Strides Pharma Science announced a 13% year-on-year revenue growth for the first quarter of fiscal year 2027 (Q1FY27), reaching ₹12,654 million. The company highlighted a strong 17% YoY growth in its Ex-US markets. EBITDA saw a 5.4% increase to ₹2,298 million, despite a ₹131 million impact from freight and operating costs due to geopolitical disruptions. The company also reported progress in debt reduction and strategic divestments.
Strides Pharma Reports Strong Q1 FY27 Performance
Strides Pharma Science Ltd has announced a steady start to fiscal year 2027, with Q1FY27 revenue reaching ₹12,654 million, marking a significant 13% increase compared to the same period last year. The company’s performance was bolstered by robust growth in its international markets, particularly in the Ex-US regions, which saw a 17% year-on-year (YoY) expansion.
Key Financial Highlights (Q1FY27)
The financial results for the quarter ended June 30, 2026, reveal several key performance indicators:
- Revenue: Increased by 13.0% YoY to ₹12,654 million.
- Gross Margin: Grew by 14.0% YoY to ₹7,702 million, with Gross Margin % improving to 60.9%.
- EBITDA: Rose by 5.4% YoY to ₹2,298 million. Despite this growth, the EBITDA margin was 18.2%, influenced by approximately ₹131 million in additional costs related to freight and operating expenses due to ongoing geopolitical disruptions.
- Operational PAT: Showed an 8.0% increase YoY, reaching ₹1,231 million.
- Reported PAT: Experienced a substantial 56.7% surge YoY to ₹1,655 million, which includes the gain from the sale of a majority stake in Pivot Path.
Market Performance and Strategic Moves
The Ex-US markets were a significant driver of growth, with revenue reaching ₹5,875 million ($63 million), up 17% YoY. The US business also demonstrated resilience, growing 4% YoY to ₹6,282 million ($68 million). The company has actively managed its financial leverage, reducing net debt by ₹119 million, bringing the Net Debt-to-EBITDA ratio to 1.52x, even amidst significant working capital investments.
A notable strategic move during the quarter was the divestment of Strides’ majority stake in Pivot Path, its captive GCC. This transaction unlocked ₹1,000 million of value, while the company retains meaningful participation in its future growth. Furthermore, Strides improved its EcoVadis sustainability score to 68/100, a 19-point increase.
Company Outlook
Badree Komandur, MD & Group CEO, expressed confidence in the company’s strategy, stating, “Our investments in Ex-US Markets over the past few years are now yielding strong results… We remain focused on mitigating these pressures through continuous cost optimization initiatives.” The company remains committed to delivering sustainable and profitable growth amidst a dynamic external environment.
Source: BSE
