Strides Pharma Science (STAR) Q4 25/26 earnings summary

Executive summary

• Achieved highest-ever EBITDA and operating PAT, with sustained improvement in revenue, margins, and operational performance over the last 10-12 quarters.

• FY26 saw strong operational and financial performance, with EBITDA at ₹9,253m and operational PAT at ₹5,181m, both up over 15% and 50% YoY, respectively.

• Geographical diversification shifted business mix, with ex-U.S. markets now contributing close to 50% of Q4 revenue.

• Leadership update: Ramaraju appointed as Executive Director, overseeing global technical operations.

• Audited standalone and consolidated financial results for FY26 were approved, with an unmodified auditor's opinion issued.

Financial highlights

• FY26 consolidated revenue reached INR 48,587 million, up 6.4% YoY; underlying growth (excluding access markets) was ~10%.

• EBITDA for FY26 was INR 925 crores, up 15% YoY, with margins expanding to 19%.

• Operational PAT grew 50% YoY to INR 518 crores; reported PAT at INR 575 crores, up 40%.

• Q4FY26 revenue rose 11.2% YoY to ₹13,235m, with operational PAT up 20% YoY to ₹1,357m.

• Board recommended a dividend of INR 5 per share for FY26.

Outlook and guidance

• Ex-U.S. markets expected to continue outpacing company average growth and remain a critical pillar for resilience.

• U.S. business aspires to reach INR 375-400 million by FY28, with growth expected to accelerate from H2 FY27.

• Long-term EBITDA margin target set at 20%+, with gross margins in the 58%-60% range.

• Sequential quarter-on-quarter growth expected to continue.

• Committed to long-term sustainable and profitable growth despite external headwinds.