Thank you. Good evening everyone, and welcome to the third quarter earnings call for quarter three FY26.

This quarter, we continue to see healthy performance in our branded markets, which accounted for roughly 75% of the overall revenues this quarter. Our two largest branded markets, India and Brazil, each continue to deliver healthy double-digit growth.

India business grew at 14%, and Brazil grew at 27%. Constant currency growth in Brazil for the quarter was 10%, while the secondary sales grew at 13%.

On the generic side, US business grew at 19%, and Germany grew at 8%. In constant currency terms, Germany revenues have declined by 6%, mainly due to the continued disruption at the third-party supplier.

Quickly on the financial performance for quarter three: revenues were ₹3,303 crores, up by 18%. Operating EBITDA at ₹1,088 crores grew by 19%, and operating EBITDA margin stands at 32.9%.

A very quick update on JB Pharma acquisition: so we've acquired the controlling stake of 46.39% in JB on 21st of January, followed by another 2.41% stake purchased from certain employees. Effectively, from 21st January, JB will start getting consolidated into Torrent Pharma.

As a next step, we expect the SEBI approval for the merger scheme soon, and we will file the merger application with NCLT over the next few days. Overall, we remain on track to complete the transaction as per previously indicated timelines.

I'll now hand over the call to Aman for India business.

Thanks, Sudhir. India revenue at ₹1,798 crores registered a growth of 14%.

As per the AIOCD Pharmatrac market data, the IPM growth for the quarter was 10%. We are seeing continued volume outperformance over the IPM in chronic and sub-chronic therapies led by cardiac, gastro, and diabetes segments.

The Curatio business grew at 27% in Q3 and also 27% in YTD nine months for the year, driven by strong demand generation on account of OTC ad spends and field force expansion. We are hopeful that the high growth now should continue for the rest of the financial year as well.

Our field force strength at the end of the quarter stands at 6,900 versus 6,800 last quarter, and we remain on track to close the financial year with a strength of just over 7,000. Going forward, we expect our India business to continue outperforming the market growth.

Our focus during the rest of the year will be to continue improving our market share in focus therapies, improving field force productivity in the expanded divisions, and scaling up of the Curatio business. An update on JB: following the acquisition of controlling interest of 48.8% in the company, our priority now is to ensure continuity in business operations and ensure there is a smooth transition under the new leadership team.

I will now hand over to Mr. Sanjay Gupta for the international business of Torrent.

Thanks, Aman. We'll start with the branded generics market of Brazil.

Based on internal sales, Q3 constant currency revenue was Brazilian Real 224 million, registering a 10% year-on-year growth. IQVIA data shows Q3 market growth at 7%, with Torrent growing at 13%.

We are seeing healthy volume growth coupled with mid-single digit pricing increase. Torrent has a rich pipeline of 60 molecules, which are currently awaiting approval at ANVISA.

In Germany, our German business registered a constant currency revenue of €29 million, down by 6%. As highlighted last quarter, growth continues to be impacted due to disruption at a third-party supplier.

In the US, we registered constant currency revenues of $36 million, up by 12%. Growth is coming from our new launches, where we have achieved our target market share, and we are also seeing increased purchase volume on existing contracts.

I would like to conclude the opening comments here and open the call up for questions.

Hi. Thank you very much for the opportunity.

My first question is on JB acquisition. You mentioned now you have 48.8% stake and it will be consolidated as part of your financials.

Will it be a line-by-line consolidation, or how you account for it before the complete merger happens?

Consolidation, Damayanti, is line-by-line only. Effective from 21st of January till 31st of March, the quarter four numbers will include JB numbers.

That's clear. On India segment, the 14% growth, can you split between volume, price, and new launches the way you usually do?

Yeah. As per the AIOCD Pharmatrac data, our reflected growth is 14%, which is the same as the reported growth.

The breakup of 14% is 5.5% volume versus 1.2% of the market, 5.8% price versus 5.6% of the market, and 2.7% new products versus 2.8% of the market.

Okay. Thanks.

My last question is on Germany. We are yet to see a resolution of this supply disruption.

What is the timeline? When do you think things will come back on track here?

Unfortunately, Damayanti, I cannot give a timeline because our supplier is caught up in regulatory issues, and I don't have visibility as to when he will start manufacturing again. These days it's very complicated in Europe because they also consider the observations of the US FDA, etc.

