Natural Capsules Limited — PPTs, 31-05-2025: Investor Presentation

1. Financial Highlights:

Natural Capsules posted consolidated revenue of ₹44.97 Cr in Q4FY25, up 11.8% YoY and 2.6% QoQ. EBITDA margin held steady at 9.74%, with EBITDA of ₹4.38 Cr. PAT declined 46% YoY to ₹0.52 Cr but improved sharply QoQ. For FY25, revenues grew 8.9% YoY to ₹169.21 Cr, while EBITDA margins compressed to 10.35%. Net worth rose steadily to ₹257.16 Cr with total assets at ₹419.35 Cr. Capacity utilization remains high at ~94% despite capacity expansion to 19.5 BCPA.

2. Strategic Initiatives & Growth Drivers:

A new HPMC capsule line was commissioned, boosting capacity from 18.75 to 19.5 BCPA. The company is focusing on increased sales in regulated markets, capitalizing on strong export demand and higher US duties on Chinese HPMC capsules. API operations are scaling with a greenfield Tumkur facility for steroidal APIs aimed at import substitution and government incentives, targeting cash breakeven from Q1 FY26.

3. Business Developments:

Commercial production has begun for steroidal APIs including Dexamethasone, Betamethasone, and Prednisolone, positioning the company as the only domestic manufacturer for these key products. API subsidiary Natural Biogenex is developing WHO, USFDA, and EU GMP-compliant facilities with zero liquid discharge. R&D has yielded patents and proprietary fermentation technologies enhancing yields and cost-efficiency.

4. Market Position & Competitive Advantage:

Natural Capsules is India’s second-largest gelatin capsule maker and a pioneer in vegetarian capsules. Its leadership rests on advanced manufacturing and integrated API production, enabling better cost control and supply reliability. The company exports to 28 countries, maintaining strong positions in regulated markets with established customer ties in Africa and North America.

5. Investor Implications:

Capacity expansion, growth in the high-margin HPMC segment, and backward integration into steroidal APIs backed by government support signal positive growth potential. Key value drivers include scaling API operations and upcoming regulatory approvals, though execution risk in facility scaling and market expansion exists. Investors should monitor margin trends driven by raw material costs and new API sales from FY26 onwards.