NATCO Pharma Limited (NSE: NATCOPHARM) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Rajesh Chebiyam — Executive Vice President, Crop Health Sciences
Rajeev Nannapaneni — Vice-Chairman and Chief Executive Officer
Analysts:
Unidentified Participant
Hrishikesh Patole — Analyst
Love Gupta — Analyst
Candice Pereira — Analyst
Nitin Gandhi — Analyst
Mihir Desai — Analyst
Abdulkader Puranwala — Analyst
Nithin Agarwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Natco Pharma Q3 and FY26 earnings conference call hosted by Batliwala and Kharani securities India Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshikesh Patole from Batliwala and Karani securities. Thank you.
And over to you sir.
Hrishikesh Patole — Analyst
Hello. Thank you. Good afternoon everyone. On behalf of BNK Securities I welcome you all to the Q3FY26 earnings conference call of Netco Pharma. Hope everyone is in good health and doing well. On behalf of NATCO today we have with us Mr. Raju Nana Panini Vice Chairman and CEO Mr. Rajesh Chebiam, Executive Vice President, Crop Health Sciences. I now hand over the call to Rajesh for the management’s opening remarks post which will open the session for Q and A. Over to you Rajesh.
Rajesh Chebiyam — Executive Vice President, Crop Health Sciences
Thank you. Thank you, Rishikesh. Good evening and welcome everyone to NATCO’s conference call discussing our earnings results for the third quarter of FY26 which ended 12-31-2025. During this call we may be making certain forward looking statements which are not necessarily historical facts and anything said on this call which reflects our outlook for the future must be reviewed in conjunction with the risks that the company faces. We undertake no obligations to update these forward looking statements like to state that the material of the call except for participant questions the property of NATCO and cannot be recorded or rebroadcast without NATCO’s expressed written permission.
We’ll begin with the call results highlights and followed by an interactive Q and A session. We have updated the financials and press release earlier today. These are also available on our website. NATCO recorded consolidated total revenue of 705.4 crores for the quarter ended on 31st December 2025 as against 651.1 crores as of 31st December 2024. EBITDA for the quarter was at 216.8 crores with a margin at 30.7%. The net profit for the period on a consolidated basis was 151.3 crores. Revenue from our associated company Adcock Ingram Holdings South Africa for the first half of the financial year ended which ended 12-31-2025 was at 2464 crores at a profit after tax of 198 crores. For NATCO. The profit pickup for the period which started from 10th November to 31st December 2025 at 35.75% amounts to 29.65 crores.
So after a one time period amortization of 18.75 crores, the associated profit reflection in NATCO’s financials amounts to 10.9 crores. The board of directors have declared an interim dividend of 1.5 rupees per equity share of 2 rupees each during Q3 of FY26. The segmental spread have also been shared in our. Actually the press release. I will not go through the details but we will take questions and we’ll answer from there. Thank you all.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Gautam from LEO Capital. Please go ahead.
Unidentified Participant
Hi sir, good afternoon. I had a question on GLP1. Do we have any fill and finish capacity and if so, is this for an Indian market or an emerging market?
Rajeev Nannapaneni
A GLP1 approval is expected sometime this month. It’s pending a DCGI capacity. Right now we are outsourcing from one source.
Unidentified Participant
All right. And regarding emerging markets, which geographies will be launching in and will we have our own capacity in the future or just this one source capacity?
Rajeev Nannapaneni
As of now we don’t have any capacity. So right now for our tie up. Right now is for India One source we’re doing and then we’re not actively pursuing emerging markets. Actively pursuing only regulated markets. So those I think the launches of A little away.
Unidentified Participant
All right. Thank you sir.
Rajeev Nannapaneni
Thank you. Next call please.
operator
Participants who wish to ask a question may press Star and one on the Touchstone telephone. The next question is from the line of Love Gupta from Counter Cyclical Investments. Please go ahead.
Love Gupta
Hello. Am I audible?
Rajeev Nannapaneni
Yeah, yeah. Please go ahead, sir.
Love Gupta
So I was just looking at a statement. We have like about 2,600, 700 cash on our books post the Adcock acquisition. Why don’t we consider a share buyback given the current favorable valuations of a share price and reward the shareholders in. Some in that form.
Rajeev Nannapaneni
Actually cash position net is about 2,500. I just want to be more precise regarding buyback at this time. I’m not really thinking about it. I think my sense is that there. Are further acquisitions to do and we’re. Actively engaging trying to do another very large transaction. And I think we have enough cash. I would like to preserve my cash for another transaction similar to size of Adcock. So I would preserve the cash for that. I wouldn’t want to do a buyback at this time.
Love Gupta
And when do we plan to announce. Or complete this acquisition and what vertical?
Rajeev Nannapaneni
We’re really working on a couple of transactions. Yeah. So until it’s done, it’s not done. Right. So we’re actively pursuing two, three targets and we’re hoping we’ll able to close and we close this in 2025. Ad cock. So something large we want to close. At least one or two we are pursuing. So we’re lucky. Two or at least one in 2026. We want to close in this calendar year for sure. All subject to clearance of diligence and clearance of whatever other things that we need to close.
