Strides Pharma Science Limited , a prominent player in the pharmaceutical industry, has taken a strategic step towards optimizing its global operations. The company announced the voluntary deregistration of its non-operating step-down subsidiary, Apollo Life Sciences Holdings (Pty) Ltd, in South Africa, effective August 22, 2025.

Streamlining Group Entities

The deregistration is part of Strides Pharma's ongoing efforts to streamline its group entities and eliminate non-operating companies. This move aligns with the company's strategy to enhance operational efficiency and focus on core business activities.

Financial Impact

Apollo Life Sciences Holdings (Pty) Ltd, the deregistered subsidiary, had a minimal financial impact on Strides Pharma's consolidated performance. For the financial year ended March 31, 2025, the subsidiary reported:

The negligible revenue and negative net worth underscore the rationale behind the company's decision to deregister this non-operating entity.

Regulatory Compliance

Strides Pharma Science Limited has duly informed the stock exchanges about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received communication regarding the deregistration from its local consultant on August 25, 2025, which explains the slight delay in intimation to the stock exchanges.

Corporate Structure Optimization

This deregistration is a clear indication of Strides Pharma's commitment to optimizing its corporate structure. By eliminating non-operating entities, the company aims to reduce administrative overhead and potentially improve overall group efficiency.

The move is expected to have no material impact on Strides Pharma's operations or financial performance, given the insignificant contribution of Apollo Life Sciences Holdings to the company's consolidated financials.

As Strides Pharma Science continues to refine its global presence, investors and industry observers will be keen to see how this streamlining effort contributes to the company's long-term strategic goals and operational efficiency.

Strides Pharma Science Limited has reported robust financial results for the first quarter, demonstrating significant growth and improved profitability across key metrics.

Financial Highlights

• Revenue reached ₹1,120.00 crores
• Gross margins expanded by 300 basis points to 60%
• EBITDA margin improved to 19.5%
• Operational EPS grew by 81% year-on-year to ₹12.40
• Operating PAT hit a record ₹114.00 crores with 52% EBITDA to PAT conversion
• Net debt reduced to ₹1,496.00 crores

Business Performance

U.S. Market

• 7% year-on-year growth
• Maintained $400 million revenue target by 2028
• One product approval and launch in Q1
• 70 commercial products in portfolio
• Discontinued four products that didn't meet margin thresholds
• Ranked among top 3 in 37 products, covering 75% of U.S. revenue

Other Regulated Markets

• 9.2% growth, reaching $42.00 million
• Expansion of product portfolio and new customer acquisitions driving growth

Growth Markets

• 32.2% growth on a small base
• Regulatory work in progress to support future growth

Access Markets

• Challenging quarter due to donor funding environment

Strategic Initiatives

Strides Pharma is focusing on a 'beyond-generics' strategy, including:

• Nasal sprays: First filing completed
• Controlled substances: Leveraging Chestnut Ridge facility capabilities
• Patch products: Expected by year-end

Management Commentary

Badree Komandur, Managing Director and Group CEO, stated, "We are very pleased to report the quarter 1 results for Strides. Operating leverage has started and is completely playing out in our results."

Vikesh Kumar, Group CFO, added, "Our EBITDA at ₹218.00 crores has grown 15% year-on-year with an EBITDA margin of 19.5% for the quarter. It's a very significant margin expansion, reflecting the strong operating leverage and margin improvement that we remain focused on."

Outlook

The company remains focused on its long-term goal of achieving $400.00 million in U.S. sales by 2028. Management expects growth to pick up from Q2 onwards and maintains a positive outlook on the U.S. opportunity despite potential challenges such as tariff risks.

Strides Pharma continues to invest in R&D programs for growth beyond the $400.00 million target, with a focus on difficult-to-make, scarce, and hard-to-develop products. The company aims to maintain its gross margin in the 58% to 60% range while pursuing a disciplined approach to growth and profitability.

Conclusion

Strides Pharma Science's Q1 results demonstrate the company's ability to deliver strong operational performance and financial growth. With a focus on expanding its product portfolio, entering new markets, and pursuing strategic initiatives beyond traditional generics, Strides is well-positioned for sustained growth in the coming quarters.