Torrent Pharmaceuticals Ltd (NSE: TORNTPHARM) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Sudhir Menon — Executive Director, (Finance) and Chief Financial Officer
Aman Mehta — Whole-time Director
Sanjay Gupta — Executive Director, International business
Analysts:
Damayanti Kirai — Analyst
Gautam Rajesh — Analyst
Neha M — Analyst
Aditya Vikram — Analyst
Kunal Randaria — Analyst
Vivek Agarwal — Analyst
Bansi Desai — Analyst
Abdulkader Puranwala — Analyst
Gaurav T — Analyst
Tushar Manudane — Analyst
Girish Bakru — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q3FY26 earnings conference call of Torrent Pharma. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing STAR and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sudhir Menon, Executive Director, Finance and CFO. Thank you. And over to you sir.
Sanjay Gupta — Executive Director, International business
Thank you.
Sudhir Menon — Executive Director, (Finance) and Chief Financial Officer
Good evening everyone and welcome to the third quarter earnings call for quarter three FY26. This quarter we continue to see healthy performance in our branded markets which accounted for roughly 75% of the overall revenues this quarter. Our two largest branded markets, India and Brazil each continue to deliver healthy double digit growth. India business grew at 14% and Brazil grew at 27%. Constant currency growth in Brazil for the quarter was 10% while the secondary sales grew at 13%. On the generic side, US business grew at 19% and Germany grew at 8%. In constant currency terms, Germany revenues have declined by 6% mainly due to the continued disruption at the third party supplier.
Quickly on the financial performance for quarter three revenues were 3303 crores up by 18%. Operating EBITDA at 1088 crores grew by 19% and operating EBITDA margin stands at 32.9%. A very quick update on JB Pharma acquisition. So we have acquired the controlling stake of 46.39% in JB on 21st of January followed by another 2.41% stake purchased from certain employees. So effectively from 21st January, JB will start getting consolidated into Torrent Pharma. As a next step, we expect the SEBI approval for the merger scheme soon and we will file the merger application with NCLT over the next few days.
Overall, we remain on track to complete the transaction as per previously indicated timelines. I’ll now hand over the call to Aman for India business.
Aman Mehta — Whole-time Director
Thanks Sudhir. India revenue at 1798 crores registered a growth of 14%. As per the AIO City PharmaTrack market data, the IPM growth for the quarter was 10%. We are seeing continued volume outperformance over the IPM in chronic and sub chronic therapies led by cardiac, gastro and diabetes segments. The curatio business grew at 27% in Q3 and also 27% in YTD nine months per year. Driven by strong demand generation on account of OTC AD spends and field force expansion. We are hopeful that the high growth now should continue for the rest of the financial year as well.
Our field force strength at the end of the quarter stands at 6900 versus 6800 last quarter and we remain on track to close the financial year with a strength of just over 7,000. Going forward, we expect our India business to continue outperforming the market growth. Our focus during the rest of the year will be to continue improving our market share in focused therapies, improving fuel force productivity in the expansion and scaling up of the Curatio business. An update on JB following the acquisition of controlling interest of 48.8% in the company, our priority now is to ensure continuity in business operations and ensure there is a smooth transition under the new leadership team.
I will now hand over to Mr. Sanjay Gupta for the international business of Torrent.
Sanjay Gupta — Executive Director, International business
Thanks Aman. We’ll start with the branded generics market of Brazil. Based on internal sales, Q3 constant currency revenue was Brazilian 224 million registering a 10% year on year growth. IQVR data shows Q3 market growth at 7% with Torrent growing at 13%. We are seeing healthy volume growth coupled with mid single digit pricing increase. Torrent has a rich pipeline of 60 molecules which are currently awaiting approval at Tan Visa in Germany. Our German business registered a constant currency revenue of 29 million euros down by 6%. As highlighted last quarter growth continues to be impacted due to disruption at a third party supplier in the US.
