Torrent Pharmaceuticals (TRP IN) – Q1FY27 Result Update – Strong qtr; synergy benefits to exceed earlier guidance – BUY
Published on 31 Jul 2026
Torrent Pharma (TRP) reported a strong Q1FY27 performance, with the base business EBITDA growing 20% YoY, ahead of our estimates, driven by robust execution and continued momentum in the domestic franchise. While a temporary supply disruption impacted injectable semaglutide, 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 FY28. 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 Rs4-4.5bn deal and expect combined entity EBIDTA to be at Rs78-80bn in FY28E. TRP trades at 25.5x EV/EBITDA on FY28E for the combined business. We maintain “BUY” rating with revised TP of Rs5,500/share, valuing at 28x EV/EBITDA on FY28E for combined entity.
