Torrent Pharmaceuticals has emerged from its latest quarter with renewed momentum, and ICICI Securities has kept its stance at BUY with a target of Rs 5,100, implying about 15% upside from the Rs 4,420 closing price used in the report. The broker’s thesis rests on a sturdy India franchise, a stronger Brazil business, improving US profitability, and the strategic addition of JB Chemicals, which it believes can deepen Torrent’s earnings engine over the next few years. The stock is being valued at 25x FY28E EBITDA, and the house sees the integration play as the central catalyst rather than a one-quarter earnings surprise.

What drove the quarter

Revenue growth stayed broad-based. Torrent’s standalone Q4FY26 revenue rose about 16% year on year to Rs 3,424 crore, with growth visible across India, Brazil, the US, and Germany. On a consolidated basis, after JB Pharmaceuticals was folded in, revenue rose to Rs 4,128 crore and EBITDA reached Rs 1,356 crore, translating into a 32.3% margin.

Margins remained resilient. The standalone business continued to deliver healthy gross profit margins of 75.8%, while EBITDA margins held at 32.3%. That is notable because the company is simultaneously scaling newer opportunities and integrating a major acquisition, both of which can typically pressure profitability in the near term.

India remains the anchor

Domestic growth outpaced the market. Management said base India business grew 15% in Q4FY26, ahead of IPM growth of 10%. Chronic therapies, better pricing, and volume gains supported the performance, while Curatio also contributed with 27% growth in FY26, powered by OTC traction.

Semaglutide is becoming a strategic prize. Torrent said it has 38% share in generic semaglutide in India, split between 28% in injectable and 100% in oral formats. The company believes oral semaglutide can capture 20% to 30% of the Indian generic market, though margins are temporarily lower because of higher API costs and marketing spends.

Overseas growth is mixed

The US turned more encouraging. Base business revenue in the US grew 16%, or 9% in constant currency, to US$ 38 million. Management now expects single-digit growth in FY27 and said the US business is profitable after R&D, which is an important inflection for an export-led pharma portfolio.

Brazil is outpacing the market. Brazilian growth was supported by key brands and new launches, and management said Torrent is targeting 10% to 15% growth over the next two years. The company also has 58 products under ANVISA review and sees meaningful opportunity in semaglutide, where the market is expected to be roughly US$ 1 billion.

Germany remains a weak spot. Growth there was hit by supply disruption at a third-party vendor, although currency movements softened the blow. Torrent launched its first biosimilar in Germany through the tender route in Q4FY26 and is guiding for low-single-digit growth in FY27.

JB Chemicals changes the story

The acquisition is now central to the valuation debate. Torrent has acquired a 48.8% stake in JB Pharma and has already begun consolidating JB’s financials. Shareholders have approved the full merger, and the final NCLT hearing is scheduled in June 2026.

Synergy hopes are substantial. Management is targeting Rs 400 crore to Rs 450 crore of cost synergies from the JB deal, with roughly 20% expected in the first year, 50% to 80% in the second year, and the balance in year three. Importantly, the company does not expect revenue synergies in FY27, so the first phase is likely to be driven more by cost discipline than by top-line fireworks.

Targets and levels

The broker’s target is Rs 5,100. That implies a valuation of 25x FY28E EBITDA of Rs 7,087 crore, and sits above the current market price by roughly 15%, which is right at the upper boundary of ICICI Securities’ BUY framework.

Investor levels worth watching: immediate support is near Rs 4,200, where the stock would likely start looking optically attractive on a pullback; a stronger support band sits closer to Rs 4,000, where sentiment could become more defensive. On the upside, Rs 4,700 is the first resistance, while Rs 5,100 is the formal target and the key breakout zone for medium-term holders.

Risks to track

Currency and execution matter. The report flags currency volatility in Brazil and other emerging markets as a key risk, especially because overseas earnings can swing sharply when the real or other local currencies weaken. The second risk is more operational: Torrent must preserve its EBITDA margin tempo even while absorbing integration costs and expanding its field force.

Watch the cost base closely. Semaglutide economics, supply chain reliability in Germany, and the pace of JB integration will all influence whether the company delivers on the current earnings trajectory. The numbers suggest room for further compounding, but the market will want proof that the acquisition can add value without diluting returns.

Investor view

Torrent now looks less like a pure pharma stock and more like a consolidation story with operating leverage. For investors, the appeal lies in the combination of resilient branded generics, improving export economics, and a merger that could broaden scale without destroying margins. The stock has a credible path toward Rs 5,100, but the next leg higher will likely depend on execution rather than narrative alone.