Torrent Pharmaceuticals Limited Earnings Summary — Q4 FY2026
Torrent Pharma Reports Record Revenue Amid Strategic Leverage Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 7 consecutive quarters.
- Revenue of ₹4,921 Cr is 54.8% higher year-on-year.
- Revenue has compounded at 29.6% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹566 Cr is 3.3% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 10.8% annualised across the period.
- Operating margin stands at 33.8% in Q1 FY2027.
- Operating margin expanded by 134 bps year-on-year.
- Over the last two years operating margin has expanded by 219 bps.
- PBT margin is 14.9%.
- Expense growth of 51.8% remained below revenue growth of 54.8%.
- Operating profit of ₹1,664 Cr is 61.2% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 80/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 4,921 | 4,197 | 3,303 | 3,302 | 3,178 | 2,959 | 2,809 | 2,889 | 2,859 | 2,745 |
| Expenses | Improving | 3,257 | 2,841 | 2,215 | 2,219 | 2,146 | 1,995 | 1,895 | 1,950 | 1,955 | 1,862 |
| Operating Profit | Accelerating | 1,664 | 1,356 | 1,088 | 1,083 | 1,032 | 964 | 914 | 939 | 904 | 883 |
| Operating Margin | Stable | 33.8% | 32.3% | 32.9% | 32.8% | 32.5% | 32.6% | 32.5% | 32.5% | 31.6% | 32.2% |
| Other Income | Volatile | -33 | -83 | -23 | -40 | -37 | -42 | 33 | -16 | 24 | 31 |
| Interest | Volatile | 305 | 236 | 45 | 48 | 56 | 56 | 57 | 64 | 75 | 80 |
| Depreciation | Volatile | 593 | 508 | 206 | 204 | 201 | 201 | 199 | 198 | 197 | 203 |
| Profit Before Tax | Improving | 733 | 529 | 814 | 791 | 738 | 665 | 691 | 661 | 656 | 631 |
| Tax | Stable | 167 | 165 | 179 | 200 | 190 | 167 | 188 | 208 | 199 | 182 |
| Net Profit | Improving | 566 | 364 | 635 | 591 | 548 | 498 | 503 | 453 | 457 | 449 |
| Net Margin | Stable | 11.5% | 8.7% | 19.2% | 17.9% | 17.2% | 16.8% | 17.9% | 15.7% | 16.0% | 16.4% |
Key Takeaways
- Revenue reached an all-time high of ₹4,197 Cr in Q4 FY2026, a 42% YoY growth.
- The balance sheet shows a massive spike in borrowings to ₹15,026 Cr, suggesting a major strategic acquisition.
- Net Profit significantly contracted to ₹364 Cr due to a massive jump in interest costs (₹236 Cr vs ₹56 Cr YoY).
- Depreciation more than doubled to ₹508 Cr, further impacting the bottom line following recent expansions.
- Operating margins (OPM) remain resilient at 32%, demonstrating strong core business pricing power.
- The company continues to pivot toward high-margin branded generics in India and Brazil.
- Interest coverage and debt servicing will be critical monitoring factors going forward.
Management Guidance
Management is focused on integrating large acquisitions and transitioning toward a high-margin branded business in India and Brazil, which now contributes 74% of revenue.
Sentiment Shift
Deteriorating
While top-line growth is explosive, the sudden surge in debt and interest costs has drastically compressed net profitability in the short term.
Outlook
The outlook remains positive for top-line growth and operating efficiency, but net earnings will be under pressure until the new assets are fully integrated and debt is deleveraged.
From the Annual Report (Key Quotes)
“Torrent has transitioned from a cyclical US-focused model to a high-margin branded business.”
“The core business maintains an industry-leading operating margin of 30-33%.”
“Recent balance sheet shows a massive spike in borrowings which warrants caution regarding interest coverage.”
Official Quarterly Documents
This summary is AI-generated from Torrent Pharmaceuticals Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.