TORNTPHARM's Q2 FY27 numbers came in strong, with revenue of Rs. 4,979.00 Cr (+50.80% YoY) and PAT growth of -9.60% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 23, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 4,979.00 Cr (+50.80% YoY) |
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| PAT (Q2) | Rs. 534.00 Cr (-9.60% YoY) |
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| EBITDA margin | 33.46% (+66 bps YoY) |
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| EPS (Q2) | Rs. 14.05 (-19.50% YoY) |
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| Market cap | Rs. 172,093.63 Cr |
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| CMP | Rs. 4,524.40 |
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Quarter Snapshot
Torrent's Q2 FY27 shows a structurally transformed P&L post the JB Pharma amalgamation: revenue grew 50.8% YoY to Rs.4,979 Cr and Op EBITDA rose 53.8% to Rs.1,666 Cr (33.46% margin, +66 bps YoY), with base India growing 20% vs IPM's 12%. PAT fell 9.6% to Rs.534 Cr entirely due to guided acquisition consequences (finance costs +525% YoY, D&A +199% YoY, share dilution), while cash generation (CFO/PAT 2.23x, FCF Rs.2,063 Cr) validates earnings quality and supports the deleveraging path toward ~1-1.1x by FY28. Watch-points for the earnings call are Germany's unresolved supplier disruption (−13% CC), the semaglutide supply recovery, JB international normalization by Q4, and the combined-entity margin framework.
Key Investment Insights
Key Positives
- Consolidated revenue grew 50.8% YoY to Rs.4,979 Cr; base business (ex-JB) grew 18% YoY to Rs.3,893 Cr
- Op EBITDA before exceptional items rose 53.8% YoY to Rs.1,666 Cr with margin of 33.46%, up 66 bps YoY
- Base India grew 20% YoY vs IPM growth of 12% (8 pp outperformance); Brazil grew 38% INR / 20% CC (Torrent +26% vs market 6% per IQVIA); base US grew 24% INR / 13% CC
- H1 consolidated Op EBITDA margin of 33.64% vs 32.64% (+100 bps) tracks ahead of the guided ≥0.5% FY27 improvement
- H1 CFO of Rs.2,452 Cr was 2.23x PAT; FCF of Rs.2,063 Cr against derived net debt of Rs.10,888 Cr (1.63x annualised H1 Op EBITDA, down from 2.07x at Q1)
- India Ratings outlook revised to Positive (IND AA+, Oct 7, 2026)
- R&D spend rose to 4.2% of revenue from 3.5% in Q1, tracking toward the ~5.5% FY27 guide
Risk Factors
- PAT fell 9.6% YoY to Rs.534 Cr and EPS fell 19.5% on finance costs of Rs.300 Cr (+525% YoY), D&A of Rs.609 Cr (+199% YoY) and the expanded share count
- JB international business declined 7% YoY on transient integration impact; JB India Rx grew only 7% vs H1's 10%
- Germany declined 13% CC (third-party supplier disruption and tender losses, still unresolved); H1 −11% CC vs the FY27 guide of low single-digit growth
- Gx Semaglutide share fell to 32% from 36% in Q1 amid the injectable supply disruption; the Rs.250 Cr FY27 target status cannot be assessed
- Gross margin declined 36 bps YoY to 75.77% and 95 bps QoQ, with materials and stock-in-trade purchases growing faster than revenue
- Stamp duty on the Scheme is payable but excluded from results pending adjudication, an unquantified contingent item