Strides Pharma Science
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Strides Pharma Science (STAR) investor relations material

Strides Pharma Science Q3 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 25/26 earnings summary30 Jan, 2026

Executive summary

  • Achieved highest ever quarterly EBITDA of ₹2,359m in Q3FY26, with operational PAT at ₹1,282m and EPS at ₹13.9, up 39% year-on-year; gross margins reached 59.8%–61.2% and ex-U.S. markets contributed 47% of revenue with 20% YoY growth.

  • U.S. business remained flat due to delayed flu season and product discontinuations, but long-term growth drivers remain intact.

  • Leadership strengthened with appointment of new CEO for North America and EVP of HR to drive growth and organizational capability.

  • ESG/Sustainability score improved by 5 points to 80, reflecting focus on responsible growth and governance.

  • Major one-time gain of Rs. 31,881.07 million recognized from the demerger of the CDMO and Soft Gelatin business, presented as discontinued operations.

Financial highlights

  • Q3FY26 revenue reached ₹11,946m, up 3.6% YoY; gross margin improved to 61.2% (+280bps YoY); EBITDA margin rose to 19.8% (+160bps YoY).

  • Operational PAT rose 39% YoY to ₹1,282m; reported PAT for the quarter at ₹2,081m, including gain from sale of investment property.

  • For nine months, operational PAT grew 65% YoY to ₹3,824m, exceeding full FY25 PAT.

  • Cash to cash cycle stable at 124 days; operational cash flow for nine months at ₹4,841m (70% EBITDA to operating cash conversion).

  • Basic EPS for continuing operations for the quarter was Rs. 21.93, compared to Rs. 9.56 in the prior year quarter.

Outlook and guidance

  • U.S. business revenue outlook reiterated at ~$400m by FY28, with ex-U.S. markets expected to mirror U.S. size in two years, driven by portfolio expansion and new customer acquisitions.

  • Growth to be driven by relaunch of dormant products, investments in complex generics, and expansion in regulated and growth markets.

  • CapEx guidance: ₹1,000–1,250m for maintenance, with additional opportunistic investments in global product rights.

  • Tax rate expected in the 15%–18% range for the year.

  • Focus remains on operating cashflow generation and continued debt reduction while funding capex from internal accruals.

How will new CEO and investments drive US growth
Sustain ex-US growth: what specific levers are key
Cash-to-cash cycle: how to manage ex-US impact
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Q4 25/2622 May, 2026
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Frequently asked questions

Strides Pharma Science Limited is a pharmaceutical company engaged in the development, manufacturing, and distribution of generic medicines. The company specializes in niche and complex formulations across various therapeutic areas, including antibiotics, oncology, central nervous system, and dermatology. It operates a global network of manufacturing facilities and supplies products to regulated markets, including the United States, Europe, and emerging economies. The company is headquartered in Bengaluru, India, and its shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

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