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Informist, Friday, May 22, 2026

By Eshitva Prakash

MUMBAI – Torrent Pharmaceuticals Ltd. reported a fall in its net profit for the first time in 14 quarters in the March quarter as expenses surged and key leverage ratios jumped right after it integrated JB Chemicals & Pharmaceuticals Ltd. and its subsidiary's figures in its earnings. The debt-fuelled acquisition of a controlling stake in JB Chemicals resulted in the pharma company reporting the worst on-year fall in the bottom line in over eight-years. However, the consolidated entity reported healthy organic growth, and revenue for the March quarter reached multi-quarter highs, surpassing the view on the Street. 

The pharmaceuticals company reported a near 22% on-year decline in its consolidated net profit to INR 3.89 billion during the March quarter, sharply lower than the Street's estimates of INR 5.83 billion. The company's revenue for the first three months of 2026 rose nearly 42% on year to INR 41.97 billion. This is the sharpest top-line growth in at least 42 quarters, according to data available with Informist. 

The company's net profit growth halted in the March quarter due to a sharp rise in expenses, which also rose to at least a 42-quarter high. Finance costs jumped to INR 2.36 billion from INR 560 million in the year-ago quarter. Depreciation and amortisation expenses more than doubled on year to INR 5.08 billion. Costs classified under 'other expenses' rose to 10.38 billion, up almost 48% on year.

Torrent Pharmaceuticals completed the acquisition of a 48.80% stake in JB Chemicals from US-based global investment firm KKR and some investors for INR 119.17 billion and gained controlling promoter status on Jan. 21. It has secured up to INR 200 billion in funding from global banks HSBC, Standard Chartered, and Barclays to finance the acquisition, several media outlets and broking firms said.

The company reported a sharp jump in key leverage ratios. Its debt-to-equity ratio rose to 1.76 times from 0.21 times in the year-ago quarter. Its debt-to-asset ratio rose to 0.33 times from 0.12 times. The company's margins were also hit, with its net profit margin declining to 8.7% from 19.2% in the year-ago quarter. The company's operating earnings before interest, taxes, depreciation, and amortisation, however, rose 41% on year to 13.56 billion, higher than the consensus view. Its operating EBITDA margin compressed to 32% from 31% in the corresponding quarter of 2024-25 (Apr-Mar). The company's expenditure on research and development increased 22% on year to INR 1.83 billion in the March quarter.

Excluding JB Chemicals, the company said its base business recorded a revenue growth of 16% for the quarter and 15% for FY26, with operating EBITDA growth of 16% and EBITDA margin of 32.7% for both periods. For the quarter ended March, JB Chemicals reported net profit of INR 965.4 million on revenues of INR 8.36 billion.

The revenue from India operations rose a whopping 43% on year to INR 22.15 billion. Its generic Semaglutide launch was off to a strong start as it captured 38% of the market share, which includes oral and injectable versions of the drug, the company said, citing PharmaTrac data. The company's India business growth surpassed the industry's year-on-year growth of 10%.

In Brazil, the company's revenues increased 30% on year to INR 4.55 billion owing to strong performance of top brands and recent launches. In constant currency terms, the revenue was up 11% to around INR 4.96 billion. Torrent Pharma has 58 products under review by Brazil's Health Surveillance Agency, or Agncia Nacional de Vigilncia Sanitria. 

In the US, the company's top line grew 31% on year to INR 3.96 billion in rupee terms. However, in constant currency terms, the top line grew just 9% on year to $38 million. The company said its base business revenue for FY26 in the region grew 20%, helped by performances of recent launches. In constant currency terms, revenue for the financial year rose 14% on year to $149 million. 

In Germany, the company's top line rose 16% on year to INR 3.33 billion but in constant currency terms, the revenue was down 1% on year to around INR 593.71 million. Torrent Pharma's growth in Germany was hit by a disruption at a third-party supplier's end.

The company announced an interim dividend of INR 9 per share. The record date for the dividend will is set as May 29. Its board has approved raising INR 50 billion through a qualified institutional placement or other means. 

For FY26, Torrent Pharma's consolidated net profit grew over 13% to INR 21.63 billion and consolidated sales increased over 21% on year to INR 139.80 billion. Friday, the company's shares closed 0.4% higher at INR 4,486.20 on the National Stock Exchange. The company declared its results after market hours.  End

US$1 = INR 95.69

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

Edited by Akul Nishant Akhoury

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