Torrent Pharma Q1 FY26 Results: Net Profit Jumps 20% YoY to ₹548 Cr; PL Capital Raises Target to ₹4,000
- 29th July 2025
- 12:00:00 PM
- 3 min read
Mumbai | July 29 – Torrent Pharmaceuticals reported a 20% year-on-year growth in consolidated net profit at ₹548 crore for the quarter ended June 30, 2025, compared to ₹457 crore in the same period last year. The company’s revenue from operations rose 11% YoY to ₹3,178 crore, led by strong performance in India and steady growth in international markets like the US, Brazil, and Germany. EBITDA grew 14% YoY to ₹1,032 crore, including acquisition-related one-off expenses of ₹15 crore; adjusted for this, operating margins expanded to 32.9% versus 31.6% a year ago.
India remained the key growth engine with revenue of ₹1,811 crore, up 11% YoY, supported by 6% price growth, 3.5% volume growth, and 2.5% from new product launches. Chronic therapies including cardiac, diabetes, CNS, and gastrointestinal portfolios grew 13% during the quarter. Management highlighted that 85–90% of India revenue comes from prescription-led products and announced the field force has been expanded by 200 to 6,600 medical reps in Q1, with a target to scale to 7,000 by FY26-end. “Our domestic franchise continues to outperform, driven by deepening presence in core therapies and expanding reach. Curatio and consumer brands are also seeing strong traction,” the company said in its post-result commentary.
US revenue rose 19% YoY to ₹308 crore ($36 million), with 4–5 new product launches including Sacubitril Valsartan rolled out alongside 10 other generic players on Day 1. The company guided for 10 launches in FY26 from its US pipeline. Brazil revenue stood at ₹218 crore, up 11% YoY, with constant currency growth of 16% to BRL 143 million. The company has 62 filings awaiting approval from ANVISA and is targeting a Day 1 launch of Semaglutide (Ozempic/Wegovy), where the market is valued at over $950 million. Germany revenue grew 9% YoY to ₹308 crore, although constant currency growth was muted at 1% due to third-party partner supply disruptions—Torrent derives 75% of Germany sales from external manufacturing.
Also Read about Torrent Pharma’s acquisition of JB Chemicals & Pharmaceuticals
PL Capital, in its Q1 review, maintained an ‘Accumulate’ rating on Torrent Pharma and raised the target price to ₹4,000 from ₹3,850, stating, “The JB acquisition strengthens Torrent’s domestic growth engine and unlocks meaningful margin and synergy opportunities. The stock trades at 23x FY27E EV/EBITDA, offering scope for rerating.”
Gross margins remained stable at 75.3% while adjusted profit after tax (PAT) rose 25% YoY, excluding a ₹48 crore forex loss that impacted other income. R&D spend remained elevated at ~5% of revenue as the company continues investing in its global pipeline. Torrent reaffirmed guidance for steady margin performance through FY26 and noted continued focus on high-value chronic launches, both oral and injectable forms of Semaglutide in India, and US approvals.
Torrent Pharma expects FY26 revenue at ₹12,962 crore and PAT at ₹2,505 crore. The company reported robust free cash flow and healthy return ratios, with RoE projected at 30.4% and RoCE at 33.3%. On Monday, the stock closed at ₹3,630 on the NSE, up 0.73%. At current levels, it trades at 23x FY27E EV/EBITDA. With consistent delivery in branded markets, a margin-accretive acquisition in the pipeline, and improving US momentum, Torrent Pharma continues to strengthen its position as a leader in the Indian pharma space.
PL Capital
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