Natco Pharma Shares Jump 11%: What’s Driving This Sharp Rally?

Natco Pharma shares surged nearly 11% after the company received approval to launch semaglutide injection in India. Strong quarterly earnings and a positive USFDA update added more fuel to the rally. Investors reacted fast, pushing the stock among the top gainers on NSE.

Big Trigger: CDSCO Approval for Semaglutide

The biggest reason behind the sudden spike was approval from the Central Drugs Standard Control Organisation. The regulator cleared Natco Pharma to manufacture and market generic semaglutide injection in India. The company plans to launch the product in March.

Semaglutide is widely used for adults with type 2 diabetes. It also helps in weight management when combined with diet and exercise. Demand for such medicines is rising in India. That makes this approval commercially important.

The Indian diabetes market is huge. Cases are increasing every year. A cost-effective generic version can attract strong demand. Investors clearly saw that opportunity.

Strong Earnings Added More Power

The rally was not just about approval. Natco Pharma also posted solid December quarter numbers. Net profit rose 14.3% year-on-year to ₹152 crore. Revenue jumped 36.3% to ₹647.3 crore.

EBITDA saw a sharp rise to ₹158.7 crore from ₹39 crore last year. Margins improved strongly too. That kind of performance builds confidence. It shows growth is not one-time.

When regulatory approval meets strong earnings, markets usually respond quickly. That’s exactly what happened here.

USFDA Inspection Update Explained

There was also news regarding the company’s Chennai API unit. The US Food and Drug Administration issued seven observations under Form 483 after inspection in November 2025.

However, the inspection was classified as Voluntary Action Indicated. This means issues, if any, are not severe. It does not stop operations or approvals. Investors took this as manageable risk, not a major red flag.

Getting the Establishment Inspection Report also brought clarity. Uncertainty often pressures stocks. Once clarity comes, prices stabilise or even rise.

Where the Stock Stands Now

After the jump, shares were trading around ₹912–₹921 levels in morning trade. Even after this rally, the stock remains below its 52-week high of ₹1,059. Over the past year, it has gained more than 13%.

That tells one thing. The stock already had steady momentum. This latest news simply accelerated it.

Pharma stocks often move sharply on regulatory approvals. In this case, three factors came together. New product approval, strong earnings, and manageable USFDA observations. That combination created a perfect short-term trigger.

What Investors Should Watch Next

The real test will be the March launch of semaglutide. Market response, pricing strategy, and competition will matter. Diabetes and obesity treatment is a growing space. But competition is also heating up.

Investors may also track further updates from USFDA. Any closure of observations would add more comfort.

For now, sentiment looks positive. The company has growth visibility. Earnings are improving. And regulatory progress is visible. That mix is what pushed Natco Pharma shares sharply higher today.