It's a little different in Europe currently than what I have seen in the past. There's a lot of interaction between EMA and the FDA, things are taking longer to resolve.

Honestly cannot give you a guidance.

Okay. Is there a possibility to move to an alternative supplier, or even that will be very time-consuming?

It is time-consuming, but we are working on it. We started work on it already last quarter, but it'll take at least three to four quarters to get an alternate supplier on board.

We are trying to move some of the products to our own facilities, but it's a little time-consuming.

Okay. Thank you.

I'll get back in the queue.

Hi. Good evening.

Thank you for taking my question. My question was for the GLP-1.

Do you have any fill-and-finish capacity for it, and is that for Indian market or the emerging market?

No, we do not. We only have capacity for the oral.

Everything else will be partnered for India and other markets.

All right. Who would be our partner?

Is that possible to reveal?

We can share that once we launch.

Understood. Which geographies will we be launching in?

Only in India will it be partnership, or everywhere else?

The injectable partnership is across all territories. The first launch is most likely going to be India followed by other markets.

We can share an update once the launch is done next quarter.

Understood. Other markets you don't want to reveal right now, or is that possible?

No, we had already shared about Brazil last time as well. Nothing changes in terms of timelines.

It's a bit behind what we would have liked. Probably sometime in the next financial year.

Even though we would be late to the game, the market opportunity is much larger than the Indian market. It should still be an interesting opportunity.

Understood. Thank you.

Yeah. Thanks for taking my question.

Sudhir, now that we've acquired the stake in JB, I know that the merger still depends on SEBI approval, etc., but how should we think about other than the continuity of operations and transition that you've mentioned, the synergies that you should see? Would that essentially all come through once the merger is done?

If you could just tell us what we can expect in the next, let's say, 6 months or 12 months and probably longer term, how should we look at the synergies from the deal?

I think in terms of timelines, Neha, until the effective merger order, both the entities will remain separate. In terms of timeline, we think once we file to NCLT, then probably 6 to 9 months as indicated earlier should be the timeline we should be looking at in terms of integrating both the entities.

Okay? I think in terms of synergy, some part of the synergy will start flowing from now on, and maybe a major part of that will come post the integration happening.

What part of the synergy, if you don't want to quantify it, what areas of synergy do you think you can get now before the merger? I understand what can come after the merger, but what do you think we can bring to the table now before the merger happens?

I think we're happy to quantify at this stage. I think we've been waiting to understand the business a bit more over the last couple of quarters.

Broadly, I would say that our synergy number is looking like ₹400-450 crores over the next 2 to 3 years. Maybe 20% of that could be in the first year, up to 80% of that could be in the second year, and the rest in the third year.

That's what it currently looks like.

You said ₹400 to ₹450 crores in the next 2 to 3 years.

That's correct.

The first year is starting now, right? It's not first year after the merger.

No, first year would mean now. Obviously, some of the effect would come on subsequently in the coming quarters, but we will start seeing some benefit in the subsequent quarters already.

Again, this 20% that you're talking about synergies, these would be largely cost synergies that we would see initially? Because I'm assuming revenue synergies would require a merger probably or would it be a mix of both?

This number is only cost. We have not looked at revenue synergies yet.

We'll wait for first year business top line to stabilize and then we can look at revenue synergies.

Understood. Okay.

Thank you so much. That's very helpful.

Hi. Am I audible?

Yeah. Thank you.

Quick question: once the JB merger happens, right, what would be the margin guidance, if at all, considering you're going to have cost savings? JB currently have an EBITDA margin of 18% to 19%.

You are sitting at 32%. Even if we consider the synergies, is this going to be margin accretive for our businesses?

I understand that you haven't done on the revenue side so far, but you must have some ballpark number in your head.

No, sir. I think firstly, JB's margin is closer to 28-29% EBITDA margin.

I think our margin this year has been in the range of 32.5% to 33%. There is definitely a scope to bring JB's margin closer to our base business margin in the next financial year.

We've already given the number on the cost synergy target for the next three years, I guess you can work out the margin potential there. I think it will be a bit too complicated to look at the combined margin at this stage.

Standalone JB, certainly there is a significant scope for margin improvement.

