Natco's trough is here. The growth math starts next year.
FY27 profit guidance of ₹700-750 cr quantifies the Revlimid hit. From FY28, management targets 15-25% annual earnings growth and is ready to spend ₹2,400 cr on deals.
— 2 earlier stories on Natco Pharma Ltd. →What's new
- Natco guided for FY27 consolidated revenue of ₹3,400-3,500 cr and net profit of ₹700-750 cr.
- For the first time, management put a target on long-term growth: 15-25% annual earnings compounding from FY28.
- The company confirmed an active M&A strategy, with ₹2,400 cr of net cash and 1-2 acquisitions targeted for FY27.
Why this matters
The guidance puts a number on the post-Revlimid trough, giving investors a clear base year to measure the recovery. The 15-25% growth target ties that recovery to specific product launches and a substantial acquisition war chest.
What we're watching
- Progress on US launches of specialty drugs Semaglutide and Somatuline.
- Any acquisition announcements in FY27.
- Execution of the international expansion in South Africa, Brazil, and Canada.
The full read
Natco Pharma's Q4 call confirms FY27 will be the trough. Management guided for consolidated revenue of ₹3,400-3,500 crore and net profit of ₹700-750 crore. That profit figure is the base. The forward story hinges on specialty launches like Semaglutide and Somatuline, and new international markets. For the first time, management put a number on its long-term aspirations: 15-25% annual earnings growth from FY28. To fund this, Natco is sitting on ₹2,400 crore in net cash and plans 1-2 acquisitions in FY27. The guidance gives a clear trough. The next proof point is execution on the pipeline and the M&A front.
Questions answered
- What profit does Natco expect for FY27?
- Management guided for consolidated net profit of ₹700-750 crore, reflecting the full-year impact of losing Revlimid exclusivity.
- When does the growth story restart?
- From FY28, management targets 15-25% annual earnings compounding, driven by specialty launches and new international markets.
- What is Natco's plan for its cash?
- The company has ₹2,400 crore of net cash and is targeting 1-2 acquisitions to close in FY27.
- Which products are the key growth drivers after FY27?
- The growth targets rely on specialty launches like Semaglutide and Somatuline, plus expansion into markets such as South Africa, Brazil, and Canada.
Story so far
All notes on NATCOPHARM →- 29 May 2026 · 7:14 PM IST Natco's trough is here. The growth math starts next year.
- 1d ago Natco Pharma files audited results for FY26
- 1d ago Natco Pharma profit drops 25% as annual revenue slips