Natco Pharma Limited is a vertically integrated, research and development focused pharmaceutical company engaged in developing, manufacturing, and marketing complex products for niche therapeutic areas. The company is an Indian multinational pharmaceutical company based in Hyderabad, founded in 1981 by V C Nannapaneni. The company owns nine manufacturing facilities across India and two research centers in Telangana.
Natco Pharma is a major producer of branded oncology medicines, cardiology, diabetology and other pharma specialty drugs at affordable prices. The company aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. The company is engaged in the development, manufacturing and commercialization of complex pharmaceuticals that target specific therapeutic areas, specializing in catering to niche markets and offering solutions to address complex medical needs.
Natco has established its presence in all three business segments: finished dosage formulations ("FDF"), active pharmaceutical ingredients ("APIs"), and Contract Manufacturing Business. The company's segments include Pharmaceuticals and Agro chemicals. The Pharmaceuticals segment is engaged in manufacturing and selling of bulk drugs, finished dosage formulations and related services. The Agro Chemicals segment is engaged in manufacturing and selling of agro chemicals.
The company manufactures and markets finished dosage formulations in 50+ countries, including the US, Canada, Brazil, and Europe. Major US partners include Sun-Ranbaxy, Aceto-Rising, Alvogen, Teva, Mylan, Actavis, Lupin, etc. The international business focuses on Para IV and first-to-file molecules, with plans to expand into emerging markets like MENA, LATAM, and Southeast Asia.
The company's capabilities include multi-step synthesis, semi-synthetic fusion technologies, production of high-potency APIs and peptides. It manufactures active pharmaceutical ingredients products which are primarily used for captive consumption in its FDF products and are also sold to customers for various international markets such as Brazil, Europe, and United States of America.
Natco Pharma currently has a market cap of ₹17,886 Crore, with revenue of ₹4,430 Crore and profit of ₹1,883 Crore. Promoter holding has decreased to 49.56% as of March 2025 from 49.71% as of June 2024.
The company has shown mixed financial performance in recent quarters. Net profit jumped 5.25% year-on-year to ₹406.60 Crore in Q4 FY2024-2025. Standalone net sales for March 2025 reached ₹1,157.40 Crore, up 19.96% YoY, with net profit rising 22.63% to ₹428.10 Crore and EBITDA increasing 27.57%.
However, Q3 FY2024-2025 showed challenges with revenue falling 18.16% year-on-year to ₹651.10 Crore and net profit falling 37.47% to ₹133.00 Crore. Export formulation business contributed 44% in Q3 FY25 compared to 73% in FY23.
Key financial metrics for recent periods include:
- Q4 FY25: Revenue ₹1,221.00 Crore, Net Profit ₹406.00 Crore.
- Q3 FY25: Revenue ₹651.10 Crore, Net Profit ₹133.00 Crore.
- Q4 FY25 dividend: ₹1.50 per share.
In June 2025, the US FDA inspection at Kothur facility found 7 observations, with the company confident to resolve issues timely. The US FDA also inspected Natco's Hyderabad API plant in June 2025, receiving one procedural Form-483 observation. Natco Pharma's Mekaguda API manufacturing facility received one procedural observation from the USFDA following an inspection, with the company committed to addressing the observation comprehensively.
The company appointed Mr. Yarramshetty Krishna Rao as Senior VP – Operations effective June 16, 2025. The company has achieved significant milestones including a compulsory license from Bayer for its patent protected anticancer drug Nexavar in 2012, and various first-to-market generic drugs including HEPCINAT (generic Sofosbuvir) and Epclusa.
In 2021, Natco had 8 launches in the domestic market and acquired Dash Pharmaceuticals LLC in the US. The company has 8 international subsidiaries, including the Philippines, Australia, Brazil, and the US, constantly achieving the first generic to market for a variety of drugs.
In 2019, Natco Pharma initiated work on green-field manufacturing facilities for producing niche agrichemical products in Nellore district, Andhra Pradesh. In 2022, its Crop Health Sciences division launched chlorantraniliprole (CTPR) based products.
The company continues to maintain its position as a leading pharmaceutical manufacturer with strong regulatory compliance and global market presence, despite facing some recent regulatory observations and quarterly performance variations. Natco is well recognized as a high quality contract manufacturing company to many leading pharmaceutical firms in India.