Okay. Thanks for that.

In terms of US, how are you seeing the growth there? Is it stabilizing with this tariff news out of the [unclear]?

Tariff out of the...

Sure. Is it better now?

Yeah. Okay.

How is US looking for you? I know there was no tariff on pharma in any case, right?

After this tariff news out of the way, are you seeing the potential to grow above 20% on the US side in the subsequent quarters?

US we are a very small player. We do $35-36 million a quarter.

It's really dependent upon new launches, but also upon the level of competition that we see in the new launches. We have a healthy pipeline, and we are augmenting the pipeline for the US, but it's hard to give guidance today.

It depends really as on when the new launches happen and the competitive landscape at that point in time.

Okay. I just want to clarify something one more time.

In your opening remarks, you guys said that you will continue with the double-digit volume growth for India business in subsequent quarters as well. Is that correct?

What we had said was we'll continue the above-market volume growth, double-digit growth overall including price and new products, and our volume growth is about 5.5% for the quarter.

Okay. Understood.

Thank you very much for clarifying. Have a great day.

Good evening, sir. Sir, in the previous calls you had mentioned that the Brazil GLP-1 market is around $1 billion.

In the first wave of launches in March, what would be the competitive scenario that you see, and typically what's the kind of price erosion that you would expect based on your understanding of the market?

We don't think we'll be the first one to launch, right? I don't know.

It'll be somewhere in the range of between three to third to fifth launch. We've filed Ozempic, which is today a $270 million market, and the rest is as you know it's been taken over by Wegovy.

Wegovy will come to us, but it's a little bit down the line. I can't really give guidance on Brazilian price erosion because it depends really on how many players come to the market and who are the players who come to the market.

Some of the players are known for very aggressive pricing and some others are much more reasonable. To be safe, you can take at least 50 50% price 45% price erosion on the Brazilian market.

Honestly it's hard because it's been all over the map. I've seen price erosion of 90% on a couple of products, and I've seen price erosion of 20% also.

It honestly depends upon it's the same thing: how many players and what's the nature of the player.

Sure. Sir, in March, it's only the Ozempic generics which are hitting the market, or are some players also launching Wegovy generics?

Generally, the Wegovy generics in Brazil are behind. The Ozempic was the first one that was launched in Brazil, where Wegovy came much later by the innovator.

Hence, the Wegovy generics are all running behind Ozempic ones.

Right. Do you think there could be some substitution happening because Ozempic will become cheaper versus Wegovy?

It's hard because the laws are very strict, and I think the Brazilian law requires a pharmacist to keep a copy of the prescription and to make sure the right product is dispensed against the right prescription. The government has been very strict with this semaglutide usage, and it's hard for a pharmacist to substitute.

I expect the substitution to be minimal.

Got it, sir. My assumption, if I understood correctly, you would be launching Ozempic this year and then Wegovy sometime next year?

I can't give the exact timing because it's in the hands of the regulator. Our products have been with the regulator for a substantial number of months.

They are giving some kind of priority review for such an important product. They've kind of improved our ranking in approval.

For semaglutide, you get a opportunity to move up the queue. They've moved us up also in terms of prioritization of approval as compared to other molecules.

I cannot give guidance as to when it'll get approved and launched, but we have the pieces in place. Once we get approved, we'll be ready to launch.

Got it, sir. Just one more if I can: I think in the India business, they had said the sales force would go up to 7,000 at the end of FY26.

Would you be on track for that or there would be any changes to that?

That's correct. It'll be just over 7,000, maybe close to 7,100.

As of now, we see maybe some additional delivery in the next coming year as well financial year could be around 7,500 maybe by end of FY27.

Got it, sir. That's very helpful.

Thank you and all the best.

Yeah. Hi.

Thanks for taking the question. The question is on Germany.

You have highlighted that there is some kind of disruption from one of your suppliers, etc., right? Just want to understand whether the disruption is fully there in the numbers or is it partly reflected or, for example, quarter we can see the sales for Germany?

Thank you.

No, it's fully there in the numbers.

Okay. Got it.

One question I have on US, right? For quite some time actually, if you look at your sales numbers are largely hovering around somewhere around $33-35 million and all.

