Mumbai — Indian pharmaceutical companies Torrent Pharmaceuticals and Dr. Reddy’s Laboratories reported declines in quarterly profits, as rising expenses and pressure on operating margins weighed on their financial results for the three months ended September 2026.
Torrent Pharmaceuticals reported a 9.6% year-over-year decline in consolidated net profit to 534 crore rupees, compared with 591 crore rupees during the same quarter last year.
Despite the decline in earnings, the Ahmedabad-based drugmaker recorded strong revenue growth. Revenue from operations increased 50.8% to 4,979 crore rupees from 3,302 crore rupees a year earlier.
However, the company’s expenses rose significantly, offsetting much of the benefit from higher sales.
Total expenses climbed 70.9% to 4,222 crore rupees, compared with 2,471 crore rupees in the corresponding quarter of the previous fiscal year.
Finance costs surged to 300 crore rupees from 48 crore rupees, while depreciation and amortization expenses increased to 609 crore rupees from 204 crore rupees. These increases contributed substantially to the company’s lower profitability.
Torrent’s underlying operating performance remained strong despite the higher costs.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 53.8% to 1,666 crore rupees. Its EBITDA margin improved to 33.5%, compared with 32.8% in the year-earlier quarter.
Meanwhile, Dr. Reddy’s Laboratories reported a sharper decline in earnings, reflecting weaker revenue and operating profitability.
The company posted a 36% year-over-year drop in net profit to 913.4 crore rupees for the September quarter, compared with 1,426.8 crore rupees during the corresponding period last year.
Revenue from operations declined 1.5% to 8,671 crore rupees from 8,805.1 crore rupees a year earlier. However, revenue increased 7% compared with the preceding quarter, indicating some sequential improvement in business performance.
Dr. Reddy’s also experienced a significant contraction in operating earnings.
EBITDA fell 24.2% to 1,783 crore rupees from 2,351.1 crore rupees in the year-ago quarter.
The company’s EBITDA margin narrowed to 20.6% from 26.7%, a decline of 6.1 percentage points, highlighting the pressure on profitability.
The quarterly results underscore contrasting revenue trends at the two pharmaceutical companies. While Torrent Pharma delivered substantial sales growth and improved operating margins, higher financing and depreciation costs reduced its net earnings.
Dr. Reddy’s, meanwhile, faced declines in revenue, operating earnings and margins, resulting in a more pronounced drop in quarterly profit. (Source: IANS)