We register constant currency revenues of $36 million up by 12%. Growth is coming from a new launches where we have achieved our target market share and we are also seeing increased purchase volume on existing contracts. I would like to conclude the opening comments here and open the call up for questions.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question cue, you may press Star and two participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Damayanti Kirai from hsbc. Please go ahead.
Damayanti Kirai
Hi, thank you very much for the opportunity. My first question is on JV acquisition. So you mentioned now you have 48.8% take and it will be consolidated as part of your financial. So will it be a line by line consultation or how you Account for it before like the complete merger happens.
Sudhir Menon
So consolidation Damianti is line by line only. So effective from 21st of January till 31st of March, the quarter four numbers will include JB numbers.
Damayanti Kirai
Okay. Okay, that looks clear. And on India segment, the 14% growth, volume, price and new launches the way you generally do.
Aman Mehta
Yeah. So as per the AIOCD Pharma track data, our reflected growth is 14% which is the same as the reported growth. The breakup of 14% is 5.5% volume versus 1.2% of the market, 5.8% price versus 5.6% of the market and 2.7% new products versus 2.8% of the market.
Damayanti Kirai
Okay, thanks. My last question is in Germany. So we like. We are yet to see a resolution of the supply disruption. So we what is the timeline? When do you think things can come back on track here?
Sanjay Gupta
So unfortunately Narendi, I cannot give a timeline because our supplier is caught up in regulatory issues and I don’t have visibility as to when he will start manufacturing again. And these days it’s very complicated in Europe because they also consider the observations of the US FDA etc. So it’s a little different Europe currently than what I’ve seen in the past is a lot of interaction between the EMEA and the fda. So things are taking longer to resolve. So honestly cannot give you guidance.
Damayanti Kirai
Okay. And is there a possibility to move to an alternative supplier or even that will be very time consuming.
Sanjay Gupta
Well, it is time consuming but we are working on it. So we have started work on it already last quarter so. But it will take at least three to four quarters to get an alternate supplier on board. So we are trying to move some of the products to our own facility but it’s only time consuming.
Damayanti Kirai
Okay, thank you. I’ll get back in the queue.
operator
Thank you. Participants, you may press Star and one to ask a question. Our next question comes from the line of Gautam Rajesh from LEO Capital. Please go ahead.
Gautam Rajesh
Hi, good evening. Thank you for taking my question. My question was for the GLP1.
Gautam Rajesh
Do you have any Philip finished capacity for it and is that for Indian.
Neha M
Market or the emerging market?
Aman Mehta
No, we do not. We only have capacity for the oral. Everything else will be partnered for India and other markets.
Gautam Rajesh
All right.
Neha M
And who would be our partner? Is that possible to release?
Aman Mehta
We can share that once we launch.
Gautam Rajesh
Understood. And big geographies will be launching in and.
Neha M
Only in India would it be partnership or everywhere else.
Aman Mehta
For the injectable partnership is across all territories. The first launch is most likely Going to be India, followed by other markets so we can share an update once the launch is done next quarter.
Gautam Rajesh
Understood. And other markets you don’t want to reveal right now or is that possible?
Aman Mehta
We had already shared about Brazil last time as well. Nothing changes in terms of time line. It’s a bit behind what we would have liked. So probably sometime in the next financial year. So even though we would be late to the game, the market opportunity is much larger than the Indian market. So it should still be an interesting opportunity.
Gautam Rajesh
Understood.
Neha M
Thank you.
operator
Thank you. Our next question comes from the line of Neha M from bank of America. Please go ahead.
Neha M
Yeah, thanks for taking my question, Sudhir. Now that we have acquired the stake in jb, I know that the merger still depends on SEBI approval, etc. But how should we think about other than the continuity of operation and condition that you mentioned, the synergies that we should see? Would that essentially all come through once the merger is done? I mean if you could just tell us, you know, what we can expect in the Next, let’s say six months or 12 months and probably longer term, how should we look at the synergies from the beach?
