Torrent Pharma: consolidated PAT falls 9.6% YoY to ₹534 Cr despite 51% revenue surge

Torrent Pharmaceuticals' consolidated (primary) Q2 FY27 revenue was ₹4,979 Cr, up 50.8% YoY and 1.2% QoQ, while PAT fell 9.6% YoY to ₹534 Cr (down 5.7% QoQ from ₹566 Cr). The headline revenue jump is largely inorganic: J.B. Chemicals, amalgamated into Torrent effective 8 July 2026 (NCLT-approved scheme, appointed date 21 January 2026), contributed ₹1,086 Cr of the ₹4,979 Cr total; the like-for-like base business grew a steadier 18% YoY to ₹3,893 Cr. Standalone PAT was ₹498 Cr, down a steeper 16.6% YoY — consolidated earnings held up relatively better because they capture JB's subsidiaries for the full quarter, while acquisition debt sits mostly at the standalone/parent level. Operating performance was actually strong: consolidated Op. EBITDA was ₹1,666 Cr, up 53.8% YoY, with margin expanding to 33.5% from 32.8%. The net margin compression (NPM 10.7% vs 17.9% YoY, 11.5% QoQ) sits entirely below the EBITDA line — finance costs jumped to ₹300 Cr from ₹48 Cr and depreciation & amortisation to ₹609 Cr from ₹204 Cr, both consequences of debt-funding the JB acquisition (consolidated debt-equity now 0.76x vs 0.31x) and amortising the ₹23,352 Cr of intangibles recognised on purchase accounting. Exceptional items were minor and roughly flat YoY, so adjusting for them barely moves the picture — adjusted PAT is still down about 9.9% YoY. The drag is structural (financing and amortisation), not a one-off. Against FY27 guidance set on the Q1 call — JB India Rx double-digit growth and international high-single to low-double-digit constant-currency growth — the quarter missed on both: JB India Rx (ex trade generics/contrast media) grew just 7% YoY to ₹597 Cr (H1 at 10%, right on the guided line), and JB International revenue fell 7% YoY to ₹406 Cr. Base EBITDA margin improved ~70bps YoY, broadly in line with the guided ~50bps annual pace. No quarter-specific street PAT/revenue consensus could be confirmed via search; against the pre-result preview's EBITDA margin expectation of 24-26%, the actual 33.5% Op. EBITDA margin beat that marker comfortably. Base India revenue grew 20% YoY against 12% IPM growth (PharmaTrac), and Brazil grew 38% reported (20% constant currency) against 6% market growth — both ahead of market. The quarter also saw an Executive Director resignation on 16 October, just before results, continuing the management churn flagged pre-result, plus a further ₹11.88 Cr investment in Torrent Urja (power/capex). Management's own framing, from the results press release, is that India base-business strength (+20%) was offset by a "transient impact on JB business" from post-merger integration — consistent with the India Rx and international shortfalls against guidance.