Torrent Pharmaceuticals (TRP IN) – Q2FY26 Result Update – BGx segments continue to outperform – Accumulate
Published on 10 Nov 2025
Torrent Pharma’s (TRP) Q2FY26 EBITDA was in line with our estimates. Our FY26/ FY27E EBITDA broadly remain unchanged. TRP reported Rs 90bn (80% of total sales) worth of highly profitable branded formulation (BGx) sales spread across India, Brazil and RoW markets. The acquisition of JB Chemicals & Pharma (JBCP) appears strategically compelling, making it the 5th largest player in the domestic pharma market. This will further be strengthening its position in high-margin chronic therapies and opens up many newer therapeutic areas. The deal also adds JBCP’s CDMO vertical, offering diversification and growth optionality.
The deal is considered financially attractive and strategically sound with long -term earnings accretion. TRP trades at 23.5x and 20x EV/EBITDA on FY27E and FY28E for the combined business. We maintain our Accumulate with revised TP of Rs4,200/share, valuing at 25x EV/EBITDA on Sept 2027E for combined entity. Guidance for key synergies from JBCP deal will key.
