Torrent Pharmaceuticals (TRP IN) – Q4FY26 Result Update – Strong India performance – BUY
Published on 25 May 2026
Torrent Pharma’s (TRP) reported steady quarter with base business Q4FY26 EBITDA growth of 16% YoY, in line with our estimates. The strong headstart in Sema franchise will continue TRP to achieve higher growth in domestic formulation. 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 23.5x EV/EBITDA on FY28E for the combined business. We maintain “BUY” rating with revised TP of Rs5,000/share, valuing at 26x EV/EBITDA on FY28E for combined entity.
