Natural Capsules Limited (NATCAPSUQ)
₹160.45 +2.26% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Natural Capsules' revenue was ₹48.7 Cr (+7.8% year on year, -16.7% on the previous quarter), and net profit ₹-5.7 Cr (a bigger loss than a year earlier); the operating margin was 2.3%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹48.7 | +7.8% | -16.7% |
| Operating profit | ₹1.1 | +250.8% | -15.8% |
| Net profit | ₹-5.7 | loss widened | loss widened |
| EPS (₹) | -5.55 | loss widened | loss widened |
| Operating margin | 2.3% | — | — |
📢 Recent Corporate Announcements
Natural Capsules Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended September 30, 2026. The certificate issued by Registrar & Share Transfer Agent Cameo Corporate Services Limited confirms that all securities received for dematerialisation were duly processed, mutilated, and cancelled. The depository's name was substituted as the registered owner within the stipulated timelines. This is a recurring regulatory compliance filing with no impact on business operations or financials.
- Compliance certificate submitted under Regulation 74(5) for the quarter ended September 30, 2026
- Certificate received from Registrar and Share Transfer Agent Cameo Corporate Services Limited dated October 05, 2026
- Confirmation that received certificates were mutilated, cancelled, and depositories updated within the stipulated time limit
Natural Capsules Limited announced that shareholders have approved two special resolutions at the Extraordinary General Meeting held on September 09, 2026. The resolutions cover the issuance of equity shares and convertible warrants on a preferential basis, both passing with over 99.99% approval. A total of 3,090,923 votes (99.994%) supported the share issuance, while 3,090,901 votes (99.993%) approved the convertible warrants. Specific issue sizing, pricing, and gross proceeds were not detailed in the Scrutinizer's report.
- Resolution 1 for preferential equity share issuance approved with 99.99408% votes in favour (3,090,923 votes)
- Resolution 2 for convertible warrant issuance approved with 99.99337% votes in favour (3,090,901 votes)
- A total of 37 members cast 3,091,106 valid votes across both resolutions
- Record date for voting eligibility was September 02, 2026
Natural Capsules Limited conducted its 1st Extraordinary General Meeting on September 09, 2026, seeking shareholder approval for capital raising via preferential allotment. The resolutions tabled included the issuance of equity shares and convertible warrants on a preferential basis. A total of 31 members attended the meeting via video conferencing, and final voting results under Regulation 44 will be disclosed upon receipt of the Scrutinizer's report. The capital infusion is significant as the company reported a TTM net loss of Rs -25 Cr on Rs 177 Cr revenue.
- EGM held on September 09, 2026, at 12:00 PM and concluded by 12:35 PM
- Quorum of 31 members attended the meeting through Video Conferencing
- Remote e-voting was conducted from September 4, 2026 (9:00 AM) to September 8, 2026 (5:00 PM)
- Special resolutions presented for preferential issue of equity shares and convertible warrants
Natural Capsules Limited has issued a corrigendum to its EGM notice for the meeting scheduled on September 9, 2026, revising the issue price and quantity for its proposed preferential issue following exchange queries and a fresh valuation report. The company plans to issue 1,12,500 equity shares (aggregating ₹2.00 Cr) and 4,50,000 convertible warrants (aggregating ₹8.01 Cr) at ₹178 per share/warrant to promoter Sunil Laxminarayan Mundra. Total capital infusion stands at ₹10.01 Cr (approx. 4.5% of current market cap), increasing total promoter holding from 50.92% to 53.44% on a fully diluted basis.
- Revised issue price set at ₹178 per share and warrant based on valuation report dated August 31, 2026.
- Issuance of 1,12,500 equity shares (₹2.00 Cr) and 4,50,000 convertible warrants (₹8.01 Cr), totaling ₹10.01 Cr.
- Allotment designated entirely to promoter Sunil Laxminarayan Mundra, increasing his stake from 5.79% to 10.61%.
- Total promoter group stake will increase from 50.92% to 53.44% post-dilution.
- EGM scheduled for September 09, 2026 with relevant pricing date fixed as August 10, 2026.
