Detailed Narrative
India Business Outperformance Driven by Chronic Therapies
Torrent's India business grew by 12% YoY to ₹1,820 crores, significantly outpacing the IPM growth of 8%. This was driven by a 13% growth in chronic therapies, particularly in cardiac and gastro segments. Volume growth was a healthy 3.7% compared to flat market volumes, while new products contributed nearly 3% to the growth. The company is expanding its field force to 7,000 representatives by year-end to support a new therapeutic area entry in Q4.
Strategic Ramp-up in US ANDA Filings
After a period of low activity, Torrent is aggressively increasing its US pipeline investments. Management expects to file 4-5 ANDAs this fiscal year, increasing to 10 in FY27 and approximately 15 in FY28. The US business grew 21% in constant currency this quarter to $39 million, supported by new launches and increased volumes on existing contracts. Management reiterated their commitment to the US market, targeting sustainable profitability within a 3-5 year horizon.
Brazil Growth and Semaglutide Opportunity
Brazil remains a high-growth market for Torrent, delivering 21% YoY growth (13% CC). The company has a rich pipeline of 65 molecules filed with ANVISA. A major upcoming opportunity is generic Semaglutide, where Torrent has already filed its application. Management targets a 15% market share for this product, which they estimate will be a billion-dollar market by the time it goes generic. While standard approvals take 36 months, they expect priority treatment for this molecule.
JB Pharma Acquisition and Financial Deleveraging
The acquisition of JB Pharma is progressing through regulatory milestones, with CCI and South Africa approvals secured. The mandatory tender offer (MTO) is expected to conclude by mid-December, with the transaction closing in January 2026. Financially, Torrent has significantly deleveraged, with its net debt to EBITDA ratio falling to 0.45x. Operating EBITDA margins remained strong at 32.8%, even with a ₹39 crore FOREX loss booked during the quarter.
Germany Supply Chain Headwinds
The German business faced a 5% constant currency revenue decline due to ongoing supply disruptions at a third-party supplier. Management expects these disruptions to persist through Q3 FY26 but is working to normalize operations by Q4. Despite these challenges, the company maintains a long-term focus on the German market as part of its broader European strategy.