Torrent Pharmaceuticals (500420) Q2 24/25 earnings summary

Executive summary

• Branded businesses contributed 74% of revenue in Q2 FY25, with strong growth in India (13%), Brazil (17% in constant currency), Germany (8%), and the U.S. (8%).

• Consolidated revenue from operations for Q2 FY25 was ₹2,889 crore, up from ₹2,660 crore in Q2 FY24, with half-year revenue at ₹5,748 crore, a year-over-year increase from ₹5,251 crore.

• Net profit for Q2 FY25 stood at ₹453 crore, compared to ₹386 crore in Q2 FY24; half-year net profit was ₹910 crore, up from ₹764 crore year-over-year.

• Insulin revenues were impacted by a planned facility shutdown for maintenance, with recovery expected in Q4 and no full-year impact.

• Expansion of field force and geographic reach in India is driving market share gains, especially in chronic therapies.

Financial highlights

• Q2 FY25 revenue reached INR 2,889 crore, up 9% year-over-year; operating EBITDA was INR 939 crore, up 14%.

• Operating EBITDA margin stood at 32.5%, absorbing the cost of 300 new reps added this year.

• Adjusted for insulin impact, underlying revenue growth was 10% and EBITDA growth 16%.

• Gross margins improved to above 75%, driven by a higher branded mix.

• Forex loss of INR 22 crore included in other income.

Outlook and guidance

• Insulin shortfall to be recovered in Q4; no expected full-year revenue impact.

• India business expected to continue outperforming market growth, focusing on chronic therapies, new launches, and consumer health scale-up.

• U.S. business to remain stable with slow ramp-up; profitability targeted within three years.

• Brazil expected to maintain double-digit growth, outpacing market.

• Margins guided to improve by 50–100 bps annually over the next three years.