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Strides Pharma Science (STAR) investor relations material
Strides Pharma Science Q2 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 FY26 revenue grew 4.6% year-on-year to ₹12,208 million, with operational PAT up 84% to ₹1,403 million and EPS at ₹15.2, up 83.8% year-on-year.
H1 FY26 revenue rose 5.5% year-on-year to ₹23,406 million, with operational PAT at ₹2,543 million, up 82.6% year-on-year, and EPS at ₹27.6, up 82.2% year-on-year.
Profit after tax from continuing operations for Q2 FY26 was ₹1,315 million, compared to ₹723 million in Q2 FY25.
Growth was primarily driven by Other Regulated Markets and disciplined execution across all key markets.
A major demerger of the CDMO and Soft Gelatin business was completed, resulting in a one-time gain of ₹31,881 million, presented as discontinued operations.
Financial highlights
Q2 gross margin at ₹706 crore (57.8%), up 500 bps year-on-year; H1 gross margin at ₹1,381 crore (59%), up 410 bps.
Q2 EBITDA at ₹2,316 million (19% margin), up 25.4% year-on-year; H1 EBITDA at ₹4,500 million (19.2% margin).
Q2 operational PAT at ₹1,403 million, highest ever; operational EPS at ₹15.2.
Net debt reduced by ₹733 million in H1 FY26 after funding ₹1,492 million of capex from internal accruals.
Q2 FY26 finance income included a one-time income of ₹185 million.
Outlook and guidance
Long-term U.S. revenue target of $400 million by FY28 remains intact, with 60 dormant ANDAs to be relaunched over the next 3 years.
Other Regulated Markets expected to mirror U.S. market size in 2-3 years, with portfolio expansion and new customer acquisitions.
H2 is expected to be better than H1, continuing the historical trend.
Growth Markets expected to have lumpy quarters until business stabilizes in the next two years.
The business is now evaluated as a single segment, "Pharmaceutical," following the demerger.
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