Torrent Pharmaceuticals
Torrent Pharmaceuticals
Healthcare F&OKey Fundamentals
LargecapPharmaceuticalsHealthcareTapetide Score
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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 19.2 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 is a large-cap pharma company with a market capitalisation of about ₹1,88,244 crore. Its return on equity has been consistently high: 27% last year, 26% over 3 years and 22% over 10 years. The stock trades at 87.1x earnings and 22.3x book value, and its 3-year return of 39% CAGR has run well ahead of 3-year sales growth of 13%. TTM sales grew 33% but TTM profit grew only 10%, and promoter holding fell 7.53% last quarter. Both points need a closer look.
- ROE has been high and steady: 27% last year, 26% over 3 years, 24% over 5 years and 22% over 10 years. That points to strong capital efficiency over a long period.
- Profit grew at a 22% CAGR over 3 years, well above 3-year sales growth of 13%. This suggests margins expanded and operating leverage improved over the period.
- TTM sales grew 33%, compared with 13% over 3 years and 12% over 5 years. Growth has clearly picked up, possibly helped by inorganic additions.
- The dividend payout ratio is a healthy 57.8% (0.77% yield). This shows the business generates enough cash to return more than half its profits to shareholders.
- Shareholders have seen strong long-term returns: 40% over 1 year, 39% CAGR over 3 years, 26% over 5 years and 20% over 10 years.
- The company is flagged as expected to post a good quarter, which could support the recent pace of earnings.
- With a market cap of about ₹1,88,244 crore, Torrent is one of the larger Indian pharma companies. Its size gives it scale in branded domestic formulations, a segment that tends to hold up well in downturns.
- At 87.1x earnings, the implied earnings yield is only about 1.15%. That multiple is very high for a company whose profit grew at a 12% CAGR over 5 years, so there is little room for error.
- The stock trades at 22.3x book value (the screener cites 20.1x). That is well above most pharma peers and leaves the price exposed if the multiple compresses.
- TTM profit grew only 10% against 33% TTM sales growth. The gap suggests margin dilution, higher costs or acquisition-related charges.
- Promoter holding fell 7.53% last quarter. That is a large one-quarter change and should be examined for its cause and what it signals.
- Sales grew at only 11.8% over 5 years and 8% over 10 years. That modest long-term top-line growth contrasts with the premium valuation.
- Profit grew at only a 2% CAGR over 10 years. The recent 22% 3-year profit growth comes after a long period of flat earnings.
- The company may be capitalising interest costs. If so, reported profit could be flattered and the true financing burden understated. The debt-to-equity figure is not available to check leverage.
- The stock's 3-year return of 39% CAGR is about 3x the 13% sales CAGR over the same period. Most of the return appears to come from a rising valuation multiple rather than business growth.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Higher stake in captive renewable power Sep 28
Torrent Pharmaceuticals amended its agreement to raise its investment in Torrent Urja 27 Private Limited to ₹11.88 crore for a captive hybrid power project in Gujarat. The amount is small for the company, but it should help lower long-term power costs and support ESG goals.
- Investor meets with Jefferies, Kotak, JPM Sep 10
Torrent Pharma will take part in group and one-on-one investor meetings on September 17, 18 and 21, 2026, hosted by Jefferies, Kotak and JP Morgan. These are routine investor-relations meetings that keep institutional investors engaged, with no new financial disclosures expected.
TL;DR: Recent news on Torrent Pharma is routine and neutral, with no clear positive or negative triggers. The ₹11.88 crore increase in its captive renewable power investment shows steady work on cost efficiency and sustainability, and the September investor meetings point to continued engagement with institutional investors. No new risks showed up in this period, but the news gives little insight into how the core business is doing. The stock's direction will likely depend on upcoming quarterly results, domestic formulations growth, and US FDA or regulatory updates rather than these items.
Quarterly Results
| Particulars | 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
| Particulars | 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
| Particulars | 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
| Particulars | 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
| Particulars | 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% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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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]
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