Torrent Pharmaceuticals Ltd
Torrent Pharmaceuticals Ltd
Healthcare F&OKey Fundamentals
LargecapPharmaceuticalsHealthcareInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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50 extracted metrics + investor summaries across FY15–FY26.
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Technical Indicators
Key Insights
Strengths
3- Company is expected to give good quarter
- Company has a good return on equity (ROE) track record: 3 Years ROE 26.2%
- Company has been maintaining a healthy dividend payout of 57.8%
Weaknesses
4- Stock is trading at 19.5 times its book value
- Promoter holding has decreased over last quarter: -7.53%
- The company has delivered a poor sales growth of 11.8% over past five years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
Torrent Pharmaceuticals trades at a market cap of ₹1,84,612 Cr with a PE of 86.3x and PB of 22.1x, reflecting premium valuations. The company delivers strong ROE of 27% (last year) with TTM sales growth accelerating to 33%, though historical 5-year sales CAGR remains modest at 12%.
- TTM sales growth has accelerated sharply to 33%, significantly above the 5-year CAGR of 12%, indicating a potential inflection in revenue trajectory
- Consistently high ROE at 27% last year, with 3-year average of 26% and 5-year average of 24%, demonstrating efficient capital allocation
- Compounded profit growth of 22% over 3 years outpaces the 10-year profit CAGR of 2%, showing meaningful margin expansion in recent years
- Healthy dividend payout ratio of 57.8% signals management confidence in cash flow sustainability and shareholder-friendly capital return policy
- Stock CAGR of 35% over both 1-year and 3-year periods reflects sustained investor confidence and consistent re-rating
- 10-year stock CAGR of 21% demonstrates long-term compounding ability through multiple market cycles
- Company is expected to deliver a good quarter, suggesting near-term operational momentum remains intact
- PE ratio of 86.3x is extremely elevated relative to pharma sector averages of 25-40x, leaving limited margin of safety for execution misses
- Price-to-book of 22.1x (trading at 19.7x book value) implies the stock prices in many years of future growth, creating downside risk if growth disappoints
- Promoter holding decreased by 7.53% in the last quarter, a significant reduction that may signal insider concerns or pledging-related selling
- Historical 5-year sales growth of only 11.8-12% is modest for a company commanding an 86x PE multiple, suggesting valuation-growth disconnect
- 10-year compounded profit growth of just 2% highlights that sustained high profitability growth is historically not the norm for this company
- Dividend yield of only 0.78% provides minimal income cushion against potential capital depreciation at current elevated valuations
- Potential capitalization of interest costs may be flattering reported profitability, making true earnings quality harder to assess
- TTM profit growth of 10% lags significantly behind TTM sales growth of 33%, suggesting possible margin pressure or one-time revenue items not flowing to the bottom line
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Q1FY27 revenue surges 55% Jul 30
Consolidated revenue of ₹4,921 crore and net profit of ₹566 crore for Q1FY27, driven by JB Pharma amalgamation and strong India business growth.
- JB Chemicals amalgamation shares listed Jul 27
4.19 crore equity shares issued under the JB Chemicals amalgamation scheme received final listing approval, with trading commencing on NSE and BSE on July 28, 2026.
- ESG score of 70 assigned Aug 11
Torrent Pharma received an ESG rating of 70 from NSE Sustainability Ratings and Analytics Limited, a SEBI-registered provider.
- Institutional block trades on NSE Aug 5
Two block trades recorded on Aug 4-5 totalling ~₹83 crore — 1,07,153 shares at ₹5,015 (Aug 4) and 59,070 shares at ₹4,961.50 (Aug 5), indicating institutional activity.
- Senior management restructuring Jul 30
Three senior management personnel (Hasmukh Patel, Sushil Jaiswal, Sunil Nadkarni) ceased roles effective July 30 due to reporting structure changes.
- Shanti Ekambaram appointed director Jul 29
Shanti Ekambaram appointed as Additional Independent Director for three years effective July 30, 2026, subject to shareholder approval via postal ballot (e-voting from Aug 8).
- Ameera Shah completes director term Aug 1
Ameera Shah ceased to be Independent Director on August 1, 2026, upon completion of her term.
