Natco Pharma's Profit Dips Amid R&D and Bonus Pressures

Natco Pharma reported a 23.44% drop in net profit for Q2 2025, impacted by increased R&D expenses and a one-time employee bonus. The profit declined to Rs 517.9 crore from Rs 676.5 crore the previous year, with revenue slightly falling to Rs 1,363 crore from Rs 1,371.1 crore.

Natco Pharma Ltd announced a significant 23.44% decline in its consolidated net profit for the second quarter ending September 30, 2025. This financial slump is primarily attributed to elevated research and development costs alongside a one-time employee bonus expenditure.

The pharmaceutical company reported a net profit figure of Rs 517.9 crore, compared to Rs 676.5 crore during the same period last year, as per regulatory filings. Its consolidated revenue from operations mirrored a minor decrease, standing at Rs 1,363 crore, slightly down from Rs 1,371.1 crore in the previous year.

Total expenses rose significantly to Rs 849.3 crore from Rs 616.7 crore in the corresponding quarter last year, driven by investments in bioequivalence research and other business provisions. Despite lower formulations export revenue, the API sector showed modest growth. The company also declared an interim dividend of Rs 1.50 per share for the fiscal year 2025-26.

(With inputs from agencies.)