Torrent Pharma. Q1 FY27 Results (NSE: TORNTPHARM)
Signal: Margin expansion
The read
First full quarter post JB Pharma amalgamation shows revenue leaping 55% YoY to ₹4,921 Cr, but PAT grew only 3.3% as integration costs, higher depreciation (+195%) and finance costs (+445%) offset top-line gains; EPS fell 8% due to share dilution. EBITDA margin improved 130bps YoY to 33.8%, suggesting underlying operating leverage. Key watch: debt load (D/E 0.78 vs 0.27 a year ago) and working capital integration.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,921 Cr | 54.8% | 17.2% |
| EBIT | ₹1,071 Cr | 28.9% | |
| Net profit | ₹566 Cr | 3.3% | |
| EPS | ₹14.87 | -8.2% | |
| EBIT margin | 33.8% |
P&L walk
Revenue growth entirely inorganic from JB Pharma full-quarter consolidation; margin improvement driven by operating leverage partially offset by integration costs; PAT squeezed by steep rises in depreciation (+195% YoY) and finance costs (+445% YoY); EPS diluted by 33% increase in share count.
Segments
Group operates in a single generic formulation segment; no segment split.
Key positives
- Revenue surged 55% YoY to ₹4,921 Cr driven by full quarter of JB Pharma amalgamation.
- EBITDA margin expanded 130bps YoY to 33.8%, indicating operating leverage despite integration costs.
- Underlying profit before exceptional items estimated at ~₹587 Cr (PAT + exceptional of ₹21 Cr).
Key concerns
- PAT growth of only 3.3% lags revenue due to ₹593 Cr depreciation (+195% YoY) and ₹305 Cr finance cost (+445% YoY).
- EPS declined 8.2% to ₹14.87 due to 33% increase in equity shares outstanding.
- Exceptional items of ₹21 Cr (inventory fire, regulatory fees) indicate integration friction.
- Debt jumped to ₹11,390 Cr from ₹643 Cr, raising financial leverage and interest burden.
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