Synopsis: The pharma major aims to expand margins through stronger India and US growth and acquisition-led synergies from FY27. In Q3, it reported 17.6% YoY growth in revenue and 26.2% growth in profit.
One of the leading Indian Pharmaceutical Company engaged in research, development, manufacturing and marketing of generic pharmaceutical formulations has come into the spotlight after its shares jumped by 6 percent, attracting attention from investors and market watchers.
With a market capitalization of Rs. 1,44,275.91 crore, the shares of Torrent Pharmaceuticals Limited were trading at Rs. 4,262.90, up by 4.53 percent from its previous day’s closing price of Rs. 4,078 per equity share. The stock has touched an intraday high of Rs. 4,324.90, implying an increase of 6.05 percent from previous day’s closing price.
Q3FY26 Results & Dividend announcement
The company reported revenue of Rs. 3,303 crore in Q3FY26, registering a 17.6 percent year-on-year (YoY) growth compared to Rs. 2,809 crore in Q3FY25. On a quarter-on-quarter (QoQ) basis, revenue remained largely flat, rising marginally by 0.03 percent from Rs. 3,302 crore in Q2FY26, indicating stable sequential performance.
EBITDA stood at Rs. 1,088 crore in Q3FY26, up 19.0 percent YoY from Rs. 914 crore in Q3FY25. Sequentially, EBITDA increased slightly by 0.5 percent from Rs. 1,083 crore in Q2FY26, reflecting steady operating performance and stable margins during the quarter.
Net profit came in at Rs. 635 crore, marking a strong 26.2 percent YoY increase compared to Rs. 503 crore in Q3FY25. On a QoQ basis, profit rose 7.4 percent from Rs. 591 crore in Q2FY26, indicating improved bottom-line performance both annually and sequentially.
The company has declared an interim dividend of Rs. 29 per equity share of Rs. 5 each (580 percent) for the financial year. The record date for determining the eligibility of shareholders to receive the dividend is set as 6th March 2026.
Geographical Segmentation
India
Revenue from the India business stood at Rs. 1,798 crore, reflecting a 14 percent growth during the quarter, ahead of the 10 percent growth reported for the Indian Pharmaceutical Market (IPM) as per AIOCD PharmaTrac data. The company continued to outperform the market in chronic and sub-chronic therapies, particularly in the Cardiac, Gastro, and Diabetes (OAD) segments. For the nine months ended FY26, India revenues reached Rs. 5,430 crore, marking a 12 percent increase year-on-year.
Brazil
Brazil revenues came in at Rs. 371 crore, up 27 percent, while constant currency revenue of R$ 224 million grew 10 percent. According to IQVIA, the company outpaced the market with 13 percent growth compared to overall market growth of 7 percent, supported by strong performance of key brands and recent launches. Additionally, 60 products remain under ANVISA review. For 9M FY26, revenues rose 21 percent to Rs. 907 crore, with constant currency revenue of R$ 564 million increasing 13 percent.
United States
The US business reported revenues of Rs. 321 crore, up 19 percent, while constant currency revenue stood at $36 million, rising 12 percent year-on-year. Growth was supported by recent product launches achieving targeted market shares. For the nine-month period, revenues grew 21 percent to Rs. 967 crore, with constant currency revenue of $111 million increasing 16 percent.
Germany
Germany revenues were Rs. 304 crore, up 8 percent, though constant currency revenue of EUR 29 million declined 6 percent due to supply disruptions at a third-party supplier. For 9M FY26, revenues increased 7 percent to Rs. 916 crore; however, constant currency revenue of EUR 91 million was down 3 percent, reflecting ongoing operational challenges.
Brokerage View
JM Financial
JM Financial has maintained a Buy call on Torrent Pharma and raised its 12-month target price to Rs. 4,743 from Rs. 4,255 (Upside of 16 percent), underpinned by expectations of strong growth and margin expansion.
The brokerage noted that the company expects its India business to grow slightly ahead of the market, while the US segment is projected to deliver strong double-digit growth. It also highlighted that Torrent’s recent 49 percent stake acquisition in JB Chemicals & Pharmaceuticals Limited is likely to generate synergy benefits starting FY27, with NCLT filing expected shortly.
JM Financial projects revenue, EBITDA, and PAT CAGRs of 14 percent, 16 percent, and 26 percent, respectively, over FY25–28, along with a 110 basis points margin expansion. Valuing the combined entity at 25 times FY28 EV/EBITDA.
ICICI Securities
ICICI Securities has a Hold stance with a target price of Rs. 4,150 from Rs. 3,530 (Upside of 2 percent from previous close) , reflecting a more cautious view on margin expansion.
The brokerage stated that Q3FY26 performance was driven by steady growth in India, Brazil, and the US markets, although Germany remained weak on a constant-currency basis.
The firm estimates revenue, EBITDA, and PAT CAGRs of 23 percent, 23.7 percent, and 19.2 percent, respectively, over FY25–28E, with a modest 50 basis points margin expansion. It noted that the stock is currently trading at relatively elevated valuations and prefers valuing it on an EV/EBITDA basis due to significant non-cash amortisation costs, suggesting limited upside at current levels despite solid fundamentals.
How Torrent Pharma Is Planning to Improve Margins
Based on brokerage commentary, Torrent Pharma’s margin improvement strategy revolves around three key drivers: strong growth in high-margin markets such as India and the US, operating leverage from rising revenues, and synergy benefits from the acquisition of a 49 percent stake in JB Chemicals, expected to contribute meaningfully from FY27 onwards. Additionally, steady performance across core geographies and scale efficiencies are likely to support gradual margin expansion over the medium term.
About The Company
Torrent Pharmaceuticals is one of India’s most prominent specialty-focused pharmaceutical companies, with a portfolio strongly anchored in chronic and sub-chronic therapies such as cardiovascular, gastro-intestinal, central nervous system, dermatology and related segments.
The company has built its domestic strength over decades through both organic growth and strategic acquisitions, and has a robust presence in international branded generic markets such as Brazil and Germany. Torrent combines a broad field force, multiple USFDA-approved manufacturing facilities, and a growing research capability to maintain steady growth and healthy profitability.
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