Now if you look at most of your facilities, maybe facilities are clear. When are you expecting a kind of a meaningful jump in US sales or any possibility that it can go to $45-50?

It can only go up from here. That's my hope actually, because it's already kind of low.

I would guide towards the higher sales number from where we are. I would guide towards at least five to seven launches a year.

Now depending upon the timing, as US launch if it's 10 days late, it's too late. It has to come on time, and sometimes it helps when your competitors are not on time.

We are looking at a one-directional sales growth in the US from here on. Not happy with this current level of $150-160 million.

The first target I'm looking to cross is $200 million a year. Hopefully next year we'll do that.

I'm being optimistic and taking a punt on the launches that we will have.

You are suggesting that FY27 you can get $200 million kind of US number in US, possibly?

I'm targeting based on what I see in our launch plans, but again it's not in Torrent's hands. Understood.

One question if I can ask on JB acquisition, right? So...

Okay. Okay.

Sorry. On JB acquisition, right?

Is there any possibility that the growth of this company, right, that can slow down maybe during integration, etc., if there's kind of disruption because of the transaction, or do you think that this company that can keep growing the way it is growing over the last few years during the transition period?

Our view strongly is that the fundamentals of the business are fairly robust. The medium-term, long-term prospects are looking pretty much as what we expected pre-acquisition and now.

What we do expect is a bit of a course correction in this current Q4 because in any change of control situation, there are changes of business practices and you've have to kind of integrate processes and so on. Q4 could be a little bit muted in both India and international.

Q1 onwards, there should be pretty much absolutely back on track.

Thank you. Just one more question if I can squeeze in.

This is on Brazil. It looks like that you have highlighted product semaglutide launch seems to have been delayed and pushed to next year.

Data itself is taking time to approve the filings out there? Any color actually that would be helpful if you can help us understand that how the regulatory is taking the filings or there is a possibility that even the market formation can get delayed by, let's say, around 6 to 9 months or maybe 12 months?

Thank you.

I can tell you two things. One is the file is solid, and the second thing is the regulator is prioritizing this product.

That's all. I can't give you a exact month and date, but I know that the regulator is prioritizing semaglutide generics, and I know that the file that we have sent is complete in all ways that we can think of.

Other than that, really not much to say.

Thank you, sir. That's so much helpful.

Yeah. Hi.

Thanks for taking my question. My first question is until the JB merger concludes, how should we think about how will the marketing of JB brands work?

Does Torrent MRs get to market JB brands, or that will remain separate till the time we merge the entities?

No, it will be separate. All the divisions of JB will remain within JB till merger.

Only post-merger can any such change be possible.

Then in that event, if there is MR attrition on the JB side, then how do we ensure that we do not see disruption in sales?

The attrition in the last six months, where the period between the announcement of the deal and till now, the attrition has been pretty much the same as the historical attrition. It hasn't gone up.

We don't see any reason why it can go up, especially after the closure of transaction. In fact, we'll probably do our best to reduce attrition as much as possible.

We don't really see that to be an issue post our change of control.

Okay. Also on the purchase price, could we get an understanding of breakup into goodwill and intangibles?

In how many years should we think about amortizing this?

Bansi, the amortization policy for Torrent has been 15 years. You'll just have to wait for one quarter because that whole purchase price allocation work is going on.

Maybe by end of February, we should have the numbers in place. I think once that is done, I should be able to guide you.

All right. Also lastly, how should we think about debt repayment?

In how many years do we get back to our net cash position?

I think this is something which I had guided earlier. I think the way I'm looking at it is if I correctly remember the numbers, FY27 will be the first year of integrated Torrent.

FY28, my net debt to EBITDA should be around 1-1.1x. FY29, it should be around 0.6.

What I remember, plus minus here and there, I think this is the broad guidance I can give.

Okay. What should we assume as cost of interest here?

Average cost of interest is roughly 7.6%.

All right. Thank you.

Yeah. Hi, sir.

Thank you for the opportunity. My first question is pertaining to the JB Chemicals acquisition.

While the complete control or the merger of the two entities may take another 6 to 8 months, in the near term, how are we dealing at the senior-level attrition, especially where the CEO and CFO of JB has resigned? How are you going to have two different managements in place, or it would be the Torrent team completely taking over?