Sudhir Menon
So I think in terms of timelines, neha, until the effective merger order, both the entities will remain separate and it’s only. And in case, in terms of timelines, we think once we file to nclt, then probably six to nine months as indicated earlier, should be the timeline we should be looking at in terms of integrating both the entities.
Neha M
Okay.
Sudhir Menon
I think in terms of synergy, some part of the synergy will start flowing from now on and maybe a major part of that will come post the integration happening.
Neha M
And what part of the synergy, I mean if you don’t want to quantify it, I mean, what areas of synergy do you think you can get now before the merger? I understand what can come after the merger, but what do you think we can bring to the table now before the merger happens?
Aman Mehta
I think we’re happy to quantify at this stage. I think we were waiting to understand the business a bit more over the last couple of quarters. So broadly I would say that our synergy number is looking like 400, 450 crores over the next two to three years. Maybe 20% of that could be in the first year, up to 80% of that could be in the second year and the rest in the third year. So that’s what it currently looks like.
Neha M
So you said 400 to 450 crores in the next two to three years.
Aman Mehta
That’s correct.
Neha M
And the first year is starting now, right? It’s not first year after the merger.
Aman Mehta
No, first year would mean now. Obviously some of the effect would come on subsequently in the coming quarters. But we will start seeing some benefit in the subsequent quarters already.
Neha M
Again, this 20% that you’re talking about synergies, these would be largely cost synergies that we would see initially. Because I’m assuming will require merger probably.
Gautam Rajesh
Or would it be this number is only cost.
Aman Mehta
We have not looked at revenue synergies yet. We’ll wait for first year business top line to stabilize and then we can look at revenue synergies.
Neha M
Understood. Thank you so much. That’s very helpful.
operator
Thank you. Participants who wish to ask questions may press star and 1. Our next question comes from the line of Aditya Vikram from DB Securities Private Limited. Please go ahead.
Aditya Vikram
I am audible.
operator
You are audible. So you may proceed.
Aditya Vikram
Yeah, thank you. So quick question. Once the JV merger happens, right. What would be the margin guidance, if at all, considering you are going to have cost savings. JB currently have an EBITDA margin of 18 to 19%. You are sitting at 32. Even if we consider the synergies, this is going to be margin accretive for our businesses. I understand that you haven’t done on the revenue side so far. But you must have some ballpark number in your head.
Aman Mehta
So I think the. Firstly, JB’s margin is closer to 28, 29% EBITDA margin. I think our margin this year has been in the range of 32 and a half to 33. So there is definitely a scope to bring JB’s margin closer to our base business margin in the next financial year. We’ve already given the number on the Synergy cost Synergy target for the next three years. So I guess you can work out the margin potential there. I think it will be a bit too complicated to look at the combined margin at this stage. But standalone JB standard, certainly there is significant scope for margin improvement.
Aditya Vikram
Okay, thanks for that. And in terms of us, how are you seeing the growth there? Is it stabilizing with this tariff news out of the way?
operator
Sorry to interrupt, Aditya, but your line is not clear. May I request you to please ask a question if.
Aditya Vikram
Sure. Is it better now?
operator
This is slightly better.
Gautam Rajesh
Okay. So how is US looking for you? I know there was no tariff on Pharma in any case. Right. But after this tariff news out of the way, are you seeing the potential to grow above 20% on the US side in the subsequent quarters.
Sanjay Gupta
So us so we have a very small player. We do 35, 36 million a quarter and it really dependent upon new launches but also upon the level of competition that we see in the new launches. So we have a healthy pipeline and we are augmenting the pipeline for the US but it’s hard to give guidance today. Depends really on when the new launch will happen and the competitive landscape at that point in time.
Aditya Vikram
Okay. And I just want to clarify something one more time. In your opening remarks you guys said that you will continue with the double digit volume growth for India business in subsequent quarters as well. Is that correct?
Aman Mehta
What we had said was we’ll continue the above market volume growth, double digit growth, overall price in new products and our volume growth is about 5.5% for the quarter.
