Strides Pharma Science Ltd has delivered a strong performance in the second quarter of FY27, with revenue surging 17.1% year-on-year to Rs 14,297 million, powered by robust growth in its Ex-US markets.
In a significant shift in its business mix, the company's Ex-US markets generated Rs 6,963 million in revenue, registering a 31% year-on-year jump and surpassing its US business for the first time in quarterly revenue.
The US business, meanwhile, grew 9% to Rs 6,855 million ($73 million), with the company launching three products during the quarter.
Strides' EBITDA climbed 8.4% year-on-year to Rs 2,509 million, crossing the Rs 2,500-million mark in a single quarter for the first time. The growth came despite mounting raw material, freight and operating costs, with the EBITDA margin standing at 17.6%, compared with 19% in the corresponding quarter last year.
The company's operational profit after tax (PAT) rose 11.5% to Rs 1,358 million, while operational earnings per share (EPS) increased to Rs 14.7. Reported PAT edged up 2% to Rs 1,341 million, with reported EPS at Rs 14.2.
For the first half of FY27, Strides posted revenue of Rs 26,951 million, up 15.1% from Rs 23,406 million a year ago. EBITDA rose 6.9% to Rs 4,807 million, while operational PAT increased 9.8% to Rs 2,589 million. Reported PAT surged 26.4% to Rs 2,996 million.
The 31% growth in Ex-US markets marks a significant milestone in Strides' diversification strategy, with these markets overtaking the US business in quarterly revenue for the first time.
The company said its US business continued to deliver growth, while three product launches during the quarter added to its portfolio.
Commenting on the performance, Badree Komandur, MD & Group CEO, said, “Strides delivered a strong second quarter, with revenue of Rs 14,297m growing ~17% YoY, driven by Ex-US Markets. Our diversification strategy continues to play out, with Ex-US Markets growing 31% YoY to Rs 6,963m and, for the first time, surpassing our US business in quarterly revenue.
"Our US business delivered 9% YoY growth. EBITDA grew to Rs 2,509m, crossing the Rs 2,500m mark in a quarter for the first time. This was despite higher raw material, freight and operating costs arising from geopolitical disruptions. We remain focused on mitigating these pressures through continuous cost optimization initiatives during the year.
"Net Debt increased by Rs 2,114m during H1 due to an elongated cash-to-cash cycle and higher inventory holding to navigate current market conditions. We expect the Net Debt to EBITDA ratio to stabilize by the end of the year. We are also pleased to welcome Biren Gabhawala to our Board as an Independent Director. His deep expertise in financial reporting, audit and corporate governance will further strengthen the Board’s oversight. While the external environment remains dynamic, we are committed to”
Despite the strong revenue growth, Strides faced margin pressure during the quarter. Gross margin declined 180 basis points year-on-year to 56%, while EBITDA margin contracted 140 basis points to 17.6%, reflecting higher input material and freight costs.
The company also reported a Rs 2,114-million increase in net debt during the first half of FY27, attributing it to an elongated cash-to-cash cycle and higher inventory holding amid prevailing market conditions.
Management expects the net debt-to-EBITDA ratio to stabilise by the end of the financial year, while cost optimisation initiatives remain a key focus to counter external cost pressures.
