Torrent Pharmaceuticals (500420) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached INR 3,302 crores, up 14% year-over-year, with net profit after tax at INR 591 crores, a 30% increase year-over-year.

• Branded markets contributed 73% of revenue, with India and Brazil showing double-digit growth; India up 12%, Brazil up 21% (13% in constant currency).

• U.S. business grew 26%, Germany up 5% (but down 5% in constant currency due to supply disruption).

• The Board approved audited standalone and unaudited consolidated financial results for the quarter and half year ended 30th September 2025.

• H1 FY26 total revenue was INR 6,480 crores, reflecting a 13% year-over-year increase.

Financial highlights

• Operating EBITDA for Q2 FY26 was INR 1,083 crores, up 15% year-over-year, with an EBITDA margin of 32.8%.

• Gross margin stood at 76% for the quarter.

• Net debt to EBITDA ratio improved to 0.45x.

• Basic and diluted EPS for Q2 FY26 were INR 17.45.

• Forex loss of INR 39 crores recorded in other income.

Outlook and guidance

• India business expected to continue outperforming market growth, focusing on chronic therapies and new launches.

• Germany supply disruption likely to persist in Q3, with normalization expected from Q4.

• Brazil semaglutide approval pending; significant opportunity anticipated.

• U.S. filings to ramp up, targeting 10-15 ANDAs annually in coming years.

• R&D spend for Q2 FY26 was INR 156 crores, representing 5% of revenue.