Strides Pharma Science Limited (STAR)
₹1,045.20 -1.39% last close, 16 Oct
Latest quarterly results (Q4 FY26)
In its latest reported quarter, Q4 FY26, Strides Pharma's revenue was ₹1,323 Cr (+11.2% year on year, +101.4% on the previous quarter), and net profit ₹129 Cr (+50.0% year on year); the operating margin was 18.1%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹1,323 | +11.2% | +101.4% |
| Operating profit | ₹240 | +10.1% | +1.7% |
| Net profit | ₹129 | +50.0% | +5.8% |
| EPS (₹) | 13.77 | +54.5% | -37.2% |
| Operating margin | 18.1% | — | — |
STAR delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 50.25% of the STAR shares traded on NSE were taken to delivery, against the stock's own 20-session average of 47.13%. That is close to its usual level.
Delivery in the last 5 sessions: 42.1% · 55.0% · 46.3% · 50.6% · 50.2%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Strides Pharma Science Limited submitted its Sustainability Report for FY26 prepared under GRI Standards 2021 and SASB guidelines. The reporting boundary was expanded to cover ~97% of consolidated revenue, up by 11% compared to FY25. Due to expanded scope, total reported energy consumption increased by ~130%, Scope 1 and Scope 2 GHG emissions increased by 49%, and water withdrawal rose by 54%. 100% of Indian manufacturing sites remain certified under ISO 14001.
- Reporting scope expanded to cover ~97% of consolidated revenue, an 11% increase from FY25
- Reported Scope 1 and Scope 2 greenhouse gas emissions rose by 49% due to expanded site coverage
- Total energy consumption increased by approximately 130% due to inclusion of additional global entities
- 100% of Indian operating sites are certified under ISO 14001
- Manufacturing facilities covered in India contributed ~81% of Strides' manufacturing revenue in FY26
The USFDA conducted a routine cGMP inspection at Strides Pharma's formulations facility in Alathur, Chennai, from September 2, 2026, to September 11, 2026. At the close of the inspection, the regulator issued a Form 483 containing 3 observations. Strides announced it will respond to the USFDA within the stipulated timeframe. The final classification (VAI vs OAI) of the facility will determine if there is any impact on future US product approvals.
- Routine cGMP inspection conducted from September 2, 2026 to September 11, 2026
- USFDA issued Form 483 with 3 observations upon inspection completion
- Formulations facility inspected is located at Alathur, Chennai
- Company confirmed it will submit responses within the stipulated regulatory time
Strides Pharma Science has received the Establishment Inspection Report (EIR) from the USFDA for its flagship manufacturing facility in Bengaluru, formally closing the inspection conducted between May 12 and May 20, 2026. The inspection, which previously resulted in a Form 483 with 5 observations, has been classified as Voluntary Action Indicated (VAI). The Bengaluru plant produces tablets, capsules, and oral liquids, serving the US and other regulated markets.
- USFDA issued Establishment Inspection Report (EIR) classifying inspection outcome as Voluntary Action Indicated (VAI)
- Inspection conducted from May 12 to May 20, 2026, is now successfully closed
- Resolves 5 Form 483 observations previously disclosed on May 20, 2026
- Flagship Bengaluru site supplies dosage forms (tablets, capsules, oral liquids) to US and regulated markets
Strides Pharma Science Limited submitted voting results and the Scrutinizer's Report for its 35th Annual General Meeting (AGM) held on August 14, 2026. Shareholders approved all six resolutions with overwhelming majorities (>97% in favor for each). Key resolutions passed included the adoption of FY26 financial statements, declaration of a final dividend, re-appointment of Arun Kumar, appointment of Aditya Arun Kumar as Non-Executive Director, and appointment of Venkata Seetharama Raju Pakalapati as Executive Director.
- All 6 resolutions passed with requisite majority at the 35th AGM held on August 14, 2026.
- Adoption of FY26 audited financial statements approved with 99.9997% votes in favor.
- Declaration of FY26 final dividend approved with 99.9998% votes in favor (6,76,53,890 votes in favor).
