Natco PharmaNSE:NATCOPHARM +2.34%89 Gross Margin % is 79.07% as of Mar. 2026, which is 7% above its 10-year median of 74.15. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 89/100 and a GF Value™ of ₹932.30 (Fairly Valued). The stock has 2 warning signs investors should review. Among 943 Drug Manufacturers companies, Natco Pharma ranks better than 94.8% on this metric.
The historical rank and industry rank for Natco Pharma's Gross Margin % or its related term are showing as below:
NSE:NATCOPHARM'
s Gross Margin % Range Over the Past 10 Years
Min: 64.04 Med: 74.15 Max: 84.43
Current: 83.07
During the past 13 years, the highestGross Margin % of Natco Pharma was 84.43%. The lowest was 64.04%. And the median was 74.15%.
NSE:NATCOPHARM's Gross Margin % is ranked better than 94.8% of 943
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs NSE:NATCOPHARM: 83.07
Natco Pharma had a gross margin of 79.07% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Natco Pharma was 6.50% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Natco Pharma had a gross margin of 79.07% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Natco Pharma Gross Margin % Related Terms
Natco Pharma Gross Margin % Historical Data
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The historical data trend for Natco Pharma's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:NATCOPHARM vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Natco Pharma Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Natco Pharma's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Natco Pharma (NSE:NATCOPHARM) has a Gross Margin % of 79.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Natco Pharma and its competitors. This is near median its historical median of 74.15. Over the past decade, Natco Pharma's Gross Margin % has ranged from 64.04 to 84.43. According to the industry distribution chart, Natco Pharma ranks #49 out of 943 companies in the Drug Manufacturers industry, placing it in the top 5.2%.
Is Natco Pharma's Gross Margin % too high?
Natco Pharma's current Gross Margin % of 79.07% is near median its 10-year median of 74.15. Over the past 10 years, this metric has ranged from a low of 64.04 to a high of 84.43. The Drug Manufacturers industry median Gross Margin % is 48.54. Natco Pharma's value of 79.07% is 62.9% above this industry median. Based on the distribution chart, Natco Pharma ranks #49 out of 943 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Natco Pharma has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #49 out of 943 companies for Gross Margin %. This places Natco Pharma in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.54. Natco Pharma's value of 79.07% is 62.9% above this benchmark. Historically, Natco Pharma's own Gross Margin % has ranged from 64.04 to 84.43 over the past decade. While the company's 10-year median is 74.15 vs. the industry median of 48.54, Natco Pharma has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 943 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Natco Pharma's current Gross Margin % of 79.07% is 62.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Natco Pharma and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current Gross Margin % is 79.07%, which is near median its own 10-year median of 74.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹932.30, compared to a current price of ₹984.10 — trading 5.6% above its estimated fair value. The current Gross Margin % is 79.07%, which is near median its 10-year median of 74.15 and 62.9% above the Drug Manufacturers industry median of 48.54. Natco Pharma's overall GF Score™ is 89/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Natco Pharma (NSE:NATCOPHARM), the current Gross Margin % is 79.07% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued.
The current stock price of ₹984.10 is trading 5.6% above its estimated GF Value™ of ₹932.30.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
Gross Margin %: 79.07% (near median its 10-year median of 74.15)
GF Value™: ₹932.30 vs. price of ₹984.10 (5.6% above fair value)
Industry Position: 62.9% above the Drug Manufacturers median (#49 of 943)
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
89GF Score
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