Natural Capsules' board approved a revised preferential issue to promoter Sunil L Mundra following queries from BSE and NSE. The issue comprises 1,12,500 equity shares at ₹178 each (raising ₹2.00 Cr) and 4,50,000 convertible warrants at ₹178 each (raising ₹8.01 Cr), totaling ₹10.01 Cr. Upon full conversion, the promoter's holding will increase from 5.79% to 10.61%. The issue is subject to shareholder approval at the EGM scheduled for September 9, 2026.
- Preferential issuance of 1,12,500 equity shares at ₹178 per share aggregating to ₹2,00,25,000
- Issuance of 4,50,000 convertible warrants at ₹178 per warrant aggregating to ₹8,01,00,000
- Total capital to be raised from promoter Sunil L Mundra is ₹10.01 Cr (~4.7% of ₹212 Cr market cap)
- Promoter shareholding of Sunil L. Mundra will increase from 5.79% (6,02,290 shares) to 10.61% (11,64,790 shares) post full conversion
- 25% upfront warrant subscription (₹44.50 per warrant) with an 18-month conversion window
Natural Capsules Limited has scheduled an Extraordinary General Meeting (EGM) on September 9, 2026. The company has fixed September 2, 2026, as the cut-off (record) date to establish shareholder voting eligibility. The filing is procedural and does not outline the specific agenda or resolutions to be considered at the EGM.
- Extraordinary General Meeting (EGM) scheduled for September 9, 2026
- Record / Cut-off date for voting eligibility fixed for September 2, 2026
- Filing submitted to BSE and NSE on August 18, 2026
Natural Capsules Limited has issued a notice for an Extraordinary General Meeting (EGM) on September 09, 2026, to approve preferential allotments. The company plans to issue 1,25,000 equity shares at ₹160.00 per share to promoter Sunil Laxminarayan Mundra, raising ₹2.00 crore, alongside convertible warrants. The issue price of ₹160.00 is at a premium to the current market price of ₹148.30. The fundraise quantum is modest, representing approximately 1.3% of the company's current market cap of ₹153 crore.
- Preferential allotment of 1,25,000 equity shares at ₹160.00 per share
- Total equity tranche fundraise size of ₹2.00 crore
- Allotment proposed entirely to promoter Sunil Laxminarayan Mundra
- EGM scheduled for September 09, 2026; relevant pricing date set as August 10, 2026
Natural Capsules Limited has announced the resignation of Mr. Pramod Kasat from his position as Independent Director of its material unlisted subsidiary, Natural Biogenex Private Limited, effective August 17, 2026. The resignation was tendered due to professional commitments, with no other material reasons cited. This subsidiary is critical to the company's API manufacturing initiatives and turnaround strategy.
- Mr. Pramod Kasat resigned as Independent Director of Natural Biogenex Private Limited effective August 17, 2026
- Natural Biogenex Private Limited is categorized as a Material Unlisted Subsidiary of Natural Capsules Limited
- Cessation is attributed strictly to professional commitments as per the resignation letter
- Intimation submitted under Regulation 30(9) of SEBI LODR Regulations, 2015
Natural Capsules Limited (NCL) reported a Q1 FY27 revenue of ₹48.71 Cr, an 8% YoY increase, though it remains loss-making with a PAT of ₹-5.74 Cr. The company is strategically converting HPMC capsule lines to gelatin due to erratic US demand and duty uncertainties to protect margins. The API segment is showing operational progress with the commencement of contract manufacturing for Fermbox Bio and gram-scale synthesis of Prednisolone. Management is targeting WHO GMP certification by Q2 FY27 to facilitate scaling of the API business, which currently requires significantly higher utilization to reach cash break-even.
- Q1 FY27 Revenue reached ₹48.71 Cr, representing approximately 28% of TTM revenue.
- EBITDA grew 251% YoY to ₹1.12 Cr, although margins remain thin at 2.30%.
- Total capsule capacity stands at 20.25 billion units per annum as of FY26.
- API division requires 25-30% utilization (approx. ₹100 Cr revenue) to reach cash break-even.
- Export revenue contributed 28.94% to the total turnover in FY26.