- Appointment of Mr. Venkata Seetharama Raju Pakalapati as Executive Director approved with 99.55% votes in favor.
Strides Pharma Science Limited conducted its 35th Annual General Meeting on August 14, 2026, via video conference. Shareholders transacted six key agenda items, including the adoption of FY26 audited financial statements, declaration of final dividend, and director appointments. The company noted that the Statutory Auditor's Report for FY26 contained no qualifications or adverse observations. Final voting results along with the scrutinizer report will be submitted on or before August 18, 2026.
- 35th AGM concluded on August 14, 2026, between 12:15 IST and 13:34 IST
- A total of 6 resolutions (3 Ordinary, 3 Special/Ordinary business) were placed before shareholders
- Resolutions included FY26 financial adoption, final dividend declaration, and director appointments
- Scrutinizer's report and formal voting results to be declared on or before August 18, 2026
Strides Pharma reported a 13% YoY revenue growth for Q1 FY27, with Ex-US markets leading at 17% growth. The US business remained stable at $68 million (₹628.2 cr), contributing approximately 52% of quarterly revenue, while EBITDA margins held at 18.2% despite ₹13.1 cr in additional freight costs. Management reiterated a $375 million US revenue target by FY28, supported by its US-based manufacturing facility which currently supplies one-third of US sales. A key regulatory update involves the Bangalore plant inspection (May 2026), with a final USFDA response expected by September 2026.
- Ex-US revenue grew 17% YoY to ₹587.5 cr, driven by regulated markets and African brand expansion.
- US revenue reached $68 million (₹628.2 cr) for the quarter, with 37 products holding top-three market positions.
- Management maintains annual capex guidance of ₹250 cr to ₹300 cr for maintenance, R&D, and high-impact lines.
- Geopolitical volatility in the Middle East added ₹13.1 cr in incremental operating and freight costs during Q1.
- Controlled substances currently contribute ~5% of revenue, with growth dependent on future quota allocations from the US DEA.
Strides Pharma Science Limited has released the audio recording of its earnings call held on July 31, 2026, regarding the unaudited financial results for the quarter ended June 30, 2026 (Q1 FY27). This is a routine regulatory disclosure following the announcement of quarterly results. The company currently operates with a TTM revenue of ₹3,636 Cr and an operating profit margin of 25.4%. Investors can access the recording on the company's website for management commentary on operational performance.
- Earnings call conducted on July 31, 2026, at 17:00 hrs IST
- Recording covers financial performance for the quarter ended June 30, 2026
- Company is working towards a target of 60 new product launches in the US over 3 years
- Management aims to scale US revenue to $400m (~INR 3,500 Cr) using existing infrastructure
Strides Pharma reported a steady Q1 FY27 with revenue reaching ₹1,265.4 cr, driven by a strong 17% growth in Ex-US markets. While EBITDA margins compressed by 130 bps to 18.2% due to a ₹13.1 cr impact from geopolitical freight costs, absolute EBITDA grew 5.4% YoY to ₹229.8 cr. The company unlocked ₹100 cr through the sale of a majority stake in its GCC, Pivot Path, contributing to a reported PAT of ₹165.5 cr. Net debt was marginally reduced to ₹1,424.6 cr, maintaining a Net Debt/EBITDA ratio of 1.52x.
- Revenue grew 13% YoY to ₹1,265.4 cr, with Ex-US markets delivering 17% growth to ₹587.5 cr
- Reported PAT increased 56.7% YoY to ₹165.5 cr, aided by a ₹100 cr gain from the Pivot Path divestment
- Net Debt reduced by ₹11.9 cr during the quarter to ₹1,424.6 cr, with a Net Debt/EBITDA of 1.52x
- US market revenue remained steady at $68m (₹628.2 cr) with 72 commercialized products
- CARE Ratings upgraded long-term bank facilities to CARE A+ (Stable) from CARE A (Positive)
Strides Pharma reported a steady Q1FY27 with revenue growing 13% YoY to ₹12,654m, driven by a strong 17% surge in Ex-US markets. While EBITDA grew 5.4% to ₹2,298m, margins contracted by 130 bps to 18.2% due to a ₹131m impact from geopolitical-related freight costs. Reported PAT jumped 56.7% to ₹1,655m, significantly bolstered by a ₹1,000m gain from divesting a majority stake in its captive GCC, Pivot Path. The company reduced net debt by ₹119m, maintaining a healthy Net Debt-to-EBITDA ratio of 1.52x.
