Quick Note - Torrent Pharmaceuticals (TRP IN) (Neutral) - JB Chemicals’ 4Q results impacted by integration

Research evidence excerpt

Quick Note - Torrent Pharmaceuticals (TRP IN) (Neutral) - JB Chemicals’ 4Q results impacted by integration

Global Markets Research

Torrent Pharmaceuticals TORP.NS TRP IN 11 May 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

RatingJB Chemicals’ 4Q results impacted by integration Remains Neutral

Target price INR 4,670 RemainsQuick Note

Closing priceJB Chemicals (JBCP IN, Not rated), a subsidiary of Torrent Pharma (TRP IN, Neutral) 11 May 2026 INR 4,517

reported its results. Sales/EBITDA/PAT for JB Chemicals was 10%/20%/38% below our

estimates.

Research Analysts

●Sales at INR9.04bn was down 15% q-q and 5% y-y owing to business disruptions

across business segments. This follows JB Chemicals’ takeover by TRP in January India Pharmaceuticals

2026 and integration of the businesses. Saion Mukherjee - NFASL

saion.mukherjee@nomura.com

●Domestic formulation sales were largely flat y-y, in-line with our estimates. The growth +91 22 403 74184

was impacted by: a) distribution network optimisation initiatives undertaken as part of Kushal Chovatia - NFASL

the integration process; b) discontinuation of low-margin portfolio of trade generics kushal.chovatia@nomura.com

business; c) alignment of trade and sales closing practices with the parent entity +91 22 403 74013

(including credit policy, field incentives, etc.); and d) alignment of cut-off policies as

part of the post-acquisition integration process, resulting in a timing impact on revenue

during the quarter.

●International formulations performance was affected by: a) one-off negative impact of

inventory rationalization as well as change in credit practices linked to the change of

control and alignment of practices with those of the parent company; and b) shipment

delays due to container constraints in international markets.