Financial Highlights for Quarter Ended June 30, 2026
Revenue: ₹48.71 crore (decline of 17% year-over-year, 8% quarter-over-quarter)
EBITDA: ₹1.12 crore (decline of 16% year-over-year, 251% quarter-over-quarter)
EBITDA Margin: 2.30% (improved by 2 basis points quarter-over-quarter, declined by 159 basis points year-over-year)
PAT: Net loss of ₹5.74 crore (decline of 15% year-over-year, 3% quarter-over-quarter)
Management Commentary by Mr. Sunil Mundra, Executive Director
Capsules Business Performance: Q1FY27 was a strong operational quarter, though numbers are not directly comparable to preceding quarter which benefited from dispatch of deferred inventory following Puducherry plant shutdown. The business delivered healthy underlying performance with sustained demand across capsule products and improvement in realisations. Company successfully navigated input cost increases through timely pass-throughs to customers. Gelatine capsules business delivered healthy margins.
Operational Impacts: Implementation of new ERP system towards quarter close caused brief disruption to billing and dispatch cycle, with sales from final five days of Q1 pushed into Q2. Absent this impact, reported revenue would have been modestly higher. Depreciation of rupee during quarter provided meaningful tailwind to export realisations.
HPMC Segment: Demand environment in US market remained erratic with continued uncertainty around duty structures. With no material US export volumes during quarter, company temporarily converted one HPMC line to gelatine line to optimise capacity utilisation and protect profitability. Second HPMC line expected to be similarly converted in coming month.
API Business: Q1FY27 presented mixed results with geopolitical uncertainty weighing on operations. Appreciation of Chinese yuan and depreciation of Indian rupee created headwinds for African export business routed through merchant exporters, moderating volumes.
Strategic Progress: First batch under contract manufacturing agreement with Fermbox Bio commenced in August. Executed new contract manufacturing agreement with Mumbai-based client. Successfully completed prednisolone synthesis at gram-scale batches. Expect to produce first fully backward-integrated prednisolone batch by end of September. Transitioned one fermentation step to enzymatic route, resulting in meaningfully improved yields and cost optimisation.
Regulatory Update: WHO GMP application process initiated, expected audit by end of Q2FY27.
Leadership Appointment: Appointed Chief Operating Officer for API business with over 30 years industry experience, including prior stint at Shilpa Medicare.
Outlook
Demand trends remain firm into Q2FY27. Company confident of sustained performance in capsules business through financial year. Priorities include scaling API volumes, sustaining capsules business profitability, and progressing critical regulatory milestones.
Company Background
Natural Capsules Limited is a hard capsule shell manufacturer that pioneered vegetarian capsules in India and is the second largest Indian manufacturer for gelatin capsules. Incorporated as Public Limited Company in 1993 at Bangalore, expanded to Pondicherry in 2003. Now foraying into API manufacturing through subsidiary Natural Biogenex Private Limited.