Outcome of Board Meeting dated 22-May-26
TORNTPHARM · price
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Torrent Pharmaceuticals reported strong FY26 results with standalone revenue of Rs 10,712 crore (up 10.6% YoY) and net profit of Rs 2,192 crore (up 16.1% YoY). EPS stands at Rs 64.75. The board approved an enabling approval for raising up to Rs 5,000 crore via QIP or other modes. A final dividend of Rs 9 per share (180%) was recommended; with the earlier Rs 29 interim dividend, total dividend for FY26 is Rs 38 per share. The company completed acquisition of controlling stake (46.39%) in J.B. Chemicals & Pharmaceuticals (JB Pharma) for Rs 11,917 crore in January 2026, which significantly increased borrowings from Rs 1,021 crore to Rs 11,462 crore. The leverage ratio has risen to 1.68x due to this acquisition, though debt service coverage remains healthy at 3.22x.
Strong earnings growth with 16% YoY profit increase is positive. However, the large debt-funded JB Pharma acquisition has significantly increased leverage and may weigh on near-term sentiment. The QIP approval provides flexibility for future capital raising or debt reduction. The total dividend of Rs 38 per share demonstrates shareholder-friendly approach.