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Informist, Monday, Oct. 26, 2025

By Narayana Krishna

HYDERABAD - Steady growth in key markets is likely to help Torrent Pharmaceuticals Ltd. report healthy growth in its September quarter earnings, though margins are likely to see muted growth, according to analysts. The company is expected to report double-digit revenue growth in India and Brazil, which will boost the overall earnings for the quarter.

Ahmedabad-based Torrent Pharmaceuticals is expected to report a consolidated net profit of INR 6 billion, up 32% on year and 9% sequentially, according to the average of estimates from eight brokerages. Prabhudas Lilladher Pvt. Ltd. has the highest estimate for net profit at INR 6.3 billion, while JM Financial Institutional Securities Pvt. Ltd. has the lowest estimate at INR 5.7 billion.

Torrent Pharma's revenue for the September quarter is projected to rise 11% on year and 1% sequentially to INR 32.1 billion, the estimates show. The highest revenue projection is INR 32.6 billion by ICICI Securities Ltd., while the lowest estimate of INR 31.3 billion is from JM Financial. The company is yet to announce a date for detailing its September quarter earnings.

Torrent Pharmaceuticals is a specialty-focused drugmaker with a strong presence across key therapeutic areas such as cardiovascular, central nervous system, gastrointestinal, and vitamins-minerals-nutritionals. Around 80% of the company's revenue comes from its four major markets — India, which accounts for over 50% of the consolidated revenues, while the US, Germany, and Brazil account for 10% each and the remaining comes from the rest of the world.

The company's India business is expected to grow 10–11% on year, driven by strong traction in key therapies, according to the consensus estimates of HDFC Securities Ltd., Motilal Oswal Financial Services Ltd., Nirmal Bang Equity Research, Nuvama Wealth Management Ltd., and JM Financial. Steady performance in the cardiac and neuro segments along with new launches in the consumer health business will likely aid domestic sales growth, Motilal Oswal said.

In Brazil, the company is expected to report similar growth, HDFC Securities said, projecting a 6% on-year sales growth in the US and flattish sales in Germany.

According to Motilal Oswal, Torrent Pharma's US sales will see healthy growth of 14.6%, supported by improved offtake under existing contracts and contributions from new launches such as gastric and acidity treatment drug esomeprazole granules and generic of heart drug Entresto. Sales in Brazil will grow 20% on the back of strong secondary sales growth, the brokerage said.

Despite pricing pressure in some markets and disruptions related to the cut in the goods and services tax, analysts expect Torrent Pharma to report steady margins for the September quarter led by cost rationalisation. Analysts' estimates for the company's earnings before interest, tax, depreciation and amortisation margin are in the range of 31.0-33.6% against 32.5% a year ago. The average of estimates of eight brokerages pegs the company's Jul-Sept EBITDA at INR 10.6 billion.

Analysts will watch for commentary on reviving sales in the US and the outlook on consumer health products.

Of the 15 research reports on the company available with Informist, seven have a 'buy' or equivalent rating on the stock with an average target price of INR 3,872. Six brokerages have a 'hold' rating on the stock with an average target price of INR 3,558 and two have a 'sell' rating with an average price target of INR 3,246.

The stock has fallen over 1% since the announcement of its June quarter earnings on Jul. 28. At 0934 IST, the company's shares traded at INR 3,579.10 on the National Stock Exchange, up 0.1% from its previous close. 

Following are the Jul-Sept earnings estimates for Torrent Pharmaceuticals Ltd. from eight brokerage firms in the descending order by the estimate of net profit:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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