STARNSEq4FY26May 21, 2026

Strides Pharma Science Limited

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Key numbers — 40 extracted

rs,

l, and thank you for joining us for the Strides Q4 and FY26 earnings call. Like in previous quarters, I will begin with an overall summary of the Q4 and full year performance, focusing on growth metri

12%

vered consistent growth across key metrics with overall revenue growth at a CAGR of approximately 12%, supported by 11% CAGR in U.S. and 19% CAGR in Ex-U.S. markets. More importantly, the mix of the

11%

rowth across key metrics with overall revenue growth at a CAGR of approximately 12%, supported by 11% CAGR in U.S. and 19% CAGR in Ex-U.S. markets. More importantly, the mix of the business has shift

19%

ics with overall revenue growth at a CAGR of approximately 12%, supported by 11% CAGR in U.S. and 19% CAGR in Ex-U.S. markets. More importantly, the mix of the business has shifted meaningfully. Ex

41%

tantly, the mix of the business has shifted meaningfully. Ex-U.S. contribution has increased from 41% in FY24. approximately to 46% in FY26. And on a Q4 basis, it is now close to 50%. This marks a ve

46%

s has shifted meaningfully. Ex-U.S. contribution has increased from 41% in FY24. approximately to 46% in FY26. And on a Q4 basis, it is now close to 50%. This marks a very important structural shift

50%

s increased from 41% in FY24. approximately to 46% in FY26. And on a Q4 basis, it is now close to 50%. This marks a very important structural shift in our business model. It clearly indicates that we

26%

ney, and we continue to see strong and consistent improvement. EBITDA compounded at approximately 26% over the last 3 years, driven by the EBITDA margin expansion of 400 basis points to close FY26 at

400 basis point

A compounded at approximately 26% over the last 3 years, driven by the EBITDA margin expansion of 400 basis points to close FY26 at 19%. This reflects improvements across our business, whether it is a better por

18x

l efficiency. Operating leverage is clearly visible at the bottom line. Operational PAT has grown 18x over the last 3 years and EPS has increased to INR 56 for FY26, which is the highest for us with

INR 56

at the bottom line. Operational PAT has grown 18x over the last 3 years and EPS has increased to INR 56 for FY26, which is the highest for us with a strong exit run rate of INR14.7 per share in Q4. This

INR14.7

EPS has increased to INR 56 for FY26, which is the highest for us with a strong exit run rate of INR14.7 per share in Q4. This shows that we are now operating with significantly stronger earnings engine,

Guidance — 20 items

Abhishek Singhal

opening

“The transcript for this call will be available in a week's time on the company's website.”

Badree Komandur

opening

“If we look at the last 3 years, we have delivered consistent growth across key metrics with overall revenue growth at a CAGR of approximately 12%, supported by 11% CAGR in U.S.”

Badree Komandur

opening

“EBITDA compounded at approximately 26% over the last 3 years, driven by the EBITDA margin expansion of 400 basis points to close FY26 at 19%.”

Badree Komandur

opening

“Operational PAT has grown 18x over the last 3 years and EPS has increased to INR 56 for FY26, which is the highest for us with a strong exit run rate of INR14.7 per share in Q4.”

Badree Komandur

opening

“We expect the benefits of these investments starting in the second half of FY '27.”

Badree Komandur

opening

“As I mentioned earlier, we have grown this business at a CAGR of around 19% over the last 3 years, and we are now starting to see the benefits of the investments we have made across markets, partnerships and product portfolio.”

Badree Komandur

opening

“business has scaled from $40 million per quarter in Q1 of FY '24 to about $70 million in Q4 of FY'26, a $30 million growth in 12 quarters, and this steady progression highlights not just a growth, but the consistency and sustainability of the business model we have built.”

Badree Komandur

opening

“We remain committed to achieving our long-term aspiration, and we aim to reach EBITDA margins upwards of 20% and gross margins in the 58% to 60% range and continue to driving operating leverage to deliver strong EPS and PAT growth.”

Badree Komandur

opening

“As Executive Director, Ramaraju will be responsible for overseeing the global technical operations and strategic management of critical functions, including manufacturing, supply chain and procurement.”

Vikesh Kumar

opening

“We had a corresponding increase in payable days in Q4, and we expect these to normalize over the coming days.”

Risks & concerns — 7 flagged

This is despite a negative impact of the currency depreciation, which impacted our net debt by about INR112 crores for the year.

— Vikesh Kumar

So this increased competition or pricing pressure is coming from where?

— Pratik Kothari

Now can you help me understand a bit about this product, again, through my limited research, I could understand it's a difficult business to do and also, at the same time, has a very strong EBITDA margins.

— Dhaval Shah

So, FY '28 is when you will see the impact of this.

— Abhishek Singhal

So while the quarter-on-quarter there'll be growth, the full potential of the growth with more launches, you will see the impact of it more in the H2 onwards.