Natural Capsules reported Q1 FY27 revenue of Rs 48.71 Cr, a 25% YoY increase, though it remains loss-making with a PAT loss of Rs 5.74 Cr. The company is pivoting its HPMC capacity back to gelatin due to US market uncertainty and duty structures, converting one line immediately with another to follow. The API segment is showing operational progress with new contract manufacturing (CMO) agreements and the appointment of a new COO from Shilpa Medicare. A WHO GMP audit for the API facility is expected by the end of Q2 FY27, which is critical for scaling international sales.
- Revenue grew 25% YoY to Rs 48.71 Cr, representing approximately 28% of TTM revenue.
- EBITDA margins stood at 2.30%, a slight improvement of 159 bps YoY despite input cost pressures.
- ERP implementation at quarter-end resulted in 5 days of sales being deferred into Q2 FY27.
- API segment leadership strengthened with a new COO having 30+ years of industry experience.
- Conversion of HPMC lines to gelatin initiated to optimize capacity utilization amid erratic US demand.
Natural Capsules Limited (NCL) has appointed Mr. K. H. Honneshaiah as the Chief Operating Officer (COO) of its material unlisted subsidiary, Natural Biogenex Private Limited. This appointment is significant as the subsidiary manages the steroidal API facility, which currently requires a capacity utilization of 25-30% (approx. ₹100 cr revenue) to reach cash break-even. The new COO brings 36 years of experience in regulated API manufacturing and greenfield scaling, addressing a critical leadership need for a segment that has contributed to NCL's TTM net loss of ₹19 cr.
- Appointment of Mr. K. H. Honneshaiah as COO of Natural Biogenex Private Limited effective August 12, 2026
- New COO brings 36 years of experience in regulated API, Polymers, Peptides, and CDMO operations
- Subsidiary is central to NCL's target of achieving a ₹225 cr topline for FY26
- API division currently faces quarterly losses of ~₹10 cr due to low utilization levels
- Leadership change specifically targets the scaling of regulated pharma plants and greenfield capacity
Natural Capsules Limited (NCL) reported a consolidated net loss of ₹5.74 Cr for Q1 FY27, compared to a loss of ₹5.58 Cr in the same quarter last year. While revenue grew 7.7% YoY to ₹48.71 Cr, the API segment remains a significant drag, posting a loss of ₹8.04 Cr on revenue of just ₹5.69 Cr. To bolster the balance sheet, the board approved a ₹10 Cr fundraise through a preferential issue of equity and warrants to promoters at ₹160 per share, which is a slight premium to the current market price. This infusion represents approximately 6.2% of the company's current market capitalization.
- Consolidated revenue for Q1 FY27 stood at ₹48.71 Cr, up from ₹45.20 Cr in Q1 FY26.
- API segment reported a loss of ₹8.04 Cr, significantly impacting the consolidated bottom line.
- Promoter Sunil L Mundra to infuse ₹10 Cr via 1.25 lakh equity shares and 5 lakh warrants at ₹160/unit.
- Interest costs increased to ₹4.97 Cr in Q1 FY27 from ₹3.99 Cr in the year-ago period.
- Promoter shareholding of Sunil L Mundra expected to rise from 5.79% to 11.12% post-conversion.
Natural Capsules Limited (NCL) reported a consolidated net loss of Rs 5.74 Cr for Q1 FY27, largely unchanged from the Rs 5.58 Cr loss in the same quarter last year. While total revenue grew 7.7% YoY to Rs 48.71 Cr, the API segment remains a major drag with a quarterly loss of Rs 8.04 Cr. To address liquidity, the board approved a Rs 10 Cr preferential issue of equity and warrants to the promoter at Rs 160 per share, which is slightly above the current market price. High interest costs of Rs 4.97 Cr continue to erode the profits generated by the core capsule business.
- Consolidated net loss of Rs 5.74 Cr for Q1 FY27 vs a loss of Rs 5.58 Cr in Q1 FY26.
- API segment revenue grew to Rs 5.69 Cr from Rs 0.96 Cr YoY, but segment losses widened to Rs 8.04 Cr.