Aditya Vikram
Okay, understood. Thank you very much for clarifying.
operator
Thank you. Participants, you may press Star and one to ask a question. Our next question comes from the line of Kunal Randaria from Access Capital. Please go ahead.
Kunal Randaria
Sir.
Kunal Randaria
In the previous call we mentioned that the Brazil GLP1 market is around $1 billion. So in the first wave of launches in March, what would be the competitive scenario that you see and typically what’s the kind of price erosion that you would expect, you know, based on your understanding of the market.
Sanjay Gupta
So we don’t think we’ll be the first one to launch. Right. So I don’t know. It will be somewhere in the range of between three to third to fifth launch and refiled or Ozempic which is today $270 million market. And the rest is as you as you know, has been taken over by WeGovy. So we Gobi will come to us. But it’s a little bit down the line and I can’t really give guidance on Brazilian price erosion because it depends really on how many players come to the market and who are the players who come to the market.
Some of the players are known for very aggressive pricing and some others are much more reasonable. But to be safe you can take like at least 50, 50% price, 45% price erosion on the Brazilian market. But honestly it’s hard because it’s been all over the map. So I’ve seen price erosion of 90% on a couple of products and I’ve seen price erosion of 20% also. It honestly depends upon same thing, how many players and what’s the nature of the the players.
Kunal Randaria
Sure. So in March it’s only the Ozempic generics which are hitting the market or are some players also launching Wegovy generics?
Sanjay Gupta
Generally the Wegovy generics Brazil are behind. So the Ozempic was the first one that was launched and came much later by the innovator. So hence the Vigovi generics are all running behind the Olympic.
Kunal Randaria
Right, but do you think there could be some substitutioning substitution happening? Because Ozempic will become cheaper, you know, versus we go.
Sanjay Gupta
It’s hard because the laws are very strict and I think the Brazilian law requires the pharmacist to keep a copy of the prescription and to make sure the right product is dispensed against the right prescription. So the government has been very strict with the semaglutide usage. Then it’s hard for a pharmacist to substitute. So I expect the substitution to be minimal.
Gautam Rajesh
Got it, sir. And so my assumptions, I mean if I understand correctly, you’ll be launching Ozempic this year and then Begov sometime next year.
Sanjay Gupta
I can’t use the exact timing because it’s in the hands of the regulator. Our products have been with the regulator for a substantial number of months and they are giving some kind of priority review for such an important product. So they’ve kind of improved our ranking in approval. So the queue for semaglutide you get an opportunity to move up the queue. So they moved us up also in terms of prioritization of approval as compared to other molecules. So but I cannot give guidance as to when it will get approved and launched. But we have the pieces and pieces place.
So once we get approved we’ll be ready to launch.
Kunal Randaria
Got it, sir. And just one more if I can, I think for in the India business you have said the sales force would go up to 7,000 at the end of FY26. So would you be on track for that or there would be any changes to that?
Aman Mehta
Yeah, that’s correct. It will be just over 7,000, so maybe close to 7,100. And as of now we see maybe some additional visibility in the next coming year as well. Financial year could be around 7,500, maybe by end of FY27.
Kunal Randaria
That’s very helpful, thank you and all the best.
operator
Thank you. Our next question comes from the line of Vivek Agarwal from Citigroup. Please go ahead.
Vivek Agarwal
Thanks for the question.
Vivek Agarwal
In Germany you have highlighted that there is some kind of disruption from one of your supplier etc. Right. So just want to understand whether the disruption is fully there in the numbers or is it like it is partly reflected or for example you can see the sales. Thank you.
Sanjay Gupta
No, it’s fully There.
Vivek Agarwal
Okay, so one question I have on us, right? So for quite some time actually if you look at your sales numbers are largely hovering around somewhere around 33, $35 million or more. Now if you look at both of your facilities, major facilities are clear. So when I think you are expecting a kind of a meaningful jump in your sales or any possibility that it can go up to 45, 50.
