Nomura expects Torrent Pharmaceuticals to report strong second-quarter results for FY27, with market-beating growth in India, tailwinds from rupee depreciation for its export business and early realisation of cost synergies from the JB Pharma acquisition.
In a quick note dated October 21, Nomura said Torrent Pharma recorded 16.3% year-on-year growth in the Indian pharmaceutical market in the July-September quarter, according to Pharmarack data, on a like-for-like basis after JB Pharma consolidation. This significantly outpaced broader market growth of 12%. The brokerage models 17% year-on-year growth for the base business, excluding JB Pharma, and 14% growth for JB Pharma.
Nomura expects US revenue to decline sequentially by $4 million to $40 million, as sales in the previous quarter benefited from one-time factors.
In Brazil, revenue in the first quarter was affected by channel inventory correction. Adjusting for this, constant-currency growth reached the mid-to-high teens, according to management. Nomura forecasts 17% year-on-year constant-currency growth for the second quarter. Other international revenue, including Germany, is expected to grow in the low single digits year-on-year.
The brokerage expects further EBITDA margin expansion on a sequential basis as cost synergies from the JB Pharma acquisition continue to materialise. In the first quarter, JB Pharma's EBITDA margin expanded 650 basis points year-on-year, driven by gross margin improvement and overhead cost synergies.