This article first appeared on GuruFocus .
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Consolidated revenue grew by 55% year-over-year, with operating EBITDA up 61% and margins at 33.8%.
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India business posted strong 19% growth, outperforming the IPM growth of 12%, driven by volume, price, and new launches.
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JB Pharma business integration is progressing well, with cost synergies tracking ahead of the initial 90 crore target, expected to exceed 100 crores.
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Curatio business continues strong growth trajectory at 34%, supported by OTC expansion and field force expansion.
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Torrent now ranks first in the cardiac market in India, a significant milestone in a key chronic therapy segment.
Negative Points
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Semaglutide injectable supply issue with a manufacturing partner is a temporary setback, leading to lost sales in July and most of August.
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Brazil branded generics business saw a one-time channel inventory reduction, impacting constant currency growth by 150 basis points.
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Germany business declined 9% due to supply disruptions at a third-party supplier and lower tender uptake.
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Integration of JB Pharma brands into Torrent divisions may cause a minor, transient revenue impact over the next 2-3 quarters.
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Semaglutide launch in Brazil faces delays as regulatory approval is still pending, missing first-mover advantage as competitors receive approvals.
Q & A Highlights
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Q: The JB Pharma business profitability was exceptionally strong at a 35.3% EBITDA margin. Is this largely due to cost synergies, and how should we view the margin trajectory for the full year? A: (Management) The margin improvement is largely due to cost synergies being implemented sooner than expected, along with some operating leverage. This is just the beginning of the realization, so we expect incremental improvement each quarter. The first-year synergy target of ?90 crore is tracking well ahead of plan and will definitely be above ?100 crore.
Q: Regarding the integration of JB Pharma's portfolio, you mentioned a potential transient impact on revenues. Can you elaborate on why this happens and the expected timeline? A: (Management) When we transfer a mid-to-large brand built by JB's field force to a Torrent division, the new reps need time to learn the territories and prescribers. This typically causes a short-term transition impact, but sales return to normal growth quickly. We expect this integration to be completed within this fiscal year, with normalization by Q4.
Q: The India base business grew 19% versus the IPM growth of 12%. Can you break down the drivers and comment on the sustainability of this momentum? A: (Management) The growth was driven by 5.1% volume, 7.7% price, and 6% from new products, compared to the market's 2% volume growth. Key factors include the strong performance of the Curatio business (growing at 34%), field force expansion, and top brands growing over 20%. While the IPM growth acceleration helped, we believe this trajectory is sustainable for the rest of the year.
Q: In Brazil, there was a one-time channel inventory correction. What was the exact impact, and when do you expect growth to normalize? A: (Sanjay Gupta, International Business) Without the inventory correction, our constant currency sales would have grown by 15-16% instead of the reported 3%. We expect normalized mid-teens growth to resume in Q2. Regarding the semaglutide filing, the regulator is expediting approvals, and we are optimistic for a decision in months, not years.
Q: On the semaglutide opportunity in India, you mentioned a supply issue with your injectable partner. What is the impact on your annual target of ?250 crore? A: (Management) The affected SKU represented about 20% of monthly sales. We have an alternate source and expect supply to resume by end of August. While this setback will affect sales, we believe it won't materially derail our leadership trajectory. We will provide a revised annual objective after observing the recovery trajectory for one more quarter.
Q: The US business grew 23% in constant currency. How do you see the trajectory going forward, given past challenges? A: (Sanjay Gupta, International Business) The US has been stable and is now profitable, a significant improvement. We've lost 17 products in the last 30 months (contributing ~$20-25 million in sales), but new launches and market share gains have compensated for price erosion. We see a stable trajectory with potential for top-line and bottom-line improvement.
Q: The gross margin for the base business improved to ~78%. Is this level sustainable? A: (Management) Last year's gross margin was around 76.5%. The improvement is driven by annual price increases, a higher mix of branded business (especially India), and favorable forex. A level up to 77% is definitely sustainable, with further improvement possible from the factors mentioned.
Q: Given the strong execution in India, what is the vision for capital allocation over the next 3 years? A: (Management) It's still early days with the JB acquisition. We need another 12-18 months to ensure smooth integration. After that, we will evaluate opportunities. India will always be the first priority for acquisitions of similar size. In the absence of domestic opportunities, we may look at mid-size international acquisitions, but we will not exceed a 3-3.5x leverage ratio.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
