Strides Pharma Science Q2 FY27 results: net profit up 2.0% to ₹134.12 crore, revenue up 17.1%

How did Strides Pharma Science perform in Q2 FY27?

Strides Pharma Science reported consolidated revenue of ₹1,430 crore for Q2 FY27, the quarter ended September 2026, against ₹1,221 crore in Q2 FY26 and ₹1,265 crore in Q1 FY27. That was a rise of 17.1% year on year and 13.0% from the previous quarter. EBITDA was ₹250.91 crore, up 8.4% from ₹231.57 crore a year ago and 9.2% from ₹229.77 crore in Q1 FY27, while the EBITDA margin was 17.5% against 19.0% and 18.2%.

Profit before tax was ₹149.54 crore, down 3.0% from ₹154.16 crore in Q2 FY26 and 25.6% from ₹200.90 crore in Q1 FY27. Net profit was ₹134.12 crore against ₹131.52 crore a year ago and ₹165.49 crore in the previous quarter, and basic EPS was ₹14.19 against ₹13.84 and ₹17.02. The profit margin was 9.4%, down 1.4 percentage points from 10.8% a year ago and 3.7 percentage points from 13.1% in Q1 FY27. On a standalone basis, revenue was ₹659.91 crore, up 26.4%, and net profit was ₹9.26 crore against ₹32.04 crore.

What changed in Strides Pharma Science's costs and profit?

Total expenses rose to ₹1,283 crore in Q2 FY27 from ₹1,085 crore in Q2 FY26, an increase of ₹197.55 crore or 18.2%. Cost of materials was the largest mover, up ₹135.19 crore or 31.5% to ₹564.95 crore, while other expenses rose ₹63.90 crore or 25.8% to ₹311.12 crore. Employee cost was ₹238.27 crore, up 5.1%, depreciation was ₹57.22 crore, up 15.3%, and finance costs were ₹46.54 crore, up 0.9%.

Other income fell to ₹4.08 crore from ₹27.14 crore a year earlier, a decline of ₹23.06 crore or 85.0%. Tax was ₹16.32 crore against ₹21.59 crore, down ₹5.27 crore or 24.4%. The exceptional item was a charge of ₹1.70 crore, compared with a charge of ₹8.77 crore in Q2 FY26 and a gain of ₹63.20 crore in Q1 FY27, which partly explains the sequential fall in profit before tax and net profit.

How did the first half of FY27 go?

In H1 FY27, the first half of the financial year, Strides Pharma Science reported consolidated revenue of ₹2,695.14 crore against ₹2,340.57 crore in H1 FY26, an increase of ₹354.57 crore or 15.1%. Total income was ₹2,704.11 crore, up 13.8% from ₹2,376.29 crore.

Profit before tax rose 26.9% to ₹350.44 crore from ₹276.11 crore, and net profit rose 26.4% to ₹299.61 crore from ₹237.12 crore. EPS for the half year was ₹31.22 against ₹24.64 a year earlier, an increase of ₹6.58 or 26.7%.

What do the balance sheet and cash flow show?

As at 30 September 2026, total assets were ₹7,488.82 crore against ₹6,927.23 crore at 31 March 2026, and total equity was ₹3,470.50 crore against ₹3,149.34 crore. Borrowings were ₹1,847.12 crore compared with ₹1,668.69 crore, while cash was ₹137.34 crore against ₹188.70 crore. Inventories were ₹1,873.47 crore against ₹1,634.79 crore, trade receivables ₹1,463.96 crore against ₹1,288.96 crore, and trade payables ₹1,432.72 crore against ₹1,309.68 crore.

In H1 FY27, operating cash flow was ₹106.57 crore against ₹391.48 crore in H1 FY26. Investing cash flow was ₹182.28 crore of outflow against ₹147.86 crore of outflow, financing cash flow was ₹25.23 crore of inflow against ₹232.63 crore of outflow, and capital expenditure was ₹266.45 crore against ₹149.19 crore.

