Torrent Pharma hits record high after Q3 results; Should investors buy or wait?

Torrent Pharmaceuticals share price rose sharply on Monday, February 16, after the company reported strong December quarter results and announced an interim dividend. The stock hit a record high during the session. The rise came even as the overall market remained weak.

Torrent Pharma share price hits all-time high

Torrent Pharmaceuticals shares jumped as much as 6 per cent in early trade to hit a record high of Rs 4,322.80. The stock opened at Rs 4,154.95 compared to its previous close of Rs 4,074.05.

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Around 10:05 am, the pharma stock was trading 5.64 per cent higher at Rs 4,304. The sharp rise came after the company reported healthy earnings growth and strong operating performance.

The stock has seen strong buying interest as investors reacted positively to the company’s consistent earnings growth and future expansion plans.

Profit rises 26%, revenue growth remains strong

Torrent Pharmaceuticals reported a consolidated net profit of Rs 635 crore in the December quarter. This was up 26.24 per cent from Rs 503 crore in the same quarter last year.

Revenue from operations increased 17.6 per cent year-on-year to Rs 3,303 crore from Rs 2,809 crore. The growth was driven by strong performance across domestic and international markets.

Operational EBITDA rose 19 per cent to Rs 1,088 crore compared to the year-ago period. The EBITDA margin stood at 33 per cent, showing strong operational efficiency and cost control.

The company also reported an exceptional cost of Rs 10 crore. This was related to regulatory and statutory filing expenses linked to the acquisition of J.B. Chemicals and Pharmaceuticals.

Torrent Pharma’s research and development spending increased 2 per cent year-on-year to Rs 154 crore. This reflects continued investment in product development and future growth.

India business remains key growth driver

Torrent Pharma’s India business delivered strong performance during the quarter. Revenue from the India segment rose 14 per cent year-on-year to Rs 1,798 crore.

The company reported strong volume growth in chronic and sub-chronic therapies. Key segments such as cardiac, gastro, and diabetes performed well and outpaced the overall pharma market.

The India business remains a major contributor to the company’s overall earnings and provides strong growth visibility.

Interim dividend announced

Torrent Pharmaceuticals announced an interim dividend of Rs 29 per equity share of face value Rs 5.

The dividend is expected to be paid on or around March 6, 2026.

Brokerages remain positive; targets raised after results

Global brokerages maintained a positive outlook on Torrent Pharma after the December quarter results and raised their target prices.

Jefferies maintained a Buy rating and raised its target price to Rs 4,690 from Rs 4,600. The brokerage said Torrent delivered solid performance in India, US, and Brazil markets. It also expects cost savings of Rs 400–450 crore from the JB Pharma acquisition over the next 2–3 years.

JP Morgan maintained an Overweight rating and sharply raised its target price to Rs 4,700 from Rs 4,000. It expects strong earnings growth supported by margin expansion and acquisition synergies.

CLSA maintained a Hold rating and raised its target price to Rs 4,000 from Rs 3,700. This indicates limited upside after the recent rally in the stock.