Torrent Pharmaceuticals (TORP.NS): Strong Core Performance; JB Synergies Ahead of Plan, Raise TP to Rs5,860

Torrent's 2Q numbers were in-line. Base business continued to deliver robust growth, led by strong India and Brazil performance, while the JB Pharma business saw a transient impact from post-merger integration and postponement of deliveries in certain international markets. Management expects JB's recovery to be gradual, with 2H India growth better than the c.10% delivered in 1H and margins improving sequentially. Importantly, synergy realization is tracking ahead of earlier guidance, with c.50% of the Rs4.5bn synergies expected in FY27E and the balance in FY28E. Consolidated margins are expected to improve from the 2QFY27 level of 33.5%. We roll forward our target valuation to September 2028E EBITDA and raise our target price to Rs5,860 from Rs5,800, lowering our target EV/EBITDA multiple to 26x from 28x, and maintain our Buy rating.