Torrent Pharmaceuticals reported a consolidated net profit of 3.89 billion rupees for the quarter ended March 31, a 21.9% decline from 4.98 billion rupees in the same period a year earlier. The company also announced a dividend of 9 rupees per share.
Total revenue from operations for the quarter rose 41.8% to 41.97 billion rupees, driven primarily by stronger performance in its domestic formulations business. Regional performance showed notable growth, with revenue from India increasing 43% - a lift the company attributed to gains in chronic therapies - while the U.S. business expanded by 31% and Brazil sales were up 30%, supported by recent product launches in that market.
Despite the revenue momentum, total expenses increased by almost 60%, outpacing the top-line rise. Torrent cited higher employee costs, increased finance charges and elevated depreciation as key contributors to the surge in spending. The company also recorded exceptional charges related to regulatory fees and integration costs arising from its acquisition of J.B. Chemicals and Pharmaceuticals - a set of one-time items that weighed on quarterly profitability.
On an operational basis, EBITDA margin stood at 32.3% for the quarter, modestly below the 33.0% margin reported a year ago. The narrowing of the margin reflects the combined effect of faster-growing operating costs and the exceptional items tied to the J.B. Pharma transaction.
Management highlighted broad-based revenue gains across its largest markets but the cost profile for the quarter - including both recurring increases in employee, finance and depreciation expenses and the acquisition-related regulatory and integration fees - left headline profit lower year on year.
Quarter at a glance
- Consolidated net profit: 3.89 billion rupees, down from 4.98 billion rupees a year earlier.
- Total revenue: 41.97 billion rupees, up 41.8% year on year.
- Total expenses: rose nearly 60%, led by employee, finance and depreciation costs, plus exceptional acquisition-related charges.
- Operational EBITDA margin: 32.3% versus 33.0% a year ago.
- Dividend declared: 9 rupees per share.