• Total Revenue (FY25): INR 4,784 crores, up 16% from INR 4,126.9 crores in FY24.

• Net Profit (FY25): INR 1,883.4 crores, a 36% increase from INR 1,388.3 crores in the previous year.

• Q4 Revenue: INR 1,287.3 crores, compared to INR 1,110.3 crores in Q4 FY24.

• Q4 Profit: INR 406 crores, up from INR 386.3 crores in the same period last year.

• Impairment Charge: INR 50 crores in the Crop Health Science business.

• Chargeback Adjustment: INR 25 crores in the US subsidiary.

• Cash Position: Over INR 3,500 crores.

• Projected Revenue Dip (FY26): Estimated 20% decrease due to geopolitical uncertainties and pricing pressure.

• Projected Profit Dip (FY26): Estimated 30% decrease due to increased R&D expenses.

• Warning! GuruFocus has detected 2 Warning Signs with BOM:524816.

Release Date: May 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Natco Pharma Ltd (BOM:524816) recorded its highest ever consolidated revenue and profits for the financial year, with a 16% increase in revenue and a 36% increase in net profit.

• The company maintains a strong cash position of over INR3,500 crores, providing a buffer against potential headwinds.

• Natco Pharma Ltd (BOM:524816) has a robust pipeline with significant products like semaglutide and Risdiplam, which could drive future growth.

• The company is actively pursuing acquisitions to enhance its business portfolio, indicating strategic growth plans.

• Natco Pharma Ltd (BOM:524816) is investing in innovative areas such as cell and gene therapy, which could provide long-term growth opportunities.

Negative Points

• The company anticipates a potential 20% dip in revenue and a 30% dip in profits for FY26 due to geopolitical uncertainties and pricing pressures in the US market.

• Natco Pharma Ltd (BOM:524816) took an impairment charge of INR50 crores in its Crop Health Science business, indicating challenges in this segment.

• There is uncertainty regarding the outcome of the Risdiplam litigation, which could impact the company's ability to launch the product.

• The company faces increased R&D expenses, which could pressure margins if not offset by successful product launches.

• Natco Pharma Ltd (BOM:524816) acknowledges potential challenges in the US market due to aggressive drug price cuts and potential import tariffs.

Q & A Highlights

Q: Could you update us on the current status of the Risdiplam litigation and any upcoming milestones? A: Rajeev Nannapaneni, CEO, stated that the Risdiplam case is expected to be reserved for order by the end of the month, with a potential order in July or August. If the order is favorable, the company plans to launch the product immediately.