Torrent Pharmaceuticals (500420) investor relations material

Executive summary

• Revenue for Q1 FY26 reached INR 3,178 crores, up 11% year-over-year, with net profit after tax at INR 548 crores, a 20% increase year-over-year.

• Branded markets contributed 72% of revenue, with India up 11% and Brazil up 16% in constant currency.

• US business grew 19%, Germany up 9% (1% in euro terms) due to supply disruptions.

• Operating EBITDA grew 14% to INR 1,032 crores; adjusted margin at 32.9% after excluding INR 13 crores one-off acquisition expenses.

• Net leverage stands at 0.45.

Financial highlights

• India revenues at INR 1,811 crores, up 11% year-over-year.

• US constant currency revenue at USD 36 million, up 16%; Germany at EUR 32 million, up 1%.

• Brazil Q1 constant currency revenue at BRL 143 million, up 16% year-over-year; IQVIA secondary sales up 14%.

• Gross margin stood at 76%, and operating EBITDA margin at 32.5% for the quarter.

• ForEx loss of INR 48 crores booked in other income, mainly due to euro/USD translation losses.

Outlook and guidance

• Adjusted operating margin of 32.9% expected to sustain for FY26, with potential for improvement depending on R&D and reinvestment pace.

• India business expected to continue outperforming market growth, with ongoing field force expansion.

• US business not yet profitable but losses are narrowing; 10 product launches expected in FY26.

• Germany's supply disruption likely to persist for a couple of quarters; improvement not expected soon.

• Tax rate expected at 25-26% for the year; transition to a lower tax regime from FY 2025-26 expected to benefit profitability.