Torrent Pharmaceuticals remains in focus after brokerage firm Prabhudas Lilladher reiterated its ‘BUY’ rating and raised confidence on the company’s long-term growth outlook, assigning a target price of ₹5,000 against the current market price of ₹4,573.
Q4FY26 Performance Snapshot
Torrent Pharma reported a stable operational performance during Q4FY26 with:
- Base business EBITDA growth of 16% YoY
- Performance broadly in line with analyst expectations
- Continued strength in domestic chronic therapies and international markets
JBCP Acquisition Emerges as Key Growth Trigger
The acquisition of JB Chemicals & Pharmaceuticals is being viewed as a transformational move for Torrent Pharma.
Key strategic benefits include:
- Torrent becomes the 5th largest pharma player in India
- Stronger positioning in chronic therapies
- Entry diversification through JBCP’s CDMO business
- Improved scale and product portfolio depth
Synergy Potential
Brokerage estimates suggest:
- ₹400–450 crore cost synergies over the next three years
- Combined entity EBITDA projected at ₹7,700–7,800 crore by FY28E
The report highlighted that operational integration and procurement efficiencies could materially improve profitability over the medium term.
Major Growth Drivers Ahead
India Business
- Semaglutide launch witnessing strong traction
- Achieved ~38% market share in April 2026
- Mid-teen organic growth expected in FY27
Brazil Market
- Double-digit growth guidance of 10–15%
- New product launches expected to aid expansion
- Company targeting early generic entry opportunity for Ozempic alternatives
US Market
- Supported by new launches and market share gains
- Single-digit growth projected for FY27
Financial Outlook
PL Research estimates:
- FY27 revenue at ₹19,581 crore
- FY28 revenue at ₹21,899 crore
- FY27 EPS at ₹77.1
- FY28 EPS at ₹107.2
Valuation View
The brokerage noted:
- Current valuation at 23.5x FY28E EV/EBITDA for the combined business
- Target price of ₹5,000 implies valuation of 26x FY28E EV/EBITDA
Analysts believe the current valuation remains attractive considering:
- Strong domestic franchise
- Synergy benefits from JBCP
- Expanding diabetes portfolio
- Growth visibility across India, Brazil, and the US markets.
