Strides Pharma Science Reports Strong FY26 Performance with EBITDA at ₹9,253m; Focus on Ex-US Markets
Strides Pharma Science Limited has reported a strong performance for the quarter and financial year ended March 31, 2026. The company announced that its EBITDA for FY26 reached ₹9,253m, with Operational Profit After Tax (PAT) climbing to ₹5,181m. Furthermore, the Board recommended a dividend of ₹5 per share for FY26.The company highlighted that its strong profitability and efficiency gains were primarily fueled by the Ex-US markets, which recorded a robust growth of 21% Year-on-Year (YoY).
Operational and Profitability Drivers
Strides maintained strong growth across profitability, efficiency, and overall metrics during FY26. The group's focus on profitability resulted in a gross margin expansion of 310 basis points (bps) YoY and an EBITDA margin improvement of 140 bps YoY, reaching 19%. Operational PAT and Earnings Per Share (EPS) grew by 50% YoY, reflecting strong operating leverage.While the US business remained stable throughout the year, it was noted that the Ex-US markets significantly outpaced overall company growth.
The company also reported that the consistent margin improvement over the last three years reached 460 bps, sustaining a stable 58-60% profile.
Segment Performance Analysis
Ex-US Markets:The Ex-US Market generated revenue of $254m, achieving a 21% YoY growth, driven by strong performance across various markets.
US Market:
The US revenue stood at $284m, remaining steady despite headwinds experienced in the second half due to a weaker flu season and the entry of new competitors. The company plans to focus on achieving North America Business Revenue of approximately $400m by FY28.
Growth Markets:
The Growth Market, encompassing Africa operations and new geographies in LATAM, MENA, and APAC, reported a revenue of $68m, marking a 22% YoY growth, with the expansion being led by Africa operations.
Other Regulated Markets:
Revenue from other regulated markets, which includes all regulated markets except the US, amounted to $186m, growing 21% YoY.
Financial Results Overview
The company demonstrated strong financial discipline, as reflected in the Income Statement and Balance Sheet data.According to the Income Statement, the group’s revenue reached 48,587 ₹M in FY26, a 6.4% YoY increase compared to 45,653 ₹M in FY25. Gross Margin increased to 29,000 ₹M, showing a 12.2% YoY growth.
The key financial trends over the last four quarters and financial years are detailed in the following tables:
Income Statement (₹M)
| Particulars | Q4FY26 | Q4FY25 | YoY | Q3FY26 | QoQ | FY26 | FY25 | YoY |
|---|---|---|---|---|---|---|---|---|
| I. Revenue | 13,235 | 11,904 | 11.2% | 11,946 | 10.8% | 48,587 | 45,653 | 6.4% |
| II. Material Costs | 5,362 | 4,989 | 4,629 | 19,587 | 19,799 | |||
| III. Gross Margin (I- II) | 7,872 | 6,914 | 13.9% | 7,317 | 7.6% | 29,000 | 25,854 | 12.2% |
| Gross Margin% | 59.5% | 58.1% | 140 bps | 61.2% | -170 bps | 59.7% | 56.6% | 310 bps |
| a. Personnel Cost | 2,471 | 2,229 | 2,295 | 9,290 | 8,628 | |||
| b. Other Opex | 3,004 | 2,507 | 2,662 | 10,457 | 9,198 | |||
| IV. Total Opex (a+b) | 5,475 | 4,736 | 4,958 | 19,747 | 17,826 | |||
| V. EBITDA (III-IV) | 2,397 | 2,179 | 10.0% | 2,359 | 1.6% | 9,253 | 8,028 | 15.3% |
| EBITDA Margin% | 18.1% | 18.3% | -20 bps | 19.8% | -170 bps | 19.0% | 17.6% | 140 bps |
| c. Depreciation and amortisation | 532 | 489 | 506 | 2,024 | 1,923 | |||