Sanjay Gupta
It can only go up from here. That’s my hope actually because it’s already kind of low.
Sudhir Menon
So I would guide towards a higher.
Sanjay Gupta
Sales number from where we are and I would guide towards at least five to seven launches a year now depending upon the timing. You know, US launch. If it’s 10 days late, it’s too late. So it has to come on time. And sometimes it helps that your competitors are not on time. So I. But we are looking at a one directional sales growth in the US from here on. We are not happy with this current level of 150, 160 million. So the first looking to cross is 200 million per year and hopefully next year we’ll do that.
I mean I’m being optimistic and taking a punt on the launches that we will have.
Vivek Agarwal
So you are suggesting that FY 2020 can be $200 million kind of us numbering us?
Sanjay Gupta
I’m targeting based on what I see in our launch plans. But again, it’s not in my. Not in torrent’s hands.
Gautam Rajesh
One question if I can ask. J.B.
operator
Sorry to interrupt. Sorry to interrupt. Vivek, you do sound a little muffled. May I request you to please check the device mode that you’re using?
Vivek Agarwal
Okay, sorry. On GB at the right. So.
operator
Is there any possibility that the.
Vivek Agarwal
Growth of this company that can slow down maybe during integration etc. There’s kind of disruption because of the transaction or do you think that this company can keep growing the way it is growing over the last few years during the transaction?
Aman Mehta
Our view strongly is that the fundamentals of the business are fairly robust. The medium term, long term prospects are looking pretty much as what we expected pre acquisition. And now what we do expect is a bit of a course correction in this current Q4 because in any change of control situation there are changes of business practices and I mean you have to kind of integrate processes and so on. So Q4 could be a little bit muted in both India and International. But Q1 onwards they should be pretty much absolutely back on track.
Vivek Agarwal
Thank you. Just one more question, if I can squeeze in. This is on Brazil, it looks like that. And you have highlighted product launch Seems to have been delayed and pushed to next year. So data itself is taking time to approve the filings out there. Any color. Actually that would be helpful if you can help us understand that how the regulator is taking on the filings or there is a possibility that even the market formation can get delayed by let’s say.
Sanjay Gupta
Well, I can tell you two things. One is the file is solid and the second thing is the regulators prioritizing this product. That’s all. I don’t know. I can’t give you exact month and date, but I know there’s a regulator prioritizing semaglutide generics and I know that the file that we have sent is complete in all ways that we can think of. So other than that, really not much to say.
Vivek Agarwal
Thank you, sir. That’s.
operator
Thank you. Our next question is from the line of Bansi Desai from JP Morgan. Please go ahead.
Bansi Desai
Yeah, hi. Thanks for taking my question. So my first question is, you know, until the JB merger concludes, how should we think about, you know, you know, the. So how will the marketing of JB brands work? So does Torrent Mr. Get to market JB brand or that that will remain separate till the time we merge the entities?
Aman Mehta
No, it will be separate.
Sudhir Menon
All the divisions of JB will remain.
Aman Mehta
Within JB till merger. Only post merger can any such change be possible.
Bansi Desai
So then in that event, if there is, you know, Mr. Attrition on the JB side, then how do we ensure that we do not see disruption in sales?
Aman Mehta
The attrition in the last six months where the period between the announcement of the deal until now, the attrition has been pretty much the same as the historical attrition. It hasn’t gone up and we don’t see any reason why it can go up, especially after the closure of transaction. In fact, we’ll probably do our best to reduce attrition as much as possible. So we don’t really see that to be an issue post our change of control.
Neha M
Okay. And also on the purchase price, you know, could we get understanding of breakup into goodwill and intangible and how many years should we think about, you know, amortizing, you know this.
Sudhir Menon
So Bansi, the amortization policy for Torrent has been 15 years. You just have to wait for one quarter because that whole purchase price allocation work is going on and maybe by end of February we should have the numbers in place. So I think once that is done, I should be able to guide you.
