NOVARTIND - Novartis India

📊 NSE: NOVARTIND 🏢 Pharmaceuticals - Indian - Bulk Drugs & Formln 📅 Last Updated: 12/14/2025 10:37

💰 Financial Performance

Revenue Growth by Segment

Total revenue and segment-specific growth are not disclosed in the available documents; however, the company reported total related party transactions of INR 5.78 Cr for H1 FY26, including commission income of INR 0.06 Lakhs.

Geographic Revenue Split

Not disclosed in available documents, though the company operates as the Indian arm of the global Novartis AG group.

Profitability Margins

Specific net profit and operating margins are not disclosed; however, the company incurred royalty expenses of INR 12.87 Lakhs and business support service costs of INR 15.01 Lakhs in H1 FY26, which impact overall profitability.

Capital Expenditure

Historical and planned CAPEX is not specified, but the company recorded a small purchase of shares worth INR 0.13 Lakhs from a fellow subsidiary in H1 FY26.

Credit Rating & Borrowing

The company reports NIL outstanding loans, revolving facilities, or debt securities as of September 30, 2025, indicating a 0% reliance on external debt and zero borrowing costs.

⚙️ Operational Drivers

Raw Materials

Pharmaceutical goods and services (APIs/Formulations) represent the primary procurement cost, with purchases from Novartis Pharma AG totaling INR 5.02 Cr in H1 FY26.

Import Sources

Switzerland and global markets via fellow subsidiary Novartis Pharma AG.

Key Suppliers

Novartis Pharma AG (INR 5.02 Cr) and Novartis Healthcare Private Limited (INR 39.15 Cr combined across multiple purchase categories).

Raw Material Costs

Procurement of goods and services from related parties totaled approximately INR 5.41 Cr in H1 FY26, representing the core operational cost for its distribution and marketing model.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company focuses on leveraging its parent company's global portfolio, evidenced by INR 5.02 Cr in purchases from Novartis Pharma AG and royalty payments of INR 12.87 Lakhs to Novartis AG for intellectual property access.

Products & Services

Medicines, pharmaceutical formulations, and healthcare products.

Brand Portfolio

Novartis

Strategic Alliances

Novartis AG (Holding Company), Novartis Pharma AG (Fellow Subsidiary), and Novartis Healthcare Private Limited (Fellow Subsidiary).

🌍 External Factors

Industry Trends

The industry is shifting toward specialized medicine and integrated healthcare filings, as evidenced by the company's adoption of new SEBI integrated reporting formats in 2025.

Competitive Landscape

Competes with other multinational pharmaceutical firms and large domestic generic manufacturers in the Indian market.

Competitive Moat

The company's moat is built on the 'Novartis' brand and exclusive access to the global parent's patent-protected pharmaceutical pipeline, which is highly sustainable due to high R&D entry barriers.

Macro Economic Sensitivity

Sensitivity to healthcare regulatory changes and pharmaceutical pricing controls in India.

Geopolitical Risks

Trade relations between India and Switzerland/Europe could impact the supply of goods from Novartis Pharma AG.

⚖️ Regulatory & Governance

Industry Regulations

Subject to CGST and Central Excise regulations; currently appealing an order from the Commissioner (Appeals-II) regarding CENVAT credit non-reversal.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates and indirect tax oversight, currently facing a 100% penalty on a disputed service tax demand.

Legal Contingencies

Pending service tax demand of INR 15,01,762 and a penalty of INR 15,03,762 (Total INR 30,05,524) for the period 2014-2017 related to business divestment.