| d. Net Finance Cost | 373 | 439 | 397 | 1,381 | 1,957 | |||
| e. Other Income | -39 | -55 | -1,032 | -1,102 | -55 | |||
| f. Exceptional items - net (gain) / loss | 64 | 274 | 33 | 268 | -647 | |||
| g. JV share of loss | -14 | -31 | 0 | -5 | -18 | |||
| VI. Profit/ (loss) before tax | 1,481 | 1,064 | 2,455 | 6,687 | 4,869 | |||
| h. Tax | 188 | 208 | 374 | 942 | 775 | |||
| VII. Profit/(loss) after tax For the Period | 1,293 | 856 | 51.0% | 2,081 | -37.9% | 5,745 | 4,094 | 40.3% |
| VIII. ReportedEPS ( ₹) | 13.8 | 8.9 | 54.3% | 21.9 | -37.2% | 60.3 | 44.0 | 37.0% |
Balance Sheet (In ₹m)
| Particulars | 31-Mar-24 | 31-Mar-25 | 31-Mar-26 |
|---|---|---|---|
| Assets | |||
| Net Tangible Assets (including CWIP) | 8,809 | 9,220 | 10,756 |
| Right-of-use assets | 895 | 695 | 782 |
| Goodwill and Other Intangibles | 10,565 | 11,145 | 13,941 |
| Investments | 1,969 | 3,397 | 2,914 |
| Other Non-current Assets | 2,659 | 2,111 | 1,438 |
| Tax assets | 3,809 | 2,929 | 3,309 |
| Inventories | 11,262 | 12,776 | 16,348 |
| Cash and bank balances (including Current investments) | 2,969 | 2,063 | 2,131 |
| Trade receivables | 11,419 | 12,029 | 12,890 |
| Other current assets | 4,040 | 4,121 | 4,764 |
| Total Assets | 58,398 | 60,487 | 69,272 |
| Liabilities | |||
| Equity | 21,256 | 25,518 | 31,076 |
| Non-controlling interest | -539 | 346 | 418 |
| Equity | 20,717 | 25,865 | 31,493 |
| Borrowings | 24,145 | 17,956 | 16,687 |
| Lease liabilities | 1,023 | 840 | 893 |
| Tax liabilities | 808 | 1,534 | 1,691 |
| Other non-current liabilities | 137 | 147 | 312 |
| Provisions | 1,632 | 1,951 | 2,227 |
| Trade payables | 8,516 | 10,325 | 13,097 |
| Other current liabilities | 1,420 | 1,868 | 2,872 |
| Total Equity and Liabilities | 58,398 | 60,487 | 69,272 |
Key Financial Metrics Update
Financial data for debt and cash flow shows that the Reported Net Debt stood at ₹14,365m. The company also reported that FY26 Operating cash flow was ₹7,025m, leading to a reduction of ₹1,972m in Net debt on a constant currency basis, after funding ₹4,179m for Capex and Growth Initiatives.Net Debt Summary (In ₹m):
| Particulars | Mar'25 | Mar'26 |
|---|---|---|
| Working Capital Loans | 11,364 | 9,476 |
| Long Term Loans | 6,593 | 5,907 |
| GrossDebt | 17,956 | 15,383 |
| Cash and Cash Equivalents | (2,734) | (2,133) |
| Net Debt at Constant Currency | 15,222 | 13,250 |
| Currency Impact | 1,115 | |
| Reported Net Debt # | 14,365 |
Corporate and Leadership Updates
In an effort to support its long-term growth strategy, the company strengthened its executive management on the Board by appointing a new Executive Director.The new Executive Director, Ramaraju PVS, currently serves as the Chief Operating Officer (COO) of Strides. He holds a master's degree in Pharmaceutical Chemistry and brings vast experience in the pharmaceutical and healthcare sectors. With over two decades of experience in the industry, his expertise will be utilized in overseeing the global technical operations and strategic management of critical functions, including Manufacturing, Supply Chain, Procurement, and New Digital initiatives.
STAR Stock Price Movement
As of 2:58 PM, Strides Pharma Science Limited shares are slipping by 1.87% in live trading, currently at ₹1132.10. The stock is seeing considerable activity, with 1.01 million shares traded today, remaining significantly higher than its intraday low of ₹1115.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.