Revenue and Profit Growth
Over the seven-year period ending March 2025, Torrent Pharma’s net sales have shown a steady upward trend, increasing from ₹7,673 crores in 2019 to ₹11,516 crores in 2025. This represents a compound growth trajectory reflecting the company’s expanding market presence and product portfolio. The operating profit margin has also improved, rising from 26.6% in 2019 to 32.9% in 2025, signalling enhanced operational efficiency and cost management.
Profit after tax (PAT) has seen a significant rise, from ₹436 crores in 2019 to ₹1,911 crores in 2025. This growth is supported by a consistent increase in earnings per share (EPS), which climbed from ₹25.76 in 2019 to ₹56.46 in 2025, indicating strong shareholder value creation. The PAT margin improved from a modest 5.8% in 2019 to a robust 16.9% in 2025, underscoring the company’s ability to convert sales into net earnings effectively.
Operating profit (PBDIT) excluding other income increased from ₹1,984 crores in 2019 to ₹3,721 crores in 2025, reflecting the company’s growing core profitability. Despite fluctuations in interest expenses, which declined from ₹504 crores in 2019 to ₹252 crores in 2025, the company maintained healthy gross profit levels, supported by stable raw material and employee costs relative to sales.
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Balance Sheet and Asset Management
On the balance sheet front, Torrent Pharma’s shareholder funds have grown steadily from ₹4,823 crores in 2020 to ₹7,591 crores in 2025, reflecting retained earnings and capital accumulation. The company’s total reserves have also increased consistently, reaching ₹7,422 crores in 2025. This solid equity base supports the company’s expansion and investment activities.
Long-term borrowings have decreased from ₹3,275 crores in 2020 to ₹1,192 crores in 2025, indicating a strategic reduction in debt and improved financial leverage. Short-term borrowings, however, have fluctuated, standing at ₹1,834 crores in 2025. Total liabilities remained relatively stable around ₹14,400 crores in recent years, balancing growth with prudent risk management.
Asset-wise, the net block of fixed assets increased from ₹6,295 crores in 2022 to ₹7,700 crores in 2025, signalling ongoing capital expenditure and capacity enhancement. Current assets have also grown, with inventories and sundry debtors rising in line with sales growth, while cash and bank balances stood at ₹579 crores in 2025.
Cash flow from operating activities has shown resilience, with ₹2,585 crores generated in 2025, despite some volatility in investing and financing cash flows. The company’s net cash position remains positive, supporting operational needs and strategic investments.
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Summary and Outlook
Overall, Torrent Pharma’s historical performance reflects a robust growth story characterised by rising revenues, expanding profit margins, and strengthening equity. The company has effectively managed its costs and debt levels while investing in fixed assets and working capital to support future growth. Earnings per share and book value per share have both shown upward trends, signalling enhanced shareholder returns.
While the pharmaceutical sector remains competitive and subject to regulatory challenges, Torrent Pharma’s consistent financial improvements and prudent balance sheet management position it well for continued expansion. Investors may find the company’s track record reassuring as it navigates evolving market dynamics.
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