India Pharma Outlook Team | Tuesday, 06 January 2026
Torrent Pharmaceuticals Ltd has sanctioned a big debt issuance exercise to strengthen in liquidity and without affecting financial flexibility. The board has authorized the issue of secured non-convertible debentures (NCDs) up to Rs 12,500 crore, through the privately issued issue of non-conversion instruments. It will be issued in tranches or in one tranche and the NCDs will be listed in the NSE Wholesale Debt Market segment, the company notified stock exchanges on January 5.
The debentures will be charged with first priority exclusive security over the identified accounts and selected trademarks, with security cover being 1.1x, with coupon rates, tenure and maturity being decided at the time of allotment.
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The fundraising is happening when Torrent seeks to keep liquidity and help it expand its plans in the face of good operating performance and future acquisition-related undertakings. The company is in the last phases of its JB Chemicals purchase out, and SEBI approval of the least tender offer is already established.
Torrent has increased its revenue to Rs 3,302 crore in the second quarter, which is 14 percent higher compared to the first quarter. EBITDA operations were 1,083 crore, and margins were 32.8 percent, and net debt-to-EBITDA was 0.45x, which gave the company a lot of room to leverage.
The management has indicated annual capex of 250-300 crore in the coming 3 years and an increase in R&D filings to the US market and introduction of new products in India and Brazil, including high-potential GLP-1 analogs. As branded markets generate 73 percent of revenue and chronic therapies propagate the growth of the domestic markets, the NCD issuance highlights a lack of acquisition, capex and pipeline investments by the company, which wants to be able to afford long-term funding flexibility to maintain an investment-grade profile.
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