Natco Pharma Ltd

Investment in eGenesis, Inc.

• Natco to invest US$14 million in eGenesis via convertible promissory notes.
• US$9.50 million from NATCO Canada Inc.; US$4.50 million from NATCO South Africa Proprietary Limited.
• Total investment in eGenesis now US$22 million.
• Previous investment of US$8 million in 2024 via preferred stock.
• Indicative completion timeline: September 30, 2026.
• Conversion notes bear 8% interest compounded annually.
• At completion, no additional shares are being acquired.
• Regulatory approvals not required per filing.

Meeting Details

• Aug 27, 2026, 9:00 AM–6:00 PM: in-person group investor meet in Mumbai, organized by Nuvama Wealth Management.
• Aug 27–28, 2026: Hong Kong meet; organizer Limited and ICICI Securities; 9:00 AM–5:00 PM (27), 9:00 AM–1:00 PM (28).

Participants

• Company officials attending: Company Secretary & Compliance Officer.

Purpose

• Purpose: Investor interaction; latest investor presentation already posted on Natco's website.

Regulatory update

• FDA conducted inspection of Natco's Visakhapatnam FDF unit Aug 17–21, 2026.
• Form 483 issued with four observations, procedural and addressable within timelines.
• Company to address observations comprehensively within stipulated timelines.

Meeting Details

• Dates: 24–26 August 2026, 9:30 AM–6:00 PM
• Type/Mode: In-person, group meeting
• Organiser: Investor meeting organized by Nuvama Wealth Management Limited and ICICI Securities Limited
• Location: Singapore

Participants

• Company officials expected to participate (incl. Company Secretary & Compliance Officer)

Purpose

• General investor interaction during the investor meet

Additional Notes

• Latest investor presentation already placed on the company website
• Schedule subject to change

Business overview

• Global generic pharma focused on niche, complex molecules and APIs.
• Segments include API, Formulations (Domestic/International), Crop Health Sciences, plus R&D investments.
• Strategic initiatives target US market access and Adcock Ingram expansion.

Operational highlights

• FY26 consolidated revenue INR 43,759 Mn; EBITDA INR 17,341 Mn; PAT INR 14,185 Mn.
• CHS topline reached INR 138 crores in FY26; demerger awaiting regulatory clearance.
• Para IV pipeline in USA totals 28; First-To-File opportunities exceed 20.
• Adcock Ingram stake stands at 49% as of 31-Jul-2026; prior stake acquisitions.
• CHS demerger approved; regulatory approvals in progress.

Financial performance

• Q1FY27 consolidated revenue INR 7,944 Mn; EBITDA INR 2,457 Mn; PAT INR 1,222 Mn.
• FY26 revenue INR 43,759 Mn; EBITDA INR 17,341 Mn; PAT INR 14,185 Mn.
• EBITDA margin 39.6%; PAT margin 32.4% in FY26.
• ROE 15.4%, ROCE 15.9% for FY26.

Capital structure & liquidity

• Total assets INR 110,737 Mn; total equity INR 92,211 Mn (Mar 31, 2026).
• Borrowings current INR 6,064 Mn; non-current INR 1,000 Mn.
• Cash & equivalents INR 1,989 Mn; bank balances INR 13,520 Mn.

Strategic priorities & outlook

• Direct US access; 40+ approved products; 30+ in pipeline; shift from partner to player for select molecules.
• RoW growth; Brazil/Canada expansion; tenders and partnerships to capture market share.
• CHS demerger to unlock value; regulatory approvals in progress.

Governance & leadership

• Board approves CHS demerger; awaiting regulator clearance.
• NATCO stake in Adcock Ingram stands at 49% as of 31-Jul-2026.
• NATCO acquired 35.75% stake in Adcock Ingram in 2025.

