Natco Pharma board gives in-principle approval to evaluate agro business demerger, shares down

Natco Pharma on Thursday, September 25, said that its board of directors gave in-principle approval to evaluate the demerger of its agro business into a separate entity.

Shares of Natco Pharma slipped 1.08% to an intra-day low of ₹845 apiece on the National Stock Exchange (NSE) on Thursday. At around 12:31 pm, the stock was trading 0.16% lower at ₹852.85 per equity share.

Under the proposed reorganisation, the company will retain a minority stake in the resulting demerged entity. This will enable Natco Pharma to support the entity through transitional service agreements (TSAs) at arm’s length pricing in terms of common services such as research and development (R&D), patents, etc, it said in a regulatory filing.

At the meeting, the drugmaker’s board authorised its management to undertake a detailed evaluation of the proposed demerger, suggesting an optimal capital and shareholding structure, and present it to the Audit Committee and Board of Directors.

Furthermore, the management also received authorisation to appoint consultants, legal and financial advisors, valuers, merchant bankers, and other intermediaries or agencies as may be required to evaluate and progress on the potential transaction.

This move will allow Natco to unlock value in its core business, pharmaceuticals, and enable long-term growth, along with providing operational flexibility, focused and dedicated management for its various businesses, and different brand positioning for each legal entity.

Natco Pharma stock performance

The share has declined 0.78% over the week and 2.49% over three months. However, it surged 3.69% over a period of six months.

On a year-to-date basis, the scrip has fallen 38.61%.

While the stock reached a 52-week low of ₹726.80 on April 7, 2025, it touched a year’s high of ₹1,505 per equity share on December 10, 2024.

Natco Pharma has a total market capitalisation of ₹15,287.92 crore, as of September 25, 2025, according to data on the NSE.

Natco Pharma Q1 results

The drugmaker reported a 28% year-on-year (YoY) fall in its consolidated net profit to ₹481 crore in the June quarter of FY26, compared to ₹668.5 crore in the corresponding period a year ago.

Its revenue from operations stood at ₹1,329 crore during the reporting quarter, marking a 2.5% YoY decline from ₹1,363 crore in the first quarter of FY25.