Torrent Pharma gains over 2% after Q1 results; what should you do?

Business Standard

3 days ago

Torrent Pharma share price today: Shares of pharmaceutical firm, Torrent Pharma, gained over 2 per cent on Tuesday, July 29, 2025, logging an intraday high of ₹3,717.
At 9:30 AM, Torrent Pharma shares were trading at ₹3,717.50, up by 2.21 per cent on the National Stock Exchange. In comparison, Nifty50 was trading largely flat, albeit with a positive bias, up by 19 points or 0.08 per cent, quoting 24,700.75 level.
The buying interest on the counter came after the company released its earnings for the first quarter of the financial year 2025-2026 (Q1FY26).
Torrent Pharma Q1FY26 earnings
The pharma major reported a 20 per cent rise in net profit for the quarter ended June 30, 2025, to ₹548 crore from ₹457 crore reported in the corresponding quarter of the previous fiscal year. Consolidated revenue from operations figure stood at ₹3,178 crore, an 11 per cent increase from ₹2,859 crore. Operational earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter under review stood at ₹1,032 crore, signalling an increase of 14 per cent year-on-year (Y-o-Y).
Ebitda margins for the quarter stood at 32.5 per cent. At home, Torrent Pharma's India revenue stood at ₹1,811 crore, up 11 per cent. This was largely backed by outperformance in the focus therapies segment. During the June quarter, the pharma company also entered into a definitive agreement with Tau Investment Holdings Pte. Ltd to acquire a controlling stake in JB Pharma. The acquisition was aimed at expanding Torrent's overall market presence.
That apart, Torrent's chronic business grew at 13 per cent as compared to the Indian pharmaceutical market's (IPM) growth of 9 per cent for the quarter.
Torrent's revenue from the Brazil market increased by 11 per cent to ₹218 crore, up from ₹196 crore recorded in Q1FY25. Meanwhile, revenues from the US market were up 19 per cent at ₹308 crore in the June quarter of FY26. ALSO READ |
What should you do?
Nuvama institutional equities has retained its optimistic view on Torrent Pharma. This is largely due to the company's increased focus on the domestic business and continued efforts to add inorganic growth drivers such as JB Pharma. The brokerage firm has maintained its 'Buy' on the stock and has revised the target price to ₹4,180 (up from ₹3,920).
"While the stock trades at a premium valuation (39x FY27E Earnings per share), we think it can sustain due to superior capital allocation. Additionally, the JB acquisition is a long-term value creation driver for Torrent Pharma," Nuvama said in its report.
The pharma major has 21 brands in the top 500 brands in the IPM list. Out of this, more than 14 brands have made sales exceeding ₹100 crore.
"On the technical charts, the stock price has broken out of a bullish flag pattern from the ₹3,400 level and is likely to trade in an uptrend in the coming sessions, with upside potential to ₹4,000. Investors and traders are advised to buy the stock at the current market price with a stop loss at ₹3,300 for a target of ₹4,000. For existing positions, trail the stop loss to cost and maintain long positions," said Ravi Singh, SVP-retail research at Religare Broking. ALSO READ | Mazagon Dock shares plunge 5% as Q1 profit drops; time to book profit? Meanwhile, ICICI Securities estimates better margins in the coming quarters alongside mixed performance in global markets. "In Q2FY26, it (Torrent Pharma) has also launched gEntresto in the US, which should drive up the momentum in this segment. Growth across Germany is expected to be tepid in coming quarters, as regulatory issue at the supplier's plant will likely take time to resolve...we estimate revenue/Ebitda/PAT CAGRs of 28 per cent/28.2 per cent/20 per cent over FY25–27 with flattish margin of 32.6 per cent in FY27 boosted by acquisition of JB Chemicals," the brokerage firm stated, while maintaining 'Hold' rating on the stock with a higher target price of ₹3,530 (earlier ₹3,500).