Torrent Pharmaceuticals Ltd. has been recommended as a BUY for Medium Term by BP Wealth, a leading institutional research house, following its robust Q2FY26 results and strong growth trajectory across both domestic and international markets. The company’s branded business, especially in India and Brazil, continues to outperform, while its US operations are showing signs of recovery. Torrent’s strategic expansion, pipeline strength, and upcoming acquisition of JB Chemicals position it for sustained profitability and margin improvement. Investors are advised to monitor key support and resistance levels, with a clear target price for the stock.

BP Wealth’s BUY Recommendation

BP Wealth has reiterated its BUY call on Torrent Pharmaceuticals Ltd., citing strong execution, healthy revenue growth, and improving profitability. The research house highlights that Torrent’s branded portfolio, particularly in India and Brazil, is driving value creation and market share gains. The company’s ability to outpace the industry average and deliver consistent margin expansion makes it a compelling investment opportunity.
Torrent’s Q2FY26 revenue grew 14.3% YoY to Rs. 3,302 crores, surpassing market expectations. Branded markets contributed 73% of total revenue, with India and Brazil delivering double-digit growth. The US business also saw a 25.7% YoY increase, driven by new product launches and higher volumes.

India Business: Chronic Therapy Growth

Torrent’s India business remains the primary value driver, growing 12% YoY and outpacing the industry average. The company’s chronic therapy portfolio—including cardiac, gastro, and derma—recorded robust growth, with the Curatio portfolio up 29%. Torrent is expanding its field force to 7,000 medical representatives by FY26-end, which is expected to further boost domestic sales and market penetration.
Management expects India’s business to continue outpacing the market, driven by new launches, improved field productivity, and expansion into new therapeutic areas. The company is also planning to enter a new therapy segment by Q4FY26, further strengthening its domestic portfolio.

Brazil: Double-Digit Growth and Semaglutide Catalyst

Torrent’s Brazilian operations delivered healthy double-digit growth in Q2FY26, significantly outperforming the market. The company’s pipeline in Brazil is robust, with 65 molecules awaiting regulatory approval, including semaglutide—a key future growth catalyst. Torrent aims to capture a 10-15% market share in semaglutide once approved, which could materially boost revenues.
Brazil’s growth is supported by new product launches and favorable pricing trends, with management targeting steady double-digit expansion in the coming years. The company’s focus on CNS, cardiology, and diabetes segments is expected to sustain momentum.

US and Germany: Recovery and Challenges

Torrent’s US business witnessed robust growth, driven by new launches and increased market share. The company is focused on returning the US operations to sustainable profitability, leveraging existing infrastructure rather than major capital expenditure. In Germany, however, supply disruptions at a third-party supplier led to a 5% revenue decline in constant currency. Recovery is expected to begin in Q4FY26 as supply bottlenecks ease.
Management remains committed to maintaining its branded generics and specialty portfolio in Germany, with gradual recovery anticipated in FY27. The US business is poised for more meaningful traction from FY27 onward.

Acquisition and Pipeline Expansion

Torrent has received all necessary approvals for the acquisition of JB Chemicals, with the transaction expected to close in January 2026. The deal will enhance Torrent’s branded portfolio and therapeutic diversification, offering meaningful cost and revenue synergies. The company is also stepping up R&D investments, with plans to file 4-5 ANDAs in FY26, increasing to 10 in FY27 and 15 in FY28.
Increased R&D spending is expected to accelerate pipeline development and support medium-term growth ambitions. Torrent’s focus on organic and inorganic growth levers positions it for sustained expansion.

Key Financials and Valuation

Torrent’s Q2FY26 EBITDA increased 15.3% YoY to Rs. 1,083 crores, with EBITDA margin at 32.8%. Profit after tax stood at Rs. 591 crores, up 30.5% YoY, with PAT margin improving to 17.9%. The company’s financials reflect strong operational leverage and margin expansion.

Stock Levels and Target for Investors

Torrent Pharmaceuticals Ltd. is currently trading at a strong technical level, with support around Rs. 3,800 and resistance at Rs. 4,200. The stock has shown consistent momentum, driven by robust fundamentals and positive market sentiment. BP Wealth suggests a target price of Rs. 4,500 for the next 12 months, with a BUY recommendation for investors seeking exposure to the pharmaceutical sector.
Investors are advised to monitor key levels and consider accumulating on dips, with a clear exit strategy at the target price. The company’s strong execution, pipeline, and strategic initiatives make it a top pick for long-term investors.