Torrent Pharmaceuticals Ltd Q1FY26 Earnings Results – 20% rise in Profits

Torrent Pharmaceuticals Ltd is one of the leading Indian Pharmaceutical Company engaged in research, development, manufacturing and marketing of generic pharmaceutical formulations.

Q1 FY26 Earnings Summary (Apr–Jun 2025)

• Revenue: ₹3,178 crore, up 11.2% YoY (Q1 FY25: ₹2,859 crore).

• Net Profit (PAT): ₹548 crore, up 20% YoY (Q1 FY25: ₹457 crore).

• EBITDA: ₹1,032 crore, up 14% YoY (Q1 FY25: ₹904 crore).

• Margin: Improved to 32.5% from 31.6% YoY.

• India Business: ₹1,811 crore, up 11% YoY, driven by outperformance in focus therapies. Chronic segment grew 13%.

• US Business: Revenue ₹308 crore, up 19% YoY; recent launches achieved targeted market shares.

• Germany & Brazil: Germany revenue up 9% YoY to ₹308 crore. Brazil portfolio revenue up 11% to ₹218 crore.

• Outlook: Analysts continue to rate the stock favorably; consensus price targets with modest upside.

Key Management & Strategic Decisions

• Leadership Transition: Appointment of Aman Mehta as MD from August 2025, ensuring generational leadership and continuity.

• Growth Investment: Planned fundraise to support R&D, M&A, and pipeline development in India and export markets.

• Expansion: Recent product launches in the US achieving targeted market share; focus continues on India, Brazil, Germany.

• R&D Focus: Increasing R&D allocation to 5–6% of revenues in FY26 to support innovation and complex generics.

• Cost & Efficiency: Continued margin improvement through operational leverage and scale.

• Dividend Policy: Maintains high shareholder returns via dividends.

• Strategic Acquisitions: Recent acquisition in the sector to diversify and strengthen specialty product offering.

• Therapy Leadership: Targeting market leadership in chronic diseases (cardiac, diabetes, CNS) in India and selective global markets.

 

 

Q4 FY25 Earnings Summary (Jan–Mar 2025)

• Revenue: ₹2,959 crore, up 7.8% YoY.

• Net Profit (PAT): ₹498 crore, up 11% YoY (Q4 FY24: ₹449 crore).

• EBITDA: ₹964 crore, up 9% YoY; EBITDA margin expanded to 32.6% from 32.2%.

• EPS: Approximately ₹14.

• Gross Margin: 75.3%.

• Profit Driver: Growth led by robust India business and margin improvement.

• Exceptional Items: Adjusted PAT growth for Q4 FY25 is 15% when excluding exceptional charges related to the closure of DPCO litigation.

• R&D Investment: ₹581 crore for FY25, making up 5% of revenues (+10% YoY).

• Dividend: Recommended a final dividend of ₹6/share (face value ₹5) and distributed ₹26/share interim dividend in FY25.

• Fundraise Plan: Board approved proposal to raise up to ₹5,000 crore via shares/convertibles (subject to shareholder approval).

• Leadership: Aman Mehta (Whole-Time Director) named as new Managing Director, effective August 1, 2025, pending AGM approval.