Torrent Pharma Posts Modest Profit Growth, Misses Estimates In March Quarter

Torrent Pharmaceuticals Ltd. reported a consolidated net profit of ₹5.0 billion for the March quarter, up nearly 11% year on year but below analyst expectations of ₹5.2 billion. This marks the slowest net profit growth in seven quarters, impacted by slower revenue growth in key markets.

Consolidated net revenue rose 8% on year to ₹29.6 billion, just short of the estimated ₹29.8 billion, but represented the highest sequential quarterly growth in nine quarters with a 5% rise from the previous quarter.

For the full year 2024-25, net profit increased over 15% to ₹19.1 billion, while revenue grew more than 7% to ₹115.2 billion. The board recommended a final dividend of ₹6 per share and approved Aman Mehta as managing director effective August 1.

Revenue from Brazil declined 6% to ₹3.5 billion due to currency depreciation, although in constant currency terms, it rose 5%. The company currently has 63 products under review by Brazil’s ANVISA. Revenue from Germany edged up 2% to ₹2.9 billion, while the US business grew 15% to ₹3 billion (10% constant currency). India sales rose 12% to ₹15.5 billion, driven by focus therapies.

Operating EBITDA for the quarter was ₹9.6 billion, up 9%, with the margin improving slightly to 32.6% from 32.2% a year earlier. R&D spending increased 8% to ₹1.5 billion, and total expenses rose 5% to ₹22.5 billion.

The board also approved plans to raise ₹50 billion through debt and equity instruments to support growth initiatives.