Natco PharmaNSE:NATCOPHARM +1.28%89 Net Margin % is 36.25% as of Mar. 2026, which is 25% above its 10-year median of 28.89. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 89/100 and a GF Value™ of ₹938.21 (Fairly Valued). The stock has 2 warning signs investors should review. Among 954 Drug Manufacturers companies, Natco Pharma ranks better than 96.12% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Natco Pharma's Net Income for the
three
months ended in Mar. 2026 was ₹2,679 Mil. Natco Pharma's Revenue for the
three
months ended in Mar. 2026 was ₹7,391 Mil. Therefore, Natco Pharma's net margin for the quarter that ended in Mar. 2026 was 36.25%.
The historical rank and industry rank for Natco Pharma's Net Margin % or its related term are showing as below:
NSE:NATCOPHARM'
s Net Margin % Range Over the Past 10 Years
Min: 8.92 Med: 28.89 Max: 42.56
Current: 34.78
NSE:NATCOPHARM's Net Margin % is ranked better than 96.12% of 954
companies
in the Drug Manufacturers industry
Industry Median: 5.695
vs NSE:NATCOPHARM: 34.78
Natco Pharma (NSE:NATCOPHARM) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Natco Pharma Net Margin % Related Terms
Natco Pharma Net Margin % Historical Data
* Premium members only.
The historical data trend for Natco Pharma's Net 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: Net Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's Net Margin % distribution charts can be found below:
* The bar in red indicates where Natco Pharma's Net 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.
Natco Pharma (NSE:NATCOPHARM) has a Net Margin % of 36.25% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Natco Pharma and its competitors. This is 25% above median its historical median of 28.89. Over the past decade, Natco Pharma's Net Margin % has ranged from 8.92 to 42.56. According to the industry distribution chart, Natco Pharma ranks #37 out of 954 companies in the Drug Manufacturers industry, placing it in the top 3.9%.
Is Natco Pharma's Net Margin % too high?
Natco Pharma's current Net Margin % of 36.25% is 25% above median its 10-year median of 28.89. Over the past 10 years, this metric has ranged from a low of 8.92 to a high of 42.56. The Drug Manufacturers industry median Net Margin % is 5.70. Natco Pharma's value of 36.25% is 536.5% above this industry median. Based on the distribution chart, Natco Pharma ranks #37 out of 954 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 Net Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #37 out of 954 companies for Net Margin %. This places Natco Pharma in the top 4% of its industry — outperforming the majority of peers. The industry median Net Margin % is 5.70. Natco Pharma's value of 36.25% is 536.5% above this benchmark. Historically, Natco Pharma's own Net Margin % has ranged from 8.92 to 42.56 over the past decade. While the company's 10-year median is 28.89 vs. the industry median of 5.70, 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 Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.70, based on 954 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Natco Pharma's current Net Margin % of 36.25% is 536.5% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Natco Pharma and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current Net Margin % is 36.25%, which is 25% above median its own 10-year median of 28.89. 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 ₹938.21, compared to a current price of ₹931.30 — trading 0.7% below its estimated fair value. The current Net Margin % is 36.25%, which is 25% above median its 10-year median of 28.89 and 536.5% above the Drug Manufacturers industry median of 5.70. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Natco Pharma (NSE:NATCOPHARM), the current Net Margin % is 36.25% 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 undervalued.
The current stock price of ₹931.30 is trading 0.7% below its estimated GF Value™ of ₹938.21.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
Net Margin %: 36.25% (25% above median its 10-year median of 28.89)
GF Value™: ₹938.21 vs. price of ₹931.30 (0.7% below fair value)
Industry Position: 536.5% above the Drug Manufacturers median (#37 of 954)
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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