Strides Pharma Science Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Strides Pharma Science Ltd filed with BSE on 21 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Strides Pharma Science reported FY26 revenue of INR48,587 million, up 6.4% year-on-year, with EBITDA of INR925 crores growing 15% and EBITDA margin expanding to 19%. Management attributed the revenue shortfall against expectations to a weaker US flu season and donor funding challenges in access markets, while highlighting 21% growth in Ex-US markets and a shift in revenue mix toward Ex-US business. The company also announced the appointment of Ramaraju, current COO, as Executive Director, and the Board recommended a dividend of INR5 per share.
Numbers mentioned
Revenue: INR48,587 million (FY26)
p. 4
“We reported a revenue of INR48,587 million that is INR48 billion, representing a growth of 6.4% year-on-year.”
Badree Komandur, page 4 of the filed PDF · View the filing
US revenue: $284 million (FY26)
p. 4
“We delivered a revenue of $284 million for FY '26 and $70 million in Q4.”
Badree Komandur, page 4 of the filed PDF · View the filing
EBITDA: INR925 crores (FY26)
p. 7
“For FY '26, we are reporting an EBITDA of INR925 crores, which is a healthy 15% growth year-on-year, with EBITDA margins expanding by 140 basis points over FY '25 to 19%.”
Vikesh Kumar, page 7 of the filed PDF · View the filing
Operational PAT: INR518 crores (FY26)
p. 7
“We are reporting an operational PAT of INR518 crores crossing the INR500 crores mark for the first time.”
Vikesh Kumar, page 7 of the filed PDF · View the filing
Reported PAT: INR575 crores (FY26)
p. 7
“Our reported PAT for the year is at INR575 crores, which is up 40% with a reported EPS of INR60.3 per share.”
Vikesh Kumar, page 7 of the filed PDF · View the filing
Operational EPS: INR56.2 per share (FY26)
p. 7
“Operational EPS also grew by 50% year-on-year with an EPS for the year at INR56.2 per share.”
Vikesh Kumar, page 7 of the filed PDF · View the filing
ROCE: 15.8% (FY26)
p. 8
“Our ROCE continues to improve. It is at 15.8% for FY26 compared to 14.9% last year, which reflects our improvement in operating performance.”
Vikesh Kumar, page 8 of the filed PDF · View the filing
Net debt-to-EBITDA: 1.55x (FY26)
p. 8
“our superior profitability and cash flows have helped improve our net debt-to-EBITDA ratio from 1.9x last year to 1.55x as we closed FY '26.”
Vikesh Kumar, page 8 of the filed PDF · View the filing
Q4 EBITDA: INR240 crores (Q4 FY26)
p. 8
“For the quarter, our EBITDA grew 10% year-on-year to INR240 crores, which reflects our continued growth in absolute profitability.”
Vikesh Kumar, page 8 of the filed PDF · View the filing
Q4 EBITDA margin: 18.1% (Q4 FY26)
p. 8
“Our EBITDA margin for the quarter was at 18.1%.”
Vikesh Kumar, page 8 of the filed PDF · View the filing
Q4 Operational PAT: INR136 crores (Q4 FY26)
p. 9
“Operational PAT at INR136 crores grew 20% year-on year with an operational PAT margin of 10.3%.”
Vikesh Kumar, page 9 of the filed PDF · View the filing
Cash-to-cash cycle: 124 days (FY26)
p. 7
“On the efficiency metrics, our cash-to-cash cycle is at 124 days, which is an increase of 7 days year-on-year.”
Vikesh Kumar, page 7 of the filed PDF · View the filing
Operating cash flow: INR703 crores (FY26)
p. 7
“we've delivered an operating cash flow of INR703 crores for the year, which translates to a 76% EBITDA to operating cash conversion.”
Vikesh Kumar, page 7 of the filed PDF · View the filing
Net finance costs: INR138 crores (FY26)
p. 8
“Our net finance costs stood at INR138 crores for the year, which reflects a consistent reduction from FY25 levels, which has been supported both by lower debt and improvement in our borrowing costs.”
Vikesh Kumar, page 8 of the filed PDF · View the filing
Effective tax rate: sub 15% (FY26)
p. 8
“Our effective tax rate for the year remained at sub 15%, which is at the lower end of our expectations.”
Vikesh Kumar, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — upwards of 20% · long-term
stated as an aspiration by Badree Komandur
p. 6
“We remain committed to achieving our long-term aspiration, and we aim to reach EBITDA margins upwards of 20% and gross margins in the 58% to 60% range and continue to driving operating leverage to deliver strong EPS and PAT growth.”
Badree Komandur, page 6 of the filed PDF · View the filing
US revenue — $375 million to $400 million · FY28
stated as an aspiration by Badree Komandur
p. 5
“We continue to focus our aspiration of reaching $375 million to $400 million in the U.S.”
Badree Komandur, page 5 of the filed PDF · View the filing
Sandoz portfolio contribution — second half of FY27
stated firmly by Badree Komandur
p. 16
“So as far as the Sandoz transaction is concerned, it's expected to fructify in the second half of FY27, that is between October and March.”
Badree Komandur, page 16 of the filed PDF · View the filing
R&D spend — $20 million to $25 million · coming 2 years
stated firmly by Badree Komandur
p. 16
“It will be upwards of $25 million, $20 million to $25 million for sure in the coming 2 years.”
Badree Komandur, page 16 of the filed PDF · View the filing
Tangible and intangible capex — around INR300 crores · next 2 years
stated conditionally by Badree Komandur
p. 14
“Yes. it will be around INR300 crores is what I think because the tangible portion is almost coming to an end from a fact we need only the maintenance capex.”
