Strides Pharma Science Limited announced its financial results for the second quarter and half year ended September 30, 2026. The company achieved its highest ever quarterly revenue of ₹14,297 million, representing a 17% year-on-year growth. A key highlight was the ex-US business becoming larger than the US business for the first time, achieving this milestone ahead of its FY28 target.
Strides Pharma Science Limited Reports Record Quarterly Performance
Strides Pharma Science Limited has announced its financial results for the second quarter (Q2) and the first half (H1) of the financial year 2027 (FY27), ending September 30, 2026. The company achieved a significant milestone by reporting its highest ever quarterly revenue of ₹14,297 million, marking a robust 17% year-on-year increase and a 13% quarter-on-quarter growth. This performance was predominantly driven by its ex-US markets amidst a challenging macro backdrop.
Ex-US Business Surpasses US Business
A pivotal development highlighted by the company is that its ex-US business has now surpassed its US business in revenue contribution. This strategic shift, where ex-US revenue now constitutes 49% of total revenues (up from 43% in Q2 last year), was achieved in Q2 FY27, well ahead of the company’s original target of matching US revenue by FY28. This signifies the success of Strides Pharma’s geographical diversification strategy.
Financial Highlights for Q2 FY27
The company reported an absolute gross margin growth of 13% year-on-year, reaching ₹8,003 million. The gross margin stood at 56.0%, slightly moderated from 57.8% in the previous year due to increased input costs. EBITDA saw an 8% year-on-year growth to ₹2,509 million, marking a first time crossing the ₹2,500 million mark in a single quarter. The EBITDA margin was 17.6%. Operational PAT grew by a strong 12% year-on-year to ₹1,358 million, with Operational EPS rising to ₹14.7.
FY28 Aspirations and US Market Outlook
Strides Pharma reiterated its overall growth ambition for FY28 remains intact. While the US revenue aspiration of $375 million is now expected to be achieved slightly beyond FY28, the company’s commitment to the US market remains strong. The US business is growing at a more measured pace due to industry-wide normalization of drug shortage opportunities, higher operating costs, and constraints in Controlled Substances due to quota allocations. However, the company is focusing on differentiated platforms like nasal sprays, patches, and films, alongside its growing Controlled Substances portfolio.
Ex-US Business Growth and Strategy
The ex-US business is identified as the company’s accelerator, with revenue for Q2 reaching ₹6,963 million, an impressive 31% year-on-year growth. For H1 FY27, ex-US revenue was ₹12,838 million, up 24% year-on-year. This broad-based growth is driven by new product launches and expansion into new geographies. The company highlighted strong performances in the UK, Europe, Nordics, Australia, and Africa.
Operational and Working Capital Management
The company emphasized its focus on profitability-led growth and disciplined capital allocation. Working capital saw an increase, partly due to investments in inventory to counter supply chain disruptions, leading to a cash-to-cash cycle of 137 days. Strides Pharma expects the cash conversion cycle to improve in the coming quarters as inventory normalizes.
Governance Update
The company also announced the welcome addition of Mr. Biren Gabhawala to its Board as an Independent Director, further strengthening the Board’s financial oversight.
Source: BSE
