Torrent Pharmaceuticals (500420) Q1 25/26 earnings summary

Executive summary

• Branded markets contributed 72% of revenue, with India and Brazil showing double-digit growth; India up 11%, Brazil up 16% in constant currency.

• U.S. business grew 19%, Germany up 9% (1% in euro terms due to supply disruption).

• India chronic business outperformed market, driven by cardiac, diabetes, gastro, and CNS divisions.

• Net profit for Q1 FY26 grew 20% year-over-year to ₹548 crores, driven by robust sales across key markets.

• Expansion of field force and divisions in India to support new launches and market share gains.

Financial highlights

• Q1 FY26 revenue at ₹3,178 crore, up 11% year-over-year from ₹2,859 crore.

• Operating EBITDA at ₹1,032 crore, up 14% year-over-year; adjusted margin at 32.9% after excluding one-off expenses.

• Net profit after tax was ₹548 crores, up from ₹457 crores in Q1 FY25.

• Booked ₹48 crore forex loss in other income, mainly on euro/USD pair due to euro appreciation.

• R&D spend increased 16% year-over-year to ₹157 crores.

Outlook and guidance

• Expectation for adjusted margin of at least 32.9% to continue for the rest of FY26.

• India business expected to continue outperforming market growth, with focus on new launches and field force productivity.

• U.S. business not yet profitable but losses are reducing; further launches expected to improve performance.

• Germany supply disruption expected to persist for at least a couple of quarters.

• Transition to a lower tax regime from FY 2025-26 may impact deferred tax balances and future tax liabilities.