Bansi Desai
All right. And also lastly, how should we think about debt repayment? In how many years do we get back to our net cash position?
Sudhir Menon
Yeah, I think this is something which I had guided earlier. So I think the way I am looking at is if I correctly remember the numbers, FY27 will be the first year of integrated torrent. FY28, my net EBITDA should be around 1.1.1x and FY29, it should be around 0.6. What I remember plus minus here and there. I think this is the broad guidance I can give.
Bansi Desai
Okay, and what should we assume as you know, cost of interest here?
Sudhir Menon
So average cost of interest is roughly 7.6%.
Bansi Desai
All right, thank you.
operator
Thank you. Our next question comes from the line of Abdulkader Puranwala from ICICI Securities. Please go ahead.
Gautam Rajesh
Yeah.
Abdulkader Puranwala
Hi sir. Thank you for the opportunity. So my first question is pertaining to the GD Chemical acquisition. So while you know, the complete control or you know the merger of the two entities may take another six to eight months in the near term, you know, how are we dealing at the senior level attrition especially where the CEO and CFO of JB has resigned. So I mean are we going to have two different managements in place or it would be the torrent team completely taking over.
Aman Mehta
On certain critical roles like cfo, there will be a separate CFO for jv. Similarly, wherever anyone such critical role is required, there will be a separate team running at the senior level and eventually it should all merge into torrent.
Abdulkader Puranwala
And second one I had is a bookkeeping question. So while in, you know, most of the geographies it seems like you know, you have a currency benefit and your other income, it’s still negative for the quarter. So you know what explains that negative other income for the quarter.
Sudhir Menon
So there’s a hedging loss which we have booked in other income. It’s close to 45 crores.
Gautam Rajesh
Understood.
Abdulkader Puranwala
Thank you.
operator
Thank you. The next question is from the line of Gaurav T from Ambit. Please go ahead.
Gaurav T
Yeah, hi. Thank you and good evening. Just a clarification on the synergy number. You know, 400 to 450 crore next two to three years. Is that so? JB has this Novartis of portfolio which is currently in license and you know there’s an opportunity for growing gross margin and portfolio by FY28. So 400, 450 crore number is inclusive of that, you know, gross margin synergies on the off tile portfolio of Novartis.
Aman Mehta
No, it does not include that. There’s two parts. There’s the Novartis business of the Ophthal portfolio and the Asmada portfolio. So the Synergy number does not include either of these.
Gaurav T
Perfect. Okay, thank you. Secondly, on the Brazil EclipseMaglutide, I think one of your peers reported quarterly numbers where they had a new launch and high growth with dapa. So any guidance on the number of new product launches in Brazil exos and you know how that growth trajectory can look like for the next two to three years, please.
Sanjay Gupta
We have good visibility on new launches. So. So we’ll be doing about five to six launches here.
Gaurav T
And in terms of growth, you know, can that translate to a 20% kind of a growth CAGR exosomer for the next two, three years?
Sanjay Gupta
So the market growth itself has slowed down considerably. So we are seeing a market growth of 6.7% and I’m targeting 10 to 15% growth for torrent. So driven by new products and pricing increases, Brazil has muted considerably because they’ve managed to keep inflation under control with crazy high interest rates. So the inflation is pretty low and the price increases we are seeing is not like old times. Nowadays we are seeing 4 and 5, which also companies are not able to take because of competition. So combining muted pricing increase, some volume increase in new products, I think in the range of 10 to 15% is reasonable to expect.
In terms of secondary sales growth, demand growth, prescription growth, and primary sales varies up and down a little bit based on healthier decisions on inventory.
Tushar Manudane
Sure.
Gaurav T
Thank you for that. I’ll join back together.
operator
Thank you. The next question is from the line of Tushar Manudane from Motila LOSWAL Financial Services Ltd. Please go ahead.
