Torrent Pharmaceuticals (TRP IN) – Q2FY27 Result Update – In line quarter, JB integration on track – BUY
Published on 25 Oct 2026
Torrent Pharma (TRP) reported in line Q2FY27 performance, with the base business EBITDA growing 20% YoY. The performance was driven by robust execution and continued momentum in the domestic franchise. The injectable semaglutide, supply disruption got resolved with stock now fully restored, management expects market share to recover following normalization of supplies. The integration of JB Chemicals & Pharma (JBCP) is progressing ahead of schedule, with cost synergies already exceeding initial expectations and revenue synergies likely to accrue from FY28E. The acquisition strengthens Torrent's leadership in high-margin chronic therapies, expands its presence across multiple therapeutic segments, and positions the company as the 5th largest player in the Indian pharmaceutical market. Additionally, JBCP's CDMO business enhances portfolio diversification and provides an incremental long-term growth avenue.
We expect company to achieve higher cost synergies of earlier guidance of INR 4-4.5bn deal and expect combined entity EBIDTA to be at INR 79-80bn in FY28E. TRP trades at 21.5x EV/EBITDA on Sept 2028E for the combined business. We maintain “BUY” rating with revised TP of Rs5,500/share, valuing at 25x EV/EBITDA on Sept 2028E for combined entity.
