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Informist, Tuesday, May 20, 2025

By Sunil Raghu and J. Navya Sruthi
 
AHMEDABAD/MUMBAI– Torrent Pharmaceuticals Ltd. expects its India business to continue to outperform market growth in 2025-26 (Apr-Mar) as the company focusses on improving marketshare in the expanded areas and new launch performance, the company's management said in its post-earnings analyst call Tuesday.

Torrent Pharma earned a revenue of INR 15.45 billion from India business in the March quarter, driven primarily by outperformance in focus therapies as cardiac, diabetes, and gastroenteritis divisions. The industry growth for the quarter was 8%. Cardiac segment, which is the largest business contributor for Torrent Pharma, grew by 15% in the March quarter versus a market growth of 10%. "Due to the restructuring that was undertaken last year along with divisional expansion, we continue to see positive traction in our consumer health business, particularly in the Curatio," company management said.

Torrent Pharma had acquired Chennai-based Curatio Healthcare, which specialises in dermatology and cosmetology products, for INR 20 billion, with an aim to be among top 10 players in this segment. The company now said that the revenue growth from Curatio had accelerated in the last couple of years, and it could emerge as the key driver for the company's India business in the coming quarters. In FY25, Curatio portfolio has grown around 18-19% and the company expects this growth to be potentially higher in FY26.

For FY25, the company's consolidated net revenue grew over 7% on year to INR 115.16 billion while the net profit rose 15% on year to INR 19.11 billion. In the March quarter, the company reported a nearly 8% growth in net sales at INR 29.59 billion and the profit grew nearly 11% on year to INR 4.98 billion. Torrent Pharma also has 21 brands in the top 500 of the industry benchmark products, with 14 brands having sales of more than INR 1 billion. Of the total revenue, the company earned nearly INR 750 million via insulin sales. The company sees similar sales for insulin in the coming quarters.

The company plans to add 200-300 medical representatives to its existing strength of 6,400 in the June quarter and is hoping that by the end of FY26, their numbers will be around 6,800-6,900. "We believe the expansion will help us provide a platform for new launches and also increase our territorial reach and help gain regional market share in previously untapped areas," the management said.

Other than India, Torrent Pharma has a presence in more than 50 countries, with key markets being the US, Brazil and Germany.

In FY25, the company's Germany business grew by 6% on year to INR 11.39 billion, while it was 2% up in the March quarter at INR 2.86 billion. The management now sees a high single-digit growth in the upcoming quarters in the Germany business, as it expects to win a greater number of tenders. The German government procures most of its medicines via tendering process, especially generic medicines.

As for the Brazil market, the other important market for the company, its revenue from the south American nation was at INR 3.51 billion, down 6% on year. However, the company expects its Brazil business to grow in double digits, too, nearly 10%-12%, in FY26. During the past two years, the company's Brazil business grew about 9%, the management said.

Its revenue from US business in the March quarter came in at INR 3.02 billion, up 15% on year. For FY25, company's revenue in US was INR 11 billion, up 2% on year. The company now expects growth in this market via launch of new products but more towards FY27 and beyond. The company had filed for launches of its new drug entities with the US Foods and Drugs Administration "a few years ago". It now hopes to launch 5-10 new products each year, but the value of these launches would not be high due to delays. 

The company's management, that in its September quarter analyst call had said that they were aiming to be debt-free by Mar. 31, 2026, on Tuesday reiterated their commitment but hinted at some delay. They said that they would now want to repay the debt by either the first half of FY27 or December quarter of FY27. "…the goal is to use whatever cash flows or excess cash which is available to repay the debt which I have on my balance sheet," Aman Mehta, whole-time director, Torrent Pharmaceuticals Ltd. said.

On Tuesday, shares of the company closed at INR 3,241.50 on the National Stock Exchange, down 1.86%.  End
 
Edited by Deepsikha Bhardwaj
 
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