Tushar Manudane
Thanks for the opportunity. So just one more on the JD side. So any, any therapy in India or let’s say a segment in India and then likewise in the international market which you think is not going to be remunerated or not aligned with the foreign pharma strategy which you would like to eliminate or reduce considerably.
Aman Mehta
Not therapy exactly, but certainly the JV trade generics business is not something which we are looking at continuing. It’s been practically run at zero margin. So. And, and if we keep running it, it’ll keep giving us stock returns. So we’re planning to, if not discontinue, at least shift some of it to our base trade generics business at the earliest possible.
Tushar Manudane
That is as far as India business and on the international market side, international.
Aman Mehta
Is all fairly complementary. So nothing that we see there which doesn’t align with our current strategy.
Tushar Manudane
Got it, sir. And for at a group level, right within. Let’s say Europe or Latam or any other, let’s say developed markets where you know, we’ve been doing pretty well, maybe in India, Brazil, US just sort of growing Germany, certain temporary constraints. But any other geographies where Torrent would intend to, you know, make mark or you know, start building in addition to these core geographies.
Sanjay Gupta
So you’re talking in the context of jb, right?
Neha M
No.
Sanjay Gupta
Four large markets like India, Brazil, Germany, US and we are preparing future large markets like Russia, then Mexico, then the Philippines. So these should be become in the medium term roughly 50 million dollar markets and that’s what we are targeting. And then there’s another series of markets below that that are currently in the 10 million range and we want to take them up to 25. So that is the way we look at our let’s say geographical portfolio.
Tushar Manudane
50 million each of the combined you refer to, I mean and over what period?
Sanjay Gupta
So it’ll take three, four years. But the JB doesn’t bring us much in terms of front end sales in Mexico, neither in the Philippines. And so in Russia they do add. So we have current business of 20 million and they bring let’s say another 50% of that. So it leads to a scale improvement generally in all emerging markets, especially in Africa and Eastern Europe and Russia. So this combined scale provides you an opportunity to be more visible on the market, to invest more on the market, to increase profitability and to increase momentum.
operator
Thank you ladies and gentlemen. To ask a question, you may press star and 1. Our next question is from the line of Girish Bakru from Orbimed. Please go ahead.
Girish Bakru
Yeah, hi, thanks for taking the question, Sanjay. I’m just trying to understand NVISA better here. You know, I know you don’t have a crystal ball, but given that there are 1112 filers on SEMA, I mean has it happened in the past where regulator has had the situation where there are so many filers on the new product and I mean how many can it approve in the first wave? I mean typically Nvidia approves I think two, three products in any semester, right?
Sanjay Gupta
No, no, no, it’s not like that. No, no, they can, it’s pretty much like anywhere else in the world. There’s no kind of quota system in Brazil so they give some flexibility for you to prioritize and indicate to them which are your priority doses and then you can kind of push them up the queue, but they can improve as many as you want. I’ve never, never seen any limitation from amnesia in terms of number Of So.
Girish Bakru
When you say wave of launch, you being let’s say maybe in the second wave. First wave can be as big as five approvals also, right?
Sanjay Gupta
Yeah, yeah, I’m hoping to be in the first five. But let’s see because the file is there. But again we have Ozempic which is ahead now we go is behind.
Gautam Rajesh
So.
Sanjay Gupta
And the bigger market is vigorous, moving.
Girish Bakru
Understood. And typically, I mean for a product like this supply chain is different or is like again same like other generics.
Sanjay Gupta
No, So I mean it’s not a torrent supply chain on this one. Right. Because we are not manufacturing. So and that is a device. So it’s slightly different but otherwise it’ll work. We have the systems to make it work.
Girish Bakru
My question is more on the distribution side. Do we have to have large distributors, local distributors like you know, RD and this Abra Pharma tied up to get larger market.
Sanjay Gupta
So these big distributors, they have a refrigerated supply chain. So we don’t anticipate any problems because they’re so large. So Santa Cruz Abraham that you mentioned, they all have capabilities to distribute refrigerated products, temperature control products. So not an issue.
