Torrent Pharmaceuticals to Acquire 26% Stake in Hybrid Power Project

Torrent Pharmaceuticals on Wednesday announced that it will acquire a 26% equity stake in Torrent Urja 27 Private Ltd., a special purpose vehicle (SPV) established for a captive hybrid power project in Gujarat. The move reflects the company’s push towards increasing renewable energy integration in its operations while meeting statutory obligations under India’s electricity regulations.

Details of the Investment

The pharmaceutical major will invest ₹7.92 crore through a share subscription and shareholders’ agreement signed on September 10. Torrent Urja, a wholly owned subsidiary of Torrent Green Energy Pvt. Ltd., has been set up to develop a solar-plus-wind hybrid project.

Torrent Pharma will subscribe to 79.19 lakh Class A equity shares of Torrent Urja at ₹10 each. The company clarified that while the transaction is classified as a related-party deal, it is being executed on an arm’s-length basis.

The renewable energy project is expected to be completed within 18 to 20 months.

Strategic Rationale

The investment aligns with Torrent Pharma’s commitment to sustainability and energy efficiency. By securing a direct stake in a hybrid renewable energy project, the company seeks to reduce reliance on conventional power and transition a larger portion of its energy consumption to clean sources.

This move also ensures compliance with regulatory requirements under India’s Electricity Act, which mandates renewable energy obligations for captive consumers.

Recent Developments and Financial Performance

Torrent Pharma has been active on the acquisition front. In June, it announced the ₹19,500 crore acquisition of JB Chemicals and Pharmaceuticals, a deal poised to make it India’s second most valuable pharma company. The transaction includes a 46.39% promoter stake purchase worth ₹11,917 crore, with an open offer for additional shares as per market regulations.

Operationally, Torrent Pharma delivered strong earnings for the June quarter, reporting a 19.9% year-on-year rise in net profit to ₹548 crore on revenue of ₹3,178 crore. Margins improved on the back of its branded generics portfolio and leadership in chronic therapies such as cardiovascular and central nervous system (CNS).

Torrent Pharmaceuticals Share Price Performance

On September 10, 2025, Torrent Pharmaceuticals share price opened at ₹3,644.90, compared to the previous close of ₹3,643.30. During the session, the stock touched a high of ₹3,676.80 and a low of ₹3,567.20 before closing at ₹3,591.70, down by 1.23% at the end of the trading day.

The stock recorded a traded volume of 1.36 lakh shares and a traded value of ₹49.16 crore on the NSE. The total market capitalisation stood at ₹1,21,786.21 crore, with a free float market cap of ₹37,531.34 crore. Over the past 52 weeks, the stock has hit a high of ₹3,787.90 and a low of ₹2,886.45. Torrent Pharmaceuticals is currently trading at a P/E ratio of 61.06.

Conclusion

Torrent Pharmaceuticals’ investment in Torrent Urja underscores its dual strategy of pursuing aggressive growth in pharmaceuticals while committing to sustainability through renewable energy adoption. With strong financials and large-scale acquisitions in place, the company is well-positioned to strengthen both its industry standing and its environmental footprint.

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