Synopsis: Natco Pharma Ltd (NSE: NATCOPHARM) shares surged over 11% to reach ₹918 on February 16, 2026, following the CDSCO approval to manufacture and market generic Semaglutide injection in India. The breakout was fueled by a massive 6.4x spike in trading volume and positive Q3 FY26 results showing a 14.3% YoY profit jump to ₹151.3 Crore. With a planned commercial launch in March 2026, Natco is positioned to disrupt the high-growth diabetes and obesity market.
On Monday, February 16, 2026, shares of Natco Pharma Ltd emerged as a top gainer on the BSE, skyrocketing 11.7% to trade at ₹918. This aggressive breakout follows a regulatory filing over the weekend confirming that the company has received the green light from the Central Drugs Standard Control Organisation (CDSCO) for generic Semaglutide. The stock’s rally effectively reverses recent technical weakness, as investors aggressively price in the first-mover advantage in the multi-billion dollar GLP-1 receptor agonist market in India.
The buying frenzy was supported by an extraordinary 6.4x jump in trading volume, with over 43.9 Lakh shares changing hands in the first half of the session. This massive liquidity spike indicates strong institutional interest as the Hyderabad-based drugmaker transitions from a complex generic exporter to a major player in the domestic “lifestyle disease” segment.
Why is Natco Pharma stock rising today?
The primary driver is the approval for generic Semaglutide, the active ingredient in blockbuster drugs like Ozempic and Wegovy. Natco has announced a March 2026 launch for the injection, targeting adults with type 2 diabetes. By manufacturing the product locally and outsourcing the fill-finish process, Natco aims to offer a significantly more affordable alternative to the Aam Aadmi, potentially capturing a massive share of the Indian metabolic health market.
Further boosting sentiment are the Q3 FY26 financial results. The company reported a consolidated Net Profit of ₹151.3 Crore, up 14.3% YoY, while Revenue from Operations surged 36.3% to reach ₹647.3 Crore. Despite a sequential decline in export revenue, the robust 30.7% EBITDA margin and the declaration of a ₹1.50 interim dividend have provided a solid fundamental floor for the current rally.
Natco Pharma Q3 FY26 vs Q3 FY25: Financial Highlights
| Key Metric | Q3 FY26 (Actual) | Q3 FY25 (YoY) | Growth (%) |
| Total Revenue | ₹705.4 Cr | ₹651.1 Cr | 8.3% ↑ |
| Net Profit (PAT) | ₹151.3 Cr | ₹132.4 Cr | 14.3% ↑ |
| Trading Volume | 43.91 Lakh | 6.83 Lakh (Avg) | 643% ↑ |
The “Analyst Consensus” on Natco Pharma
Top brokerages are re-evaluating the stock’s valuation as it enters a high-growth domestic phase.
- Domestic Brokerage View: Analysts suggest that the Semaglutide launch could be a “game-changer” for Natco’s domestic formulations segment, which already grew 24% this quarter.
- Valuation Appeal: With a P/E ratio of 9.78x, the stock trades at a nearly 70% discount to the sector average, making it an attractive value play for long-term investors.
- Technical Outlook: Chartists highlight that the stock has cleared its 50-day and 200-day moving averages in a single move. If the price sustains above ₹900, the next resistance is seen at the ₹960 mark.
The Bottom Line
Natco Pharma’s 11% surge is a definitive market validation of its R&D prowess and timely entry into the Semaglutide space. For the Aam Aadmi investor, the combination of March 2026 launch visibility and a 6x volume spike makes this a high-conviction breakout in the mid-cap pharma space.
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