Love Gupta
All right, thank you.
Rajeev Nannapaneni
Thank you. Next caller, please.
operator
Thank you. The next question is from the line of Rahul Chowdhury, an individual investor. Please go ahead.
Unidentified Participant
Do we know what is the net cash in Adcock? Igrams books.
Rajeev Nannapaneni
Exactly. I don’t remember my friend, but I think net debt is zero, I think. Or some little bit of cash they have, they don’t have. Net debt is zero is what I recollect. Exact number I don’t recollect. But yeah, it’s about something like that.
Unidentified Participant
So regarding this domestic semaglutide, we have two, two applications like I mean for the generic Ozempic and generic Vigov or we once since we’ve got some SEC approval. It’s for. It’s for the diabetes variant. Right. There’s something which will. Is also there for the weight loss.
Rajeev Nannapaneni
Both for Ozempic and Wegovy. You have both the application, the one of the trials is not completed yet. The Ozempic one is what got completed. So for which we got the SEC committee clearance. So we’re expecting the license any moment. I think that’s the way things are. So our expectation that we launch the. Diabetes strength when the market opens up in shortly.
Unidentified Participant
And so the court case that we’ve done is to prevent them from evergreening the patent or why are we. Why are we spending money on stopping. There’s so many other companies that also have got Approval from the htc. What’s the logic behind it?
Rajeev Nannapaneni
Logic behind the court case you’re saying? I mean it’s a very complicated question at this time. I don’t want to answer that question. There is a strategy that we had. I think for the purposes of this call, I would like to say that we’re going to launch when the market opens up post March.
Unidentified Participant
Okay. So just for just on this aspect only, for the WeGovy thing also, we will get the approval soon, right? We’re working on that. Or is there some trials is pending on.
Rajeev Nannapaneni
I think the clinical trial is expected to complete soon and then we’ll file for approval shortly. Yes, that’s correct.
Unidentified Participant
So my last question is in the export, export formulations, year on year there is an uptick of around 135 odd crows. So this year is this because of the tailwind of revenue mid or in other things? We have done better.
Rajeev Nannapaneni
In fact there’s been literally no rev limit this quarter. We had zero development this quarter and these numbers are with zero development, which is a good thing. And whatever tailwind that we got is essentially because our subs have done extremely well. Brazil and Canada has done extremely well. And also we’ve done very well in the Middle East. So our strategy of expanding into emerging markets has paid dividends. And you will see the benefit of. That, I think in the coming quarters. As of now we’re not consolidating for this quarter substantial amount of profit from Adcock. But I think for the coming quarters we’ll be consolidating Adcock profit as well. So we’ll have a steady, strong base business. And so I think you’ll see more steady revenue like we have this quarter.
Unidentified Participant
Okay, thank you very much.
operator
That’s all. Thank you. The next question is from the line of Candice Pereira from Dalit Capital. Please go ahead.
Candice Pereira
Yeah, thank you for taking my question. So with regards to the Acok Ingram acquisition, will there be an annual amortization amount or. This was just a one time amortization that will be taking.
Rajeev Nannapaneni
This is a one time amortization. But we will also have. See this is how we’re going to account for Adcock profit. So whatever Adcock profit is there, 35.75% of that will be consolidated into Natcos books. There will be an element of amortization. I think the accountants are working on it. It will be about 10 to 14 crores per year. So essentially a thumb rule for you. Would be take AD Cox profit, take. 35.75% of their profit and remove about 10 to 15 crores from that for amortization. I mean any one time has happened. That I can’t project for you. But I think that will be the quarterly amortization. It will be split over a quarter. So I think maybe about 3 crores a quarter is what our expectation is. But I think the accountants are working on finalizing number. But roughly about that is what my expectation is. So back of our hand, I mean if you assume that this is a steady state number and they’re able to repeat the numbers, we’ll be adding about 35 to 40 crores of PAT to our balance sheet every quarter from Adcock.
Candice Pereira
Okay, that is helpful. And sir, is there any timeline for the crop health sciences demerger in place for now?
Rajeev Nannapaneni
I think we have started the process. So I think roughly we are thinking by October, November. But I don’t want to say any definite timelines. But this is our, what should I say goal to do. But I mean there’s a lot of processes that we had to run. Right. So I think process will take whatever. Time it will take. Right. So but our end goal is that we should be able to do it. In the next eight, nine months. But again we’ll keep you updated to give you more accurate timelines. But as of now that is the expectation.
Candice Pereira
And one last question you called up that you are looking at 2, 3 targets for acquisitions. So there are any particular segments or like for domestic market or export?
Rajeev Nannapaneni
We are, I think we’re actively looking. I don’t want to answer the question directly but our focus has been looking at emerging markets and looking at brand business, established brand business. I think that’s what we’re looking at. This is where we see value in our portfolio. So this is what we’re looking at.
Candice Pereira
Okay. Thank you sir.
Rajeev Nannapaneni
Okay, thank you.
operator
Thank you.
Rajeev Nannapaneni
Next caller please.
operator
Participants who wish to ask a question may press star and one on the Touchstone telephone. The next question is from the lion of Gautam from LEO Capital. Please go ahead.
