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Business India News Updated Oct 23, 2026

Torrent Pharma Q2 profit falls 9.6 pc, Dr Reddy's drops 36 pc

Torrent Pharmaceuticals reported a 9.6 per cent year-on-year fall in consolidated net profit to Rs 534 crore for the September quarter, even as revenue jumped 50.8 per cent to Rs 4,979 crore. Dr Reddy's Laboratories saw a steeper 36 per cent decline in net profit to Rs 913.4 crore, with revenue slipping 1.5 per cent to Rs 8,671 crore. Both companies cited higher expenses and margin pressure, though Torrent's EBITDA margin improved to 33.5 per cent while Dr Reddy's contracted to 20.6 per cent.

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Torrent Pharma's profit falls 10 pc, Dr Reddy's slumps 36 pc in Q2

Mumbai, Oct 23

Pharmaceutical majors Torrent Pharmaceuticals and Dr Reddy's Laboratories on Friday reported declines in net profit for the quarter ended September 2026, as higher expenses and margin pressures weighed on earnings despite resilient operational performance.

Ahmedabad-headquartered Torrent Pharmaceuticals posted a 9.6 per cent year-on-year decline in consolidated net profit to Rs 534 crore in the September quarter, compared with Rs 591 crore in the corresponding period last financial year.

The company, however, reported a strong rise in revenue from operations, which surged 50.8 per cent to Rs 4,979 crore from Rs 3,302 crore a year earlier.

The decline in profit came amid a sharp increase in expenses. Total expenses rose 70.9 per cent year-on-year to Rs 4,222 crore from Rs 2,471 crore.

Finance costs jumped to Rs 300 crore from Rs 48 crore, while depreciation and amortisation expenses increased to Rs 609 crore from Rs 204 crore. Together, these costs accounted for a significant portion of the increase in overall expenditure during the quarter.

Despite the pressure on the bottom line, Torrent Pharma delivered a robust operational performance. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 53.8 per cent year-on-year to Rs 1,666 crore. Its EBITDA margin improved to 33.5 per cent from 32.8 per cent in the year-ago period.

Meanwhile, Dr Reddy's Laboratories reported a steeper decline in profitability during the quarter. The drugmaker's net profit fell 36 per cent year-on-year to Rs 913.4 crore, compared with Rs 1,426.8 crore in the corresponding quarter of the previous fiscal.

Revenue from operations slipped 1.5 per cent to Rs 8,671 crore from Rs 8,805.1 crore a year ago, although it registered a 7 per cent increase on a sequential basis.

The company's operating performance also weakened during the quarter. EBITDA declined 24.2 per cent year-on-year to Rs 1,783 crore from Rs 2,351.1 crore, while the EBITDA margin contracted to 20.6 per cent from 26.7 per cent in the year-ago period.

— IANS

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Reader’s Guide · AI-assisted, based only on the report above

What the report makes clear: Both companies grew revenue differently but saw profits squeezed by rising costs and finance charges.

Still open: The report does not yet say what drove the expense increases or what management expects in coming quarters.

Another way to look at it: Torrent's profit fell even as revenue surged 50.8 per cent, so the acquisition-driven cost base matters as much as the top line.

Do falling profits alongside rising revenue change how you view these pharma stocks?

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