Natural Capsules Limited — PPTs, 05-08-2025: Investor Presentation

Here is the financial summary:

**Financial Highlights:**

NCL reported Q1FY26 consolidated revenue of ₹45.20 Cr (+15.36% YoY). Profitability declined sharply, with EBITDA at ₹0.32 Cr (-92.69% YoY) and a net loss of ₹5.58 Cr, largely due to expenses from the new API facility. Management anticipates improved profitability as API revenues ramp up and gelatin prices moderate.

**Strategic Initiatives & Growth Drivers:**

NCL plans two new HPMC production lines, leveraging strong demand from US duties on Chinese HPMC. The company targets API facility cash breakeven in its first year, scaling capacity by Q2. Expected Production Linked Incentive (PLI) amounting to ~₹67 Cr over six years significantly de-risk API investments.

**Business Developments:**

NCL's API subsidiary, Natural Biogenex Private Limited, commenced commercial production for large-volume batches in March 2025. The US imposing an 88% duty on Chinese HPMC capsules is a key development, greatly benefiting Indian manufacturers like NCL (14% duty).

**Market Position & Competitive Advantage:**

NCL pioneered vegetarian capsules in India and is the second-largest gelatin capsule manufacturer. Its API foray positions it as India's sole backward-integrated manufacturer for key steroidal products (Dexamethasone, Betamethasone) and one of two for Prednisolone under PLI.

**Investor Implications:**

Despite Q1FY26 profitability impacted by new API costs, NCL's strategic expansions in HPMC and API, coupled with favorable market shifts (US duties) and PLI, indicate positive growth potential. Monitoring API revenue ramp-up and cash breakeven is crucial.