Unidentified Participant
Hi sir, thank you for taking my question again. Sir, you mentioned that for India we are outsourcing via one source. What capacity are we outsourcing from one source for even just fill in finish or the whole product? And what capacity would be like how many?
Rajeev Nannapaneni
It’s a fill finish. So you give all the raw materials and they’ll convert and give it to you. What capacity am I reserving? You saying we’re only launching for India. Right. So India, see India is actually a very tricky market. I’m positive about the semaglutide launch. But I think it’ll be extremely competitive. I think my expectations are there going to be a lot of generics. Each guy, you know, see we are launching our own brand plus also we’re giving to two other people. So again, all the other guys also I think they’re launching their own brand. And there’s also some outlaws licensing business that’s happening. So it will be like a crowded. 1015 generic market and a lot of strategies involved in it, if you ask me. I think the next quarterly call I’ll give you an idea of how the. Uptake is and what I believe the market will entail and capacity because at this time it’s very early, my friend. Because there are a lot of permutation. Combinations like you know that Manjaro is doing better than some are gluted in the Indian market. But obviously with the lower price, obviously there’ll be some uptake. And so I think once we’re in the market we will have, I think. For our, you know, when we do the main, the March annual audited numbers. In May, I think I would, I think, I think I can shed better light right now. I’m even actually, you know, we need little more time to give you a little more clarity on guidance on how to how things are going to play out.
Unidentified Participant
But regarding the capacity reserved with one source, is that shareable?
Rajeev Nannapaneni
No, my friend, I can’t because it’s very difficult actually. I have no idea what the demand is going to be. So once we have a demand clarity and seeing how the market formation plays out, I think I’ll give you more. Color on how I think the things will play out.
Unidentified Participant
Okay, understood. Thank you.
Rajeev Nannapaneni
Right. Okay.
Rajeev Nannapaneni
Thank you so much. Next caller please.
operator
Thank you. The next question is from the line of Mr. Rishikesh Patoli from BNK Securities. Please go ahead.
Hrishikesh Patole
Hi, Audio. I’m audible.
Rajeev Nannapaneni
Yeah.
Hrishikesh Patole
Yes, quickly. Our other expenses have declined sequentially as Yoyo we had earlier highlighted in previous calls that in the post development era we will be probably curtailing some cost and R D if at all. So I mean what’s the major chunk that has gone away and will this be like the likely a trend going forward quarterly on a quarterly basis?
Rajeev Nannapaneni
I think, you know, a lot of the R and D budget in terms of allocation and all was done in the September quarter, a lot of projects because we knew that there’ll be a decline in revenue. So a lot of the allocations were done for the next 12 months in September. So I think that kind of a. Lot of the R and D for. The next few months is covered already for most part. Obviously there’ll be some incidental expenditure and I think one time bonuses that we wanted to give. They’re all done with September because we anticipated decline in the earnings. So a lot of things, I mean we’ve been waiting for this moment for almost four years. So we’ve been preparing for this new cost structure and R and D budget. Yes, but we have re. I mean we’re still continuing our strategy of doing complex generics. I don’t want to back down doing projects. So we continue to invest. I think there’s enough surplus and the guidances that we’re giving on surpluses are based on after accounting for the R and D expenditure that we intend to spend.
Hrishikesh Patole
Thank you for that. And quickly on our Tennessee and Seal Engine pipeline. So can you just throw on the two, three names that we have in the pipeline and the progress as of now?
Rajeev Nannapaneni
Yeah, sure. I think there are four ideas that. We have that we. Five ideas we have put on the presentation. I think the most exciting one if you ask me personally is E Genesis. So E Genesis is doing extremely well. As you know, I’m interested in public domain. So they have dosed one patient, what do you call it, they have transplanted one kidney for one particular patient and then they had to remove it after six months. But another patient doing extremely well and they’re trying to extend it to multiple patients. So I think that trial is going extremely well. We are very excited about this investment and we believe that the trial goes well. So would be a multi blogger among the portfolio that we have. So I think this is probably the most exciting one of the five ideas that we had. Thanks.
Hrishikesh Patole
Yeah, thanks. Thanks for the update.
operator
Thank you. The next question is from the line of Nitin Gandhi from InnoQuest Advisors Ltd. Please go ahead.
Nitin Gandhi
Yeah, just continuing the same question in different way that where do you see like in three to five years this E Genesis potential or the second best idea which can come across within next three to five years. All five are unlikely to rectify in three years. So if you can share some time frame within which each of them can rectify what could be another and some quantification if you can share over three to five years need not be one year or so.
