Torrent Pharmaceuticals Shares Reach 52-Week High Following Q4 Earnings, Analysts Predict Up to 19% Potential Gain

Torrent Pharmaceuticals Hits Fresh 52-Week High After Strong Q4 Performance

Torrent Pharmaceuticals shares surged to a fresh 52-week high on Monday, as brokerages maintained a positive view on the company following its March quarter earnings announcement. Despite a 27 percent decline in consolidated profit after tax for the quarter ended March 31, 2026, due to acquisition-related costs linked to the J.B. Chemicals and Pharmaceuticals deal, the stock gained significantly.

The company reported a profit after tax of Rs 364 crore for the fourth quarter, compared with Rs 498 crore in the corresponding period of the previous fiscal. However, the decline was attributed to exceptional expenses related to regulatory fees and integration costs associated with the J.B. Pharma acquisition. Revenue from operations in the fourth quarter rose to Rs 4,197 crore from Rs 2,959 crore in the year-ago period.

Read also: Market Analysis: Key Stocks to Watch - Narayana Hrudayalaya, ABB India, Federal Bank, Premier Energies, Ather Energy and More

Brokerages such as Morgan Stanley and Jefferies maintained a positive view on the company, highlighting growth in the domestic business and progress in the integration of J.B. Pharma. Morgan Stanley noted that, excluding J.B. Pharma, revenue and EBITDA rose 16 percent year-on-year, led by the India business and semaglutide. The brokerage also stated that Torrent's India base business grew 15 percent, ahead of the Indian pharmaceutical market growth, while the semaglutide launch gained 38 percent share in the generic market.

Morgan Stanley added that Torrent expects semaglutide sales of Rs 200-250 crore in FY27 and sees it as the company's biggest product launch opportunity so far. The brokerage also said the J.B. Pharma merger is nearing final approval from the National Company Law Tribunal and cost synergies of Rs 400-450 crore remain on track over the next three years.

Jefferies maintained a 'Buy' rating with a target price of Rs 5,350, an upside of 19.25 percent from its closing price on Friday at Rs 4,486.20 per share on the NSE. The brokerage stated that the March quarter included two months of J.B. Pharma integration and that the results were broadly in line with estimates on a like-to-like basis. It also noted that the India business maintained strong momentum with 15 percent year-on-year growth and added that the company expects FY27 to be a similar or better year.

The board of the company has recommended a final dividend of Rs 9 per equity share of face value Rs 5 each. During the quarter, revenue from the India business stood at Rs 2,215 crore, up 43 percent year-on-year. Revenue from Brazil rose 30 percent to Rs 455 crore, while revenue from the US business increased 31 percent to Rs 396 crore.

Read also: FirstClub Secures $55 Million in Funding from Peak XV, Sofina, and Other Investors 9 Months After $22 Million Series A Round

For the full financial year 2025-26, net profit rose to Rs 2,138 crore from Rs 1,911 crore in the previous fiscal. Revenue for FY26 stood at Rs 13,980 crore as against Rs 11,516 crore in FY25.