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 outperform their counterparts in the increasingly difficult U.S. generic drug market.

Torrent Pharmaceuticals and Mankind Pharma reported double-digit growth for the June quarter on Thursday; This underlined the resilience of India-focused businesses even as US-focused companies grappled with pricing pressure and weak demand.

Torrent Pharma reported a 55% year-over-year increase in consolidated revenue from operations. ₹4,921 crore through the merger of JB Chemicals & Pharmaceuticals. Consolidated net profit increased by 3% ₹566 crore, while EBITDA before exceptional items increased by 61% ₹1,664 crore. The company’s Ebida margin increased from 32.5% to 33.8% compared to the previous year.

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

Its US business also reported strong growth of 36%. ₹418 crore due to new launches and certain one-time deals reaching the targeted market share. The Brazilian business grew 27%, while Germany grew 3%, impacted by a supply disruption at a third-party supplier and lower tender procurement in the quarter.

Mankind Pharma also reported strong earnings, with revenue rising 12.9%. ₹4,031 crore and net profit up 29.1% ₹574 crore. EBITDA increased by 24.7% ₹1,060 crore, while the margin increased by 250 basis points to 26.3%. In its statement, the company stated that the performance was due to disciplined execution and strengthened business foundations.

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

The results reinforce a widening divide within the industry. Companies with larger domestic footprints are benefiting from sustained demand in India, while acquisitions are also contributing to reported growth as integrations mature. In contrast, companies more reliant on the US market reported weaker June quarter performance as pressure continued in that market.

According to IQVIA data, the domestic pharmaceutical market grew by 12% in the April-May period, driven by 15% growth in chronic treatments and 10% growth in acute segments.

Mankind Pharma’s shares closed down 0.88% ₹It was at 2,569.90 per capita on the National Stock Exchange on Thursday, while Torrent Pharma closed up 0.24%. ₹4,890.00 per share.