In , Strides Pharma Science Ltd (Pharma - Formulators) is outperforming Nifty 500 with +35.3% relative strength. Fundamentals: Strong. On a 9-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Ex-U.S. Revenue Growth: 20% YoY
Impact: 47% of total revenue
“Ex-U.S. markets contributed 47% of the Q3 FY'26 revenues and 20% year-on-year growth in Q3 and the gap between the U.S. and the Ex-U.S. market has reduced significantly”
What: EBITDA Margin Expansion: 160 bps
Impact: 12% EBITDA growth on 3.6% revenue growth
“3.6% increase in revenue resulted in 8% increase in gross margins plus the 12% increase in EBITDA... The multiplier effect is very, very visible”
What: Debt/EBITDA: 1.59x
Impact: ₹170 Cr debt reduction
“our debt/EBITDA is about 1.59x... it has reduced by about Rs. 170 crores, Rs 1,696 million on a constant currency basis”
What: New CEO North America: Peter Hardwick
“excited to have Peter Hardwick joining us as the CEO of North American Business. Peter brings in about 30 years of global pharmaceutical experience”
What: ANDA Pipeline: 60+ products
“we have got 60 plus products, which we said we will launch over a period of last three years and few products have already been launched.”
What: Gross Margin at 59.8%
“The gross margin crossed about 60% aided by the better business mix, because of the institutional business being scaled down.”
Earnings deceleration risks from management commentary
Trigger: Restatement of foreign currency borrowings at current exchange rates.
Impact: PAT impact: ₹83 Cr (Balance Sheet impact)
Management view: Natural hedging through U.S. dollar and Euro earnings.
Monitor: fx
Trigger: Requirement for a past track record to secure higher quotas from regulators.
Management view: Completing the first full year of operations to demonstrate manufacturing capability.
Monitor: regulatory
Trigger: Regulatory changes in labor laws.
Impact: PAT impact: Zero
Management view: Company's simplified compensation structure already aligns with the new code.
Monitor: labor
Key quotes from recent conference calls
“last five quarters, we've been upwards of $70 million. It is a very calibrated approach that we focus on profitability rather than revenue growth [Previous U.S. Revenue Run Rate guidance]”
“I think we are going to finish that cycle in the next 3 months, one full year of control substances. I think the next year should be fairly better. [Initiative: Controlled Substances Expansion]”
“I think the revenue should start kicking in from 2027-2028, I think... in the next two quarters, we should have filed for three. [Initiative: Nasal Spray Portfolio]”
“Taking into account the negative impact of currency on our net debt, which was of about Rs. 83 crores, our net debt stands at Rs. 1,436 crores. [Risk (fx): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹1,030 Cr
Why: Revenue growth was muted due to the institutional business being scaled down and a delayed flu season in the U.S.
Excluding the institutional segment, core revenue growth was approximately 8.6%.
EBITDA
₹236 Cr
Why: EBITDA growth was driven by a better business mix and a 160 basis point expansion in margins.
The company achieved its highest-ever quarterly EBITDA during Q3 FY26.
PAT
₹208 Cr
Why: PAT was significantly boosted by a one-time gain of ₹83 crores from the sale of an investment property.
Reported PAT includes a substantial non-operational gain; operational PAT stood at ₹128 crores.
Other Highlights
• Gross margins reached 59.8%, crossing the 60% mark during the quarter due to better business mix.
• Debt to EBITDA ratio improved to 1.59x, down from 1.9x at the end of FY25.
• Ex-U.S. markets grew 20% YoY, now contributing 47% of total revenues.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Gross Margin
59.8%
Why: Scaling down of low-margin institutional business and improved product mix.
U.S. Revenue
$70 million
Why: Delayed flu season and strategic discontinuation of 8 products.
Ex-U.S. Revenue Share
47%
Why: Strong growth in Other Regulated Markets (ORM) and B2B partnerships in Australia.
Net Debt to EBITDA
1.59x
Why: Debt reduction of ₹170 Cr and improved EBITDA performance.
Cash-to-Cash Cycle
124 days
Why: Shift in business mix toward Ex-U.S. markets which have longer working capital cycles.
New Product Launches (9M)
60+ planned
Why: Strategic focus on launching 60+ products over 3 years to reach $400M U.S. target.
ROCE
15.8%
Why: Aided by consistent results and better balance sheet management.
Effective Tax Rate
15%
Why: Trending at the lower end of the guided 15-18% range.
Forward-looking targets from management for FY28
OPM Guidance
58–60%
Capex Plan
₹100 Cr
$400 million in U.S. revenue
REAFFIRMED
₹100 Cr - ₹125 Cr
Maintenance CAPEX
Guidance Changes
Tax Rate: 15% to 20% → 15% to 18%
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +4% | +14% | Decelerating |
| PAT (Net Profit) | +131% | +56% | Stable |
| OPM | 20.0% | +200 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Strides Pharma Science Ltd's latest quarterly results (Dec 2025) show
Strides Pharma Science Ltd's profit is growing with an stable trend.
Strides Pharma Science Ltd's revenue growth trend is decelerating.
Strides Pharma Science Ltd's operating margin is expanding.
Strides Pharma Science Ltd's long-term compounding rates
Strides Pharma Science Ltd's earnings growth is stable with strong momentum on a sequential basis.
Strides Pharma Science Ltd's trailing twelve month (TTM) performance
Strides Pharma Science Ltd appears significantly undervalued based on our fair value analysis.
Strides Pharma Science Ltd's current PE ratio is 19.4x.
Strides Pharma Science Ltd's current PE is 19.4x.
Strides Pharma Science Ltd's price-to-book ratio is 3.9x.
Strides Pharma Science Ltd is rated Strong with a fundamental score of 77.43/100. This score is calculated from objective financial metrics
Strides Pharma Science Ltd has a debt-to-equity ratio of N/A.
Strides Pharma Science Ltd's return ratios over recent years
Strides Pharma Science Ltd's operating cash flow is positive (FY2025).
Strides Pharma Science Ltd's current dividend yield is 0.35%.
Strides Pharma Science Ltd's shareholding pattern (Mar 2026)
Strides Pharma Science Ltd's promoter holding has increased recently.
Strides Pharma Science Ltd has been outperforming Nifty 500 for 9 consecutive weeks, indicating consistent outperformance.
Strides Pharma Science Ltd is an established outperformer with 9 weeks of consecutive Nifty 500 outperformance.
Strides Pharma Science Ltd has 6 key growth catalysts identified from recent earnings analysis
Strides Pharma Science Ltd has 3 key risks worth monitoring
In Q3 FY26, Strides Pharma Science Ltd's management highlighted
Strides Pharma Science Ltd's management has provided the following forward guidance for FY28
Strides Pharma Science Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Strides Pharma Science Ltd may be worth studying
Strides Pharma Science Ltd investment thesis summary:
Strides Pharma Science Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
