Torrent Pharma Secures ₹12,500 Crore for Expansion, Acquisitions

HEALTHCAREBIOTECH
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AuthorKavya Nair|Published at:
Torrent Pharma Secures ₹12,500 Crore for Expansion, Acquisitions
Overview

Torrent Pharmaceuticals board has approved raising ₹12,500 crore via secured non-convertible debentures (NCDs) to fund expansion and acquisitions, including the JB Chemicals buyout. The company reported strong 14% revenue growth and maintains low debt, ensuring financial flexibility for strategic growth initiatives.

Torrent Pharmaceuticals Ltd. announced its board committee has approved raising up to ₹12,500 crore through secured, rated, listed non-convertible debentures (NCDs) via private placement. This substantial capital infusion is earmarked for expansion initiatives and upcoming acquisition commitments. The issuance, planned in multiple tranches, will be listed on the NSE Wholesale Debt Market segment.

Strategic Fundraising for Growth

Company's robust financial performance provides a solid foundation for this move. Q2 FY26 revenue surged 14% year-on-year to ₹3,302 crore, with operating EBITDA reaching ₹1,083 crore and margins at 32.8%. Torrent Pharma maintains a conservative leverage profile, reporting a net debt-to-EBITDA ratio of just 0.45x.

Acquisition and Expansion Plans

The fundraising comes as Torrent Pharma finalizes its acquisition of JB Chemicals, having secured SEBI approval for the minimum tender offer. Management has also guided for annual capital expenditure of ₹250-₹300 crore over the next three years. This includes increased R&D filings targeting the U.S. market and new product launches in India and Brazil, notably high-potential GLP-1 analogues.

Securing Long-Term Flexibility

With branded markets accounting for 73% of its revenue and chronic therapies driving growth, Torrent is strategically positioning itself for scale. The NCD issuance underscores its intent to secure long-term funding flexibility for strategic acquisitions, capital expenditures, and pipeline investments, thereby preserving its investment-grade profile.

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