In certain critical roles like CFO, there will be a separate CFO for JB. Similarly, wherever any such critical role is required, there will be a separate team running at the senior level.

Eventually, it should all merge into Torrent.

Understood. The second one I had is a bookkeeping question.

While in most of the geographies, it seems like you have a currency benefit, while your other income, it's still negative for the quarter. What explains that negative other income for the quarter?

There's a hedging loss which we have booked in other income, close to ₹45 crores.

Understood. Thank you.

I'll get back in the queue.

Yeah. Hi.

Thank you and good evening. Just a clarification on the synergy number, ₹400 to ₹450 crore in the next 2 to 3 years.

JB has this Novartis' ophthalmology portfolio, which is currently in-licensed, and there's an opportunity for growing gross margins on that portfolio by FY28. So ₹400-450 crore number is inclusive of that gross margin synergies on the ophthalmology portfolio of Novartis?

No, it does not include that. There's two parts: there's the Novartis business of the ophthal portfolio and the Azmarda portfolio.

This synergy number does not include either of these.

Perfect. Okay.

Thank you. Secondly, on the Brazil ex of semaglutide, I think one of your peers reported quarterly numbers where they had a new launch and high growth with dapa.

Any guidance on the number of new product launches in Brazil ex of sema and how that growth trajectory can look like over the next 2 to 3 years, please?

We have good visibility on new launches. We'll be doing about five to six launches a year.

In terms of growth, how can that translate to a 20% kind of a growth CAGR ex of sema for the next 2

to 3 years? The market growth itself has slowed down considerably.

We are seeing a market growth of 6-7, and I'm targeting 10% to 15% growth for Torrent. Driven by new products and pricing increases in Brazil have muted considerably because they've managed to keep inflation under control with crazy high interest rates.

The inflation is pretty low, and the price increases we are seeing is not like old times. Nowadays we are seeing 4 and 5, which also companies are not able to take because of competition.

Combining muted pricing increase, some volume increase, and new products, I think in the range of 10% to 15% is reasonable to expect. In terms of secondary sales growth, demand growth, prescription growth, and primary sales varies up and down a little bit based on wholesaler decisions on inventory.

Sure. Thank you for that.

I'll join back the queue.

Yeah. Thanks for the opportunity.

Just one more on the JB side. Any therapy in India or let's say a segment in India, and then likewise in the international market, which you think is not going to be remunerative or not aligned with the Torrent Pharma strategy, which you would like to eliminate or reduce considerably?

Not therapy exactly, but certainly the JB trade generics business is not something which we are looking at continuing. It's been practically run at zero margin, and if we keep running it, it'll keep giving us stock returns.

We're planning to, if not discontinue, at least shift some of it to our base trade generics business at the earliest possible.

That is as far as India business. On the international market side?

International is all fairly complementary, nothing that we see there which doesn't align with our current strategy.

Got it, sir. At a group level, right, within let's say Europe or LatAm or any other let's say developed markets where we've been doing pretty well, maybe in India, Brazil, US, just sort of growing, Germany, certain temporary constraints, but any other geographies where Torrent would intend to make mark or start building in addition to these core geographies?

You're talking in the context of JB, right?

No, at a Torrent Group level.

Four large markets like India, Brazil, Germany, US. We are preparing future large markets like Russia, then Mexico, then the Philippines.

These should become in the medium term roughly $50 million markets, and that's what we're targeting. Then there's another series of markets below that that are currently in the $10 million range and we want to take them up to 25.

That is the way we look at our, let's say, geographical portfolio.

Sanjay, this 50 million each or the combined you referred to?

Each.

Over what period?

It'll take 3-4 years. JB doesn't bring us much in terms of content sales in Mexico, neither in the Philippines.

We have current business of 20 million, and they bring let's say another 50% of that. It leads to a scale improvement generally in all emerging markets, especially in Africa and Eastern Europe and Russia.

This combined scale provides you an opportunity to be more visible on the market, to invest more on the market, to increase profitability, and to increase momentum.

Got it, sir. Thanks.

That's it from me.

Yeah. Hi.

Thanks for taking my question. Sanjay, just trying to understand ANVISA better here.

I know you don't have a crystal ball, but given that there are 11-12 filers on sema, has it happened in the past where regulator has had this situation where there are so many filers on the new product? How many can it approve in the first wave?