— Badree Komandur

So second, in terms of the pricing pressure, we have had marginal pricing pressures, but it has been offset by most of the other measures like we have some COGS improvements.

— Badree Komandur

All we can say is that, this will be an engine of growth and completed a full year, and because it's pretty difficult to commit without getting the quota, right?

— Badree Komandur

Q&A — 10 exchanges

Yes hi, good evening and thank you. Sir, my first question on the US portfolio. I mean while we have reoriented and we are doing exceptionally well in our other regulated markets and the growth markets, one, if you can touch upon what is happening in the US markets in terms of, I mean, because you're seeing product discontinuations, even the product launches that we had anticipated or plans for didn’t go through. So just one comment on US, what is happening there?

Badree Komandur

Yeah, sure. So Pratik, from a US perspective, I just want to give you some few things which did not happen in the last year. One is the seasonal aspect. Second is the, we have been telling that the controlled substances, we need a past history. Like we need a good stable year of controlled substance before the growth comes back because it depends on quota and then production and then the actual commercialization. And the third one is in terms of the portfolio, if you really see, we have got a lot of launches coming up from the second half of this year, which will continue until about '28. And

Hi, thank you for the opportunity sir. Yes. So my question is related to the flu season. So our, sir, I'm fairly new to the company so my question could be a bit basic one. So this, our medicines are given more when the patient is in the hospital or at home? How is the prescription, how does the prescription work for because I was just reading on the net that the influenza related hospitalization were third highest since 2010 -11 flu season in US. And while towards February, March, the cases, in fact started increasing a lot. So what is exactly impacting our growth for this flu-related drugs?

Badree Komandur

Yes, sure. So from your perspective, what you are saying is the very general thing. From what we need to see is what is based on our portfolio, right? Our portfolio, usually, it adds quite well in the H2 and that has been the past trend for the last 3 years and some of this is this year because of the better discipline with the wholesaler and all of these things and they are able to, the demand uptick did not happen. It's not that, it can come back next year also. We don't know. But what we can say is that definitely, the uptick which happens between the H2 and H1, what we have seen in the las

Sir, I hope I'm audible?

Badree Komandur

Yes. Thank you. Sir, in previous history, you mentioned target US$600 million, US$700 million market opportunity wise, and we are planning to launch 3 products this year. So how much of that market are we tapping in the first year? I think, I did not refer anything on the US$600 million and US$700 million. Where did you get this number from Rudraksh? I think in some previous calls or communications? No, I don't think so. We have not communicated. We have stayed completely to the same theme in the last 2, 3 quarters. I don't think so we have communicated in any forum at least as far as I rememb

So Badree, just wanted to understand a little bit more on the U.S. business, right, the $70 million run rate, right? So I mean, one of the things that I wanted to double click on was that apart from the controlled substance launches, which were delayed because of the reasons that you explained, Were there any other launches, which were also delayed and was competition, the reason there? Or because you mentioned you had some plans to launch but you did not. So was that comment specifically for controlled substance for or was it for outside the controlled substance as well? And a question relate

Badree Komandur

Yes. So what I want to say is I want to correct you here. Like if you really see, my comment was not limited to controlled substances. That is number one. And second thing is we also have 150 products in our portfolio, right? And Strides policy has been to the launch when the market actually gives an opportunity. We are not in a hurry to launch. There are also products which are there, which are available for us to launch at any point of time. And that's what we will do. We will wait for the market disruption to happen, be it our API or be it a new player coming, be it any player going out and

So my first question is on this -- you described the tangible and intangible investments to the tune of around INR350 crores plus. So what is the broad run rate, let's say, for the next 2 years in these 2 buckets?

Badree Komandur

Yes. it will be around INR300 crores is what I think because the tangible portion is almost coming to an end from a fact we need only the maintenance capex. But there will also be some intangible global rights, which we may acquire to fast track the growth. I think it should be about INR300 crores is what I think. Okay. Understood. And secondly, sir, just sorry to harp on this point again, but the U.S. guidance for FY '28 of now earlier, we were seeing $400 million. Now we're saying $375 million to $400 million. But is it an exit run rate sort of a guidance? Or is it what we want to achieve in

Badree, your opening remarks are really helpful to understand the company and congrats to Mr. Ramaraju. Sir, my question was regarding our top 37 products contribute around 75% of U.S. revenue. How vulnerable are these products? Can you highlight upon it or is the pricing erosion, competition side, and even customer concentration side?

Badree Komandur

Yes. So one of the things I just want to highlight here is that, Sanjay, thanks for your question. And as far as the 37 products is concerned, it's widely spread across the entire U.S. revenue. That's the first thing. There is no great customer concentration. So second, in terms of the pricing pressure, we have had marginal pricing pressures, but it has been offset by most of the other measures like we have some COGS improvements. And that's the reason we are able to keep the gross margin between that 58% to 60% range. And in fact, if you really see the last 3 years that disciplined approach h

Badree, two things on is, on the newer sort of growth engines you're talking about. You've talked about the nasal sprays, file a couple of them, they'll begin to contribute '29. There are some other modalities which you mentioned in the presentation. Can you give us a little more color on what are the time lines for those modalities.