Rajeev Nannapaneni
I think. See, see I think we always wanted. An exposure for nce. I think you know, this is something that all Indian companies want to do. And I always was very keen on doing it. But what happened is our balance sheet and our bandwidth in the system is never strong. So that I always felt okay, the best, next best way of participating in the NCE pipeline is by through investments. And this is probably the biggest investment. We have made among NC ideas. This is US$8 million. See this technology is called CRISPR CRISPR Cas9 technology. What they do is they do a genetic modification of the pig and which makes it more likely that the humans will accept the kidney. You can do for kidney, you can do for heart, you can do for liver. This is probably the most disruptive thing that’s going to happen in medicine. But these are all very high risk ideas. I just want to let the investors. Know that it is a high risk. Idea but if it works it’s truly disruptive. I mean we all know people who always have challenges with kidney and liver and who want a transplant and if this works practically you could use a pig kidney and transform to transplant to humans. If you ask me, this is the. Idea of the decade. I mean easily the idea of the decade. And as investors of natco you’re getting a see through of one of these ideas and we invested at very early stage, at a very early modest valuation. So I’m actually very bullish about this idea and I think if it reaches a stage where we’re able to demonstrate let’s say about 25, 30 patients, I think you have a home run and. Which will play out in my personal. View in the next two, three years. So basically you have to transplant the kidney or whatever organ you’re trying to do and see how the patient does over a period of one year, 12 months, one year or 15 months or 18 months. And we’ve seen one patient was done well for at least six months which is probably the longest in the world. So I think the second patient is. Also doing very well. So, so I think, I think we’re in good place. I I’m actually very excited so we’ll see how things go.
Nitin Gandhi
And I like sorry but if you can share something on like say they almost like one leg death for kidney transflation Spain is the highest where something is going wrong and levocide living maybe 50% what about rest which and how adoption could trigger if it’s based on some analysis or some sensitivity or what could be the factor to start the adaptation.
Rajeev Nannapaneni
I understand the exception because Spain has a very active program where you know they there’s a lot of cadaver transplant but culturally a lot of countries don’t allow it. No, a lot of countries it’s very. Difficult to get organs. I mean Spain is a super exception. But if you look at, even you look at India for example for a moment. So how many people are willing to. Give their kidney and liver away when somebody passes away? Practically none. Right. And how big is the market for kidney and liver? Is huge. And if you get a breakthrough, I mean the potential is enormous. And so the company has a great platform and so I think the potential is enormous. But these ideas are all. You just have to have the risk appetite and wait. And I think if something good happens, I think it will be very exciting. But I think my feeling is the potential is large and you just have to show the data that patients are doing well. So then I think it will be pretty interesting.
Nitin Gandhi
Yeah. Wish you all the best to keep cost sub 10k.
Rajeev Nannapaneni
Yeah, thank you. Thank you. Next call.
operator
Thank you. The next question is from the line of Ankush Malhotra, an individual investor. Please go ahead.
Unidentified Participant
Good afternoon sir. The recent exchange filing, there was a update regarding the approvals for this add. Up itnib from us. So what is the significance of this approval for this molecule from the business. Perspective.
Rajeev Nannapaneni
The litigation is still ongoing. So it’s a pair of four and it’s a 60 million dollar product. So it’s not a very large product. We just announced it because we are the first generic which got approved. I think that was $60 million.
Unidentified Participant
Just on the timeline perspective sir, as how when we can see this product launch. Any tentative idea?
Rajeev Nannapaneni
No, no, it’s too preliminary at this time. The paraphore litigation is still ongoing. I think it’s very premature to talk about the launches. I think our investor presentation has a list of all the paraphores that we have. So I think at this time it’s very difficult to judge the timelines. But, but we do have multiple launches over a period of time. So I think if you look at. Our pipeline we have things going starting from 2026 till 2035. So I can’t name which molecule when. And some of them we have settlements and some of them we are still litigating. But I think all these launches will. Play out in the next eight to nine years. So I think that’s where the excitement is. And I think some of them are sole FTFs and some of them are shared FTFs. So even if some of them come. Through, I think we’re looking at a very, very interesting situation.
Unidentified Participant
Okay, thank you. Thank you.
operator
Thank you. The next question is from the line of Rahul Chowdhury, our individual investor. Please go ahead.
Unidentified Participant
Sir. I have a marketing suggestion on a lighter note. Now that we are going to be launching the generic Ozempic and Wegovy and we have around 4 lakh retail shareholders. Plus maybe you can also think about sending a hard copy of annual report with some discount for you know, captive customers. It’s a 150crore idea. If it’s just, just on an idea.
Rajeev Nannapaneni
I should send an annual report hard copy. Our annual report. Okay.
Unidentified Participant
Yeah, yeah. Because the mass market producer.
Rajeev Nannapaneni
I understand. We will sell it at a such a discount that you will be, will be happy. Not only for shareholders, for everyone. Yeah. For the whole Raja community.
Unidentified Participant
Okay, sir.
Rajeev Nannapaneni
Certainly. Okay, thanks. Thank you. Good, good marketing idea. Thank you.
operator
Thank you. The next question is from the line of Mihir Desai from Desai Investments. Please go ahead.
Mihir Desai
Thank you. Thank you for the opportunity, sir. So firstly I wanted to ask you like if there is an opportunity which comes up for a large acquisition, would you be comfortable to take debt or you would go through a route of fundraise through capital markets.
Rajeev Nannapaneni
I’m not a big fan of debt, you’re aware of that. But I would make the judgment closer to the time. I think right now we have enough cash so we don’t need any money from public market. But if the acquisition is large enough. Then maybe we’ll look at it generally. If I do it also, I’ll mix it up with some debt and some. Equity and some cash flow. I think we’ll do a mix of all three. Ask me point blank. Right now the answer is we’re not going to raise any capital. But if something happens. Yes, I will change my mind shopping. But if something happens. Yeah, certainly, I think we’ll consider that.
