Torrent Pharma revenue +55% on JB merger; consolidated PAT flat at ₹566 Cr as net margin compresses

Torrent Pharma's Q1 FY27 consolidated revenue rose 55% YoY to ₹4,921 Cr while net profit grew just 3% to ₹566 Cr — a print that beat the street's revenue estimate (~₹4,309 Cr, 28-analyst consensus) but missed on the bottom line (consensus PAT ~₹627 Cr). The headline growth is almost entirely acquisition-led: JB Pharma was consolidated for the first time (it sits in the current ₹1,201 Cr JB-business revenue but was absent from the year-ago base), so the genuine organic comparison is base-business revenue of ₹3,720 Cr, up 17%. Adjusted for the ₹21 Cr exceptional (₹2 Cr JB merger fees + ₹19 Cr warehouse-fire inventory write-off, versus nil a year ago), underlying PAT grew ~6%.

The margin story is two-sided. Operating profitability expanded — Op. EBITDA ₹1,664 Cr, up 61%, margin 33.8% vs 32.5%, gross margin 76.4% — but net margin compressed sharply to 11.5% from 17.2%. The squeeze sits entirely below EBITDA: finance costs jumped to ₹305 Cr from ₹56 Cr and depreciation/amortisation to ₹593 Cr from ₹201 Cr, both driven by the debt-funded JB Pharma acquisition (consolidated debt-equity 0.82x). EPS actually fell to ₹14.87 from ₹16.19 as 4.19 Cr new shares were issued for the merger. Standalone tells a starker version — revenue +59% but PAT down 11% to ₹492 Cr — so readers comparing the two should note the consolidated line is the cleaner read.

The stock went into the print at ₹4,872.1, up 4.9% over the past month of trading.

For context: revenue is at a 6-quarter high.

Operationally the quarter confirmed the bullish tone of management's last concall. India base revenue was ₹2,157 Cr, up 19% against IPM growth of 12% — described as record-high organic growth — with Gx Semaglutide already at 36% combined market share and Torrent now ranked #1 in the IPM cardiac market; this delivers on the prior guidance of India outperforming the market on Semaglutide and chronic. Brazil grew 27% (constant-currency +3% after a one-time channel-inventory reduction) and the US rose 36% to ₹418 Cr — well ahead of the 'single-digit US growth' management had guided, though the company flags this was aided by one-time opportunities. Germany was the soft spot, down 9% in constant currency on third-party supply disruption.