Strides Pharma Science Limited has reported strong financial results for the second quarter of fiscal year 2026, demonstrating consistent execution and sustainable growth across key metrics.

Financial Highlights

• Revenue grew by 4.6% year-on-year
• Gross margins expanded by 14.6%
• EBITDA surged by 25.4%
• Achieved highest ever quarterly operational PAT of INR 140.00 crores, representing 84% growth

For the first half of FY26, the company reported:

• Revenue increase of 5.5%
• EBITDA growth of 20%
• Gross margin of 59%
• Operational PAT of INR 254.00 crores

Market Performance

U.S. Market

• Generated $73 million in revenue with 2% growth despite intense competition
• Launched 3 products in H1 FY26
• Maintained top-three rankings in 37 products, contributing 75% of U.S. revenue
• Total commercialized products stood at 70

Other Regulated Markets

• Showed strong 16% year-on-year growth
• Reached a significant threshold of INR 10.30 billion (over INR 1,000 crores) in revenue

Growth Markets

• Revenue at $17 million, grew 7% year-on-year

Operational Efficiency

• Gross margins improved to 57.80% for the quarter and 59% for the half-year
• Net debt reduced by INR 73.00 crores to INR 1,449.00 crores
• EBITDA to net debt ratio improved to 1.65x from 1.9x
• Operational cash of INR 394.00 crores for H1, with 87% EBITDA to operational cash conversion
• ROCE improved to 16% compared to 14.9% in March 2025

Strategic Focus

Strides Pharma continues to focus on:

1. Profitability over revenue growth
2. Maintaining disciplined capital allocation
3. Service level excellence
4. Long-term sustainable business with EPS accretion

The company maintains its target of $400 million in U.S. revenue by FY28 and expects other regulated markets plus growth markets to mirror U.S. performance within 2-3 years.

R&D and Future Growth

• Investing in new segments such as Control Substances
• Focusing on Nasal Sprays and Beyond Generics initiatives
• Filed one product in Nasal Sprays category, with plans to file more in the next 12 months
• R&D spend expected to be between $15 million to $20 million for the year

Management Commentary

Badree Komandur, Managing Director and Group CEO, stated, "Our performance demonstrates our consistent execution as we invest in sustainable long-term growth. We are focusing on long-term sustainable business with EPS accretion."

Vikesh Kumar, Group CFO, added, "It has been a comprehensive performance across metrics, and that is clearly visible, both in the profitability and the strength of our balance sheet. We hope to continue and sustain this momentum as we focus on our growth levers for the future."

The management emphasized that while there are near-term headwinds in certain markets, their long-term outlook remains intact, with a focus on profitable expansion and continuous cost improvement to maintain market leadership positions.

Strides Pharma Science Limited (Strides) has delivered a strong financial performance for the second quarter, with significant improvements across key metrics.

Financial Highlights

Strides reported a substantial 81% year-over-year increase in consolidated net profit, which rose to ₹1.3 billion from ₹718 million in the same quarter last year. This impressive growth in profitability underscores the company's operational efficiency and strategic initiatives.

The company's revenue showed modest growth, increasing to ₹12.2 billion from ₹12 billion in the corresponding period of the previous year, representing a 1.7% year-over-year rise.

Operational Performance

Strides demonstrated notable improvements in its operational metrics:

The significant expansion in EBITDA margin from 15.82% to 18.97% indicates enhanced operational efficiency and cost management.

Market Performance

Strides Pharma Science's strong quarterly results reflect its resilience in a competitive pharmaceutical landscape. The company's ability to grow its bottom line substantially while maintaining steady revenue growth suggests effective cost control measures and potentially improved product mix.

Management Commentary

Badree Komandur, Managing Director and Group CEO of Strides, commented on the performance: "Strides continues to deliver a strong performance in Q2FY26, with growth primarily driven by the Other Regulated Markets. Our focus on profitability enabled the gross margin growth of 15% YoY, and EBITDA growth of 25% YoY."

He further added, "Operational PAT stood at ₹1,403m, up 84% YoY, with EPS rising to ₹15.2 for the quarter. Net debt reduced sequentially by ₹469m despite currency headwinds and ongoing capex investments, reaffirming our strong financial discipline and focus on balance sheet health."

Future Outlook

The company's performance indicates a positive trajectory, with management emphasizing sustainable, long-term growth. Strides' focus on Other Regulated Markets and its ability to improve profitability metrics suggest a robust strategy for navigating the evolving pharmaceutical industry landscape.

Investors and stakeholders will likely watch for continued execution of the company's growth strategies and its ability to maintain this momentum in the coming quarters.