Strides FY26 PAT Rises 40% to INR575 Crores
Strides Pharma Science Limited reported a 6.4% YoY revenue growth to INR48,587 million for FY26, with underlying growth at 10%. EBITDA increased 15% to INR925 crores, while reported PAT surged 40% to INR575 crores. The company improved its net debt-to-EBITDA ratio to 1.55x and recommended a dividend of INR5 per share.
*this image is generated using AI for illustrative purposes only.
Strides Pharma Science Limited has announced its audited financial results for the quarter and financial year ended March 31, 2026. The company reported a revenue of INR48,587 million for FY26, representing a growth of 6.4% year-on-year. Adjusting for access markets facing donor funding challenges, the underlying revenue growth was approximately 10%. The Ex-U.S. markets delivered a robust 21% growth, with the business mix shifting significantly as Ex-U.S. contribution increased to approximately 46% in FY26 from 41% in FY24.
Financial Performance Overview
Profitability metrics showed strong improvement during the year. EBITDA for FY26 stood at INR925 crores, a 15% year-on-year growth, with margins expanding by 140 basis points to 19%. Operational PAT grew by 50% year-on-year to INR518 crores, crossing the INR500 crores mark for the first time. Reported PAT for the year was INR575 crores, up 40%, with a reported EPS of INR60.3 per share. Operational EPS for the year was INR56.2 per share.
| Key Financial Metric | FY26 Performance |
|---|---|
| Revenue | INR48,587 million |
| EBITDA | INR925 crores |
| EBITDA Margin | 19% |
| Operational PAT | INR518 crores |
| Reported PAT | INR575 crores |
| Reported EPS | INR60.3 per share |
| Net Debt-to-EBITDA | 1.55x |
| ROCE | 15.76% |
Operational Efficiency and Balance Sheet
The company continued to focus on efficiency and cash generation. The EBITDA to operational PAT conversion ratio improved to 56%, while the EBITDA to operating cash conversion was 76%. The net debt-to-EBITDA ratio improved from 1.9x in the previous year to 1.55x. Return on Capital Employed (ROCE) improved to 15.76% for FY26. The net debt as of March 26 stood at INR1,437 crores. The company invested INR418 crores across tangible and intangible assets during the year.
Business Segment Performance
The U.S. business reported a revenue of $284 million for FY26. The performance was impacted by a weaker flu season in the second half and the ramp-up of controlled substances where allocations are currently building up. The company remains focused on portfolio quality, having exited 9 products that did not meet return thresholds, and continues to target a revenue range of $375 million to $400 million in the U.S.
Ex-U.S. markets showed strong traction, with Other Regulated Markets (ORM) revenues growing from $31 million in Q1 FY24 to an exit run rate of $52 million in Q4 FY26. The company also announced the acquisition of certain products from Sandoz, expected to contribute from the second half of FY27, further strengthening its presence in Africa.
The Board of Directors has recommended a dividend of INR5 per share. Additionally, the company announced the appointment of Ramaraju, current Chief Operating Officer, as an Executive Director responsible for global technical operations.
Historical Stock Returns for Strides Pharma Science
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.51% | -0.19% | +15.67% | +28.84% | +65.80% | +231.15% |
How will the Sandoz product acquisition specifically reshape Strides Pharma's competitive positioning in African markets, and what revenue contribution is realistically achievable beyond FY27?
Given the donor funding challenges impacting access markets, what strategic pivots is Strides Pharma considering to reduce dependency on donor-driven revenue streams over the next 2-3 years?
With the U.S. business targeting $375-400 million in revenue, what is the timeline and key milestones for controlled substances allocations to scale sufficiently to bridge the gap from the current $284 million?
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