- Philippines subsidiary dissolved Jul 17
Wholly owned subsidiary Curatio Inc. in the Philippines dissolved on July 10, 2026. The unit had nil turnover and net worth of ₹1.3 crore.
- Investor meet on Aug 14 Aug 11
Torrent Pharma to participate in Emkay Confluence 2026 investor meet in Mumbai on August 14 with group and one-on-one discussions.
TL;DR: Torrent Pharma is executing well with a 55% revenue surge in Q1FY27 driven by the successful JB Chemicals amalgamation and domestic growth. No material headwinds are visible in recent news flow. Board reconstitution and management restructuring appear routine rather than concerning. The trend is positive with the integrated entity now fully listed and operational, and investor engagement continuing.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,591 | 2,660 | 2,732 | 2,745 | 2,859 | 2,889 | 2,809 | 2,959 | 3,178 | 3,302 | 3,303 | 4,197 | 4,921 |
| Expenses | 1,800 | 1,835 | 1,863 | 1,862 | 1,955 | 1,950 | 1,895 | 1,995 | 2,146 | 2,219 | 2,215 | 2,841 | 3,257 |
| Operating Profit | 791 | 825 | 869 | 883 | 904 | 939 | 914 | 964 | 1,032 | 1,083 | 1,088 | 1,356 | 1,664 |
| OPM % | 31% | 31% | 32% | 32% | 32% | 32% | 33% | 33% | 32% | 33% | 33% | 32% | 34% |
| Other Income | 34 | 26 | 55 | 31 | 24 | -16 | 33 | -42 | -37 | -40 | -23 | -83 | -33 |
| Interest | 103 | 91 | 80 | 80 | 75 | 64 | 57 | 56 | 56 | 48 | 45 | 236 | 305 |
| Depreciation | 191 | 201 | 213 | 203 | 197 | 198 | 199 | 201 | 201 | 204 | 206 | 508 | 593 |
| PBT | 531 | 559 | 631 | 631 | 656 | 661 | 691 | 665 | 738 | 791 | 814 | 529 | 733 |
| Tax % | 29% | 31% | 30% | 29% | 30% | 31% | 27% | 25% | 26% | 25% | 22% | 31% | 23% |
| Net Profit | 378 | 386 | 443 | 449 | 457 | 453 | 503 | 498 | 548 | 591 | 635 | 364 | 566 |
| EPS in Rs | 11.17 | 11.41 | 13.09 | 13.27 | 13.5 | 13.38 | 14.86 | 14.71 | 16.19 | 17.46 | 18.76 | 10.76 | 16.72 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 4,636 | 6,687 | 5,816 | 5,950 | 7,673 | 7,939 | 8,005 | 8,508 | 9,620 | 10,728 | 11,516 | 13,980 | 15,723 |
| Expenses | 3,616 | 3,954 | 4,438 | 4,601 | 5,690 | 5,769 | 5,524 | 6,077 | 6,778 | 7,360 | 7,795 | 9,421 | 10,532 |
| Operating Profit | 1,020 | 2,733 | 1,377 | 1,349 | 1,983 | 2,170 | 2,480 | 2,431 | 2,842 | 3,368 | 3,721 | 4,558 | 5,191 |
| OPM % | 22% | 41% | 24% | 23% | 26% | 27% | 31% | 29% | 30% | 31% | 32% | 33% | 33% |
| Other Income | 286 | 32 | 223 | 299 | -300 | 121 | 57 | -288 | 45 | 146 | -1 | -182 | -179 |
| Interest | 175 | 184 | 206 | 308 | 504 | 451 | 353 | 255 | 333 | 354 | 252 | 385 | 634 |
| Depreciation | 191 | 238 | 307 | 409 | 618 | 654 | 658 | 662 | 707 | 808 | 795 | 1,119 | 1,511 |
| PBT | 940 | 2,343 | 1,088 | 931 | 562 | 1,187 | 1,526 | 1,226 | 1,847 | 2,352 | 2,673 | 2,872 | 2,867 |
| Tax % | 20% | 26% | 14% | 27% | 22% | 14% | 18% | 37% | 33% | 30% | 28% | 26% | — |
| Net Profit | 751 | 1,733 | 934 | 678 | 436 | 1,025 | 1,252 | 777 | 1,245 | 1,656 | 1,911 | 2,138 | 2,156 |
