Natco Pharma Shocks Investors! Dividend Declared BUT Profit Tumbles – Record Date Set!

Author

Akshat Lakshkar | Whalesbook News Team

Detailed Coverage:

Natco Pharma Limited has declared its second interim dividend for the financial year 2025-26, much to the interest of its shareholders. The dividend amount is set at Rs 1.50 per equity share, representing 75% of the Rs 2 face value per share. The company has fixed November 20, 2025, as the record date for determining eligible shareholders, with the dividend payments scheduled to commence from November 28, 2025.

This announcement coincides with the release of Natco Pharma's second-quarter results for the fiscal year ending September 30, 2025. The company reported a consolidated net profit of Rs 517.9 crore, which is a notable decline of 23.44% compared to the Rs 676.5 crore profit recorded in the same quarter of the previous fiscal year. The reduced profitability is attributed to higher research and development (R&D) expenditures and a one-time employee bonus payout during the quarter. Consolidated revenue from operations was Rs 1,363 crore, slightly lower than the Rs 1,371.1 crore from the prior year's corresponding period. Total expenses increased to Rs 849.3 crore from Rs 616.7 crore a year ago, largely driven by the R&D investments and provisions.

Impact: The dividend payout offers immediate financial benefit to shareholders, which can support investor sentiment. However, the significant drop in net profit, driven by R&D and one-time costs, might put some short-term pressure on the stock price as investors digest the earnings performance. The company's strategic investments in R&D suggest a focus on future growth, which could be positive in the long run, but the near-term outlook will depend on how the market reacts to the profit decline versus the dividend.

Impact Rating: 6/10