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.

Strides Pharma Science Limited , a global pharmaceutical company, has provided insights into its financial outlook during a recent conference call, highlighting its operational strategy and financial targets for the coming years.

Operational Cost Projections

The company expects its operating costs to remain steady at approximately ₹460-470 crore per quarter. This projection suggests a disciplined approach to cost management, which could potentially contribute to improved profitability if revenues grow.

Tax Rate Forecast

Strides Pharma has forecasted its tax rate to fall between 17-20% for the year. This range provides investors with a clearer picture of the company's expected tax obligations and their potential impact on net profitability.

Debt Elimination Strategy

In a significant move towards strengthening its financial position, Strides Pharma has outlined plans to eliminate its debt within a 3-4 year timeframe. This ambitious goal reflects the company's commitment to improving its balance sheet and reducing financial leverage.

Q1 FY2026 Performance Highlights

The company also released its financial results for the first quarter of fiscal year 2026, showcasing strong performance across key metrics:

Management Commentary

Badree Komandur, MD & Group CEO, commented on the performance: "We are pleased to report a solid start to the year, marked by consistent growth and enhanced profitability. Our focus on cost management and diligent execution has enabled us to deliver robust results. The EBITDA margin improved to 19.5%, an increase of 150bps YoY. Strong operating leverage contributed to the highest-ever quarterly PAT, resulting in an operational EPS of ₹12.4. Consequently, ROCE stands at 15.1% for Q1. The company will enhance its R&D efforts during the year to drive sustainable long-term growth."

Future Outlook

Strides Pharma's management has indicated plans to increase research and development efforts in the coming year, aiming to drive sustainable long-term growth. This strategic focus on R&D, coupled with the company's debt elimination plans and steady operational cost projections, suggests a forward-looking approach to maintaining competitiveness in the global pharmaceutical market.

The company's strong Q1 FY2026 performance, particularly in terms of revenue growth and profitability improvements, provides a solid foundation for its ambitious financial goals. As Strides Pharma continues to execute its strategy, investors and industry observers will be keen to monitor its progress towards debt elimination and sustained growth in the coming quarters.