Girish Bakru
But would they take more than three, four supplies? I mean I understand capacity can be an issue here. So they may take typically, let’s say whoever gets in the first wave would lock in these distributors.
operator
Right.
Sanjay Gupta
You can’t lock in distributors so easily because basically Brazil is a prescription market. Right. So you have to convince the physician that your product is a viable product. So pretty much like India, right. So if the physicians writing and you know they are seeing the Rx is coming in, they would stop your product. So the battle is let’s. It’s not like a trade market, right. Brazil is, is more a prescription driven market. So we have to convince the doctors that our product has the right quality, right price and you know, we give the right service level so it should be fine.
As far as the distributors, we do that every day. Controlling chains and distributors, that’s part of our bread and butter and we don’t anticipate a barrier to entry on that front.
Girish Bakru
Understood. And I just wanted to also check Oral pill is already filed by Novo in Brazil. I think approval maybe probably, I don’t know this year late or next year. But do. Would you file oral in India?
Sanjay Gupta
We looking at that because Aman has that product in India and potentially we can extend it to Brazil, but we haven’t filed it as yet.
Girish Bakru
Understood. Thank you so much.
operator
Thank you. The next question is from the line of Vivek Agarwal from Citigroup. Please go ahead.
Vivek Agarwal
Yeah, thanks for the follow up. Although you are not quantifying as far as the revenue synergies are concerned from jbd, but any possibilities that what kind of is there real possibility for any kind of revenue scenarios over a period of time etc. Any qualitative color activity could be helpful.
Aman Mehta
I mean qualitatively, if we look at some of the past revenue synergies that we’ve been able to kind of deliver, most recently being in Q ratio brands and divisions, it’s generally where the torrent division has had a kind of longer duration of presence in those regions and areas where you then start selling or cross selling over over time that does really kind of show positive outcomes. So you would have seen the growth of the curetio basket of drugs or products has increased every year sequentially as a result of this. So not saying that this is what we can expect in the case of every acquisition in jb, but there are certainly pockets where even within the established JB brand there are areas where Torrance divisions or field force has had a much longer presence or has a stronger brand equity or corporate equity which can be leveraged.
So this would be across cardiac and gastro especially which are the two largest business contributors for Torrent and JV both. So because of our number of field force that we have in Torrent, the opportunity is quite significant to at least get the reach enhanced as quickly as possible. And even in overlapping areas there could be low market share of JB versus higher market share of Torrent in some products. And there you can really look at opportunities. But this is something that we would not want to focus on in the first year. First year would be pretty much in terms of top line business as usual.
First year would be probably more on the cost side. And second year onwards this is when we can start re looking at this.
Vivek Agarwal
Understood, thank you, that’s quite helpful. Thank you.
operator
Thank you. The next question comes from the line of Tushar Manudane from Motila LOSWAL Financial Services Ltd. Please go ahead. Tushar, your line has been unmuted. You may proceed with your question.
Tushar Manudane
Yes, sorry. Thanks for the follow up. Just a netbet number at the end of Q2.
Sudhir Menon
So net debt number as in December is roughly 880 crores.
Tushar Manudane
And how this trajectory with this acquisition while you have shared the net debt to EBITDA ratio, but if you could just quantify maybe at the end of FY26 subsequently the net debt number.
Gautam Rajesh
I.
Sudhir Menon
Think at this point it’s difficult to tell you the numbers, Tushar, but the guidance which I gave you, which I gave earlier, I think that you should be able to work it out.
Tushar Manudane
Okay.
operator
Thank you, ladies and gentlemen. We will take that as a last question for today. I would now like to hand the conference over to Mr. Sanjay Gupta, executive Director of International Business, for closing comments. Over to you, sir.
Sanjay Gupta
Thank you very much for joining this call and look forward to updating you in the future about our progress. Thank you.
operator
Thank you on behalf of Torrent Pharma. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.