By: IPP Bureau
Last updated : July 31, 2026 4:13 pm
The company also reduced its net debt by Rs. 11.9 crore during the quarter, maintaining a Net Debt-to-EBITDA ratio of 1.52x despite increased working capital investments
Strides Pharma Science Limited reported a steady performance for the first quarter of FY27, with consolidated revenue rising 13% year-on-year to Rs. 1,265.4 crore, driven by robust growth in international markets outside the US.
Operational EBITDA increased 5.4% to Rs. 229.8 crore despite higher freight and operating costs arising from geopolitical disruptions, while operational profit after tax (PAT) grew 8% to Rs. 123.1 crore.
Reported PAT surged 56.7% to Rs. 165.5 crore, supported by gains from the divestment of the company's majority stake in its captive global capability centre (GCC), Pivot Path.
Ex-US markets emerged as the key growth driver during the quarter, recording a 17% year-on-year increase in revenue to Rs. 587.5 crore, while the US business remained stable with 4% growth to Rs. 628.2 crore.
EBITDA margin stood at 18.2%, compared to 19.5% in the corresponding quarter last year, reflecting the impact of elevated freight and operating expenses.
The company also reduced its net debt by Rs. 11.9 crore during the quarter, maintaining a Net Debt-to-EBITDA ratio of 1.52x despite increased working capital investments.
In addition, Strides unlocked Rs. 100 crore through the sale of a majority stake in Pivot Path while retaining a meaningful interest in the business. The company also improved its EcoVadis sustainability score by 19 points to 68/100.
Badree Komandur, Managing Director & Group CEO, Strides Pharma Science Ltd., said: "Strides delivered a steady start to FY27 with revenue growth of 13% YoY. Our investments in Ex-US Markets over the past few years are now yielding strong results, delivering 17% YoY growth and reinforcing the strength of our diversified business strategy."
Komandur added durther: Our focus on execution and operating discipline enabled us to grow absolute gross margins by 14% YoY. EBITDA grew ~5% YoY to Rs. 2,298 million, despite ~Rs.131 million impact from elevated operating and freight cost arising from the ongoing geopolitical situation. We remain focused on mitigating these pressures through continuous cost optimization initiatives.
We reduced net debt by Rs. 119 million, with Net Debt-to-EBITDA at 1.52x, despite significant working capital investments required to navigate the current business environment and growth. During the quarter, we unlocked Rs. 1,000 million of value through the divestment of our majority stake in Pivot Path, our captive GCC, while retaining meaningful participation in its future growth,” he concluded.