Torrent Pharmaceuticals Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Aug 15
- 2 min read
by KarNivesh | 15 August, 2025
Overview
Torrent Pharmaceuticals Limited, a flagship of the Torrent Group founded in 1959, is one of India’s leading pharmaceutical companies with FY25 revenues of ₹11,516 crore. Operating in over 50 countries, the company focuses on branded generics in chronic therapeutic areas like cardiovascular, CNS, gastrointestinal, women’s healthcare, and diabetology ensuring recurring prescription demand.
Recent Strategic Moves
In June 2025, Torrent made its largest acquisition by purchasing a 46.39% controlling stake in JB Chemicals & Pharmaceuticals for ₹11,917 crore. This acquisition positions Torrent as India’s 4th largest pharmaceutical company, boosts combined revenue to ₹15,434 crore, and strengthens presence in ophthalmology, IVF, and nephrology, while also adding JB’s strong CDMO platform. The company has also expanded its product portfolio through launches like Shelcal Total (August 2025) and partnerships such as with Cycle Pharmaceuticals for VENXXIVA (March 2025).
Financial Performance
Torrent’s revenue has grown from ₹7,673 crore in FY19 to ₹11,516 crore in FY25 (CAGR 7%). In Q1 FY26, net sales rose 7.3% YoY to ₹2,567 crore, EBITDA grew 14% to ₹1,032 crore with margins improving to 32.5%, and net profit surged 20% to ₹551 crore. EPS increased to ₹16.28 from ₹13.86 a year earlier.
Profitability has strengthened over time: EBITDA margin climbed from 25.8% (FY19) to 32.3% (FY25), net margin improved from 5.7% to 16.6%, ROE rose from 13% to 26.5%, and ROCE from 13% to 27%. EPS grew from ₹12.89 in FY19 to ₹56.47 in FY25.
Shareholding & Valuation
Promoters hold 68.31% (June 2025), with FIIs at 16.09% and mutual funds at 4.95%. Torrent trades at a premium PE ratio of 60.5x (sector avg. 31.8x) and PB of 16.1x, with a market capitalization of ₹1,22,686 crore, ranking it 3rd in India’s pharma sector after Sun Pharma and Cipla.
Business Mix & Global Presence
Revenue by geography: India (57%), US (12%), Germany (12%), Brazil (8%), others (11%). The company is a leader in multiple therapeutic areas in India and holds strong international positions at 1 among Indian companies in Germany and Brazil. It invests 4.9% of revenue in R&D, focusing on complex generics, specialty oral solids, and new chronic therapies.
Growth Strategy
Torrent follows an acquisition-led expansion path, with notable deals including Curatio Healthcare (₹2,000 crore, 2022), Unichem’s Indian business (₹3,600 crore, 2017), Elder Pharma (₹2,004 crore, 2013), and JB Chemicals (₹11,917 crore, 2025). Internationally, it has 101 ANDA approvals in the US, leads among Indian peers in Germany, and ranks high in Brazil’s prescription market.
Risks
Key risks include regulatory challenges (US FDA actions), high valuation vulnerability, integration issues from large acquisitions, competitive pressures, and price erosion in generics.
Industry Outlook
The Indian pharma market (₹4.83 lakh crore in 2024) is projected to reach ₹9.99–₹10.83 lakh crore by 2030 and ₹37.49 lakh crore by 2047, driven by rising healthcare demand, chronic disease prevalence, and exports. High-margin areas like biosimilars (₹2.96 lakh crore global market by 2025), complex generics, and specialty drugs present significant opportunities, supported by government incentives like the PLI scheme.
Torrent Pharma offers strong fundamentals, leadership in chronic therapies, and a proven growth strategy, but investors must monitor valuation risks, regulatory compliance.
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