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Torrent Pharmaceuticals Ltd
(TORNTPHARM)
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Rating:67Neutral
Price Target:
₹5,002.00
▼(-0.46% Downside)
Action:Reiterated
Date:10/23/26
The score is driven mainly by strong financial performance (revenue growth, healthy profitability, and solid free cash flow) and a generally constructive earnings outlook with synergies progressing. These positives are meaningfully offset by weak technical momentum and a demanding valuation (high P/E and low dividend yield).
Positive Factors
Revenue and Profitability Growth
Sustained revenue growth alongside healthy operating margins indicates broadening earnings capacity across Torrent’s portfolio. The improvement in net margin supports internal funding for launches, field-force investment, and research, while reinforcing resilience over the next several quarters.
Negative Factors
Margin and Cash Conversion Pressure
Gross-margin pressure and weaker cash conversion reduce the quality and predictability of reported earnings, even though profitability remains healthy. If sustained, these trends could constrain reinvestment capacity and make future operating performance more sensitive to product mix and cost conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Growth
Sustained revenue growth alongside healthy operating margins indicates broadening earnings capacity across Torrent’s portfolio. The improvement in net margin supports internal funding for launches, field-force investment, and research, while reinforcing resilience over the next several quarters.
Read all positive factors
Torrent Pharmaceuticals Ltd (TORNTPHARM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.73T
Dividend Yield0.33%
Average Volume (3M)17.14K
Price to Earnings (P/E)74.7
Beta (1Y)0.46
Revenue Growth42.06%
EPS Growth-3.48%
CountryIN
Employees20,341
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)64.44
Shares Outstanding380,354,250
10 Day Avg. Volume30,787
30 Day Avg. Volume17,142
Financial Highlights & Ratios
PEG Ratio5.00
Price to Book (P/B)17.02
Price to Sales (P/S)10.22
P/FCF Ratio73.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)68.12
Revenue Forecast (FY)₹197.64B
Torrent Pharmaceuticals Ltd Business Overview & Revenue Model
Company Description
Torrent Pharmaceuticals Limited operates as a global pharmaceutical entity, managing the entire process from the discovery and development of generic drug formulations to their production and distribution. Its commercial activities extend across k...
How the Company Makes Money
Torrent Pharmaceuticals primarily makes money by selling finished-dose pharmaceutical formulations (branded generics) to healthcare channels (pharmacies, hospitals, and distributors) in India and abroad. In its core India business, revenue is driv...
Torrent Pharmaceuticals Ltd Earnings Call Summary
Earnings Call Date:Oct 23, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, supported by 51% consolidated revenue growth, 54% operating EBITDA growth, strong Torrent India, Curatio, Brazil, U.S., and semaglutide performance, and integration synergies tracking ahead of plan. The main challenges were JB integration-related disruption, Germany's decline, semaglutide supply-driven share loss, expected U.S. price pressure, and Brazil's approval and competitive environment.Positive Updates
Strong Consolidated Revenue and EBITDA Growth
Q2 FY27 consolidated revenues were INR 4,979 crores, up 51%, while operating EBITDA was INR 1,666 crores, up 54%. Operating EBITDA margin was 33.5%.
Negative Updates
JB Underlying Revenue Was Flat
The underlying JB business reported revenue of INR 1,086 crores, which was largely flat year-on-year. JB India branded business grew 7% in the quarter, compared with 10% growth in H1.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Consolidated Revenue and EBITDA Growth
Q2 FY27 consolidated revenues were INR 4,979 crores, up 51%, while operating EBITDA was INR 1,666 crores, up 54%. Operating EBITDA margin was 33.5%.
