Revenue jumps 54.85%, but Torrent's profit rises only 3.28%
Higher interest and depreciation offset operating gains, while the 22.78% tax rate provided some support.
Filed 30 Jul 2026, 17:35 IST · after market close · Torrent Pharmaceuticals Ltd (TORNTPHARM)
Key takeaways
- Consolidated revenue grew 54.85% YoY, while operating margin expanded 1.34 percentage points as expenses grew slower than revenue.
- Net profit rose only 3.28% YoY because interest increased 444.64% and depreciation 195.02%, despite a 2.97 percentage-point fall in the tax rate.
- Operating margin recovered 1.50 percentage points QoQ to 33.81%, which was 7.61 percentage points above the median of 19 reported healthcare peers.
Price around the results
Revenue growth did not translate into similar profit growth
Torrent Pharmaceuticals reported consolidated revenue of Rs 4,921 cr, up 54.85% YoY and 17.25% QoQ. The operating gain was absorbed below that level: net profit increased only 3.28% YoY, although it rose 55.49% QoQ from the weak Q4FY26 base. The main drag was the sharp rise in interest and depreciation, rather than operating costs.
Operating leverage was offset by financing and depreciation costs
Expenses grew 51.77% YoY against 54.85% revenue growth, lifting operating margin by 1.34 percentage points; the QoQ pattern was similar, with revenue up 17.25% and expenses up 14.64%, expanding margin by 1.50 percentage points. Interest rose 444.64% YoY and 29.24% QoQ, while depreciation increased 195.02% YoY and 16.73% QoQ. Other income was negative and represented -4.5% of pre-tax profit, so it did not support earnings quality; the lower 22.78% tax rate did provide some support to net profit.
Margin recovered after the Q4FY26 dip
Operating margin rose to 33.81% from 32.31% in Q4FY26, reversing the previous quarter's decline. The margin had moved from 32.47% in Q1FY26 to 32.80% in Q2FY26 and 32.94% in Q3FY26 before falling in Q4FY26, so the latest quarter marks a recovery rather than a third straight decline. Torrent's margin was 7.61 percentage points above the 26.20% median for 19 healthcare peers that had reported.
Results were filed after the close; past reactions were usually positive
The consolidated results were filed after market close, so there was no market response to report yet. After its last eight results, the stock rose seven times and fell once, with a median absolute move of 3.38%. That history points to a typically positive reaction pattern, but does not establish the response to this quarter.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,921 cr | ₹4,197 cr | +17.25% | +54.85% |
| Other income | ₹-33 cr | ₹-83 cr | +60.24% | +10.81% |
| Expenses | ₹3,257 cr | ₹2,841 cr | +14.64% | +51.77% |
| Operating profit | ₹1,664 cr | ₹1,356 cr | +22.71% | +61.24% |
| Operating margin (%) | 33.81% | 32.31% | — | — |
| Interest | ₹305 cr | ₹236 cr | +29.24% | +444.64% |
| Depreciation | ₹593 cr | ₹508 cr | +16.73% | +195.02% |
| Profit before tax | ₹733 cr | ₹529 cr | +38.56% | -0.68% |
| Tax | ₹167 cr | ₹165 cr | +1.21% | -12.11% |
| Net profit | ₹566 cr | ₹364 cr | +55.49% | +3.28% |
| EPS (₹) | ₹14.87 | ₹11.51 | +29.19% | -8.15% |
Operating margin of 33.81% compares with a Healthcare sector median of 26.20% across 19 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 33.81% after the Q1FY27 recovery.
- Whether interest growth moderates from 444.64% YoY and depreciation growth from 195.02%.
- Whether the tax rate remains near 22.78% rather than returning to the 31.19% reported in Q4FY26.