revenue from operations increased 14.3% to Rs 1,221 crore, missing the forecast of Rs 1,387 crore.
In terms of operational profitability, higher expenses on raw materials pressured Ebitda margin.
Natco Pharma Q4 Highlights (Consolidated, YoY)
- Revenue up 14.3% to Rs 1,221 crore versus Rs 1,068 crore (Bloomberg estimate: Rs 1,387 crore).
- Ebitda up 10.2% to Rs 548 crore versus Rs 497 crore (Bloomberg estimate: Rs 728 crore)
- Margin at 44.9% versus 46.6% (Bloomberg estimate: 52.5%)
- Net profit up 5.3% to Rs 407 crore versus Rs 386 crore (Bloomberg estimate: Rs 587 crore)
During the quarter, Natco Pharma took an impairment charge of Rs 50 crore in the Crop Health Science business related to property, plant and machinery, a chargeback adjustment of approximately Rs 25 crore in its US subsidiary apart from higher R&D expenses, said a press release.
The company said it has a “strong cash position” of over Rs 3,000 crore as it prepares for headwinds coming from its US business during the financial year 2026.
Natco Pharma estimates a possible decline in revenue by 20% and profit by 30% due to geopolitical uncertainties and pricing pressure in its core product portfolio in the US and increased R&D expenses.
The Trump administration sparked a trade war in April, placing reciprocal tariffs on goods and pharma products, piling pressure on top exporter India. Even as those tariffs are on hold, the two countries are negotiating a bilateral trade deal.