Mihir Desai
So follow up on this. Do you see any lucrative acquisitions coming up or in pipeline?
Rajeev Nannapaneni
Yes, I do. I personally do. I think a lot of the opportunities. Are there, especially outside India. There are a lot of opportunities with. Very reasonable return on capital. So compared to India, I think there are better opportunities outside India. Just that you have to have the. Leap of faith and take that currency risk and take the, you know, the risk of being outside our geography and whatever comes with the political risk or you know, whatever you want to call it, exchange risk, political risk, and so on and so forth. But I think the returns outside India. Are much better than India. I think that that has always been my take and I mean obviously I’ve been against the grain in the conventional thinking that people have. I think people have been more comfortable doing acquisitions within India because it’s a more certain environment and, you know, the. Variables are more controllable. But having said that, I believe that going out, the return is much higher. I think that’s my personal position.
Mihir Desai
Okay, yeah. So lastly, my. Lastly, I wanted to ask on the vision, like, if you can throw some roadmap of, say, five to 10 years down the line and is there a figure in your mind which you can give a ballpark, say, 10,000 kind of crore of turnover or something of that sort?
Rajeev Nannapaneni
I think, you know, so we have. What we have done is, you know, this year, I think we’re more or less going to meet the guidance. I think we should do about 4200 to 4300. 4300 crores is what my expectation is going forward. I mean, obviously we want to increase our shareholding in Adcock, but obviously subject to Bidvest willing to consider our request. So we have that in the shareholding. So that is obviously a quick way to get to Your number of 10,000 crores if that were to happen. But at this time, Bitwest has not shown interest in selling their shares. But the agreement allows us to increase in the event they are interested in diluting their shareholders. But at this time I want to clarify that they’re not shown. Interesting. So, you know, that is one possibility. Of getting to the number that you just said. Another is you probably have to do a very large transaction again, because the. Way our business is today organically can. Only grow so much. Incumbent share in generics is very difficult. To. Snatch away from the incumbent because. Everybody has their own supply chain, everybody. Has their share, nobody gives up share. And you want to disrupt and get that share, you have to do something very disruptive on pricing, which again destroys the value for everyone. So the only way you can achieve that scale, you just said it has to be in combination with the pipeline and an M and a common. An M and A has to be either supplementing what you’re doing in your. Portfolio or adding a new geography. That’s the only way. And do I have such a number in mind? Of course we have this number in mind. I’m totally aware of it. But. But that’s the only way. I think without M and A, you will not get there. Simple answer. Organically, you’ll get you to a certain point. But. But you need to do M and A for sure.
Mihir Desai
Understood. And as the world like there is a buzz in the industry, you know, people are moving towards pet care and stuff. So do you have an opportunity to explore that market or how do you look at that? Market sir.
Rajeev Nannapaneni
I have not looked at pet care. I’ll be honest with you. We have not looked at pet care. I think our focus has been only to expand our geographical footprint. I think we have been always very US and India focused and we have. Not been present in other countries. So very deliberately I think last four. Or five years we have built a. Geographical footprint with our own subsidiaries in multiple countries. And so now I think we have. Reasonable presence in Canada and U.S. now we have our own front end, Brazil, we have a very good presence and then obviously South Africa through adcorp. So I think we’re trying to build geographical expansion. I think there’s more value to our portfolio than we are getting and I think the value can be expanded by adding geographies. And one biggest market that we are. Not, we are not present in is Europe, especially western Europe. So that’s a lot of guys are present in that and that’s a market that we are not clearly present. So there’s still a lot of scope for our portfolio in multiple geographies. So I think. Let me exhaust that and I think. We’Ll probably come to a different segment. But I think the oncology portfolio has a lot of scope. So I feel that all the best oncology products for the next 10 years non biotech we have it in our pipeline and I think there are enough dossiers in the pipeline. So I feel that we are well placed to exploit that.
Mihir Desai
Okay, sure. Thank you. Thank you for taking my question, sir.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone one. The next question is on the line of Abdul Kader from ICICI Securities. Please go ahead.
Abdulkader Puranwala
Yeah, thank you for the opportunity. This year.
Rajeev Nannapaneni
I think so I. Based on how things are going, I think nine months if I look at my numbers right now we did 3,559 crores of revenue. So we anticipate, I think we’ll maintain. I think the similar sort of revenue around 720, 700/700 to 750. I think that’s what my expectation for this quarter is. So if you add the 750 to. The 3500 so it’s about. Yeah, 4300 is what our expectations. I think that’s where things are going at this time. Yeah.
Abdulkader Puranwala
So. Okay, okay, Understood, understood.
Rajeev Nannapaneni
Also I think Pat, also I think we are at 1111, almost 1150 crores for nine months. So we’ll end with I think around. 1280 to 1300 crores is what I expect.
Abdulkader Puranwala
Understood. Understood. And so from India this quarter you had, you know, a decent, decent growth in that particular segment. So what is strong revenues in India?
