Street bullish on Torrent Pharma's prospects after in-line Q1

Torrent Pharmaceuticals (Torrent) reported revenue and earnings before interest, taxes, depreciation, and amortisation (Ebitda) that met consensus for the April-June quarter of 2025-26 (Q1FY26). But earnings were lower due to lower other income.

- DEVANGSHU DATTA

Torrent had robust growth in Brazil in FY25 and the momentum carried on in Q1FY26. But currency volatility hurt earnings. There's also improved performance in the domestic formulation (DF) segment. Germany faces headwinds. New launches are expected to drive US generics business.

Sales grew 11.2 per cent year-on-year (Y-o-Y) to ₹3,180 crore. The domestic formulation revenue grew 10.8 per cent Y-o-Y to ₹1,810 crore (57 per cent of sales). US generics grew 19 per cent Y-o-Y to ₹310 crore (10 per cent of sales). Germany sales grew 8.5 per cent Y-o-Y to ₹310 crore (10 per cent of sales). In constant currency (CC) terms, sales were stable on a Y-o-Y basis.

The Brazil business grew 11.2 per cent Y-o-Y to ₹220 crore (7 per cent of sales). In CC terms, sales grew 16 per cent Y-o-Y. US generics sales grew 16 per cent in CC terms. Rest of World sales grew 10 per cent Y-o-Y at ₹530 crore (17 per cent of sales).