Domestic focus powers Torrent, Mankind in June quarter

India’s domestic pharmaceutical market is emerging as a bright spot for drugmakers, helping companies with a strong local franchise outpace peers exposed to the increasingly challenging US generics market.

Torrent Pharmaceuticals and Mankind Pharma both reported double-digit growth for the June quarter on Thursday, underscoring the resilience of India-focused businesses even as US-facing companies grapple with pricing pressure and weaker demand.

Torrent Pharma reported a 55% year-on-year increase in consolidated revenue from operations to ₹4,921 crore, aided by the merger of JB Chemicals & Pharmaceuticals. Consolidated net profit rose 3% to ₹566 crore, while Ebitda before exceptional items climbed 61% to ₹1,664 crore. The company's Ebida margin expanded to 33.8% from 32.5% a year earlier.

The drugmaker said its base business, excluding the impact of the JB Pharma merger, grew 17% to ₹3,720 crore during the quarter. The domestic business, its largest revenue source, grew a record 19%, marked by steady gains in chronic therapies. Its share in the lucrative semaglutide (oral and injectable) market was 36% during the quarter, it said in a release.

Its US business also reported robust growth of 36% to ₹418 crore, driven by new launches achieving targeted market share and certain one-time opportunities. The Brazil business grew 27%, while Germany grew 3%, impacted by a supply disruption at a third-party supplier and lower tender offtake during the quarter.

Mankind Pharma also posted strong earnings, with revenue rising 12.9% to ₹4,031 crore and net profit increasing 29.1% to ₹574 crore. Ebitda grew 24.7% to ₹1,060 crore, while margin expanded 250 basis points to 26.3%. The performance was driven by disciplined execution and strengthening business fundamentals, the company said in a release.

The company said its India formulations business increased 11% year-on-year, driven by double-digit growth in its base business and supported by strong growth in the acquired Bharat Serum and Vaccines specialty business. Its over-the-counter (OTC) business grew 4% during the quarter, while its international business grew 29% year-on-year.

The results reinforce a widening divergence within the sector. Companies with a larger domestic footprint are benefiting from sustained demand in India, while acquisitions are adding to reported growth as integrations mature. By contrast, companies more reliant on the US market have reported softer June-quarter performance amid continued pressure in that market.

The domestic pharmaceutical market grew 12% in April-May, driven by 15% growth in chronic therapies and 10% growth in acute segments, according to IQVIA data.

Shares of Mankind Pharma closed 0.88% lower at ₹2,569.90 apiece on the National Stock Exchange on Thursday, while Torrent Pharma closed 0.24% higher at ₹4,890.00 per share.