NATCO PHARMA LTD.

Natco Pharma Limited announced the conclusion of a U.S. Food and Drug Administration (FDA) inspection at its Finished Dosage Formulations (FDF) manufacturing plant in Parawada, Visakhapatnam, Andhra Pradesh. The inspection took place from August 17th to August 21st, 2026. Following the inspection, the company received a Form 483 with four observations. Natco Pharma believes these observations are procedural and is confident in addressing them within the stipulated timelines. The company's manufacturing facilities are approved by various global regulatory authorities, and it caters to over 50 global markets.

Natco Pharma Ltd's Board of Directors, in a meeting held on August 14, 2026, has declared an interim dividend of ₹1.50 per equity share (75% on a face value of ₹2). The record date for determining eligible shareholders is August 20, 2026, with the payment of the dividend scheduled to commence from August 26, 2026. This move indicates the company's financial health and commitment to returning value to its shareholders.

Natco Pharma's consolidated Q1 FY27 (quarter ended 30 June 2026) revenue fell 44.7% YoY to ₹735.2 Cr (₹1,328.9 Cr in Q1 FY26) and consolidated PAT fell 57.0% YoY to ₹206.5 Cr (₹480.3 Cr), as the company lost the high-margin exclusivity window on generic Lenalidomide (Revlimid) that powered last year's base. Sequentially revenue was roughly flat (-0.5% QoQ vs ₹739.1 Cr) but PAT fell 23.2% QoQ from ₹269.0 Cr — though that Q4 base was itself inflated by a one-off ₹115 Cr deferred-tax credit (Section 115BAA re-measurement) booked in the March 2026 quarter, so the underlying QoQ profit trend is less negative than the headline suggests. Adjusting for the ₹84.3 Cr share of profit now consolidated from associate Adcock Ingram Holdings (South Africa) — which contributed nothing a year ago — core consolidated PAT fell closer to 74.6% YoY to ₹122.2 Cr, a materially steeper decline than the 57.0% reported number. The compression sits squarely in the topline mix: operating margin (EBITDA/revenue) fell to 25.4% from 43.0% a year ago, and net margin to 26.0% from 34.5%, as the International Formulations segment — home to the US Lenalidomide franchise — dropped to ₹477.1 Cr from ₹1,120.9 Cr YoY per the company's segmental disclosure. This was partially offset by the base business: API revenue rose to ₹66.7 Cr from ₹52.6 Cr (+27%) and Domestic Formulations to ₹136.4 Cr from ₹107.0 Cr (+27%) YoY, matching management's framing that base-business growth partially cushioned the Lenalidomide decline. Standalone (parent-only) numbers show the divergence starkly — standalone PAT fell 83.9% YoY to ₹74.6 Cr (₹464.1 Cr) versus the consolidated 57.0% decline, with the gap explained by the newly consolidated Adcock associate income and other overseas subsidiary contributions absent from the standalone book. This decline was pre-signalled: on the Q4 FY26 call, management guided FY27 revenue of ₹3,400-3,500 Cr and PAT of ₹700-750 Cr, explicitly flagging a dip from the Lenalidomide falloff and framing FY27 as a base year ahead of a targeted 15-25% earnings CAGR from FY28. Annualising Q1 (₹735.2 Cr revenue, ₹206.5 Cr PAT) implies roughly a ₹2,941 Cr revenue run-rate — trailing the low end of guidance — while the PAT run-rate of about ₹826 Cr tracks ahead of the guided range, aided by the Adcock associate income; on balance the quarter reads as broadly consistent with the outlook management already set, not a material beat or miss. No independent brokerage consensus figure specific to the Q1 FY27 print was found in public searches; media reports note the stock had already corrected sharply in the days before results as the market pre-priced the exclusivity loss, so the street comparison is unknown rather than a clean beat or miss. On corporate actions, the board — at the same meeting — declared a ₹1.50/share interim dividend and approved evaluating a ₹2,000 Cr fundraise (equity/QIP/rights or combination), alongside board committee reconstitutions; NATCO also raised its Adcock Ingram stake to 49% in July 2026 (from 35.75%), the source of the associate income noted above.

Natco Pharma Ltd has announced that its Board of Directors will convene on August 14, 2026. The primary agenda item is to consider and approve proposals for raising capital. The company is exploring various methods for fund issuance, including equity shares or other securities, through mechanisms such as public issues, preferential issues, rights issues, private placements, qualified institutions placements, or any combination thereof. The decision is subject to market conditions and necessary regulatory, statutory, and other approvals.

Natco Pharma Ltd has announced that its Board of Directors will convene on August 14, 2026. The primary agenda includes the consideration and approval of the Unaudited Financial Results for the quarter ended June 30, 2026. Additionally, the board will discuss the possibility of an interim dividend for the financial year 2026-27. The company also informed about the closure of the trading window for employees and connected persons from August 7 to August 16, 2026, reopening on August 17, 2026, in compliance with SEBI (Prohibition of Insider Trading) Regulations.

Natco Pharma Limited has received tentative approval from the U.S. Food and Drug Administration (U.S. FDA) for its Olaparib tablets (100 mg and 150 mg). These are bioequivalent to AstraZeneca's Lynparza® tablets. Natco will manufacture the product, with its partner Alembic Pharmaceuticals Limited handling distribution in the U.S. The U.S. market for Olaparib tablets was approximately USD 1.4 billion for the 12 months ending March 2026. Para IV litigation is ongoing.

Natco Pharma Limited has successfully completed the acquisition of an additional 13.25% equity stake in Adcock Ingram Holdings Proprietary Limited, increasing its total shareholding to 49%. The transaction, valued at approximately ZAR 1.81 billion (₹ 1,060 crores), was executed through Natco Pharma South Africa Proprietary Limited. This strategic move is a significant step in Natco Pharma's African growth strategy, building upon its initial 35.75% stake acquired in 2025. Adcock Ingram is a prominent South African pharmaceutical and healthcare company with a strong market presence.

Natco Pharma Ltd has received an order from the Assistant Commissioner (ST)(FAC), Tenali Circle, Andhra Pradesh, raising a tax demand of ₹21,34,729/-, interest of ₹17,17,806/-, and penalty of ₹21,34,729/-. This action stems from an audit for the period April 1, 2020, to December 17, 2024, citing lower amounts reported under the Reverse Charge Mechanism (RCM) in GSTR 3B. The company is currently evaluating the matter and will decide on the appropriate course of action. Natco Pharma states there is no material impact on its financial, operational, or other activities.

Natco Pharma's Board of Directors has approved an investment of up to ₹1400 Crores in its wholly-owned subsidiary, Natco Pharma South Africa. Additionally, the board approved acquiring 19,618,825 shares of Adcock Ingram Holdings Proprietary Limited for ₹1069 Crores, increasing Natco's stake from 35.75% to 49%. Adcock Ingram reported a topline of US$423 million and EBITDA of ~US$59 million for the nine months ending March 31, 2026. Post-acquisition, Natco will recognize 49% of Adcock Ingram's profit after tax. The meeting also considered other business items.

Natco Pharma Ltd has announced the designation of two key officials, Mr. Gnanadeva Chalapathy Gudipati as Senior Vice President - Analytical Research & Development and Mr. Madhava Rao Karicherla as Vice President – Formulation Research & Development, Pharma Division, Kothur Unit. These designations are effective from July 6, 2026. The filing details their extensive experience and qualifications, highlighting their contributions to the company's research and development capabilities, particularly in complex formulations and analytical methods. Both individuals bring significant experience from previous roles in the pharmaceutical industry.