Badree Komandur

Yes. These are all again, it is a '28 and beyond. It's not going to contribute anything much to '28. We already started all the programs. It's all going in full swing. So, which we will start filing in the next 18 months. And then it will be beyond '28 for us. And so, in those apart from nasal spray, which is the second modality will probably start to become meaningful commercial for us? Patches and thin films. These are the two areas of domains we have identified. The R&D is in full swing. We should be able to file for that in the next 12 to 18 months. And then commercialization later. And on

I'll be asking on behalf of Shilpa Sabu. I have a first question on the controlled substances. So, sir, as discussed in previous concall, now we have completed 1 year in controlled substances. So, are we eligible for higher quota allocation for the US market? And if yes, then what is the revenue potential?

Badree Komandur

Yes. So, we don't want to give a very specific revenue potential on controlled substances. All we can say is that, this will be an engine of growth and completed a full year, and because it's pretty difficult to commit without getting the quota, right? So, it's a chicken and egg story. But all we can say is that the last 1 year, we have demonstrated whatever the quota we have received, we have been able to sell and we are able to demonstrate. And if there is anything additional quota, it will anyway get reflected in the growth as we go along. Okay. And second question is on 505(b)(2). So, for

Sir, I wanted to confirm that you mentioned that there will be a Q-on-Q growth. So, like last year when you guided at the start of FY that sequentially Q-on-Q there will be a growth. So, this year also, you can expect the same.

Badree Komandur

Yes, of course. Sequentially, there will be growth, right? Like from this Q4 to Q1? Last quarter, right, in Q4, we have grown at 11%. If you adjust for institutional business, we have grown at 14%. Okay. And the margins will also reverse since you are seeing... I have clearly said that margins will be between the 18% to 20% range. The endeavor is to get to on the long-term margins upwards of 20%. And sir, controlled substances you mentioned in last Q3 of some call that from Q1 also, you will see some uptick. So are we online on that or still not decided until this quota... See, we've got a pas

Thank you very much for all your questions. And should you require any more follow-ups, we are there available or the Investor Relations team, along with me and Vikesh, we'll be able to clarify all the queries you have in the near future. Thank you.

Management

Speaking time

Badree Komandur

Moderator

Nitin Agarwal

Rudraksh Raheja

Vedant S

Abhishek Singhal

Dhaval Shah

Pratik Kothari

Sarvesh Gupta

Sanjay Shah

Opening remarks

Abhishek Singhal

Thank you, Rutuja. Very good evening, and thank you for joining us today for Strides earnings call for the fourth quarter and financial year 2026. Today, we have with us Badree, MD and Group CEO, Vikesh, Group CFO, to share the highlights of the business and financials for the quarter and the financial year. I hope you've gone through our results release and the quarterly investor presentation that have been uploaded on our website as well as Stock Exchange website. The transcript for this call will be available in a week's time on the company's website. Please note that today's discussion may be forward-looking in nature and must be viewed in context of risks inherent in our business. After the end of this call, in case you have any further questions, please feel free to reach out to Investor Relations team. I now hand over the call to Badree for his opening comments.

Badree Komandur

Thank you, Abhishek. Hello all, and thank you for joining us for the Strides Q4 and FY26 earnings call. Like in previous quarters, I will begin with an overall summary of the Q4 and full year performance, focusing on growth metrics across revenue, margins and operating performance. I'll then take you through a detailed review of the geographies. After my section, Vikesh will walk you through the financials in more detail, followed by Q&A. Before I get into the operating performance, let me capture the 3 years journey in perspective. Over the last 3 years, we have been very clear on our priorities, geographical diversification, profitability and balance sheet strength. These priorities were deliberate because we believe that sustainable growth can only be built through strong foundation of profitability and operational discipline. The results of this strategy are now visible. Over the last 10 to 12 quarters, we have consistently delivered improvement across revenue, EBITDA, PAT for repo

Vikesh Kumar

Thank you, Badree. Very good morning, good afternoon, and good evening to all of you. FY '26 has been another year of strong profitable growth, which has been anchored in our pillars of profitability, efficiency and growth. At the core of this philosophy has been our disciplined approach towards profitability-led growth, a very efficient capital allocation and a drive to achieve sustainable and resilient business model. We are very pleased with the sustained progress across all of these metrics of profitability, efficiency and growth over the past few years as we continue to build long-term shareholder value. Over the last 12 quarters, we have significantly expanded on our profitability metrics, improved our cash flows and strengthened our balance sheet. Despite a challenging external environment in Q4, where we have seen additional cost pressures. We have continued to deliver consistent quarter-on-quarter growth in our absolute EBITDA and operational PAT, which truly reflects the resi

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Strides Pharma Science Limited

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