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Strides Pharma Science Ltd
NSE: STAR BSE: 532531 INE939A01011 Healthcare Pharma 🔎 Screen
Microcap 250
₹9,888 Cr
Market Cap
17.8
P/E
0.25
PEG
18.6%
ROCE
20.4%
ROE
0.57
D/E
19.0%
OPM
+12.9%
% from 52W High
73
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Strides Pharma Science Ltd is in the business of development and manufacturing of pharmaceutical products. The company's pharmaceutical products are sold in over 100 countries. The company has always followed an inorganic growth strategy over the years that resulted in foray into new markets, addition of new business segments, therapy segments and manufacturing infrastructure.

✓ Strengths 2
  • Company has delivered good profit growth of 20.1% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 57.0%
! Concerns 5
  • Stock is trading at 3.18 times its book value
  • The company has delivered a poor sales growth of 7.94% over past five years.
  • Promoter holding is low: 27.9%
  • Tax rate seems low
  • Promoters have pledged 38.1% of their holding.
Key Ratios Snapshot
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📈 Growth Pattern
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Mixed quarter: EBITDA grew 10% YoY to INR240 Cr, but margin dipped to 18.1% due to logistics cost surge; ex-US growth strong but US revenues remain under pressure from mild flu season and slower controlled substance ramp. quarter Investor Presentation One-Pager? Mar 2026
Revenue (Q4, implied)
₹1,326 Cr
EBITDA/margin derivation; 11% YoY growth (adjusted for institutional business +14%)
EBITDA Margin
18.1%
-90bps vs FY26 avg of 19%; logistics cost overhang of ~₹20 Cr
Operational PAT (Q4)
₹136 Cr
+20% YoY; PAT margin 10.3%
Operational EPS (Q4)
₹14.7
Highest quarterly EPS; FY26 full-year EPS ₹56.2 (+50% YoY)
What Went Right
  • Ex-US revenue grew 21% YoY in FY26, reaching ~$70 Mn/quarter and now 46% of total revenue (50% in Q4), driven by ORM (+20% CAGR over 12 quarters).
  • EBITDA margin expanded 140bps YoY to 19% for FY26; operational PAT crossed ₹500 Cr for first time (₹518 Cr, +50% YoY).
  • ROCE improved to 15.76% from 14.9% in FY25; net debt-to-EBITDA reduced to 1.55x (from 1.9x) despite forex impact.
  • Filed second nasal spray in May 2026; invested ₹2,500 Mn over 24 months in R&D programs (nasal sprays, patches, films) for medium-term growth.
  • Sandoz product acquisition (Feb 2026) expected to nearly double Africa branded portfolio from H2 FY27; board recommended ₹5/share dividend.
What to Watch
  • Q4 EBITDA margin of 18.1% fell short of FY26 average of 19% due to ~₹20 Cr spike in logistics and air freight costs.
  • US FY26 revenue of $284 Mn was impacted by weaker flu season (H2 revenue split 50:50 vs typical 45:55) and lower-than-expected controlled substance allocations.
  • Cash-to-cash cycle worsened to 124 days (+7 days YoY) due to inventory buildup of 21 days, tying up operating cash flows.
  • Exited 9 low-margin US products during the year, reducing near-term top-line; US growth not expected to resume until H2 FY27.
  • Ex-US access markets faced donor funding challenges, requiring adjustment of ~10% to underlying revenue growth.
Management Guidance
  • US revenue target of $375-400 Mn for FY28 (full year, not exit run rate).
  • Long-term aspirational EBITDA margin above 20%; gross margin target of 58-60%.
  • R&D spend of $20-25 Mn per annum over the next 2 years.
  • Expect US growth to meaningfully resume from H2 FY27, led by controlled substance quota increases and new launches.
Investor Lens
Strides' structural shift toward ex-US markets is delivering results, with 19% CAGR and now nearly half of revenues, but US remains the growth laggard. The US $375-400M target by FY28 hinges on controlled substance quota increases, nasal spray launches from FY28 onwards, and a recovery in seasonal demand. Near-term, Q4 margin pressures from logistics and a stretched cash cycle are manageable but warrant monitoring. The 50% YoY PAT growth and improved ROCE underscore underlying operational leverage. Key watch items: H2 FY27 US revenue uptick, inventory normalization, and progress on DEA quota approvals.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Net profit up 50% YoY to ₹129cr; OPM flat at 18%
Revenue
Revenue grew 11.2% YoY to ₹1,323cr, and was up 10.7% sequentially. Top-line expansion remains steady but slower than profit growth.
Profitability
Net profit jumped 50% YoY to ₹129cr, with EPS rising from ₹8.91 to ₹13.77. However, PAT fell 38% QoQ, indicating volatility. Tax rate was low at 13%.
Margins
Operating profit margin held at 18% YoY, unchanged from Mar 2025 but down from 20% in Dec 2025. Cost pressures or sales mix may have compressed margins sequentially.
Cash Flow
Cash flow data is not provided in this release.
Balance Sheet
Borrowings stand at ₹1,758cr against reserves of ₹3,015cr, giving a debt-to-equity of 0.67. Total assets are ₹6,927cr. Leverage appears manageable.
Key Risks
Sequential profit decline of 38% signals earnings volatility. High reported ROE of 151% may be misleading due to low equity base. Interest cost of ₹42cr remains a fixed burden.
Outlook
Revenue growth is positive but margin improvement is needed to sustain profit momentum. The company's debt level and interest cost will need monitoring for future quarters.
Generated by AI · Mar 2026 results · Not investment advice
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