Strides Pharma Q2 Profit Jumps 84% YoY to ₹140.3 Crore; Stock Up Nearly 12%

Bengaluru, October 31, 2025: The share price of Strides Pharma Science Ltd (NSE: STAR | BSE: 532531) surged almost 12% in Friday’s trading session after the company reported an impressive 84.3% year-on-year (YoY) rise in operational profit after tax (PAT) for the quarter ended September 2025. The strong performance was driven by robust margins, disciplined cost management, and steady growth across regulated markets, reflecting the company’s improved operational efficiency and strategic focus on profitability.

Market Performance

At 2:06 PM IST, the stock was trading 11.56% higher at ₹950.90, up ₹98.50 from the previous close of ₹852.40. It touched an intraday high of ₹901.65 and a low of ₹830.30, with traded volumes of 4.31 lakh shares and a market capitalisation of ₹8,155.90 crore.

Strong Q2 FY26 Performance

Strides Pharma Science Ltd delivered a solid performance in Q2 FY26, with revenue rising to ₹12,208 million for the quarter ended September 30, 2025 — a 4.6% year-on-year and 9.0% sequential increase. The company’s gross margin expanded 14.6% YoY to ₹7,056 million, while EBITDA surged 25.4% to ₹2,316 million.

The EBITDA margin improved by 320 basis points to 19%, reflecting strong operational leverage and disciplined cost management. Operational PAT soared to ₹1,403 million, compared to ₹761 million in Q2 FY25, while EPS climbed to an all-time high of ₹15.2.

According to the management, the record profitability was driven by an enhanced product mix, cost efficiencies, and a focused expansion across regulated markets following the demerger of the Softgel business.

Regional and Segment Highlights

United States:

US market revenue stood at $73 million, up 2% YoY despite price erosion due to generic competition. Strides commercializes more than 70 products in the US and is among the top three in 37 of those, accounting for 75% of its US revenue. The company reaffirmed its guidance to $400 million in generics revenues by FY27–28.

Other Regulated Markets:

Revenue in regulated markets such as Europe and the UK was up 16% YoY to $44 million, on the back of strong B2B partnerships and an expanding product portfolio.

Growth and Access Markets:

Emerging markets, including Africa, LATAM, MENA, and APAC, posted 7% YoY growth with revenues of $17 million, driven by new product launches. That compares to a 25% YoY decline in the access markets to $7 million, due to headwinds in donor-funded healthcare programs.

Balance Sheet and Financial Strength

Strides maintained strong balance sheet management throughout the quarter. Net debt reduced by ₹733 million in H1 FY26, despite a currency impact of ₹710 million and capital expenditure of ₹1,492 million, which was fully funded through internal accruals. Operating cash flow stood at ₹3,915 million for the first half, underpinning strong financial discipline. RoCE improved to 16.0% from 14.9% in FY25, reflecting efficient capital utilization.

Management Commentary

Badree Komandur, Managing Director & Group CEO, said:

“Strides continues to deliver a strong performance in Q2FY26, with growth primarily driven by Other Regulated Markets. Our focus on profitability enabled gross margin growth of 15% YoY and EBITDA growth of 25% YoY. Net debt reduced by ₹469 million sequentially despite currency headwinds and ongoing capex investments, reaffirming our financial discipline and balance sheet strength.”

Bengaluru-based Strides Pharma Science Ltd is one of the major Indian pharmaceutical manufacturers of medications in the regulated markets of the US, Europe, and the UK. It develops niche generic formulations in several therapeutic categories, and enjoys a strong global footprint with manufacturing facilities in India, Singapore, and Africa.

REF: https://nsearchives.nseindia.com/corporate/STRIDES_532531_31102025130041_StridesSEIntimationPR.pdf

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