- Revenue grew 13% YoY to ₹12,654m, with Ex-US markets contributing ₹5,875m (up 17% YoY).
- Reported PAT increased 56.7% YoY to ₹1,655m, aided by a ₹1,000m value unlocking from the Pivot Path divestment.
- EBITDA margins stood at 18.2%, absorbing a ₹131m impact on operating costs from geopolitical disruptions.
- Net debt reduced by ₹119m during the quarter, bringing Net Debt-to-EBITDA to 1.52x.
- Gross margins improved by 60 bps YoY to 60.9%, reflecting better product mix and execution.
Strides Pharma reported its Q1 FY27 results featuring a significant net exceptional gain of Rs 76.4 Cr (Rs 764.01 million) from the stake dilution in Pivot Path Private Limited. The company reduced its stake in Pivot Path to 19.95% for a total consideration of Rs 100 Cr (Rs 1,000 million), transitioning it from a subsidiary to an associate. A final dividend of Rs 5 per share was proposed, involving a cash outflow of approximately Rs 46.1 Cr. To mitigate the impact of the divestment, the company entered a 5-year Master Services Agreement with Pivot Path ensuring minimum revenue commitments.
- Recognized a net exceptional gain of Rs 764.01 million from the dilution of stake in Pivot Path Private Limited.
- Reduced shareholding in Pivot Path to 19.95% for an aggregate consideration of Rs 1,000 million.
- Proposed a final dividend of Rs 5 per equity share, totaling an estimated cash outflow of Rs 461 million.
- Executed a 5-year Master Services Agreement with Pivot Path featuring minimum revenue commitments and annual price escalations.
- Two reviewed subsidiaries contributed Rs 2,190 million in revenue and Rs 354 million in PAT for the quarter.
Strides Pharma Science Limited has scheduled its earnings conference call for July 31, 2026, at 17:00 IST to discuss the unaudited financial results for the quarter ended June 30, 2026. This follows a period of growth where the company reported a TTM revenue of ₹3,636 Cr and an operating profit margin of 25.4%. Investors will be looking for updates on the company's strategic goal of launching 60 new products in the US over three years and scaling US revenue to $400m. The call provides a platform for management to address the 'under recoveries' at existing plants and the progress of its Middle East and Africa expansion strategies.
- Earnings call scheduled for July 31, 2026, at 17:00 Hrs IST
- Focus on unaudited financial results for the quarter ended June 30, 2026
- Company maintains a TTM revenue base of ₹3,636 Cr with a market cap of ₹6,751 Cr
- Management previously targeted 60 new product launches in the US over a 3-year horizon
- Current debt stands at ₹1,184 Cr against a net worth of ₹3,283 Cr (D/E of 0.36)
Strides Pharma Science Limited has released its Business Responsibility and Sustainability Report (BRSR) for FY26, highlighting its 100% export-oriented standalone business model serving 106 countries. The company reported standalone revenue of ‡2,180 Cr and a net worth of ‡2,895 Cr for the period. Key sustainability metrics include a 44.19% share of renewable energy in total consumption and a 63.21% waste recovery rate. The report also discloses a high volume of Related Party Transactions, with 86.40% of standalone sales conducted with group entities, reflecting its global subsidiary-led distribution structure.
- Exports contributed 90.66% of the total standalone turnover for FY26.
- Renewable energy sources accounted for 44.19% of the total energy consumed during the year.
- Total workforce stands at 5,394, comprising 2,810 employees and 2,584 workers.
- Waste management systems achieved a 63.21% recovery/recycling rate out of 1,910 MT total waste.
