Strides Pharma Science Hits All-Time High on Strong Q2FY26 Performance

Strides Pharma Science Limited's stock reached a new all-time high of ₹979, marking a 15% increase during Friday's intra-day trade on the BSE. This surge follows the company's announcement of strong operational results for the September 2025 quarter (Q2FY26). The previous record was ₹971.90 set on July 29, 2025, with the stock rallying 20% over the past three trading days.

The company demonstrated strong growth drivers in Q2FY26, particularly from other regulated markets. Gross margin expanded by 15% year-on-year (YoY), and earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 25% YoY, achieving an EBITDA margin of 19%, up 320 basis points YoY. Operational profit after tax saw an impressive 84% jump YoY to ₹140 crore, while revenue increased by 4.6% YoY to ₹1,220.8 crore.

Management indicated a sequential reduction of ₹46.9 crore in net debt, achieved despite currency headwinds and ongoing capital expenditure, underscoring financial discipline. US revenues remained steady at $73 million amidst intense competition, while the UK business is expected to grow in the second half of the fiscal year with planned product launches.

Outlook: Strides Pharma Science anticipates future growth from expanding its product portfolio, acquiring new customers, converting existing opportunities, and continued momentum in regulatory filings. The company also plans to reactivate 60 dormant Abbreviated New Drug Applications (ANDAs) over three years to achieve $400 million in generics revenue, alongside targeted investments in high-value segments like Controlled Substances and Nasal Sprays.

Impact This news is highly positive for Strides Pharma Science, indicating strong operational execution and growth potential. The all-time high stock price reflects investor confidence. The company's strategic focus on profitability, debt reduction, and expansion into high-value segments suggests continued upward momentum. Rating: 8/10

Difficult Terms: * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance, excluding the impact of financing, accounting decisions, and tax environments. * **YoY**: Year-on-Year. This refers to the comparison of financial data from the current period with the same period in the previous year. * **BSE Sensex**: A composite index of 30 well-managed, large-cap Indian companies listed on the Bombay Stock Exchange (BSE). It is one of the most tracked stock market indices in India. * **ANDAs**: Abbreviated New Drug Applications. These are applications submitted to the US Food and Drug Administration (FDA) for approval to market a generic version of an already approved brand-name drug. * **PAS**: Prior Approval Supplements. These are amendments to an approved drug application that require FDA review and approval before implementation. They are often used for changes related to manufacturing processes, facility changes, or source changes. * **H1/H2**: First half and second half of a financial year.