Torrent Pharmaceuticals Ltd Q4 FY26 Earnings Call: Guides First-Year Semaglutide at Rs. 200-250 Cr, Merger Nears Final NCLT Hearing

Torrent Pharmaceuticals Ltd held its Q4 FY26 earnings call on May 22, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Headline Financials & Operational Highlights

• Consolidated revenue of Rs.4,197 croresin Q4 FY 2025-2026, up 42% YoY, driven by JB Pharma consolidation and 16% base business growth (excluding JB).
• Operating EBITDA of Rs.1,356 crores (margin 32.3%)in Q4 FY 2025-2026, up 41% YoY; base business EBITDA margin stood at 32.7%.
• Full-year FY 2025-2026 revenue grew 15%with operating EBITDA margins maintained at 32.7%; net debt-to-EBITDA stood at 2.3x (including JB Pharma's full-year EBITDA).
• Board recommended a final dividend of Rs.9 per equity sharefor FY 2025-2026.
• Exceptional items of Rs.46 crores (Torrent) and Rs.19 crores (JB)were recorded in Q4 FY 2025-2026 as one-off acquisition-related costs, within the previously guided Rs.70 crore total.

Base Outperforms; Record First-Year Guidance for Semaglutide

• India business revenue closed at Rs.2,215 croresfor FY 2025-2026 (+43% including JB); base business grew 15% in Q4 FY 2025-2026, outpacing IPM growth of 10%.
• Semaglutide achieved a 38% share among generic playersas of April FY 2026-2027 (28% injectable, 100% oral); oral pricing was reduced from Rs.149 to Rs.109 per tablet on lower API costs, with no further reduction foreseen.
• First-year semaglutide sales guided to Rs.200–250 crores(implied FY 2026-2027), exceeding the prior best launch (sitagliptin at Rs.70–75 crores in FY23); management cautioned that "the dynamics remain highly fluid" over the next 4–5 years due to additional innovator pipeline and oral innovation.
• First-to-market generic Brexpiprazole launched in April FY 2026-2027; a phase 3 trial for Resmetiron (MASH) is underway, targeting first-to-market in India upon patent expiry assuming trial success.
• Base business organic growth in FY 2026-2027 may be stronger than FY 2025-2026, management guided, barring demand shocks from geopolitical factors.

Brazil Leads with Double-Digit Growth; US and Germany Steady

• Brazil branded generics posted Q4 FY 2025-2026 constant-currency revenue of BRL 259 million(+11% YoY, IQVIA market growth 6%, Torrent growth 17%); 58 molecules are pending ANVISA approval.
• Brazil guided for 10–15% top-line growth over FY 2026-2027 and FY 2027-2028, driven by new launches (capacity constrained to three teams, ~2 launches per team per year).
• ANVISA has rejected semaglutide files but approved nonein Brazil as of Q4 FY 2025-2026; Torrent has filed Ozempic and expects to be among the first five players on that molecule (no timeline given).
• Germany business Q4 FY 2025-2026 constant-currency revenue of EUR 31 million(-1% YoY due to third-party supplier disruption); guided for low single-digit growth (below 5%) in FY 2026-2027.
• US business Q4 FY 2025-2026 constant-currency revenue of USD 38 million(+9% YoY), profitable before R&D expenses; guided for single-digit growth in FY 2026-2027 with a single-digit number of launches.
• First biosimilar launched in Europe via a European partner; sales are not yet material, with first tender quotes expected in June–July 2026 (Q1 FY 2026-2027).

Merger in Final Stages; Cost Synergies Tracking Ahead of Plan

• JB Pharma merger awaits only the final NCLT hearing, expected in June 2026 (Q1 FY 2026-2027); shareholder approval has been received.
• Cost synergy target of Rs.400–450 crores(by year three from acquisition) remains on track, with ~20% achievement expected in FY 2026-2027 and cumulative 60–80% by FY 2027-2028;some savings originally planned for FY 2027-2028 have been pulled into FY 2026-2027.
• No material revenue synergies expected in FY 2026-2027due to implementation lead times; confidence in delivering revenue synergies is increasing, though the timeline remains unchanged.
• JB Pharma attrition fell to below industry averagein April 2026 (Q1 FY 2026-2027), from above industry average pre-acquisition; management guided it should reach Torrent's base business level (high single-digit) by FY 2027-2028.
• Product discontinuation from Q4 FY 2025-2026 will remain in placefor the rest of FY 2026-2027, with no further discontinuations planned.
• JB Pharma international CDMO was impactedby change of control and business practice realignment, plus a negative effect from the Middle East geopolitical situation.

Margins Tracking Ahead; R&D Spend Creeps Higher; Field Force Capped

• Q4 FY 2025-2026 EBITDA margin of 32.3%(merged entity, post-ESOP); management noted the margin trajectory excluding ESOP charges is tracking ahead of expectations due to earlier-than-expected cost synergy realization.
• R&D spend was ~5% of sales in FY 2025-2026; management expects an incremental ~0.5% in coming years (FY 2026-2027 and beyond), primarily allocated to India and the US.
• India field force to reach 7,500 in FY 2026-2027; no further expansion is planned after merging with JB's existing team (current combined MR base of ~7,100 reps plus JB reps is considered sufficient).
• Depreciation and amortization run-rate(effective from 21st January) is the rate to use for forward quarters, including the full year FY 2026-2027.
• Negative minority interest of Rs.-25 croresin Q4 FY 2025-2026 resulted from a Rs.257 crores amortization charge (intangibles fair valuation per accounting standard 103) partially offset by a Rs.62–63 crores deferred tax liability reversal.
• Margin improvement expected from Q1 FY 2026-2027 onwardas the JB entity will no longer incur ESOP charges.

Guidance, Pipeline, and Risk Factors

• India organic business guided for mid-teens growth in FY 2026-2027, contingent on no external demand shocks (e.g., a Middle East war impacting GDP growth).
• Semaglutide injectable gross margins initially lowerdue to high API prices, expected to reach base business levels over time;EBITDA margins are much lower at launch, with reversal expected by FY 2027-2028.
• Oral semaglutide gross margins to improve meaningfullyover the next 6–12 months (into FY 2027-2028) as API prices drop significantly; pricing for both formulations follows the normal IPM trajectory of 4–5% annual increases.
• NAS product expected to launch within 12–18 months(targeting FY 2026-2027 to FY 2027-2028) after patent expiry, projected to add 1–2% incremental growth to total India revenue over its first 1–2 years.
• Management is evaluating in-house manufacturing of semaglutide injectableif the product scales to a sizable opportunity; a vial format is being evaluated but is not prioritized.
• Global partnerships for biosimilar portfolioare under consideration; the market is shifting toward tender-based procurement, which aligns with Torrent's core business.
• The next couple of years (FY 2026-2028) will be before a major US product launch, with no 180-day exclusivity opportunities in the current pipeline.