Why did Natco Pharma skyrocket 13% in today’s session?

Synopsis: Pharma stock surged 13% after receiving CDSCO approval to launch generic Semaglutide Injection in India, alongside plans for a Chile subsidiary and reappointment of the chairman, boosting investor confidence.

A leading Indian pharmaceutical company known for its focus on generic formulations and specialty drugs, has drawn market attention today after its shares jumped 13 percent, attracting attention from investors and market watchers. 

With the market capitalization of Rs. 15,754.50 crore, the shares of Natco Pharma Limited were trading at Rs. 879.60, up by 6.77 percent from its previous day’s close price of Rs. 823.85 per equity share. The stock has touched an intraday high of Rs. 932, implying an increase of 13.12 percent from previous day’s close price.

Why Natco Pharma Shares Jumped?

Natco Pharma shares surged over 13 percent on February 16, 2026, after the company received CDSCO approval to manufacture and market generic Semaglutide Injection in India. The product is scheduled for launch in March 2026 and is indicated for managing chronic weight issues and type-2 diabetes in adults.

The board approved the re-appointment of Venkaiah Chowdary Nannapaneni as Chairman and MD for one year from April 1, 2026, and authorized the incorporation of a wholly-owned subsidiary in Chile with an investment of up to $300,000, supporting Natco’s global expansion strategy.

Financials

NATCO Pharma Limited is an Indian pharmaceutical company, headquartered in Hyderabad, engaged in the research, development, manufacturing, and marketing of finished dosage formulations, active pharmaceutical ingredients (APIs), and intermediates across India, the US, and international markets. 

Its portfolio spans oncology, CNS, pain management, cardiovascular, neurology, cardiology, diabetology, gastroenterology, and orthopedic therapies, including oral and injectable drugs. The company also provides contract manufacturing services and offers agrochemical and biological pest management solutions. NATCO Pharma was incorporated in 1981.

A return on equity (ROE) of about 28 percent, a return on capital employed (ROCE) of about 32.8 percent and debt to equity ratio at 0.03 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 10.2x lower as compared to its industry P/E 28.3x.   Here’s a concise three-paragraph summary with growth rates and QoQ/YoY comparison:

The company reported Q3FY26 revenue of Rs. 647 crore, up 36 percent YoY from Rs. 475 crore in Q3FY25. However, it declined 53 percent QoQ from Rs. 1,363 crore in Q2FY26, reflecting a seasonal slowdown or lower order intake compared to the previous quarter.

EBITDA for Q3FY26 stood at Rs. 159 crore, a significant increase of 308 percent YoY from Rs. 39 crore in Q3FY25, driven by improved margins. On a sequential basis, EBITDA fell sharply 72 percent QoQ from Rs. 579 crore in Q2FY26, following higher operating costs and lower revenue in the quarter.

Net profit rose to Rs. 151 crore in Q3FY26, up 14 percent YoY from Rs. 132 crore in Q3FY25, supported by better cost management. Sequentially, profit decreased 71 percent QoQ from Rs. 518 crore in Q2FY26, in line with the decline in revenue and EBITDA. The results highlight strong annual growth but notable quarterly volatility.

Over the past three years, the company has demonstrated strong growth, achieving a revenue CAGR of 32 percent, a profit CAGR of 139 percent, and a price CAGR of 15 percent reflecting its operational performance and market confidence.

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