- Related Party Transactions (RPT) represent 86.40% of standalone sales and 99.58% of investments.
Strides Pharma Science Limited has scheduled its 35th Annual General Meeting (AGM) for August 14, 2026. The company has recommended a final dividend of ₹5 per equity share (50% of face value) for FY2025-26, with a record date of July 31, 2026. Key agenda items include the re-appointment of Founder Arun Kumar as a Director and a special resolution to pay commissions up to ₹50 lakh per Non-Executive Director even in years with inadequate profits. The company reported a TTM PAT of ₹389 Cr on a revenue base of ₹3636 Cr.
- Final dividend of ₹5 per equity share of face value ₹10 recommended for FY26.
- Record date for dividend eligibility is fixed for July 31, 2026.
- AGM to be held on August 14, 2026, via Video Conference/Other Audio-Visual Means.
- Proposed commission cap of ₹50,00,000 per Non-Executive Director in case of profit inadequacy.
- Founder Arun Kumar (DIN: 00084845) is seeking re-appointment as a Non-Executive Director.
Strides Pharma Science has fixed July 31, 2026, as the record date for a final dividend of ₹5 per share for FY26. This payout represents 50% of the ₹10 face value and follows a recovery in profitability with a TTM PAT of ₹389 Cr. The dividend is subject to shareholder approval at the 35th Annual General Meeting (AGM) scheduled for August 14, 2026. At the current market price of ₹1061.9, the dividend yield stands at approximately 0.47%.
- Final dividend of ₹5 per equity share recommended for the financial year ended March 31, 2026.
- Record date for determining shareholder entitlement is fixed for July 31, 2026.
- 35th Annual General Meeting (AGM) to be held on August 14, 2026, via video conferencing.
- Dividend payment to be completed within 30 days of shareholder approval at the AGM.
- Dividend payout represents 50% of the face value of ₹10 per share.
Strides Pharma Science Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The document, issued by KFin Technologies Limited (the Registrar and Share Transfer Agent), confirms that share dematerialization and rematerialization requests for the quarter ended June 30, 2026, were processed and reported to the exchanges. This is a standard administrative filing required for all listed entities to ensure share registry accuracy.
- Compliance certificate issued for the quarter ended June 30, 2026
- Registrar and Share Transfer Agent (RTA) identified as KFin Technologies Limited
- Confirmation provided to both NSDL and CDSL depositories
- Filing dated July 8, 2026, following the end of the April-June quarter
Financial Performance
Revenue Growth by Segment
Overall revenue grew 4.6% YoY in Q2 FY26 to INR 12,208m. US market grew 2% YoY to $73m. Growth Markets (Africa, LATAM, MENA, APAC) saw revenue of INR 1,468m ($17m) in Q2 FY26, with FY25 growth at 24.2% YoY. Access Market revenue stood at INR 609m ($7m) for Q2 FY26. Other Regulated Markets (ORM) revenue is currently in the $44m range per quarter.
Geographic Revenue Split
US Market contributes approximately 50% of revenue (INR 2,445 Cr out of INR 4,571.86 Cr in FY25). Other Regulated Markets contributed INR 1,358 Cr (approx. 30%) in FY25. Growth Markets and Access Markets make up the remaining 20%.
Profitability Margins
Gross margins improved to 57.8% in Q2 FY26 (up 500bps YoY) and reached 59% for H1 FY26. This expansion is structural, driven by a calibrated approach to onboarding high-margin business and avoiding 'loss leaders'. Operational PAT grew 84.3% YoY to INR 1,403m in Q2 FY26, reflecting a 20x multiplier effect from revenue growth due to operating leverage.
EBITDA Margin
EBITDA margin stood at 19.0% in Q2 FY26, a 320bps YoY improvement. Absolute EBITDA grew 25.4% YoY to INR 2,316m. For H1 FY26, EBITDA was INR 450 Cr with a 20% growth rate, driven by steady operating costs at 39% of sales.