- Board approved a Rs 10 Cr fundraise through 1,25,000 equity shares and 5,00,000 warrants at Rs 160 each.
- Interest expenses rose to Rs 4.97 Cr for the quarter, up from Rs 3.99 Cr in the year-ago period.
- Promoter Sunil L Mundra's stake to potentially increase from 5.79% to 11.12% upon full warrant conversion.
Natural Capsules Limited (NCL) conducted its 33rd Annual General Meeting on August 12, 2026, to adopt the FY26 financial results, which reported a net loss of ₹19.69 Cr on revenue of ₹128.75 Cr. Shareholders voted on the re-appointment and remuneration revision of Whole-time Director Laxminarayan Moondra and approved related party transactions with the subsidiary, Natural Biogenex Private Limited. The company is currently facing financial pressure with a TTM OPM of only 0.9% and significant losses in the API segment. The meeting also addressed the remuneration of Shrey Mundra, General Manager of Marketing, as a related party transaction.
- 33rd Annual General Meeting held on August 12, 2026, with 34 members attending via video conferencing.
- Adoption of FY26 Audited Financial Statements showing a net loss of ₹19.69 Cr.
- Proposed revision of remuneration for Whole-time Director Laxminarayan Moondra for a 3-year term.
- Approval sought for Related Party Transactions with subsidiary Natural Biogenex Private Limited.
- Revision in remuneration for Shrey Mundra (GM Marketing), classified as a related party.
Natural Capsules Limited's material unlisted subsidiary, Natural Biogenex Private Limited, has completed the allotment of 9,46,305 equity shares via a rights issue. The total capital raised amounts to ₹94.63 Lakhs at a face value of ₹10 per share. This follows the board's initial approval on July 10, 2026. Given the subsidiary's role in the loss-making API segment, this small capital infusion is likely for routine operational liquidity.
- Allotment of 9,46,305 equity shares by subsidiary Natural Biogenex Private Limited.
- Total capital raised aggregates to ₹94,63,050 (approx. ₹0.95 Cr).
- Shares issued at par value of ₹10 per share for cash.
- Rights issue was previously approved by the subsidiary board on July 10, 2026.
Financial Performance
Revenue Growth by Segment
The capsule business remains the primary revenue driver, growing 11.11% YoY to Rs. 45.80 Cr in Q2 FY26. The API segment is in a nascent stage, contributing only Rs. 1.22 Cr in revenue for the same quarter. Overall H1 FY26 revenue reached Rs. 91.01 Cr, a 13.18% increase from Rs. 80.41 Cr in H1 FY25.
Geographic Revenue Split
Not disclosed in available documents; however, the company is focusing on increasing exports to regulated markets and international marquee pharma clients to enhance margins and stabilize the topline.
Profitability Margins
Profitability has been severely impacted by the API segment's slow ramp-up. The company reported a net loss of Rs. 6.99 Cr in Q2 FY26 compared to a loss of Rs. 0.61 Cr in Q2 FY25. H1 FY26 net loss widened to Rs. 12.57 Cr from a marginal loss of Rs. 0.01 Cr in H1 FY25.
EBITDA Margin
Consolidated EBITDA margin for Q2 FY26 was negative 1.93%, a sharp decline of 1286 bps from 10.93% in Q2 FY25. This was driven by an operating loss of Rs. 11.47 Cr in the API division, while the capsule division maintained margins between 11.5% and 12%.
Capital Expenditure
The company is incurring incremental capex of Rs. 10-12 Cr in its subsidiary, Natural Biogenex Private Limited (NBPL), for a Phase-2 fermenter in FY26. This follows significant historical investment in the steroidal API facility and HPMC capsule lines.
Credit Rating & Borrowing
ICRA downgraded NCL's ratings due to a weakened financial profile and slow API ramp-up. Total debt to operating profit deteriorated to 6.4 times as of March 31, 2025, compared to 2.8 times on March 31, 2023. The company has a consolidated debt repayment obligation of Rs. 10.5 Cr in FY26.
