Natco Pharma shares slump 15% after Q4 results; here's why the stock is falling

Shares of Natco Pharma Ltd tumbled in Friday's late trading session after the company reported a decline in its March 2026 quarter earnings. The stock dropped 14.85 per cent to hit a day's low of Rs 1,001.05.

The sharp fall in the stock price was accompanied by heavy trading volumes. Around 1.80 lakh shares were last seen changing hands on BSE, sharply higher than the two-week average volume of 41,000 shares. Turnover on the counter stood at Rs 19.59 crore, with the company's market capitalisation (m-cap) at Rs 17,931.58 crore.

Natco Pharma reported a consolidated net profit (including share of profit from associate) of Rs 269 crore in Q4 FY26, down around 34 per cent year-on-year (YoY) from Rs 406 crore in the corresponding quarter last year.

The company said, "Net profit for the quarter and financial year includes one-time benefit of Rs 115 crore as the Company has elected to move to the new tax regime from FY26-27 and has re-measured its deferred tax assets on MAT credit and other deferred tax assets/liabilities."

Consolidated net revenue for the quarter under review came in at Rs 816.9 crore compared with Rs 1,287.3 crore in Q4 FY25.

Natco also shared details related to its associate company, Adcock Ingram Holdings Ltd, South Africa. "For the quarter, revenue from the associate Company Adcock Ingram Holdings Ltd, South Africa, was at Rs 1,208.2 crore and profit after tax (PAT) was at Rs 102.5 crore. NATCO's share of profit based on the current holding stood at Rs 35.7 crore," the company stated.

For the full financial year ended March 31, 2026, NATCO recorded consolidated total revenue of Rs 4,375.9 crore as against Rs 4,784.0 crore in the previous year.

Consolidated profit for FY26 stood at Rs 1,418.5 crore compared with Rs 1,883.4 crore in FY25.