Shares of Torrent Pharmaceuticals Ltd. rose nearly 6 per cent to hit a fresh high on Monday after its third-quarter earnings for the current financial year (Q3-FY26) came in line with Street estimates.
The pharma major’s stock rose as much as 5.8 per cent during the day to a new high of ₹4,315 per share, the biggest intraday gain since November 10 last year. The stock pared gains to trade 5.5 per cent higher at ₹4,307 apiece, compared to a 0.30 per cent advance in Nifty 50 as of 10:17 AM.
Shares of the company rose for the third straight session and currently trade at 14 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 12 per cent this year, compared to a 2.5 per cent decline in the benchmark Nifty 50. Torrent Pharma has a total market capitalisation of ₹1.45 trillion.
Torrent Pharma Q3 results
Torrent Pharma reported a 26.2 per cent jump in its consolidated net profit to ₹635 crore in Q3FY26. On a sequential basis, profit increased 7.4 per cent from ₹591 crore. The company attributed the surge to robust branded business performance across markets.
The company’s revenue from operations for the quarter increased 17.7 per cent year-on-year (Y-o-Y) to ₹3,251 crore from ₹2,762 crore in Q3FY25. Its earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter stood at ₹1,088 crore, up 17 per cent Y-o-Y.
Analysts on Torrent Pharma earnings
Antique Stock Broking said Torrent Pharmaceuticals Ltd delivered in-line revenue and profitability for the quarter. Over FY25 to FY28, the brokerage expects positive operating leverage driven by new product launches in the US, improved market share and better medical representative productivity in branded generics markets. It expects margins to expand by 210 basis points Y-o-Y to around 35 per cent.
Antique has marginally increased its FY28 earnings per share estimate. It projects revenue, Ebitda and earnings per share compound annual growth rates of 15 per cent, 17 per cent and 23 per cent, respectively, over FY25 to 28, with margins expanding to approximately 35 per cent. The brokerage has maintained its ‘Buy’ rating on the stock with a target price of ₹4,610.
JM Financial said Torrent Pharma remains confident of growing its India business slightly ahead of the market, while expecting strong double-digit growth in the US.
The brokerage noted that the company has acquired a 49 per cent stake in JB Chemicals & Pharmaceuticals Ltd, with a filing before the National Company Law Tribunal (NCLT) expected shortly. It expects synergy benefits from the deal to start reflecting in earnings from FY27. JM Financial has maintained its ‘Buy’ rating on the stock and arrived at a target price of ₹4,743.
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