Torrent Pharmaceuticals Ltd

Sustained Growth, Resilient Operations

Last year witnessed meaningful progress on multiple fronts, driven by successful product launches, strong execution and our continued focus on inorganic and licensing opportunities. Our financial performance reflected this momentum and was further supported by disciplined cost management. These efforts have laid a strong foundation for sustained growth and value creation. Across our markets, we strengthened our leadership in key therapeutic segments with an expanded customer reach.

The global economy maintained a steady growth trajectory in 2024, expanding by 3.3%. This stability was supported by resilient performance in the United States and select emerging markets, even as parts of Europe and East Asia witnessed weaker output. India remained a bright spot, with the economy growing at an estimated 6.5% in 2024-25. The growth was led by strong domestic demand, improved agricultural output, and sustained momentum in services and manufacturing. Public investment, especially in infrastructure, continued to play a catalytic role, while private sector capex also gained traction.

Looking ahead, India is well-positioned to sustain its growth trajectory, backed by strong fundamentals, continued reforms momentum, and growing integration with global value chains. While external risks persist, the domestic economy is expected to remain resilient and broad-based in its expansion.

Global spending on medicines witnessed a steady rise in 2024, reflecting continued investment in innovation, greater access to essential therapies, and the increasing role of specialty care. Growth during the year was supported by sustained demand for chronic and specialty therapies, expanding access in emerging markets, and a strong pipeline of novel treatments, particularly in oncology, immunology, and rare diseases. The broader adoption of biosimilars and further penetration of generics also contributed meaningfully to volume expansion.

In India, the pharmaceutical sector maintained its upward trajectory, reinforcing its position as a global provider of high-quality, affordable medicines. Export performance remained stable, supported by robust demand across regulated and semi-regulated markets. The domestic market demonstrated consistent growth, led by chronic therapies and increasing healthcare awareness across urban and rural populations. Continued investments under the Production Linked Incentive (PLI) scheme, regulatory enhancements, and infrastructure upgrades have collectively laid the foundation for long-term competitiveness.

As I reflect on the fiscal year 2024–25, I am pleased to report that our focus on strategic investments, and operational efficiencies helped us deliver sustained growth. During the year, we acquired of three anti-diabetes brands from Boehringer Ingelheim. Additionally, we signed a licensing agreement with Takeda to commercialise Vonoprazan for gastroesophageal reflux disease. These acquisitions and partnerships make us stronger in Gastro-Intestinal and Anti-Diabetic therapeutic areas.

In terms of financial performance, our consolidated revenue for the year stood at H11,516 crores, marking a 7% increase over the previous year's revenue of H10,728 crores. This was supported by a 10% rise in Operating EBITDA to Rs. 3,721 crores. Profit after tax was H1,911 crores registering a growth of 15%.

Our growth was primarily driven by strong performance in India, which accounted for 55% of total revenues. Focused investments in chronic and sub-chronic therapies helped us consolidate leadership positions. Our entry and expansion in the consumer health segment added an important new growth driver brands such as Shelcal-500 and Ahaglow, combined with aggressive channel expansion in modern trade, quick commerce, and e-commerce, contributed to broadening our consumer reach and portfolio diversification. The launch of differentiated products, dermatology and hair care products, and innovative formulations in gynaecology and cardiovascular therapies, drove higher-than-market growth. This was complemented by strengthening our field force, which expanded to approximately 6,400 medical representatives, enhancing our outreach and patient engagement in key therapies.

Brazil operations showed resilience and growth, with revenues of H1,100 crores, registering 9% growth on a constant currency basis. We lead the branded generics covered market in Brazil and continue to build market share by focusing on launching new products, expanding our field force, and preparing to enter new therapeutic segments. We are now ranked 15th in the overall Brazil pharma market.

In Germany, our revenue grew by 6% to Rs. 1,139 crores driven by consistent tender wins and a robust pipeline of product launches. We retain the 5th position among generic players and are the leading Indian pharmaceutical company in the market. Cost optimisation efforts and emphasis on specialty and OTC segments are expected to sustain growth momentum despite a competitive environment.

The US market presents ongoing challenges due to pricing pressures. We achieved sales of H1,100 crores and maintained a robust product pipeline, with 120 ANDA approvals including 5 tentative approvals, 19 pending ANDAs, and 17 products under development. During the year, we filed 4 new ANDAs. On the regulatory front, our Indrad and Pithampur facilities received clearance from the USFDA.

Our investment in research and development remained strong, with H581 crores spent, accounting for about 5% of revenues. Our focus on complex specialty generics, including oncology and other high-potential segments, along with advancements through our state-of-the-art Bio-Evaluation Centre, continues to drive innovation and build competitive advantage.

As a responsible corporate entity, we are committed to embedding sustainability into our business practices. We balance environmental stewardship, social responsibility, and strong governance to create lasting value for our stakeholders and communities.

We actively reduce our environmental footprint by enhancing energy efficiency, increasing renewable energy use and optimising resource efficiency. In FY 2024-25, we achieved a 32% reduction in Scope 1 and 2 emissions compared to the 2019–20 baseline and expanded Scope 3 emissions reporting to improve transparency across our value chain. We also focus on water conservation efforts such as recycling and Zero Liquid Discharge systems, complemented by waste management focused on reduction, reuse, recycling and recovery frameworks. During the year, we focused on building a future-ready and inclusive workforce by enhancing leadership development, expanding collaborations with leading universities for talent sourcing, and strengthening our onboarding and training frameworks. We continued to invest in upskilling, engagement, and recognition programmes, helping create a culture that supports growth, fairness, and long-term career development. Our corporate social responsibility philosophy is grounded in positively impacting communities through three key areas: Community Healthcare and Sanitation & Hygiene, Education and Knowledge Enhancement, and Social Care and Concern. In FY 2024-25, we intensified our focus on improving child and adolescent health through preventive healthcare programmes, addressing malnutrition, anaemia, and menstrual hygiene in rural and underserved regions. Through UNM Children's Hospital and primary health centres, we have extended quality healthcare services deep into remote villages, improving access and health outcomes. All our sustainability efforts are underpinned by a strong governance framework, ensuring ethical conduct, transparency and accountability which enable us to drive responsible growth while contributing positively to society and the environment.

Moving ahead, our focus will be on consolidating and strengthening our leadership position in the branded generic segment by enhancing the productivity of our expanded field force and deepening our market presence in key areas. In India, we will focus on strengthening our leadership in key therapy areas, expanding our consumer health portfolio, and enhancing field force productivity to capture untapped opportunities. Continued investments in new product launches and deeper market penetration will support sustained outperformance relative to the broader market.

In the international markets, we anticipate continued growth in Brazil, driven by recent successful launches and a robust pipeline awaiting regulatory approvals. In Germany, new tender wins are expected to support revenue growth despite some challenges in the OTC segment. The US market remains stable, with a focus on maintaining compliance and a strong product pipeline. Overall, we remain committed to strengthening our global presence through innovation, market expansion, and delivering high-quality healthcare solutions.

We have also made meaningful progress in our sustainability goals over the past couple of years and will continue to reinforce our commitments in the years ahead.

As I conclude, on behalf of the Board, I would like to express our sincere gratitude to our employees, partners, and stakeholders for their continued trust and support as we strive to create enduring value and sustainable growth.

Regards,

Executive Chairman