Natco Pharma Ltd. reported on Friday that its active pharmaceutical ingredient manufacturing facility in Mekaguda, Hyderabad, received one observation from the US Food And Drugs Administration which conducted an investigation, according to an exchange filing from the firm.
The investigation was conducted from June 9 to June 13, 2025.
The firm received one observation in the Form-483, which it deemed procedural in nature. It also said it would “address this observation comprehensively.”
“The company remains committed to being Current Good Manufacturing Practices compliant and in supplying high-quality products to its customers and patients globally,” the filing said.
The firm reported slower-than-expected earnings growth in the final quarter of Fiscal 2025.
Its consolidated, year-on-year net profit rose 5.3% to Rs 407 crore in the January-March quarter, compared to Rs 386 crore.
The bottom line was much lower than Bloomberg analysts’ consensus estimate of Rs 587 crore.
For the full year, profit jumped 36% to Rs 1,883 crore from Rs 1,388.3 crore in Fiscal 2024.
Revenue from operations increased 14.3% to Rs 1,221 crore, missing the forecast of Rs 1,387 crore.
The firm’s earnings before interest, taxes, depreciation, and amoritisation was up 10.2% to Rs 548 crore from Rs 497 crore in the year ago period.
In terms of operational profitability, higher expenses on raw materials pressured the company’s Ebitda margin.
Shares of Natco Pharma closed 1.24% lower at Rs 912.70 apiece on the NSE, compared to a 1.1% fall in the benchmark Nifty. The stock has fallen 22.42% in the last 12 months and 34.21% on a year-to-date basis.
Out of 12 analysts tracking the company, five have a ‘buy’ rating on the stock, three recommend ‘hold’ and four suggest ‘sell’, according to Bloomberg data. The average of 12-month analysts’ price target implies a potential upside of 6.5%.
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