How has Strides Pharma Science done over the last 8 quarters?

Quarterly revenue reached a high of ₹1,429.73 crore in Q2 FY27, up from a low of ₹1,119.74 crore in Q1 FY26. Revenue has risen year on year in each of the last eight quarters, and profit has also risen year on year in each of the last eight quarters, according to the reported series.

Net profit peaked at ₹208.12 crore in Q3 FY26 and was lowest at ₹85.62 crore in Q4 FY25, before standing at ₹134.12 crore in Q2 FY27. The EBITDA margin peaked at 19.8% in Q3 FY26 and bottomed at 17.5% in Q2 FY27. Revenue has moved higher in each of the last two quarters, from ₹1,194.65 crore in Q3 FY26 to ₹1,323.47 crore in Q4 FY26 and ₹1,429.73 crore in Q2 FY27, while the margin has fallen over the last two quarters.

What else did the company announce?

The board approved the unaudited consolidated and standalone financial results for the quarter and half year ended 30 September 2026 at its meeting on 29 October 2026, and the company filed an earnings presentation for the same period. B S R & Co. LLP issued a limited review report on the consolidated results, with the review conclusion dated 29 October 2026.

In a separate filing on 29 October 2026, the board approved the appointment of Biren Gabhawala as a Non-Executive Independent Director with effect from 1 November 2026, for a term of five years, not liable to retire by rotation and subject to shareholder approval. The company said the appointment forms part of its planned board succession planning initiative. No dividend or fund raise was filed on the same day.

What did Strides Pharma Science's management say?

Management said the overall FY28 growth aspiration remains intact, but the US revenue aspiration of about $375 million is now expected a little beyond FY28. Badree Komandur, MD and Group CEO, said: "We had shared an aspiration of about $375 million in US revenue by FY28. Given how the market has evolved, we now expect to reach this a little beyond FY28. The timing has moved; the ambition has not." Ex-US revenue of ₹6,963 million overtook US revenue of ₹6,855 million in Q2 FY27, and the Ex-US aspiration was revised upwards of $375 million in FY28.

Management guided to a gross margin of 58–60% from H2 FY27, with H1 FY27 gross margin of 58.3% viewed as sustainable, and said H2 FY27 is expected to be stronger than H1 FY27 in both the US and ex-US on new business wins, launches and supply chain normalisation. The company expects capex and intangibles of around ₹300 crore in FY27, FY28 slightly lower, net finance cost of ₹40–45 crore per quarter in H2 FY27, and four to six US product launches in H2 FY27. Komandur said: "We will not compromise on profitability or the quality of our business to chase revenue."

CFO Vikesh Kumar said the cash-to-cash cycle widened to 137 days and net debt to EBITDA rose to 1.72x after the H1 inventory build, and he expected the net debt to EBITDA ratio to stabilise by the end of the year. He added: "With the overall growth aspiration for FY '28 being intact and operating leverage playing out, we continue to maintain that bottom line should accelerate ahead of top line." Management listed risks including a largely normalised US drug-shortage tailwind in oral solids, geopolitical disruption inflating raw material, freight and supply chain costs, regulatory quota allocations capping Controlled Substances growth, and the widened cash cycle.

How did Strides Pharma Science shares react?

The filing came after market hours on 29 October 2026. From the price when the filing appeared, the stock was up 0.3% after five minutes, down 0.2% after 15 minutes and down 1.0% after 30 minutes. It closed 4.4% lower from its previous close on the reaction day, and by the next day's close it was down 6.4% from its pre-results close.

How did other Pharmaceuticals companies do?

Sixty other Pharmaceuticals companies have filed for the quarter, with a median revenue growth of 19.8%, against Strides Pharma Science's revenue growth of 17.1%. Of the peers compared, 25 grew slower than the company and 34 grew faster than the company. Among the 54 peers for which profit was compared, 38 reported higher profit.