Rajeev Nannapaneni
I think India will be primarily driven by semaglu. I think if I understood you correctly. Your voice was not, not so clear. But your, your question is, you know, what will drive India revenue the next 12 months? Is that the question? If you, I may paraphrase that.
Abdulkader Puranwala
Yes sir.
Rajeev Nannapaneni
Abdul on the India. Okay, so yeah, so I think what. From what I understood from your question, I think what’s going to drive India revenue? I mean we have our oncology pipeline that we’re launching but obviously not large ones. The biggest one will be semaglutide. I think because our business is small, our domestic business is not very large. I think it’s, we’re doing analyze around 450, 460 crore. So I think any bump on semaglutide will more than, you know, help us go grow around 20%. So I think our internal target is that our domestic business should grow more. Than 20% this year because of semaglutide. And the bump is primarily coming because of semaglutide. So a lot of our expectation of. Domestic growth is coming from semaglutide.
Abdulkader Puranwala
Understood. Okay, thank you.
Rajeev Nannapaneni
Oh.
operator
Thank you. Participants who wish to ask a question may Press Star and 1. The next question is on the line of Marut Saha, an individual investor. Please go ahead.
Unidentified Participant
Hello. Am I audible?
operator
Yes sir.
Rajeev Nannapaneni
Yeah.
Unidentified Participant
My one single question is will. There be any rev limit in this. Quarter, the running quarter?
Rajeev Nannapaneni
I have not budgeted anything at this time because it’s very difficult to judge. So I think we had very little revlimit the last quarter. Practically zero yet some amount but nothing significant. We’ve not budgeted a heavy amount of revlimit this quarter because it’s very tough. To judge how the market is going to be. So I’ve not budgeted anything. And whatever guidance we’ve given for Pat. This quarter which is around 150 crores, it doesn’t assume much from development. Okay.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from the line of Abhigan Srivastava from Asilius investment managers. Please go ahead.
Unidentified Participant
Hi Sudesh. Am I audible?
Rajeev Nannapaneni
Yeah, go ahead.
Unidentified Participant
Yeah. I just wanted to learn about. The launch timelines particularly for Ola parent. Do we have any information on that?
Rajeev Nannapaneni
We’re awaiting tentative approvals. So that is one milestone we need to achieve. The second milestone is we are still litigating the product so we don’t have any Timelines at this time. So at this time I can’t answer that question. But I think we’ll have clarity in. The next few months. But as of now, no, I don’t have any time.
Unidentified Participant
Got it. Okay, that’s all.
operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is from the line of Dr. Kartik Ban from Bajaj Life. Please go ahead.
Unidentified Participant
Thank you very much for the opportunity. I would like to know how many misses do we have on field for semaglutide in India and what would be the strategy? How many do we actually require?
Rajeev Nannapaneni
So we have a total Mr. Strength is about 600 and for semaglutide I think we allocated about 350 people to promote. 350 to 400 people. So we’re covering endocrinologists, specialists and then. We’Re covering consulting physicians. So I think that should be adequate to cover. Are we covering like every doctor that is there in the group? No, probably not. I think we don’t have that level of field force but I think we’ll. Cover all the key opinion leaders and. The key stakeholders we’ll able to cover. So we should hopefully make a meaningful impact on our revenue. So based on the setup. Okay, and my second question for the AD cop, how much CAGR can we consider for the AD Cox revenue and the pattern? I think as of now I think the business has been flat. I think the historical numbers of Adcock have been there in public domain. So the numbers have been flat. But I think the value that we’re bringing for Adcock is the pipeline. I think we have our own oncology. Pipeline and we also have relationships with others. So we are, you know, and then GLP pipeline and then we’re talking about hiv. So we’re trying to sort of use our relationships and our own pipeline to strengthen Adcock’s pipeline and file these products. The benefit of Adcock in terms of. Growth of earnings, you’ll probably see it. In the next 18 to 24 months once these registrations start coming. So I think the real value will. See in two years from now. Right now we’ll be depending on Adcock’s based business for earnings. But I think Natco’s input and the. Value of that input you’ll probably see. Two years from today. I think that’s our expectation and I think over a period of time you’ll see value and also a geographical expanse. Right. So we are getting that, I think a lot of the, what it called feedback that we get from our shareholders is that our revenue and our profitability is so very concentrated. I think we have shown that in the last three, four years we have done a lot of work to sort of diversify our, what do you call, profit base. So now you’re seeing more diversified profit base and bring more stability in earnings. And in spite of not having any development, I think you have seen that the company has delivered pretty reasonable earnings. And I think we’re going to build from here.
And we have very good launches coming. Up in the US in the next 12 months. And also we have very good launches in Brazil also coming up the next 12 months. And now with the warning letter lifted from our facility, we anticipate a lot more approvals coming in and also a lot of launch is going to happen. So we see that from this base, I think we should compound comfortably the next two couple of years.
Unidentified Participant
Thank you very much.
operator
Thank you. The next question is a follow up question from Abhijyan Srivastava. Please go ahead.