Read all positive updates
Company Guidance
Management expects JB India branded business growth in H2 to be higher than double digit and total JB business growth to recover to double digit in H2, with recovery gradually quarter-on-quarter; cost synergies remain at INR 450 crores, with most potentially coming through by the next year and achieved in two years' time instead of three years, while revenue synergies should start gradually coming through next year, with initiatives taking 6-12 months and international opportunities 2-3 years. JB EBITDA margins should continue gradual improvement for the next two, three quarters, while H2 EBITDA margin should be little higher than 33.5%; R&D spend may remain elevated for 2-3 years, with U.S. filings increasing from very low single digits to maybe high single digits and spend expected between 4%-4.5% even in the following year. India field force could potentially expand by 500 MRs or so to something between 9,500-9,600, Brazil should continue to grow double-digit, mid-teens or in that range and at least superior to 10%, closer to 15% growth in the coming years, Germany could see a slight decline in the coming quarters followed by stability after maybe three or four quarters, ROW growth can conservatively be taken at 6%-9%, Brazil semaglutide may launch in the next 6-9 months, Curatio should sustain high growth for at least a couple of years, and generic semaglutide could reach INR 800 crores for the first year and INR 2,000-INR 2,500 in 3-5 years.Torrent Pharmaceuticals Ltd Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
72
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 156.15B | 139.80B | 113.17B | 105.62B | 94.64B | 84.19B |
| Gross Profit | 90.56B | 68.24B | 84.33B | 77.75B | 66.36B | 58.81B |
| EBITDA | 50.26B | 32.57B | 37.19B | 35.00B | 28.81B | 21.41B |
| Net Income | 21.81B | 21.63B | 19.11B | 16.56B | 12.45B | 7.77B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 443.12B | 149.90B | 150.61B | 150.12B | 131.00B |
| Cash, Cash Equivalents and Short-Term Investments | 23.55B | 23.70B | 6.91B | 10.04B | 7.23B | 5.83B |
| Total Debt | 0.00 | 150.25B | 32.02B | 40.22B | 53.68B | 40.70B |
| Total Liabilities | -175.85B | 267.27B | 73.99B | 82.04B | 88.14B | 71.47B |
| Stockholders Equity | 175.85B | 83.89B | 75.91B | 68.56B | 61.98B | 59.53B |
Cash Flow | ||||||
| Free Cash Flow | 8.42B | 19.55B | 19.74B | 28.33B | 17.94B | 16.00B |
| Operating Cash Flow | 10.38B | 26.32B | 25.85B | 32.66B | 23.68B | 18.03B |
| Investing Cash Flow | -2.14B | -127.49B | -5.40B | -1.68B | -24.15B | -1.97B |
| Financing Cash Flow | -8.26B | 105.78B | -22.98B | -27.80B | 770.00M | -17.81B |
Torrent Pharmaceuticals Ltd Technical Analysis
Negative
5025.00
Price Trends
4820.95
Negative
4798.73
Negative
4495.18
Positive
Market Momentum
-82.16
Negative
40.62
Neutral
58.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TORNTPHARM, the sentiment is Negative. The current price of 5025 is above the 20-day moving average (MA) of 4651.83, above the 50-day MA of 4820.95, and above the 200-day MA of 4495.18, indicating a neutral trend. The MACD of -82.16 indicates Negative momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 58.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TORNTPHARM.
Torrent Pharmaceuticals Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹1.03T | 45.83 | ― | 0.04% | 13.27% | 27.32% | |
69 Neutral | ₹901.32B | 16.30 | ― | 0.91% | 28.19% | 49.25% | |
69 Neutral | ₹4.22T | 34.86 | ― | 0.91% | 11.41% | 16.62% | |
67 Neutral | ₹1.73T | 74.66 | ― | 0.33% | 42.06% | -3.48% | |
63 Neutral | ₹1.11T | 39.74 | ― | 0.60% | -3.60% | -52.23% | |
57 Neutral | ₹1.17T | 26.20 | ― | 0.09% | 21.11% | -1.28% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:TORNTPHARM
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Torrent Pharmaceuticals Ltd Corporate Events
Torrent Pharmaceuticals completes electronic dispatch of postal ballot notice
Aug 6, 2026
Torrent Pharmaceuticals Ltd has completed the electronic dispatch of its Postal Ballot Notice to shareholders whose email IDs were registered as of July 31, 2026, in line with the Companies Act, 2013 and SEBI Listing Regulations. The company also ...
Torrent Pharma Announces Completion of Independent Director’s Term
Aug 1, 2026
Torrent Pharmaceuticals Ltd., a publicly listed Indian pharmaceutical manufacturer and marketer, operates under SEBI’s regulatory framework on both BSE and NSE, serving healthcare markets while maintaining compliance-focused governance struc...
Torrent Pharma posts Q1 FY27 earnings call recording online
Jul 30, 2026
Torrent Pharmaceuticals Ltd has uploaded the audio recording of its conference call with analysts and investors discussing financial results for the quarter ended June 30, 2026, to the company’s website, in line with SEBI disclosure regulati...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.