Below is a structured extraction and summary of the relevant and actionable financial information from NATCO Pharma Limited’s results filing dated November 14, 2025:

1. Auditor’s Note

• The statutory auditors (B S R and Co) have issued an unmodified limited review report on both the consolidated and standalone unaudited financial results for Q2 FY26 (quarter ended 30-09-2025) and half year ended 30-09-2025.
• No qualifications, concerns, or issues were raised.
• The review included subsidiaries and step-down subsidiaries, including those outside India, with appropriate conversion adjustments.
• Conclusion: Clean review report with no material misstatements or qualifications.

2. Financial Performance

Consolidated Financials (₹ in millions)

*Note: EBITDA not explicitly stated in table; approximated from segment results and other income.

Standalone Financials (₹ in millions)

Key Observations on Financial Performance

• Revenue: Consolidated revenue for Q2 FY26 at ₹1,363 crore is slightly down YoY (₹1,371 crore in Q2 FY25) but up QoQ (₹1,329 crore in Q1 FY26).
• Profitability: Consolidated PAT declined YoY (₹517.9 crore vs ₹676.5 crore in Q2 FY25) and increased QoQ (₹480.3 crore in Q1 FY26).
• Margins: EBITDA margin for Q2 FY26 is strong at 46.4% (including other income).
• EPS: Consolidated EPS declined YoY from ₹37.81 to ₹28.94, reflecting lower profitability.
• Standalone results show similar trends with slight YoY decline in revenue and profit.

3. Detailed Notes / Management Commentary

• The results are prepared under Indian Accounting Standards (Ind AS).
• The Board declared a second interim dividend of ₹1.50 per equity share (75% on face value ₹2) for FY26.
• The company incurred substantial R&D expenses on bioequivalence studies and a one-time employee bonus during the quarter.
• The Board approved the incorporation of a wholly-owned subsidiary to demerge the Crop Health Sciences (Agro Chemicals) division to unlock value and provide operational focus.
• The company completed a major acquisition in South Africa: 35.75% stake in Adcock Ingram Holdings Limited for ZAR 3,873 million (~USD 225 million).
• The management is evaluating the demerger of the Agro Chemicals business into a separate legal entity.
• No changes in accounting policies or material adjustments reported.
• No specific commentary on NPAs, slippages, or AUM (not applicable as pharma company).

4. Segment Information (Consolidated)

Margins and Growth

• Pharmaceuticals EBIT margin Q2 FY26 = 6,334 / 13,105 = 48.3%
• Agro Chemicals EBIT margin Q2 FY26 = (66) / 525 = -12.6% (loss-making segment)
• QoQ Revenue Growth:
  • Pharmaceuticals: +1.3% (12,942 → 13,105)
  • Agro Chemicals: +51.3% (347 → 525)
• YoY Revenue Growth:
  • Pharmaceuticals: -3.3% (13,562 → 13,105)
  • Agro Chemicals: +252% (149 → 525)
• Segment losses in Agro Chemicals have narrowed QoQ and YoY but remain significant.

5. Capex, Projects, and Corporate Activity

• Capital Expenditure:
  • Consolidated Capex (PPE purchase) for H1 FY26: ₹1,804 mn (vs ₹1,690 mn in H1 FY25)
  • Standalone Capex for H1 FY26: ₹1,750 mn (vs ₹1,704 mn in H1 FY25)
• Acquisitions:
  • Completed acquisition of 35.75% stake in Adcock Ingram Holdings Limited, South Africa, for ZAR 3,873 million (~USD 225 million) via newly incorporated wholly owned subsidiary.
• Demerger:
  • Board approved incorporation of a wholly owned subsidiary for demerger of Crop Health Sciences (Agro Chemicals) division.
  • Demerger expected to unlock value and provide operational focus.
• Provisions and Expenses:
  • One-time employee bonus and increased R&D expenses incurred during the quarter.
• Dividends:
  • Second interim dividend declared at ₹1.50 per share for Q2 FY26.
  • Earlier interim dividend of ₹2 per share declared for Q1 FY26.

6. Standalone vs Consolidated

• Both Standalone and Consolidated financial results are provided and reviewed.
• Consolidated results include 12 subsidiaries/step-down subsidiaries across multiple countries.
• Consolidated revenue and profit are slightly higher than standalone, reflecting contribution from subsidiaries.
• Segment information is only provided on consolidated basis.
• Standalone results show similar trends but slightly lower revenue and profit compared to consolidated.

Additional Notes

• Cash Flow Highlights (Consolidated H1 FY26 vs H1 FY25):
  • Operating cash flow: ₹11,906 mn (up from ₹11,370 mn)
  • Investing cash flow: ₹(11,887) mn (higher outflow vs ₹(8,817) mn)
  • Financing cash flow: ₹(765) mn (lower outflow vs ₹(2,191) mn)
  • Net cash decreased slightly by ₹746 mn in H1 FY26.
• Balance Sheet Highlights (Consolidated as at 30-09-2025 vs 31-03-2025):
  • Total assets increased to ₹104,301 mn from ₹86,308 mn.
  • Equity increased to ₹86,542 mn from ₹76,123 mn.
  • Current liabilities increased significantly, mainly due to provisions and trade payables.
• No material changes in accounting policies or significant adjustments reported.

Summary for Investment Analysis Team

Actionable Insights:

• The company maintains strong profitability and cash flows despite increased R&D and one-time expenses.
• The Agro Chemicals segment remains loss-making but is being strategically separated via demerger, potentially unlocking value.
• The acquisition in South Africa signals geographic expansion and diversification.
• Dividend payouts continue, reflecting confidence in cash generation.
• Monitor impact of demerger and integration of Adcock Ingram acquisition on future earnings and cash flows.

Please advise if you require further detailed analysis or specific ratio calculations.