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Strong numbers from domestic-focused pharma players riding on chronic (lifelong) therapy growth

ICICIdirect Research 31 Jul 2026 DISCLAIMER

Pharma players having significant exposure to India reported strong earnings in Q1FY27, mainly driven by chronic (lifelong) therapy focus.
Torrent revenues(Ex-JB Chem) grew ~17% YoY to ₹3,720 crore driven by India business which grew 19% YoY to ₹2157 crore also leading to a strong EBITDA margin of ~ 34%. 
Ajanta revenues grew ~25% YoY to ₹1626 crore with India business witnessed steller growth of 24% YoY to ~₹ 510 crore leading to a strong EBITDA margin of 26%.
RPG Life revenues grew ~16% YoY to ~₹196 crore, driven by India business growth of 15% YoY to ₹132.5 crore with a healthy margin of 22%.
The growth trend is in synch with IPM MAT growth of ~11% which is mainly driven by chronic (lifelong) therapies which are growing at ~15%. These therapies cover medicines covered under cardiovascular, diabetology, anti-cancer categories which the patients must consume throughout their life. Sedentary lifestyle, obesity, stress have changed the disease pattern among Indians with significant growth in chronic lifestyle diseases.
Note that all three companies have almost 45-50% exposure towards chronic therapies.
Going by the trend, these companies have added significant MRs in chronic therapies over the last 2 years, and the expansion is likely to continue going ahead.
We remain positive on all three of them- Torrent Pharma, Ajanta Pharma and RPG Life Sciences

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