WatchTalking point
Cash conversion trending down
Cash conversion (CFO ÷ profit) has averaged 1.58× over the last 3 profit-making years versus 2.11× before that.
Importance 64 / 95 · cash quality
Torrent Pharmaceuticals · Research view
Torrent Pharmaceuticals Ltd.
NSE: TORNTPHARMBSE: 500420ISIN INE685A01028Face value ₹5standalone
₹4,762
−3.12% · 2026-10-01 · 52-wk ₹3,515–₹5,123
Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
WatchTalking point
Profit lagging revenue
Revenue grew 21.4% but profit grew 11.9%, so the company kept less of each rupee of revenue as profit.
Importance 64 / 95 · growth
StrengthTalking point
Compounding revenue
Revenue compounded at 13.2% a year over 4 years (₹8,508 → ₹13,980).
Importance 54 / 95 · growth
Section 03 · The company
Who is this company?
Classified by the exchange under Healthcare › Healthcare › Pharmaceuticals & Biotechnology › Pharmaceuticals.
- Market cap
- ₹1.61 L cr
- FY2026 revenue
- ₹10,712 cr
- FY2026 net profit
- ₹2,192 cr
- Net worth
- ₹8,452 cr
- Total debt
- ₹14,164 cr
- EPS (basic)
- ₹64.75
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 12 pharmaceuticals.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Watch
Revenue grew 21.4% but profit grew 11.9%, so the company kept less of each rupee of revenue as profit.
Rule PROFIT_SLOWER_THAN_REVENUE
- Revenue growth per year
- +12.3%over 4 years
- Revenue growth
- +10.6%vs last year
- Net profit growth
- +16.1%vs last year
- Change in net profit since FY22
- +121%
Revenue compounded at 13.2% a year over 4 years (₹8,508 → ₹13,980).
Over 4 years profit compounded at 28.8% a year while revenue compounded at 13.2% a year — though FY2023 saw a one-off step-change of 60% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Revenue grew 21.4% year on year (FY2025 → FY2026).
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q1 FY27 revenue was ₹4,921 cr, up 54.8% from ₹3,178 cr in Q1 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
Strength
Q1 FY27 EBIT was ₹1,059 cr, up 33.4% from ₹794 cr a year earlier.
Rule QTR_OPERATING_PERFORMANCE_CHANGE_YOY
Watch
Q1 FY27 interest (finance cost) was ₹305 cr, up 444.6% from ₹56 cr a year earlier.
Rule QTR_INTEREST_EXPENSE_CHANGE_YOY
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q1 FY25 | 2,859 | — | 457 | — | 16.0% |
| Q3 FY25 | 2,809 | +2.8% | 503 | +13.5% | 17.9% |
| Q4 FY25 | 2,959 | +7.8% | 498 | +10.9% | 16.8% |
| Q1 FY26 | 3,178 | +11.2% | 548 | +19.9% | 17.2% |
| Q2 FY26 | 3,302 | — | 591 | — | 17.9% |
| Q3 FY26 | 3,303 | +17.6% | 635 | +26.2% | 19.2% |
| Q4 FY26 | 4,197 | +41.8% | 364 | −26.9% | 8.7% |
| Q1 FY27 | 4,921 | +54.8% | 566 | +3.3% | 11.5% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹15,723 crTTM
- EBITDA
- ₹5,122 crTTM
- EBIT
- ₹3,611 crTTM
- PBT
- ₹2,867 crTTM
- Net profit
- ₹2,156 crTTM
C. Corporate actions
29 May 2026DividendFinal Dividend - Rs. - 9.0000 — ₹9.00/share
18 Feb 2026DividendInterim Dividend - Rs. - 29.0000 — ₹29.00/share
20 Jun 2025DividendFinal Dividend - Rs. - 6.0000 — ₹6.00/share
31 Jan 2025DividendInterim Dividend - Rs. - 26.0000 — ₹26.00/share
21 Jun 2024DividendFinal Dividend - Rs. - 6.0000 — ₹6.00/share
12 Feb 2024DividendInterim Dividend - Rs. - 22.0000 — ₹22.00/share
23 Jun 2023DividendFinal Dividend - Rs. - 8.0000 — ₹8.00/share
3 Feb 2023DividendInterim Dividend - Rs. - 14.0000 — ₹14.00/share
8 Jul 2022Bonus issueBonus issue 1:1 — 1:2
3 Jun 2022DividendSpecial Dividend - Rs. - 15.0000 — ₹15.00/share
3 Jun 2022DividendFinal Dividend - Rs. - 8.0000 — ₹8.00/share
2 Feb 2022DividendInterim Dividend - Rs. - 25.0000 — ₹25.00/share
17 Jun 2021DividendFinal Dividend - Rs. - 15.0000 — ₹15.00/share
15 Feb 2021DividendInterim Dividend - Rs. - 20.0000 — ₹20.00/share
18 Mar 2020DividendInterim Dividend - Rs. - 17.0000 — ₹17.00/share
18 Mar 2020DividendSpecial Dividend - Rs. - 15.0000 — ₹15.00/share
13 Jun 2019DividendFinal Dividend - Rs. - 4.0000 — ₹4.00/share
6 Feb 2019DividendInterim Dividend - Rs. - 13.0000 — ₹13.00/share
18 Jun 2018DividendFinal Dividend - Rs. - 5.0000 — ₹5.00/share
15 Feb 2018DividendInterim Dividend - Rs. - 9.0000 — ₹9.00/share
19 Jun 2017DividendFinal Dividend - Rs. - 4.0000 — ₹4.00/share
10 Feb 2017DividendInterim Dividend - Rs. - 10.0000 — ₹10.00/share
16 Mar 2016DividendInterim Dividend - Rs. - 15.0000 — ₹15.00/share
11 Feb 2016DividendInterim Dividend - Rs. - 20.0000 — ₹20.00/share
15 Jun 2015DividendFinal Dividend - Rs. - 6.2500 — ₹6.25/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Concern
ROE declined from 26.5% to 17.0% year on year.
