Torrent Pharma Reports Q2 FY27 Net Profit of ₹534 Crore Following JB Merger

Torrent Pharmaceuticals has released its financial results for the second quarter of FY27, reporting a net profit of ₹534 crore, marking a 10 percent decline compared to the same period in the previous year. Despite the drop in net profit, the company saw a sharp rise in revenue following the consolidation of its businesses after the merger with Mumbai-based JB Chemicals & Pharmaceuticals.

Revenue from operations increased by 50.8 percent to ₹4,979 crore during the quarter, up from ₹3,302 crore a year earlier. Operating EBITDA, before exceptional items, rose 53.8 percent to ₹1,666 crore. The company's operating EBITDA margin improved to 33.5 percent from 32.8 percent a year ago, while the gross margin was recorded at 75.4 percent.

The company stated that its base business revenue grew 18 percent to ₹3,893 crore, supported by strong performance in branded markets. However, the integration of the JB business had a transient impact on revenues during the quarter. According to the earnings release, the merger—which became effective on July 8, 2026—involved integrating the India business, optimising the global business network, and aligning manufacturing and quality management systems.

The JB business contributed revenue of ₹1,086 crore during the quarter. Within this segment, the India prescription business, excluding trade generics and contrast media, grew 7 percent to ₹597 crore. Meanwhile, international business revenue for JB, covering the US, emerging markets, and contract development and manufacturing operations, declined 7 percent to ₹406 crore.

In Torrent's base India business, revenue rose 20 percent to ₹2,181 crore, outperforming the Indian pharmaceutical market's 12 percent growth according to the PharmaTrac dataset. International markets showed mixed results: Brazil revenue increased 38 percent to ₹440 crore, and US revenue grew 24 percent to ₹417 crore. Conversely, Germany revenue declined 7 percent to ₹283 crore, impacted by supply disruptions at a third-party supplier and the loss of certain high-volume tenders.

For the first half of FY27, Torrent Pharma's revenue rose 52.8 percent to ₹9,900 crore, while net profit fell 3.4 percent to ₹1,100 crore. Operating EBITDA for the half-year increased 57.4 percent to ₹3,330 crore with margins at 33.6 percent. Research and development spending for the quarter stood at ₹211 crore, representing a 35 percent year-on-year increase and accounting for 4.2 percent of revenue.

Following the earnings announcement, shares of Torrent Pharmaceuticals ended 2.78 percent lower at ₹4,482 on the Bombay Stock Exchange (BSE).

"Large-scale corporate mergers often create short-term financial friction, as seen in Torrent Pharma's integration of the JB business. While top-line growth and EBITDA margins show strong expansion, transitional costs and operational alignment can temporarily weigh on net profitability. For businesses undergoing structural consolidation, managing supply chains and operational alignment smoothly is critical to translating revenue growth into bottom-line returns over the long term." — Dr. Shishir Gupta, Founder & CEO, StartupLanes