Unidentified Participant
Hi sir, similar to my question that I asked previously. Do we have any idea on when. This patent expiry would take place for Ola Paris car Sil Somit. Car?
Rajeev Nannapaneni
We have a settlement in the U.S. so the settlement date is bound by confidentiality, so I can’t reveal that. But I can tell you that we. Have exclusivity on 60 milligram with shared exclusivity and on one strength, we have sole exclusivity. So I think that’s a position that we are in. The launch date and all. I can’t answer that question. But it’ll happen obviously in the next few years. The exact date will come back when we are closer to the market formation. And the other question was Olaparib Ola Parib. There are multiple patents going into the next seven, eight years. So we’re litigating all of them. It depends on either you have to. Win in trial or you have to get a settlement date, you know, something in the next few years. At this time it’s very premature to sort of speak about the US launch of all of that because we don’t have clarity yet. But I think over due course I think we’ll have some clarity.
Unidentified Participant
Got it? Got it. Okay. Yeah.
Rajeev Nannapaneni
Okay then. Thank you so much. Thank you. Next caller please.
operator
Thank you. The next question is from the line of Gaurav from Ambed Capital. Please go ahead.
Unidentified Participant
Yeah, hi. Thank you. Good evening. Can you call out the R and D spend for this quarter and the nine months for FY26.
Rajeev Nannapaneni
Just one second. Yeah, and let me just. Particularly our R and D spend is about 8% of sales. I think that’s the rough estimation. I think that’s, I think it’s around that exact number. I don’t have, but I have a rough percentage.
Unidentified Participant
So just, you know, this year we had some, you know, revenue from rev limit this year and that was 8%. So next year the absolute R and D spend, you expect that should continue to grow with these trials of phase two going on and more complex pipeline or you expect some moderation there?
Rajeev Nannapaneni
Yeah, I think we gonna, we can’t spend like we spend it in rev limit time. So I think there’s no doubt in that. I think we’re looking at two, three strategies. One is we are looking at. Some generics. We want to do it ourselves and because we have our own front end. And what we’re doing is for complex. Generics, we’re looking for partnerships so that we can split the R and D expenditure between a partner and ourselves. I don’t want to stop the momentum that we had in the last few years, but I would say that we will split the R and D expenditure. I think some. If we have a very interesting idea, we believe it is a strong paraphore, then we’ll probably go to a pattern and say, you know what, why don’t we just share the cost so that we can reduce the risk. Which has always been Natco’s original model. But now because we have become a bigger company, I’m doing more R and D on my own books.
But maybe we have to do a little more sharing. But I think the momentum and the train won’t stop. I think the motivation won’t stop. I think we just have to sort of, you know, recalibrate things and you know, probably do a little bit of sharing but should. But I think the momentum won’t.
Unidentified Participant
Okay, interesting. Oh, got it. So thank you for that. A couple of questions on sema, the QS and the India filing. So I think for Ozempic if I understand there were six NC minus one filings and for wegovy there were probably three day one filings. Now we have, you know, some strength or all strengths of Ozempic where govi, where we think we are the sole ftf. So is this as a result of a settlement? Have we got a TA within 30 months. Any, any clarity on that? What gives us confidence that we are a solar?
Rajeev Nannapaneni
We don’t. I think neither do we or any of our competitors have an approval with. FDA on semaglutide nobody has approval on semaglutide in 30 months. Certain strengths of both the products we have sole ftf. You’re right, absolutely right. And which is covering a significant part of it. Did we get approval in 30 months? The answer is no. I think first I think we have we are answering FDA queries and I think we need to answer them successfully. Do we have 180 days? I have no answer to that question but typically for complex products people give a little bit of leeway on the 180 days but having said that it’s premature to talk about it. I think one product we already settled. I think if I click I think Ozempic we already settled. I think wegovy will not settle. I think that’s where we are novel.
Unidentified Participant
Got it. Yeah. Thank you. All the best. I’ll join the. Thank you. Thank you.
operator
Thank you. The next question is from the line of Nitin Agarwal from Dam Capital. Please go ahead.
Nithin Agarwal
Thanks for taking the question Rajiv since you mentioned there’s not much of rev limit that you that you’ve seen in Q3 and your guidance for Q4 so is it fair to assume H2 is sort of more representative of base quarter for us recurring quarter for us going forward? I mean in terms of before the addition of new products?
Rajeev Nannapaneni
Absolutely. Yeah absolutely. Nitin everything is base. I think there’s no. So this is a base business and. From here we need to grow. Yes, absolutely. And any new launches that we get. Will be an increment on this as well.
Nithin Agarwal
That’s perfect. And secondly you mentioned that you know you expect a lot of launches in the US over the next 12 months. If you can give us some color on what kind of launches you thinking here.
Rajeev Nannapaneni
We have some anders of expecting approval in the next few months so those are non para for hey India’s. And which was marketing through our own front end so those we’re expecting in. Around April to June quarter we’re expecting to launch some of these older products. We are launching and we’re just waiting for one we’re waiting for FDA approval and one we are waiting for we are doing some manufacturing tweaking in terms of the equipment that’s the reason why the plan is deferred to April and we are expecting at least one of our first to files in the US shared FTF that we’re going to launch in the next few months. So that’s our expectation. Which one and all we can’t reveal but yeah one of our shared FTFs we’re going to launch in the next next financial year. So benefit of that you’ll see the next financial year, which I think will also add to the base earnings.
