NATCO raises Adcock stake to 49%, reports Rs 29.2 crore

NATCO Pharma Limited raised its holding in Adcock Ingram Holding Limited to 49% in Q2 FY27 and reported Rs 29.2 crore as its net-of-tax share of associate profit. NATCO acquired an additional 13.25% stake, while its consolidated profit after the associate share was Rs 202.6 crore for the quarter.

What did NATCO's 49% Adcock holding change?

NATCO increased its Adcock holding by 13.25 percentage points to 49% in Q2 FY27, with Bidvest Group Ltd holding the remaining 51%. The presentation identifies Adcock as an associate and separately reports NATCO's share of the associate's profit in the consolidated profit and loss statement. The two shareholders are separated by 2 percentage points in the ownership structure shown for Q2 FY27.

The presentation does not disclose the purchase consideration, the exact transaction date within Q2 FY27, or the terms attached to the additional 13.25% stake. It reports Rs 29.2 crore as NATCO's profit share from Adcock during the quarter. International Formulations revenue was Rs 668.4 crore and is described as including profit share and subsidiaries, while the consolidated statement separately presents the Rs 29.2 crore share of associate profit.

How did Adcock's profit share affect NATCO's Q2 FY27 earnings?

Adcock contributed Rs 29.2 crore to NATCO's Q2 FY27 profit after tax through the share of profit of associate line, lifting profit after tax from Rs 173.4 crore before the associate share to Rs 202.6 crore after it. The contribution exactly represents the difference between those two reported profit measures. NATCO reported basic and diluted earnings per share of Rs 11.31 in Q2 FY27.

The associate-profit contribution was lower than Rs 84.3 crore in Q1 FY27, while no associate share was reported in Q2 FY26. Profit after the associate share was Rs 202.6 crore in Q2 FY27, compared with Rs 206.5 crore in Q1 FY27 and Rs 517.9 crore in Q2 FY26. The year-on-year comparison is not an Adcock-only movement because Q2 FY26 had no reported associate-profit line and the presentation does not attribute the wider profit change.

NATCO's EBITDA was Rs 310 crore in Q2 FY27, with a 30.4% margin that includes other income. EBITDA was Rs 64.3 crore higher than Rs 245.7 crore in Q1 FY27, although the margin was 0.5 percentage points below the preceding quarter's 30.9%. Against Q2 FY26, EBITDA declined from Rs 679.2 crore and the EBITDA margin declined from 46.4%.

What does Adcock's operating footprint look like?

Adcock operates through four commercial divisions in Southern Africa: Prescription, over-the-counter, Hospital and Consumer. It manufactures, sells, markets and distributes healthcare products to private and public sectors in the region. Established as a pharmacy in Krugersdorp, South Africa in 1890, Adcock is described in the presentation as the second-largest South African-based pharmaceutical company by private-market share.

Adcock owns three manufacturing facilities near Johannesburg, South Africa, and has a 49% interest in an Indian joint venture that operates two manufacturing facilities in India. The presentation identifies Clayville for high-volume oral liquids and Aeroton for integrated sterile manufacturing. NATCO does not provide Q2 FY27 divisional revenue, production volumes or a geographic profit split for Adcock.

Adcock's reported financial trend in the presentation covers FY24 to FY26, with revenue rising from US$531 million to US$592 million and net profit increasing from US$45 million to US$57 million. NATCO does not provide Adcock's quarterly standalone revenue or net profit for Q2 FY27. The Rs 29.2 crore disclosure therefore measures NATCO's reported associate-profit contribution rather than Adcock's quarterly standalone earnings.

How did NATCO's Q2 FY27 revenue and segments compare?

NATCO reported consolidated revenue of Rs 1,019.4 crore in Q2 FY27, down from Rs 1,463 crore in Q2 FY26 but up from Rs 794.4 crore in Q1 FY27. International Formulations revenue was Rs 668.4 crore, compared with Rs 1,140.2 crore a year earlier and Rs 477.1 crore in the preceding quarter. Export formulation represented 66% of Q2 FY27 revenue, the largest share in the quarterly revenue mix.

Domestic Formulations revenue was Rs 145.7 crore in Q2 FY27, above Rs 105.4 crore in Q2 FY26 and Rs 136.4 crore in Q1 FY27. Active pharmaceutical ingredient, or API, revenue was Rs 61.3 crore, compared with Rs 53.9 crore a year earlier and Rs 66.7 crore in Q1 FY27. Crop Health Sciences contributed Rs 61 crore, versus Rs 52.4 crore in Q2 FY26 and Rs 40.8 crore in Q1 FY27.

Pharmaceutical Formulations total revenue was Rs 814.1 crore in Q2 FY27, versus Rs 1,245.6 crore in Q2 FY26 and Rs 613.5 crore in Q1 FY27. Other operating and non-operating income was Rs 83.1 crore, below Rs 111.1 crore a year earlier and above Rs 73.4 crore in Q1 FY27. The segment disclosures show that quarterly revenue increased even as the reported associate-profit share declined from Rs 84.3 crore in Q1 FY27 to Rs 29.2 crore in Q2 FY27.

Conclusion

NATCO's Q2 FY27 disclosure establishes a 49% holding in Adcock after a 13.25% additional acquisition and records a Rs 29.2 crore net-of-tax associate-profit contribution. That contribution increased quarterly profit after tax from Rs 173.4 crore before the associate share to Rs 202.6 crore after it, while consolidated revenue was Rs 1,019.4 crore and EBITDA margin was 30.4%.

The next disclosure to watch is whether NATCO provides the consideration, transaction timing and accounting details for the 13.25% stake purchase, which do not appear in the Q2 FY27 presentation dated November 13, 2026. Investors can also track whether the associate-profit line changes from Rs 29.2 crore in Q2 FY27 after the Rs 84.3 crore reported in Q1 FY27.