Q1 2026 Torrent Pharmaceuticals Ltd Earnings Call Transcript
Key Points
- Torrent Pharmaceuticals Ltd (BOM:500420) reported strong performance in its branded markets, with India and Brazil showing double-digit growth of 11% and 16% respectively.
- The company's US business grew by 19% and Germany by 9% in constant currency, indicating robust international expansion.
- Operating EBITDA increased by 14% to INR1,032 crores, with an underlying operating margin of 32.9% after adjusting for one-off expenses.
- The India business outperformed the market with a growth rate of 11%, driven by strong performance in chronic segments such as cardiac, diabetes, gastro, and CNS.
- Torrent Pharmaceuticals Ltd (BOM:500420) has a rich pipeline in Brazil with 62 molecules filed and awaiting approval, indicating potential for future growth.
- The company faced a ForEx loss of INR48 crores, primarily due to euro appreciation, impacting financial results.
- Supply disruptions in Germany due to third-party supplier issues led to limited growth, with expectations of continued impact for a couple of quarters.
- Despite improvements, the US business is still not profitable post-R&D, although losses are decreasing quarter-on-quarter.
- The expansion of the field force in India has not yet resulted in proportional growth, as new MRs take 12 to 18 months to become fully productive.
- The semaglutide market in Brazil is volatile, with Ozempic sales declining and Wegovy generics expected to enter the market later, creating uncertainty in market dynamics.
Ladies and gentlemen, good day, and welcome to Q1 FY26 earnings conference call of Torrent Pharma. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Sudhir Menon, Executive Director, Finance and CFO. Thank you, and over to you, sir.
Thank you. Good evening, and welcome to the first quarter earnings call for FY26. We continue to see strong performance in our branded markets, which accounted for 72% this quarter. Our two largest branded markets, India and Brazil, each delivered healthy double-digit growth. India business grew at 11% and Brazil grew at 16% in constant currency. On the generic side, US business grew at 19% and Germany grew at 9%. The euro growth for Germany was 1%, mainly due to supply disruption at the third-party supplier this quarter.
Coming to the key highlights for quarter one. Revenues at INR3,178 crores grew by 11%. Operating EBITDA at INR1,032 crores grew by 14%. This
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