Nithin Agarwal
Okay. And secondly on the R D, have you filed any complex generics this year? So far.
Rajeev Nannapaneni
We are going to file. About four, five products we have filed. I think the total target is that. We’Re going to file about eight products. Of the ones that we don’t, we have. We didn’t get any. I can’t answer that we got any SOL FTX or shared ftx. Let me come back on that because we don’t have clarity on that yet. The really good one that we filed. Which was complex and hard to do, was probably Niraparip. So that was a good one we filed. We were not FtF. I think another beat us by a few months. So Niraparip is a cancer product for which you need to do what it called a patient buy. So I think that was a nice complex one. But yes, but we couldn’t get the ftf. Somebody else got an FTF ahead of us. So I think. So we’ll see. I think something will probably hit in the next 12 months.
Nithin Agarwal
And second one on the non US export markets. How should you broadly look at these markets? What kind of opportunities do you see in these markets? Brazil, Canada and some of the other emerging markets?
Rajeev Nannapaneni
I think you see the base earnings. I think a lot of it is coming from emerging markets and a lot. Of it has come from the Middle. East and Brazil if you look at most of our export revenue. So I think Brazil has some very good launches. We have very good approvals coming this year. I’m very bullish about our emerging market. And add that with our Adcock profit consolidation, I think our emerging market profit will drive the company’s growth. And even us also, we’re going to. See some very good launches and we’re very bullish about our US launches as well. So I think 150, 160 is the. Base and on that I believe in. 27 we’ll see a very strong growth and the guidance on the court and all I’ll give you. I think maybe closer in the May call once we finalized our audited numbers, but I feel very confident that we should go comfortably in the next couple of years.
Nithin Agarwal
Thank you so much.
Rajeev Nannapaneni
Thank you.
operator
Thank you. Last question is on the line of Rishikesh. Yes. Last question from BNK securities, please go ahead.
Hrishikesh Patole
Hi, I’m audible.
operator
Yes, sir.
Rajeev Nannapaneni
Yeah, yeah, please.
Hrishikesh Patole
Yeah. So quickly, what was the sales or subsidiary sales for 3Q and 9M.
Rajeev Nannapaneni
101 second. Yeah, let me. 177 crores out of the 705 crore subsidized sale was 177.
Hrishikesh Patole
And so my second question is can you provide a brief update or on your manufacturing plans to us? FDA status.
Rajeev Nannapaneni
We have four FDA plants. So Kotur was had a warning letter which got removed. So that, that got resolved. Maker Buddha also got an inspection this year and we got clearance for that. Chennai got inspected this year and we’re waiting for classification. We believe the observations are procedural in nature. We’re expecting clarity, the classification in the next 30, 40 days and Vizag formulation facility. I think we’ll get an inspection sometime this year. I think it’s been, it’s been due now. I think if I recollect it’s about. I think it’s been about three years. Since the last inspection happened. So two and a half, three years. I don’t recollect the exact date. So, so I think we expect to answer your question. Of the four, I think three got. Inspected in 2025, one has not been inspected and out of three that got inspected, two we got clearances and third, were anticipating clearances.
Hrishikesh Patole
Okay, thank you.
operator
Thank you.
Rajeev Nannapaneni
Last question please.
operator
Last follow up question is from the line of Gaurav from Ambit Capital. Please go ahead.
Unidentified Participant
Yeah, thank you. So sure. On your M and A, you know, you highlighted which areas you are looking for as per your M and A framework. What, what kind of, you know, valuation multiples, you know, are you generally comfortable paying just to, you know, help us factor in the terms of the size of acquisitions that may be coming? Because Adcock was, you know, relatively on the lower side of a bitter multiple. But going forward, you know, would, you know, any, any, you know, aspir framework, you know, are you able to share, you know, what kind of valuation multiples you’re comfortable with?
Rajeev Nannapaneni
It’s tough to judge, you judge a. Asset based on the, you know, the. Multiple and the growth potential. So it’s very difficult to ascribe a particular multiple. You can’t walk into a room and say, I want this particular multiple. So you have to take it by the case. I mean, I can’t answer your question directly. You take it by the case. Depending on the circumstance, the market and political issues and stability issues, currency risk, I think it is priced in that manner. So you had to keep an open mind. And now how are you going to finance it and then take it from there?
Unidentified Participant
And how much you want is now being recorded. It’s now being recorded. It’s now being recorded. It’s now being recorded. It’s now being recorded.
Rajeev Nannapaneni
I think that’s how we are looking. Yeah. So with this question, I complete our call today. First of all, let me thank everyone for all the good questions everybody’s asked. And that’s it.
Unidentified Participant
Thank you so much. Yeah.
Rajesh Chebiyam
Thank you all. Thank you all.
operator
Thank you, members of the management team. I think we can contact the call. Thank you, members of the management team. Ladies and gentlemen, on behalf of Batliwala and Karani securities Limit India Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.