Torrent Pharmaceuticals (500420) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 3% year-over-year to INR 2,809 crores, led by India, with 12% growth for the quarter and 13% YTD December.

• Brazil constant currency growth was 10% for the quarter, but reported revenue declined due to currency depreciation.

• Germany posted 4% growth in Q3 FY25, supported by tender wins.

• Insulin revenue was nil in Q3 due to facility transition, with dispatches resuming from January 2025.

• Standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board with unqualified audit opinions.

Financial highlights

• Q3 revenue was INR 2,809 crores, up 3% year-over-year; YTD December revenue up 7% to INR 8,557 crores.

• Operating EBITDA reached INR 914 crores, up 5% year-over-year; EBITDA margin sustained at 32.5%.

• Normalized for insulin and BRL impact, underlying revenue growth was 7% and EBITDA growth 12%.

• Consolidated Q3 FY25 net profit was INR 503 crores, up from INR 443 crores YoY.

• Interim dividend of INR 26 per share (520% of face value) declared.

Outlook and guidance

• Insulin business expected to see significant spillover in Q4, above the normal INR 75–80 crores quarterly run rate.

• BRL depreciation impact expected to persist for a couple more quarters; price increases in Brazil anticipated from April.

• India business expected to continue outperforming market growth, with focus on new launches and market share gains.

• U.S. business outlook remains for slow pickup due to limited new filings; meaningful growth not expected short term.

• Margin improvement of 50–100 bps expected to continue next year, driven by branded segment growth.