Hold Torrent Pharma: target of Rs 3530: ICICI Securities

ICICI Securities's research report on Torrent Pharma

Torrent Pharma’s (Torrent) Q1FY26 results were slightly below our expectations. Addition of MRs and price hikes continue to fuel growth in India (+10.8% YoY). Torrent has increased its field force by ~16% in the last one year and would further add another 400 in the next 2–3 quarters, taking the overall count to 7,000. It would also integrate 2,800 MRs of JB Chemicals post the acquisition of majority stake. Growth in Brazil and US bounced back in Q1; further, new launches too shall enable the momentum to sustain in these markets. Management expects FY26 margins to be at least ~33% levels. The acquisition of JB Chemicals is on track and Torrent is awaiting CCI’s response. We increase our FY26E/FY27E EBITDA by ~1% each to factor in better margins. Maintain HOLD with a higher TP of INR 3,530, based on 23x FY27E EV/EBITDA.

Outlook

We maintain HOLD with a higher target price of INR 3,530 (earlier INR 3,500), based on 23x FY27E EV/EBITDA (unchanged). We value the stock on EV/EBITDA(x) basis, considering a significant amortisation cost, which is a non-cash charge.