Capital Expenditure
Maintenance capex is focused on factory upkeep rather than R&D. While specific total INR Cr for future expansion is not explicitly totaled, the company is 'sweating out' existing assets to create operating leverage from under-recoveries at plants.
Credit Rating & Borrowing
The company has a moderate credit profile with improving debt servicing capacity. Net finance costs for H1 FY26 were INR 61 Cr, significantly lower than INR 105 Cr in H1 FY25. Rating sensitivity requires maintaining net total debt to PBILDT below 1.6x.
Operational Drivers
Raw Materials
Not disclosed in available documents; however, variable costs and product mix are cited as the primary drivers of the 59% gross margin.
Key Suppliers
Not disclosed in available documents; company maintains a 'reputed clientele' and 'low product concentration risks'.
Capacity Expansion
Current focus is on addressing 'under recoveries' across existing plants to drive incremental revenue without new operating costs. The company aims to scale US revenue to $400m (~INR 3,500 Cr) within three years using existing infrastructure.
Raw Material Costs
Gross margins of 57.8% imply raw material and direct production costs are approximately 42.2% of revenue. The company follows a 'calibrated approach' to product selection to maintain these margins.
Manufacturing Efficiency
Operating leverage is being achieved by increasing revenue (4.6% growth) while keeping operating costs steady at 39% of sales, resulting in a 5x-6x multiplier effect on EBITDA growth.
Strategic Growth
Expected Growth Rate
10%
Growth Strategy
Growth will be achieved through a target of 60 new product launches in the US over 3 years, strategic partnerships with at least three pharmaceutical companies in the Middle East, and expanding the channel partner network in Growth Markets (Africa, LATAM, APAC).
Products & Services
Pharmaceutical products including medicines for the US market, Other Regulated Markets, and Growth Markets (Africa/LATAM), specifically focusing on niche molecules where they hold leadership positions.
Brand Portfolio
Strides Pharma Science Limited.
New Products/Services
Initiated a wave of regulatory filings in new territories; US product launch run rate is currently being monitored to meet the 60-product 3-year goal.
Market Expansion
Targeting the Middle East through strategic partnerships and expanding in Africa via new product launches which led Q2 growth.
Market Share & Ranking
The company claims 'leadership positions' in the specific niche products they sell.
Strategic Alliances
In discussions with at least three leading pharmaceutical companies in the Middle East to forge strategic partnerships.
External Factors
Industry Trends
The industry is seeing a shift toward 'profitability over volume'. Strides is positioning itself by exiting low-margin products and focusing on 'operating leverage' where small revenue increases (4.6%) lead to massive PAT increases (84%).
Competitive Landscape
Faces rising competitive intensity in the US market, particularly on certain molecules, which the company counters by focusing on margin thresholds.
Competitive Moat
Moat is built on 'accredited manufacturing facilities', a 'calibrated approach' to niche product selection, and a track record of turning around businesses. These are sustainable due to high regulatory barriers to entry for manufacturing.
Macro Economic Sensitivity
Sensitive to donor funding cycles for the Access Market and regulatory timelines in international territories.
Geopolitical Risks
Operations in Africa and MENA regions introduce geographic-specific regulatory and stabilization risks over the next two years.
Regulatory & Governance
Industry Regulations
Operations are subject to 'inherent regulatory risks' and 'extended regulatory timelines' in new territories which can cause quarterly variability for up to two years.
Taxation Policy Impact
Effective Tax Rate (ETR) for Q2 and H1 FY26 was approximately 15%; expected to be in the range of 15% to 20% for the full year.
Risk Analysis
Key Uncertainties
The 'high pledge of promoter's shares' is a key weakness and a monitorable for credit ratings. Regulatory delays in new markets could impact the 3-year $400m US revenue target.
Geographic Concentration Risk
US market represents a significant portion of revenue (approx. 50% in FY25).
Third Party Dependencies
Dependency on 'donor funding' for the Access Market segment (INR 609m revenue).
Credit & Counterparty Risk
Receivables quality is supported by a 'reputed clientele' and 'improved working capital cycle'.
