Strides Pharma Science has reported strong earnings growth for the financial year ending March 2026, helped by robust demand in international markets outside the United States and improved operating efficiency.
The Bengaluru-based drugmaker posted operational profit after tax of ₹5.18bn for FY26, marking a rise of more than 50% from the previous year. Revenue for the year increased 6.4% to ₹48.6bn, while EBITDA rose 15.3% to ₹9.25bn.
The company said growth was largely driven by its Ex-US business, where revenue climbed 21% year-on-year to ₹22.4bn. By contrast, revenue from the US market — its largest geography — grew by a modest 2% to ₹24.9bn, with management citing a weaker flu season during the second half of the year.
Profitability also improved significantly during the period. Gross margins expanded by 310 basis points to 59.7%, while EBITDA margins rose to 19% from 17.6% a year earlier. Analysts attributed the gains to tighter cost controls, product mix improvements and stronger contributions from higher-margin international markets.
Quarterly results also reflected continued momentum. Revenue in the March quarter rose 11.2% year-on-year to ₹13.2bn, while reported profit after tax increased 51% to ₹1.29bn.
The company’s balance sheet metrics strengthened despite foreign exchange-related pressure on debt levels. Net debt stood at ₹14.4bn at the end of FY26, partly impacted by currency depreciation. However, the net debt-to-EBITDA ratio improved to 1.55 times from 1.9 times in FY25.
Return on capital employed rose to 15.8% during the year, compared with 14.9% previously.
The board of Strides Pharma also recommended a dividend of ₹5 per share.
Managing Director and Group Chief Executive Badree Komandur said the company remained focused on “sustainable and profitable growth” despite geopolitical uncertainty and a challenging external environment.
