SYNOPSIS:
Strides Pharma reported Q2 FY26 revenue of Rs. 1,221 crores, up 9 percent QoQ and 5 percent YoY, with net profit rising 24 percent QoQ to Rs. 131.5 crores and strong EBITDA margin expansion.
During Friday’s trading session, shares of a global pharmaceutical company surged nearly 15.5 percent to hit a new 52-week high at Rs. 979 on BSE, following the release of Q2 FY26 financial results with a rise in net profit by around 24 percent QoQ and 83 percent YoY.
With a market cap of Rs. 8,615 crores, shares of Strides Pharma Science Limited closed in the green at Rs. 934.65 on BSE, up by around 10 percent, compared to its previous closing price of Rs. 849.95. The stock has delivered multibagger returns of more than 198 percent in one year, and has gained by nearly 13 percent in the last one month.
What’s the News
Strides Pharma Science Limited announced the financial results for the second quarter of FY26 on Friday during market hours, as per the latest regulatory filings with the BSE.
For Q2 FY26, the company reported a revenue from operations of Rs. 1,221 crores, reflecting a marginal rise of nearly 9 percent QoQ compared to Rs. 1,120 crores in Q1 FY26, as well as a year-on-year increase of around 5 percent from Rs. 1,167 crores recorded in Q2 FY25.
During the same period, net profit stood at Rs. 131.5 crores, indicating a growth of more than 24 percent QoQ from Rs. 105.6 crores in Q1 FY26, and an increase on a year-on-year basis by more around 83 percent from Rs. 72.3 crores reported in Q2 FY25.
On a year-on-year basis, EBITDA for the quarter rose 25.4 percent to Rs. 231.6 crore, reflecting improved operational efficiency. The EBITDA margin expanded by over 300 basis points to 19 percent, compared to 15.8 percent in the corresponding period last year. The company’s gross margin also improved by 500 basis points, reaching 57.8 percent versus 52.8 percent a year earlier.
In the US market, Strides Pharma reported sales of $73 million, maintaining performance levels comparable to the same quarter of the previous year. The management reaffirmed its guidance to achieve ~$400 million in revenue from the US business by FY27-28.
In Europe, deal activity remained strong, supported by the onboarding of large pan-European partners. The company expects the UK business to record growth in the second half of the fiscal year, driven by planned product launches and portfolio expansion.
For the European business, the management emphasised three key growth drivers – expansion of the product portfolio and customer base, conversion of the existing robust pipeline of new opportunities, and sustained momentum in regulatory filings – which are expected to underpin medium-term revenue growth.
Strides Pharma Science Limited is engaged in the business of developing and manufacturing a wide range of IP-led niche pharmaceutical products. It mainly operates in the regulated markets, including key markets of the US, Europe, Australia, and South Africa.
The company is an integrated manufacturer and exporter of Finished Pharmaceutical Dosage forms for both branded and generic, along with manufacturing a wide range of ethical pharmaceutical products, OTC products and nutraceuticals. Their dosage forms include tablets, capsules, soft gelatin capsules, parenterals and semisolids.
Written by Shivani Singh
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