Operational Drivers
Raw Materials
Primary raw materials include Gelatin and HPMC (Hydroxypropyl Methylcellulose). Specific percentage of total cost for each is not disclosed, but pricing pressure in gelatin has significantly compressed margins.
Capacity Expansion
NCL has a current capsule capacity of 20 billion units. It is expanding its HPMC capacity with three new lines; one became operational in Q4 FY24, and the remaining two are expected by Q4 FY25. The API facility is also scaling up commercial production.
Raw Material Costs
Raw material costs are rising as a percentage of revenue due to pricing pressure in the gelatin capsules business, where realizations declined in FY24 and H1 FY25, leading to OPM falling from 19.9% in FY23 to 12.2% in FY24.
Manufacturing Efficiency
The API division requires a capacity utilization of 25-30% (approximately Rs. 100 Cr revenue) to achieve a cash break-even. Current utilization is significantly lower, contributing to quarterly losses of ~Rs. 10 Cr.
Strategic Growth
Expected Growth Rate
23-25%
Growth Strategy
Growth will be achieved by transitioning from low-end domestic customers to high-value international pharma clients, leveraging PLI scheme incentives for steroidal APIs, and operationalizing new HPMC capsule lines which command higher margins (16-18%).
Products & Services
Hard Gelatin Capsules, HPMC (Vegetarian) Capsules, and Steroidal Active Pharmaceutical Ingredients (APIs).
Brand Portfolio
Natural Capsules Limited (NCL), Natural Biogenex Private Limited (NBPL).
New Products/Services
New steroidal APIs and expanded HPMC capsule variants are expected to be the primary contributors to the targeted Rs. 225 Cr topline for FY26.
Market Expansion
Focusing on regulated markets and marquee pharma clients globally to reduce margin volatility and increase the share of high-value exports.
Market Share & Ranking
NCL holds a 20 billion unit capacity, which is approximately 10% of the 200 billion unit Indian capsule market.
Strategic Alliances
The company has a shareholding agreement with Somerset Indus Healthcare Fund II & Somerset Indus Healthcare India Fund.
External Factors
Industry Trends
The industry is shifting toward vegetarian HPMC capsules and domestic API manufacturing. NCL is positioning itself as a dominant player in the domestic steroidal API market to capitalize on the PLI scheme and a 1.3 trillion unit global capsule market.
Competitive Landscape
NCL competes in a fragmented global market of 1.3 trillion capsules, facing pressure from both large-scale global manufacturers and domestic pricing competition in the gelatin segment.
Competitive Moat
The moat is built on technical capabilities in HPMC manufacturing and complex steroidal API processes. These are sustainable due to high regulatory hurdles and the R&D intensity required to scale from lab to commercial production.
Macro Economic Sensitivity
Highly sensitive to global trade policies and tariffs, which directly impacted the company's ability to meet its original FY26 revenue guidance of Rs. 270-280 Cr.
Consumer Behavior
There is an increasing global consumer preference for vegetarian (HPMC) capsules over traditional gelatin-based products, driving NCL's capacity shift.
Geopolitical Risks
Tariffs and shifting regulatory environments in international geographies continue to shape trade flows and business momentum for the capsule export business.
Regulatory & Governance
Industry Regulations
Operations are governed by the PLI scheme for APIs, Pollution Control Board norms, and manufacturing standards required for regulated pharma markets.
Environmental Compliance
The API facility obtained Consent for Operation (CFO) from the Karnataka State Pollution Control Board on January 13, 2025. Specific ESG costs are not disclosed.
Legal Contingencies
The company reports no pending litigations that would impact its financial position other than items disclosed under Note No. 45; the specific value of these items is not disclosed.
Risk Analysis
Key Uncertainties
The primary risk is the slow ramp-up of the API facility (NBPL), which currently generates a quarterly loss of ~Rs. 11.47 Cr. Technical hurdles in scaling production could impact FY26 revenue by up to 17% relative to original guidance.
Geographic Concentration Risk
Not disclosed, though there is a stated intent to shift more volume toward international exports.
Technology Obsolescence Risk
Risks associated with the scale-up of advanced chemical processes from lab to commercial levels; failure to resolve these could lead to sustained cash losses.