Rule ROE_DETERIORATED_YOY
- EBITDA margin now
- 38.0%
- 5-year range
- 33.1–38.0%
- ROE FY2026
- 27.3%
- ROCE FY2026
- 20.2%
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Watch
Cash conversion (CFO ÷ profit) has averaged 1.58× over the last 3 profit-making years versus 2.11× before that.
Rule CASH_CONVERSION_DETERIORATING
Operating cash flowNet profit
- Total debt
- ₹14,164 cr
- Operating cash flow ÷ net profit
- 1.25×FY2026
- Free cash flow
- ₹2,262 cr
- Current ratio
- 1.07×
Net worth compounded at 31.1% a year over 4 years (₹5,953 → ₹17,585) — though FY2026 saw a one-off step-change of 132% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Operating cash flow has matched or exceeded reported profit in 5 of the last 5 profit-making years (latest 1.41×).
Debt-to-equity rose from 0.40× to 0.84× year on year.
Free cash flow has been positive in 5 of the last 5 years.
Section 08 · Relative position
How does it compare with peers?
Ranked against 12 pharmaceuticals (FY2026, consolidated).
Revenue growth
TORNTPHARM · 4th of 12 · set median 14.8%
EBITDA margin
TORNTPHARM · 5th of 12 · set median 28.7%
Return on equity
TORNTPHARM · 4th of 12 · set median 14.4%
P/E ratio
TORNTPHARM · 9th of 12 · set median 36.3×
Context
Trades at 74.76× earnings — 106% above the pharmaceuticals median of 36.26×.
Rule PE_ABOVE_PEERS
- P / E
- 74.8×TTM to Jun 26
- P / B
- 9.2×latest book
- P / S
- 10.3×TTM sales
- Earnings yield
- 1.3%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 75.4× · P/S 11.5× · ROE 17.0%.
Section 09 · The stock
How has the stock performed?
Long-term price performance is shown above.
- 1-year return
- +33.5%
- 3-year return
- +146.8%
- 5-year return
- +209.2%
- From 52-wk high
- −7.0%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹4,949
- vs 200-day avg
- Above₹4,420
- RSI (14)
- 40.6neutral
- MACD histogram
- -13.9
- From 52-wk high
- −7.0%
- From 52-wk low
- +35.5%
- 30-day volatility
- 23.5%ann.
- 6-month return
- +11.9%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchCash conversion trending downCash conversion (CFO ÷ profit) has averaged 1.58× over the last 3 profit-making years versus 2.11× before that.CASH_CONVERSION_DETERIORATING · conviction 64
- WatchProfit lagging revenueRevenue grew 21.4% but profit grew 11.9%, so the company kept less of each rupee of revenue as profit.PROFIT_SLOWER_THAN_REVENUE · conviction 64
- ConcernReturns decliningROE declined from 26.5% to 17.0% year on year.ROE_DETERIORATED_YOY · conviction 52
- WatchReceivables stretchingReceivable days rose from 59 to 79 — collections are slower.RECEIVABLE_DAYS_JUMP · conviction 50
- ConcernLeverage risingDebt-to-equity rose from 0.40× to 0.84× year on year.LEVERAGE_INCREASED_YOY · conviction 48
Data coverage is complete — 5 years of financials (FY2022–FY2026), full P&L, balance sheet and cash-flow statement, sector metrics fully mapped.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 6,742 | 7,695 | 8,533 | 9,682 | 10,712 |
| Total income | 6,946 | 7,777 | 8,624 | 9,714 | 10,730 |
| EBITDA | 2,304 | 2,547 | 2,981 | 3,607 | 4,072 |
| Profit before tax | 1,466 | 1,577 | 1,917 | 2,610 | 2,897 |
| Net profit | 991 | 1,052 | 1,357 | 1,888 | 2,192 |
| EPS (₹) | 58.6 | 31.1 | 40.1 | 55.8 | 64.8 |
| Net worth | 6,346 | 6,456 | 6,829 | 7,592 | 8,452 |
| Total debt | 3,344 | 4,566 | 3,333 | 2,547 | 14,164 |
| Operating cash flow | 2,140 | 2,266 | 2,893 | 2,574 | 2,731 |
| Free cash flow | 2,035 | 1,850 | 2,581 | 2,146 | 2,262 |
| Ratio | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth YoY | — | 14.1 | 10.9 | 13.5 | 10.6 |
| Profit growth YoY | — | 6.2 | 29.0 | 39.1 | 16.1 |
| Profitability | |||||
| EBITDA margin % | 34.2 | 33.1 | 34.9 | 37.3 | 38.0 |
| Net margin % | 14.3 | 13.5 | 15.7 | 19.4 | 20.4 |
| Return on equity % | 15.6 | 16.4 | 20.4 | 26.2 | 27.3 |
| Return on capital % | 17.6 | 18.1 | 21.0 | 28.0 | 20.2 |
| Leverage & cash | |||||
| Debt to equity | 0.53 | 0.71 | 0.49 | 0.34 | 1.68 |
| Cash flow ÷ profit | 2.16 | 2.15 | 2.13 | 1.36 | 1.25 |
| Current ratio | 1.62 | 1.15 | 1.25 | 1.46 | 1.07 |