Torrent Pharmaceuticals: India accelerates; JB synergies ahead of plan Quick Note

Research evidence excerpt

Torrent Pharmaceuticals: India accelerates; JB synergies ahead of plan Quick Note

Global Markets Research

Torrent Pharmaceuticals TORP.NS TRP IN 30 July 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

RatingIndia accelerates; JB synergies ahead of plan Remains Neutral

Target price INR 4,670 RemainsQuick Note

Closing priceTorrent Pharma’s (TRP) 1QFY27 sales/EBITDA/PAT were 2%/4%/5% ahead of our 30 July 2026 INR 4,872

estimates. The beat was primarily driven by India formulations and better-than-expected

performance of the recently acquired, JB Pharma (JBCP IN, Not rated) business. The

base business growth was healthy with revenues growing at 17% y-y and 9% q-q. Research Analysts

Torrent's base business EBITDA margin at 33.3%, expanded 80bp y-y and JB Pharma's India PharmaceuticalsEBITDA margin at 35.3%, expanded 650bp y-y. The EBITDA margin was 80bp ahead of

Saion Mukherjee - NFASLestimates. PAT growth of 3% y-y and 55% q-q, was aided by a lower ETR of 22.1%, but saion.mukherjee@nomura.com

impacted by an extraordinary loss of INR210mn (INR20mn related to costs associated +91 22 403 74184

with JB Pharma’s acquisition and INR190mn related to inventory write-off on account of a

Kushal Chovatia - NFASLfire at a JB Pharma warehouse). Adjusted PAT grew 7% y-y. Strong organic growth in kushal.chovatia@nomura.com

India (19% y-y), recovery in JB revenue growth, realisation of cost synergies ahead of +91 22 403 74013

schedule were the key positives. The quarter benefited from one-time sales in the US,

negated by channel inventory correction in Brazil (cc growth of 3% y-y) and sustained

supply constraints and competitive pressure in Germany.

We have a Neutral rating on Torrent Pharma with a target price of INR4,670, based on

25x Dec-27F EBITDA.