Torrent Pharmaceuticals (TRP IN) – Q3FY26 Result Update – Strong quarter; guides Rs4-4.5bn cost synergies – Upgrade to ‘BUY’
Published on 15 Feb 2026
Torrent Pharma’s (TRP) reported strong quarter with Q3FY26 EBITDA of 19% YoY. TRP reported Rs 100bn (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 cost synergies guidance of Rs4-4.5bn deal is positive and expect combined entity EBIDTA to be at Rs77-78bn in FY28. TRP trades at 26x and 22x EV/EBITDA on FY27E and FY28E for the combined business. We upgrade stock to “BUY” from “Accumulate” with revised TP of Rs4,750/share, valuing at 25x EV/EBITDA on FY28E for combined entity.
