What Went Wrong with Natco Pharma Stock

Natco Pharma's Shocking Stock Plunge: What Went Wrong & What’s Next?

Natco Pharma’s stock nosedived nearly 30% in just two days, wiping out ₹6,000 crore in market value. Investors are rattled as weak earnings and looming competition paint an uncertain future for the pharmaceutical giant.

If you're an investor or someone keeping a close eye on the pharma sector, Natco Pharma’s dramatic stock drop is impossible to ignore. The company’s shares fell another 10% on Friday, extending the massive 19.99% crash from Thursday. This staggering decline comes on the heels of disappointing Q3 earnings, revealing a 37.75% drop in consolidated net profit.

At around 10:40 AM on Friday, Natco’s stock was trading at ₹875.50 per share on NSE, deep in the red. In just 48 hours, the company’s market valuation shrank by ₹6,000 crore, sending shockwaves through the investor community.

What’s Behind the Crash?

So, what triggered this alarming downfall? Analysts point to multiple factors:

Weak Q3 Performance:

Net profit fell by 37.75% to ₹132.4 crore compared to ₹212.7 crore in the same quarter last year.
A sharp decline in formulations exports played a major role.

Concerns Over Core Business Growth:

Analysts at Dolat Capital highlighted that Natco is struggling to grow its base business outside of its blockbuster drug Revlimid.
The anticipated price erosion in Revlimid sales post-patent expiry is adding pressure.

Uncertain Future Growth:

The company expects a major earnings dip by FY27, as competition for Revlimid increases.
Future sales growth for FY26 depends heavily on how much Revlimid’s price falls in the market.

Should Investors Panic?

Long-term investors are left wondering whether this is a temporary setback or a deeper structural issue. While Natco has been a strong player in the oncology and specialty pharma segments, its over-reliance on Revlimid now seems like a double-edged sword.

Analysts suggest:

If Natco can successfully diversify its revenue streams, the stock could recover.
However, if the anticipated price erosion in Revlimid is worse than expected, the downtrend may continue.
What’s Next for Natco Pharma?
Natco’s management has a tough road ahead. To regain investor confidence, the company needs to:
✅ Strengthen its pipeline of new drugs beyond Revlimid.
✅ Boost domestic and international formulations sales.
✅ Navigate increasing competition in the generics market.

For now, the market sentiment remains weak, and investors are watching closely. Should you buy the dip or cut your losses? That depends on whether Natco can prove its resilience in the coming quarters.

? What’s your take? Do you think Natco can bounce back, or is this just the beginning of more trouble? Let’s discuss!