Torrent Pharma Sees Share Surge Post Q4 Results, Analysts Eye ₹4,000 Target

Pharmaceuticals' shares have seen an uptick following its Q4 FY25 results, with analysts expressing optimism about the stock's future performance. Global brokerage firm Citi has maintained a 'Buy' rating on Torrent Pharma, setting a price target of ₹4,000 per share, citing expected benefits from new launches in the US and tender wins in Germany by late FY26. Despite missing Q4 revenue estimates by 1%, Torrent Pharma delivered adjusted EBITDA in line with expectations and adjusted PAT that exceeded consensus by 2%. The adjusted EBITDA margin stood at 33.2%, a 60 basis points quarter-on-quarter improvement, aligning with the company's guidance of stable margins. The company's management highlighted strong underlying trends in key branded markets, including India, where volumes grew approximately 4% against a flat Indian Pharmaceutical Market (IPM), and Brazil. Management expressed confidence in the India prescription (Rx) business, Curatio (due to accelerated growth), and Germany (driven by new tender wins). Citi anticipates a continued margin expansion trend, projecting an improvement of around 200 basis points over FY25–FY27, primarily fueled by operating leverage in the branded segments. While Nuvama also holds a 'Buy' rating on Torrent Pharma, it has slightly adjusted its price target downwards to ₹3,760 from ₹3,810 after minor model revisions.