Financial Performance

• Consolidated revenue in Q1 FY27: INR 794.4 crores; Q1 FY26: INR 1,390.6 crores
• Consolidated PAT: INR 206.5 crores; Q4 FY26 had one-time INR 115 crores tax benefit; normalized PAT up 34%
• Adcock Ingram revenue: INR 1,582.8 crores; NATCO share of profit: INR 84.3 crores
• NATCO held 35.75% in Adcock as of 30 Jun 2026; stake increased to 49% in July 2026
• Domestic formulations revenue: INR 136 crores; Brazil revenue: INR 178 crores (growth 180%)
• Canada sales: around INR 56 crores; Export formulations: INR 477 crores
• Crop Health Sciences Q1 revenue: INR 40 crores; full-year Crop Health target: INR 750 crores
• Total gross sales guidance for FY27: INR 3,300–3,400 crores
• Net cash: around INR 1,400 crores; ~INR 3,000 crores spent on Adcock acquisitions over last year
• Fundraise plan: INR 2,000 crores; options include QIP or rights; opportunities domestic and outside India

Geography & Segments Update

• Brazil revenue growth driven by flu-season performance; Q1 Brazil: INR 178 crores
• Canada sales contributed to export formulations; geographical mix described; no exact rest-of-world split provided
• Adcock Ingram contribution boosted earnings; strong quarter primarily from associate profits

Cash, Balance Sheet & Capital Allocation

• Net cash around INR 1,400 crores; earlier year-end cash commentary referenced ~INR 3,000 crores
• Cash spent ~INR 3,000 crores on Adcock acquisitions in the last year
• Plan to raise INR 2,000 crores for acquisitions and internal capex; uses include opportunities abroad and in India

R&D, Pipeline & Regulatory

• Current quarter R&D spend lower after prior year spike; run-rate not implied; milestones drive spend
• Olaparib litigation: trial date in next few months; exclusivity maintained; dates not clarified
• Semaglutide: Canada and Brazil dossiers not filed; status minus; India-focused updates planned later
• Two U.S. launches planned in next financial year; confidentiality prevents naming molecules
• ANDA target: 8–10 per year; FTF target: 2–3 per year; at least one or two FTF this year

Guidance & Outlook

• PAT guidance reaffirmed: around INR 750 crores; seasonal bump not to be annualized
• India consolidated tax around 25.16%; India domestic around 27% due to CSR/disallowances
• Crop Health guidance implies FY27 revenue around INR 750 crores; full-year gross sales INR 3,300–3,400 crores
• Carfilzomib launch on track; plant upgrade to be completed by year-end; launch date not disclosed

Q&A Highlights

• Q: Export geography constant-currency growth; Brazil growth ~180%; Canada ~INR 56 crores
• A: Seasonal cycles; Adcock profit share explains Q1 uplift; not a uniform run-rate across geographies
• Q: Why sequentially lower international formulations in Q1; is pomalidomide a factor?
• A: Product cycles vary; some products have seasonal tenders; overall annual guidance remains intact
• Q: Crop Health loss; when is breakeven; next steps?
• A: Q2 stronger; full-year revenue target around INR 750 crores; agro growth across Brazil/Canada/US
• Q: Why raise INR 2,000 crores; how to use proceeds?
• A: To fund acquisitions and internal capex; opportunities both inside and outside India

Meeting Details

• Dates and times: 19–21 August 2026, 9:00 AM–5:00 PM
• Meeting type/mode: In-person, group meeting
• Organizer: Nuvama Wealth Management Ltd and ICICI Securities Ltd
• Location: Mumbai, Maharashtra

Participants

• Company officials will participate; specific roles not disclosed

Purpose

• Purpose: general investor interaction

Additional Notes

• Schedule subject to change

Meeting Details

• Date: 14 August 2026; earnings conference call (Q1 FY26-27).
• Type and mode: earnings call, virtual audio webcast.
• Event/organiser: Natco Pharma earnings conference call.
• Key participants: Company Secretary & Compliance Officer.
• Purpose: discuss Q1 FY26-27 results with investors.
• Availability: audio recording/presentation available on company website.