Torrent Pharmaceuticals Ltd (NSE: TORNTPHARM), a leading Indian pharmaceutical company with a market capitalization of approximately ₹87,000 crore, reported consolidated revenue of ₹3,303 crore for the third quarter ended December 31, 2025, up 18% year-on-year (YoY). Net profit rose 26% to ₹635 crore, compared with ₹503 crore in the year-ago period.
The results reflected steady growth across domestic and international markets, along with exceptional items related to the acquisition of JB Chemicals & Pharmaceuticals Ltd (JB Pharma) and regulatory adjustments.
Operational Performance and Margins
Torrent’s operating EBITDA for Q3 FY26 reached ₹1,088 crore, with an operating margin of 33%, while gross margin remained stable at 76%. The company declared an interim dividend of ₹29 per share of ₹5 (580%), payable in early March 2026.
Standalone net profit and revenue trends were consistent with consolidated figures. Margins benefited from operational efficiencies, partially offsetting higher costs associated with integration of recent acquisitions and regulatory compliance.
Strategic Acquisition of JB Chemicals & Pharma
The quarter saw progress in Torrent’s acquisition of a controlling stake in JB Pharma, which now stands at approximately 48.8%, including shares purchased through an open offer and employee agreements. The company initiated a merger scheme, under which 51 Torrent shares will be issued for every 100 JB Pharma shares.
Exceptional items of ₹10 crore were recorded in connection with regulatory and statutory fees associated with the acquisition. Following the merger, Torrent is expected to rank 5th in the Indian Pharmaceutical Market (IPM), enhancing its presence in chronic and specialty therapy segments.
Geographic Revenue Contribution
Revenue growth was geographically broad-based:
- India: ₹1,798 crore, up 14% YoY, outperforming IPM growth of approximately 10% in chronic and sub-chronic segments such as Cardiovascular and Diabetes.
- Brazil: ₹371 crore, up 27% YoY (10% in constant currency), maintaining Torrent’s position as the leading Indian pharma company in the market.
- United States: ₹321 crore, up 19% YoY, with constant currency growth of 16% over the nine-month period, supported by recent product launches.
- Germany: ₹304 crore, up 8%, though constant currency revenue declined 6% due to third-party supply disruptions.
Torrent’s global operations now cover over 50 countries, with specialty-focused products accounting for 76% of India revenues.
Product Portfolio and R&D Investments
Torrent maintains a diversified portfolio across chronic and sub-chronic therapies, including Cardiovascular, Gastrointestinal, Central Nervous System, Pain Management, and Cosmo-Dermatology.
Research and development expenditure for the quarter was ₹154 crore, representing approximately 5% of revenue. The company operates eight manufacturing facilities, five of which are USFDA-approved, and employs over 750 scientists. In Brazil, 60 products are under ANVISA review, signaling potential future launches.
Financial Position and Credit Metrics
Torrent maintains a conservative financial structure, with standalone debt-equity ratio of 0.14 and consolidated ratio of 0.21. Interest coverage ratios stand at 23.06x (standalone) and 18.86x (consolidated). During the quarter, the company repaid ₹143 crore of listed secured non-convertible debentures.
Regulatory Developments and Government Schemes
The company addressed recent regulatory and tax changes:
- Labor Codes: India’s consolidation of 29 labor laws into four codes, effective November 21, 2025, was assessed as not material for Torrent.
- Taxation: Transition to the 115BAA tax regime resulted in a net reversal of deferred tax liabilities of ₹151 crore.
- NPPA Settlement: Torrent resolved a long-standing pricing dispute with the National Pharmaceutical Pricing Authority, closing the litigation.
These adjustments were reflected in Q3 FY26 results, alongside acquisition-related exceptional items.
Competitive Positioning and Sector Outlook
Torrent competes with peers such as Sun Pharma and Lupin, leveraging its specialty therapy portfolio and regulated market presence. In international markets, Torrent holds leading positions among Indian pharma companies in Brazil and Germany, while maintaining global operations in 50+ countries.
The Indian pharmaceutical sector faces continued pricing pressures, rising input costs, and regulatory scrutiny, particularly in export markets. Torrent’s geographic diversification and chronic therapy focus provide resilience against these macro pressures.
Guidance and Analyst Commentary
The company did not provide updated FY26 guidance. No analyst upgrades, downgrades, or price-target revisions were reported with the Q3 release.
Summary
Torrent Pharmaceuticals delivered robust Q3 FY26 results, supported by double-digit revenue growth, stable margins, and strategic acquisition activity. Its R&D investments, geographic expansion, and specialty therapy focus position the company to sustain growth in domestic and international pharmaceutical markets.