Mumbai, October 23, 2026: Pharmaceutical majors Torrent Pharmaceuticals and Dr Reddy’s Laboratories on Friday reported declines in net profit for the quarter ended September 2026 (Q2 FY27), 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 of the previous 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.
Higher Expenses Weigh on Torrent Pharma
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 Pharmaceuticals 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.
Dr Reddy’s Net Profit Falls 36 Per Cent
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 financial year.
Revenue from operations slipped 1.5 per cent to Rs 8,671 crore from Rs 8,805.1 crore a year earlier, although it registered a 7 per cent increase on a sequential basis.
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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.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
