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    Torrent Pharma.

    TORNTPHARMGood
    Healthcare·28 Jul 2025
    Management Summary

    Torrent Pharma started FY26 with steady double-digit growth led by its core branded markets in India and Brazil. While Germany faced temporary supply disruptions from a third-party partner, the US business showed recovery with strong constant currency growth and narrowing losses. Management expressed high confidence in maintaining a 32.9% margin floor for the remainder of the fiscal year.

    Highlights

    8

    • Revenue reached ₹3,178 crores, representing an 11% YoY growth.

    • Operating EBITDA stood at ₹1,032 crores, up 14% YoY.

    • Adjusted EBITDA margin improved to 32.9% after accounting for ₹15 crore in one-off acquisition expenses.

    • India business grew by 11% to ₹1,811 crores, outperforming the IPM growth of 8%.

    • Brazil business delivered strong performance with 16% constant currency growth.

    • US business revenue grew 16% in constant currency to $36 million, though it remains loss-making post-R&D.

    • Net leverage remains healthy at 0.45.

    • Field force expansion continues with a target of 6,900-7,000 MRs by the end of FY26.

    Key financials

    Single quarter

    04 metrics
    1. 01Revenue₹3,178 Cr+11%YoY
    2. 02Operating EBITDA₹1,032 Cr+14.0%YoY
    3. 03Adjusted EBITDA Margin32.9%
    4. 04Net Leverage0.45 ratio

    Segment breakdown

    RevenueCC Growth
    India Business₹1,811 Cr—
    Brazil Business₹143 Cr16%
    US Business₹36 Cr16%
    Germany Business₹32 Cr1%
    Heatmap· 2 shared metrics

    Guidance & targets

    5
    CategoryTargetPriority
    Margin
    Adjusted EBITDA Margin
    32.9%
    		High
    Headcount
    India Field Force (MRs)
    6,900-7,000
    		High
    Volume
    US Product Launches
    10
    		Medium
    Volume
    Brazil Product Launches
    8-10
    		Medium
    Other
    Effective Tax Rate
    25%-26%
    		High

    Risks & concerns

    5
    RiskSeverity

    Third-party supply disruption in Germany

    A major partner has regulatory-linked supply issues, impacting growth for at least the next two quarters. — Management acknowledged

    medium

    Forex Translation Losses

    ₹48 crore loss booked this quarter, primarily due to Euro-USD pair appreciation. — Management acknowledged

    low

    US Generic Market Profitability

    The US business remains loss-making post-R&D, though losses are narrowing quarter-on-quarter. — Both acknowledged

    medium

    Areas of Evasion(2)

    • Specific launch dates for Semaglutide in Brazil
    • Normalization timeline for German supply chain

    Q&A highlights

    3

    “Neha, unfortunately, I won't make a prediction, at least a couple of quarters... we are kind of a little bit hostage to the situation in the sense it's not within our direct control.”

    Reveals that 75% of the Germany business relies on third-party products, creating a significant external dependency risk.

    asked by Neha Manpuria

    2 min read5 chapters

    Detailed Narrative

    01

    India Business Outperformance

    The India business grew 11% to ₹1,811 crores, significantly outpacing the IPM growth of 8%. This was driven by a 13% growth in the chronic segment, particularly in cardiac, diabetes, gastro, and CNS divisions. The growth breakup consisted of 3.5% volume, 6% price, and 2.5% from new products. Management is expanding the field force from 6,400 to a target of 7,000 MRs by year-end to further penetrate untapped regional markets.

    02

    International Branded Markets Strength

    Brazil remains a key growth engine with 16% constant currency growth (BRL 143 million), outperforming the market growth of 5%. Torrent has a rich pipeline of 62 molecules filed in Brazil and plans to launch 8-10 products annually. In Germany, growth was muted at 1% in constant currency (€32 million) due to supply disruptions at a third-party supplier, which management expects to persist for at least two more quarters.

    03

    US Generic Recovery Path

    The US business registered 16% constant currency growth to $36 million, aided by new launches like Esomeprazole granules and Sacubitril/Valsartan. While the segment is not yet profitable post-R&D, losses are narrowing. Management plans a total of 10 launches for the fiscal year, with 4-5 already completed in Q1, aiming to move the segment toward a positive contribution to overall performance.

    04

    Margin Resilience and Financial Health

    Adjusted EBITDA margins stood at 32.9%, and management has guided that this will be the minimum run rate for the rest of FY26. Net leverage is low at 0.45, providing significant balance sheet flexibility. The company faced a ₹48 crore forex loss this quarter, primarily due to Euro-USD translation, but expects some of this to reverse in future quarters as currency volatility stabilizes.

    05

    Strategic Acquisition and Pipeline

    The JB Pharma acquisition is progressing through regulatory channels, with CCI applications already filed. Management clarified that their ongoing field force expansion in India is in non-overlap areas and will continue regardless of the merger timing. Additionally, Torrent is conducting Phase III clinical trials for oral Semaglutide in India, positioning itself for the upcoming GLP-1 opportunity in the next 1-2 years.

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