Typically ANVISA approves, I think, 2-3 products in any semester, right?

No, no, no. It's not like that.

No. No.

It's pretty much like everywhere else in the world. There's no kind of quota system in Brazil.

They give some flexibility for you to prioritize and indicate to them which are your priority dossiers, and then you can kind of push them up the queue. They can approve as many as you want.

I've never seen any limitation from ANVISA in terms of number of approvals.

When you say wave of launch, you being let's say maybe in the second wave, first wave can be as big as five approvals also, right?

Yeah. I'm hoping to be in the first five, but let's see.

Because our file is there. Again, we have Ozempic, which is ahead.

Wegovy is behind. The bigger market is Wegovy.

Understood. Typically for a product like this, supply chain is different or is like, again, same like other generics?

No, it's not a Torrent supply chain on this one, right, because we are not manufacturing. That it's a device.

It's slightly different. Otherwise, it'll work.

We have the systems to make it work.

No, my question is more on the distribution side. Do we have to have large distributors, local distributors like RD and Drogasil tied up to get large market?

These big distributors, they have a refrigerated supply chain. We don't anticipate any problems because they're so large.

Santa Cruz, Profarma that you mentioned, they all have capabilities to distribute refrigerated products, temperature-controlled products. Not an issue.

Would they take more than 3-4 suppliers? I understand capacity can be an issue here, they may take typically let's say whoever gets in the first wave would lock in these distributors, right?

You can't lock in distributors so easily because basically Brazil is a prescription market, right? You have to convince the physician that your product is a viable product.

Pretty much like India, right? If the physician is writing and they are seeing the RXs coming in, they would stock your product.

It's not like a trade market, right? Brazil is more a prescription-driven market.

We have to convince the doctors that our product has the right quality, right price, and gives the right service levels. It should be fine as far as the distributors.

We do that every day. Controlling chains and distributors, that's part of our bread and butter, and we don't anticipate a barrier to entry on that front.

Understood. I just wanted to also check, oral pill is already filed by Novo in Brazil, right?

I think approval maybe probably, I don't know, this year late or next year. Would you file oral in Brazil as well?

In India?

We're looking at that because Aman has that product in India, and potentially we can extend it to Brazil. We haven't filed it as yet.

Understood. Thank you so much.

Yeah. Thanks for the follow-up.

Although you are not quantifying as far as the revenue synergies are concerned from JB deal, but is there real possibility for any kind of revenue synergies over a period of time, etc.? Any qualitative color actually if you can annex, that would be helpful.

Qualitatively, if we look at some of the past revenue synergies that we have been able to kind of deliver, most recently being in Curatio brands and divisions, it's generally where the Torrent division has had a kind of longer duration of presence in those regions and areas where you then start selling or cross-selling. Over time, that does really kind of show positive outcomes.

You would have seen the growth of the Curatio basket of drugs or products has increased every year sequentially as a result of this. Not saying that this is what we can expect in the case of every acquisition or in JB, but there are certainly pockets where, even within the established JB brands, there are areas where Torrent's divisions or field force has had a much longer presence or has a stronger brand equity or kind of corporate equity, which can be leveraged.

This would be across cardiac and gastro especially, which are the two largest business contributors for Torrent and JB both. Because of our number of field force that we have in Torrent, the opportunity is quite significant to at least get the reach enhanced as quickly as possible.

Even in overlapping areas, there could be low market share of JB versus higher market share of Torrent in some products, and there you can really look at opportunities. This is something that we would not want to focus on in the first year.

First year would be pretty much in terms of top line business as usual. First year would be probably more on the cost side, and second year onwards, this is when we can start really looking at this.

Understood. Thank you.

That's quite helpful. Thank you.

Sorry. Sir, thanks for the follow-up.

Just a net debt number at the end of Q3?

Net debt number as in December is roughly ₹880 crores.

How this trajectory with this acquisition while you have shared the net debt to EBITDA ratio, but if you could just quantify as at the end of FY26, subsequently '27, the net debt numbers?

No, I think at this point, it's difficult to tell you the numbers, Tushar, but the guidance which I gave you or which I gave earlier, I think that you should be able to work it out.

Okay. All right.

Thank you very much for joining this call, and look forward to updating you in the future about our progress. Thank you.