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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.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.
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Net income reached TRY 29.5 billion, with strong dividends and a robust net cash position.
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