Torrent Pharmaceuticals (500420) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue rose 8% year-over-year to INR 2,959 crore, with India business growing 12% and Brazil 5% in constant currency, despite channel de-stocking and currency headwinds.

• Full-year FY25 revenue increased 7% to INR 11,516 crore, with consolidated revenue from operations up from INR 10,786 crore year-over-year.

• Net profit for FY25 stood at INR 1,911 crore, compared to INR 1,656 crore in FY24.

• Board proposed a final equity dividend of INR 6 per share.

• U.S. generics grew 15% in Q4, with incremental tender wins expected to drive future growth.

Financial highlights

• Q4 operating EBITDA was INR 964 crore, up 9% year-over-year, with margins at 32.6%.

• Adjusted for a one-time INR 17 crore inventory revaluation, underlying EBITDA growth was 11% and margin 33.1%.

• Operating margin for FY25 was 32.3%, up from 31.8% in FY24.

• Net profit margin for FY25 was 16.6%, compared to 15.4% in FY24.

• Earnings per share (EPS) for FY25 was INR 56.47, up from INR 48.94 in FY24.

Outlook and guidance

• India business expected to continue outperforming market growth, with focus on new launches and expanded territorial reach.

• Brazil business projected to grow 10-12% in constant currency for FY 2026, outpacing market growth.

• U.S. business to see more significant impact from new launches in FY 2027, with 7-8 launches planned for FY 2026.

• Insulin business expected to maintain a quarterly run rate of INR 75 crore.

• Transition to the new tax regime under Section 115BAA from FY26, resulting in a net reversal of deferred tax liabilities of INR 151 crore in FY25.