Torrent Pharma: JB: 4Q in line; growth to normalize over next few quarters, aided by India

研报英文原文证据摘录

Torrent Pharma: JB: 4Q in line; growth to normalize over next few quarters, aided by India

nd equity as well as our expectation of higher than Market Value (mn) 1,528,730 INR

average price adjustments (given API cost pressure) could imply better than expected Average Daily Value (mn) 18.27 USD

growth in India. International growth is expected to remain impacted due to container Free Float 31.4%

constraints at least in 1Q with single digit growth from 2QFY27. We expect the CDMO BofA Ticker / Exchange TOPHF / NSI

business growth momentum to be FY28 weighted given the focus on improving Bloomberg / Reuters TRP IN / TORP.NS

execution to accelerate product development under new contracts for existing ROE (2026E) 26.3%

customers and add new customers (beyond the Top 4-5 already in its rooster) to Net Dbt to Eqty (Mar-2025A) 30.8%

improve utilization. We estimate JB revenue growth of 7-8% in FY27 (driven largely by

India) and improving to mid-teen growth in FY28.

Abbreviations used:

Margin – Synergies likely from 1QFY27 CDMO: Contract Development and

EBITDA excluding ESOP/one-offs was Rs2.4bn with margins at 27% aided by gross

Manufacturing Organisation

margin expansion that reflects the discontinuation of low-margin trade Gx and product

mix. While company did indicate 1Q gross margin being more reflective of underlying API: Active Pharmaceutical Ingredient

trend, they pointed to procurement benefits from the acquisition reflecting from 1Q

Gx: Genericwith some impact from higher costs due to West Asia conflict. We also expect synergies

from reduction in corporate overheads like distribution network optimization, backend MR: Medical Representative

functions etc. to contribute to margins particularly in 2HFY27 (BofAe). On integration of