The growth in the Indian market and the benefits from the JB Pharma integration are important triggers for the stock. The company continues to outperform the Indian pharma market and is benefiting from strong domestic growth. The Indian pharma market, or IPM, has posted double-digit growth for nine consecutive months. IPM grew 10.7 per cent Y-o-Y (in terms of sales) in August and this was largely driven by price increases (6.1 per cent), new product launches (contribution of 3.5 per cent) and volume growth of 1.1 per cent.
Nomura Research points out that IPM growth has picked up in CY26 and has been trending in double digits in CY26 to date. Saion Mukherjee and Kushal Chovatia of the brokerage highlight that the recovery in the growth rate is being driven by the low volume in the base, a pick-up in new launch contribution such as GLP-1 (60 basis points), a pick-up in chronic therapies such as cardiac and oncology, and strong growth in vitamins, minerals and nutrients as well as gynaecology. Torrent Pharma posted 15.1 per cent Y-o-Y growth in August, compared to 14.8 per cent growth in the trailing 12 months ended August, outperforming the domestic market by about 500 basis points.
In the semaglutide market, four players have launched generic semaglutide in a cartridge (reusable device) format, and within this category, Torrent surpassed Zydus to become the market leader with a 34 per cent market share in August 2026. In oral solids, Torrent remains the market leader with a 90 per cent market share.
In the June quarter, the company had outperformed the domestic market by 700 basis points, led by healthy growth in price, volume and new launches. This was led by the acquired Curatio portfolio, which saw strong 34 per cent Y-o-Y growth and aided the overall growth in the domestic market.
The company has reiterated its double-digit revenue growth target for the combined India business (including integrated JB Chemicals from July 2026). Cost synergies from the acquisition are tracking ahead of plan and the company expects FY27 synergy realisation to surpass the ₹100 crore mark, against initial estimates of ₹90 crore. The contract development and manufacturing business of JB Chemicals is expected to deliver high single-digit to low double-digit constant-currency growth in FY27.
Motilal Oswal Research expects 28 per cent annual growth in the India business over FY26-28, driven by continued chronic portfolio expansion, stable semaglutide momentum, market share gains and integration synergies from JB Pharma. The brokerage values Torrent Pharma at 50 times one-year forward earnings to arrive at a target price of ₹4,730. It, however, has a neutral rating on the stock as valuations factor in the upside.
In addition to the strong show in the Indian market in the June quarter, the US market too delivered steady growth in the quarter. US revenue grew 36 per cent Y-o-Y, while growth in constant currency was 23 per cent and was driven by new product launches. In addition to new launches, expansion of the existing business and differentiated generic opportunities are expected to drive 12 per cent growth in the next two years.
HDFC Securities believes Torrent Pharma (excluding JB Chemicals) is well-poised for steady growth, led by a strong branded franchise (new launches, consumer wellness, traction in Brazil — new launches) and steady growth in US generics (new launches), with margins remaining stable at 33-35 per cent for the next few years. It has an add rating with a target price of ₹5,270.
