New Delhi: Natural Capsules Limited, one of India’s leading manufacturers of hard capsule shells, has announced its financial results for the quarter ended 30 September 2025. The company reported a stable performance in Q2FY26, with demand remaining steady and results aligning with previously issued guidance. However, external challenges impacted key growth drivers, particularly in the capsules and API segments.
Executive Director Sunil Mundra stated, “Q2FY26 has been a stable quarter for our capsules business. Demand remained steady, and overall, our performance was in line with the guidance we had shared earlier. However, the key growth triggers, especially related to the HPMC capacity expansion, were temporarily affected due to tariffs imposed on Indian exports to the US. This has hit demand in the US market quite hard.”
Despite the setback, Natural Capsules remains committed to its capital expenditure plan and expects to commission a new production line by the end of the current quarter. The company anticipates a rebound in capsule segment growth once there is clarity on the tariff situation. Mundra added that stronger revenue and healthier margins would have been reported if not for the unforeseen impact of these tariffs.
On the API front, the company faced persistent challenges. Although all necessary approvals from the Pollution Control Board were secured, technical difficulties in scaling up fermentation batches have delayed commercial production. These issues, common when transitioning from lab-scale to full-scale operations, are being actively addressed. The company remains confident in its ability to resolve these hurdles and accelerate production in the coming quarters.
Reflecting on the broader performance, Mundra acknowledged that FY26 has been a tough year. “The capsules business was held back by the US tariffs, which affected the growth we expected from HPMC expansion. At the same time, delays in regulatory approvals and technical challenges have pushed back our API plant scale-up timeline. These are factors beyond our control, but they do not define us. We are on the right path and firmly believe that we will emerge from these challenges stronger and deliver better performances in the year ahead.”
Natural Capsules continues to focus on operational resilience and long-term growth, with strategic investments aimed at enhancing production capabilities and navigating global market dynamics.