| EPS in Rs | 22.19 | 51.22 | 27.59 | 20.04 | 12.89 | 30.28 | 36.99 | 22.97 | 36.79 | 48.94 | 56.47 | 63.92 | 63.7 |
| Div. Payout % | 25% | 34% | 25% | 35% | 66% | 53% | 47% | 105% | 60% | 57% | 57% | 59% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 85 | 85 | 85 | 85 | 85 | 85 | 85 | 85 | 169 | 169 | 169 | 169 |
| Reserves | 2,406 | 3,409 | 4,266 | 4,538 | 4,640 | 4,739 | 5,753 | 5,868 | 6,029 | 6,687 | 7,421 | 8,219 |
| Borrowings | 2,740 | 2,352 | 2,510 | 6,462 | 6,038 | 5,784 | 4,874 | 4,070 | 5,369 | 4,022 | 3,202 | 15,026 |
| Other Liabilities | 2,589 | 3,040 | 2,740 | 3,159 | 3,351 | 3,402 | 3,363 | 2,884 | 3,043 | 3,627 | 3,603 | 20,200 |
| Total Liabilities | 7,820 | 8,886 | 9,601 | 14,243 | 14,113 | 14,010 | 14,075 | 12,906 | 14,610 | 14,505 | 14,396 | 43,614 |
| Fixed Assets | 2,833 | 2,859 | 3,688 | 7,855 | 7,748 | 7,533 | 7,065 | 6,423 | 8,121 | 8,138 | 7,947 | 33,191 |
| CWIP | 678 | 1,042 | 519 | 647 | 617 | 712 | 889 | 630 | 765 | 361 | 478 | 641 |
| Investments | 298 | 780 | 804 | 492 | 353 | 2 | 181 | 226 | 199 | 173 | 156 | 948 |
| Other Assets | 4,011 | 4,206 | 4,589 | 5,249 | 5,395 | 5,763 | 5,940 | 5,628 | 5,524 | 5,834 | 5,815 | 8,833 |
| Total Assets | 7,820 | 8,886 | 9,601 | 14,243 | 14,113 | 14,010 | 14,075 | 12,906 | 14,610 | 14,505 | 14,396 | 43,614 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 810 | 2,742 | 1,009 | 894 | 1,798 | 1,393 | 2,005 | 1,803 | 2,368 | 3,266 | 2,585 | 3,023 |
| Investing | -2,113 | -869 | -798 | -4,677 | -246 | 229 | -444 | -196 | -2,335 | -160 | -549 | -12,630 |
| Financing | 1,212 | -1,435 | -193 | 3,417 | -1,314 | -1,549 | -1,651 | -1,781 | 77 | -2,780 | -2,298 | 10,151 |
| Net Cash Flow | -90 | 437 | 18 | -366 | 238 | 73 | -89 | -174 | 110 | 327 | -262 | 544 |
| Free Cash Flow | 574 | 2,150 | 523 | 105 | 1,138 | 990 | 1,671 | 1,607 | 1,953 | 2,967 | 1,991 | 2,386 |
| CFO/OP | 85 | 121 | 101 | 87 | 105 | 77 | 88 | 91 | 97 | 112 | 86 | 84 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 125 | 79 | 60 | 77 | 68 | 76 | 69 | 70 | 74 | 63 | 59 | 79 |
| Inventory Days | 275 | 314 | 318 | 429 | 318 | 362 | 456 | 368 | 298 | 310 | 334 | 338 |
| Days Payable | 472 | 523 | 356 | 447 | 345 | 345 | 351 | 250 | 224 | 284 | 239 | 254 |
| Cash Conversion Cycle | -71 | -130 | 21 | 59 | 42 | 93 | 174 | 188 | 147 | 89 | 154 | 163 |
| Working Capital Days | 29 | -1 | 28 | -80 | -62 | -52 | -5 | 7 | -33 | -27 | 7 | -26 |
| ROCE % | 27% | 48% | 19% | 13% | 13% | 15% | 17% | 19% | 20% | 23% | 27% | 15% |
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Company Information
Torrent Pharmaceuticals Ltd is one of the leading Indian Pharmaceutical Company engaged in research, development, manufacturing and marketing of generic pharmaceutical formulations.[1] It is the flagship company of Torrent Group which also has presence in power and city gas distribution businesses.[2]