Badree Komandur, page 14 of the filed PDF · View the filing
US business growth trajectory — H2 FY27
stated conditionally by Badree Komandur
p. 9
“And we believe the growth should start from H2 onwards, with a higher trajectory.”
Badree Komandur, page 9 of the filed PDF · View the filing
New modalities (patches, thin films) filing — next 12 to 18 months
stated firmly by Badree Komandur
p. 16
“We should be able to file for that in the next 12 to 18 months.”
Badree Komandur, page 16 of the filed PDF · View the filing
EBITDA margin range — 18% to 20%
stated firmly by Badree Komandur
p. 17
“I have clearly said that margins will be between the 18% to 20% range.”
Badree Komandur, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management cited weak flu season, controlled substances needing a track record, and a deliberate strategy to prioritize profitability over rapid launches, with growth expected to accelerate from H2.
Answered by Badree Komandur
Asked by Pratik Kothari: What is happening with US product discontinuations and delayed launches?
p. 9
“And overall, if you really see, this is a conscious effort to maintain the profitability at the marketplace. And we believe the growth should start from H2 onwards, with a higher trajectory.”
Badree Komandur, page 9 of the filed PDF · View the filing
Management explained the DEA quota process requires a track record before additional allocations are granted, and the company has now completed a full year.
Answered by Badree Komandur
Asked by Dhaval Shah: How does the controlled substances business work and how will it scale?
p. 11
“For a company which is entering newly controlled substances, it takes at least 1 to 1.5, 2 years to settle down and display that past history, right?”
Badree Komandur, page 11 of the filed PDF · View the filing
Management confirmed it is a full-year FY28 target, not an exit run rate, and reiterated the aspiration given remaining time.
Answered by Badree Komandur
Asked by Sarvesh Gupta: Is the $375-400 million US target an exit run rate or a full-year FY28 target, and is 15-20% CAGR achievable?
p. 14
“Yes, that is correct. We have not taken any exit run rate and all that. The reason why we are saying is that we have got another 8 quarters to go, we want to try to reach as close to the $400 million as possible.”
Badree Komandur, page 14 of the filed PDF · View the filing
Management said the products are widely spread with no significant customer concentration and gross margins have been maintained in the 58-60% range despite marginal pricing pressure.
Answered by Badree Komandur
Asked by Sanjay Shah: How vulnerable are the top 37 products to pricing erosion, competition and customer concentration?
p. 15
“As far as the customer is concerned, I just want to say that we have got a very wide customer base.”
Badree Komandur, page 15 of the filed PDF · View the filing
Management said R&D is underway with filings expected in the next 12-18 months, with commercialization occurring later.
Answered by Badree Komandur
Asked by Nitin Agarwal: What is the timeline for new modalities like patches and thin films to become commercial?
p. 16
“Patches and thin films. These are the two areas of domains we have identified. The R&D is in full swing.”
Badree Komandur, page 16 of the filed PDF · View the filing
Management attributed the increase to a sudden rise in freight costs and said the level should be discounted somewhat when modeling forward.
Answered by Badree Komandur
Asked by Nitin Agarwal: How should SG&A expense spike this quarter be modeled going forward?
p. 17
“Maybe you can put some discounting factor on the Q4 and then maybe you should take that.”
Badree Komandur, page 17 of the filed PDF · View the filing
Management reiterated margins will stay in the 18-20% range with a long-term aspiration above 20%.
Answered by Badree Komandur
Asked by Vedant S: Will margins reverse or stay within a range going forward?
p. 17
“I have clearly said that margins will be between the 18% to 20% range. The endeavor is to get to on the long-term margins upwards of 20%.”
Badree Komandur, page 17 of the filed PDF · View the filing
Risks flagged
Weaker than expected US flu season impacted revenue
p. 4
“The flu season did not materialize as expected in the second half this year, which typically contributes meaningfully to our revenues.”
Badree Komandur, page 4 of the filed PDF · View the filing
Donor funding challenges in access markets
p. 4
“In addition, the overall growth was impacted by access markets, which are currently facing donor funding challenges and remains tactical in the nature.”
Badree Komandur, page 4 of the filed PDF · View the filing
Increased competition in some US molecules
p. 5
“some of our molecules have faced increased competition.”
Badree Komandur, page 5 of the filed PDF · View the filing
Lower than expected controlled substances allocations as a new entrant
p. 5
“Given that we are a new entrant in controlled substances, allocations are lower than expected in FY '26.”
Badree Komandur, page 5 of the filed PDF · View the filing
Cost pressures from raw materials, logistics, fuel and foreign exchange
p. 6
“The external environment remains challenging with cost pressures across raw materials, logistics, fuel as well as foreign exchange.”
Badree Komandur, page 6 of the filed PDF · View the filing
Elevated logistics and air freight costs impacted Q4 margins
p. 8
“EBITDA margins were impacted on account of cost increases that were attributable to the escalations in logistics cost and air freight, which were seen to be significantly higher than the previous quarters.”
Vikesh Kumar, page 8 of the filed PDF · View the filing
Currency depreciation impacted net debt
p. 8
“This is despite a negative impact of the currency depreciation, which impacted our net debt by about INR112 crores for the year.”
Vikesh Kumar, page 8 of the filed PDF · View the filing
Higher inventory levels increased cash-to-cash cycle
p. 7
“And this increase is on account of higher inventory levels, which have increased by 21 days year-on-year.”
Vikesh Kumar, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.