Strides Pharma Q4 FY26 profit jumps 51% on ex-US growth

What Strides reported for the March quarter

Strides Pharma Science Ltd reported a strong March-quarter performance, led by growth outside the US even as its key US business stayed largely flat. In a regulatory filing, the Bengaluru-based drugmaker posted consolidated net profit of ₹129.28 crore for Q4 ended March 31, 2026, up 51% year-on-year from ₹85.62 crore. Revenue from operations rose to ₹1,323.47 crore from ₹1,190.39 crore a year earlier. The company also flagged that the US market remained muted during the quarter, linking the backdrop to a weak flu season. While topline improved, costs also moved up, keeping margins largely steady rather than expanding sharply. The quarter underscored a familiar theme for Indian generic players: diversification across geographies can cushion softer US demand.

Ex-US markets drove the bulk of growth

Strides highlighted that its “main markets excluding the US” delivered the clearest growth in Q4. Revenue from these markets rose to ₹645.8 crore from ₹480 crore in the year-ago quarter. That expansion helped offset a slight dip in the US. The performance suggests improving traction in markets where pricing pressure is typically less intense than the US generics segment. It also indicates that product and channel mix outside the US contributed meaningfully to the quarterly improvement. With ex-US and US revenue nearly at similar levels in the quarter, the geographic split looks balanced on the surface. But the growth contribution clearly came from outside the US.

US business stayed flat amid weak flu season

For the US market, Strides reported Q4 revenue of ₹646.7 crore compared with ₹651.5 crore in Q4 FY25, as per an investor presentation. The near-flat trend highlights the softness in seasonal demand referenced in the context of a weak flu season. In US generics, quarterly performance can also be sensitive to product-level competition and customer ordering patterns, but the company’s commentary in the provided material centred on demand conditions. The US remained a large contributor to quarterly revenue, but it did not add to growth this time. The contrast between ex-US acceleration and US stagnation was one of the key takeaways from the quarter.

Profitability, expenses, and margin signals

Operating performance was supported by EBITDA of about ₹239 crore in Q4 FY26, with an EBITDA margin of 18.1% reported in coverage. Another data point in the provided material put Q4 EBITDA at ₹239.7 crore, up about 10% from ₹217.9 crore in Q4 FY25. The margin was described as down by 20 basis points to 18.1% compared with 18.3% a year earlier. Strides also reported higher total expenses at ₹1,178.59 crore versus ₹1,071.71 crore in the year-ago quarter. Coverage also referenced profit before exceptional items and tax at ₹153.01 crore, alongside an exceptional loss of ₹6.41 crore during the quarter. These numbers collectively point to stable operating profitability, with higher costs and exceptional items limiting margin expansion.

Sequential trend: PAT fell versus the December quarter

While year-on-year profit growth was strong, sequential movement was weaker. The provided material said reported profit after tax (PAT) declined 37.9% from ₹208 crore in the previous quarter. That ₹208 crore figure corresponds to the Q3 FY26 profit reported for the quarter ended December 31, 2025. In that December quarter, Strides also reported a one-time income driver: it sold an investment property for consideration of ₹112.87 crore and recorded a profit of ₹102.14 crore as other income. With that context, a sequential drop in PAT in Q4 is consistent with the absence of such one-off gains. The sequential comparison therefore needs to be read alongside Q3’s non-operating boost.

Full-year FY26 numbers and the FY25 base effect

For FY26, Strides reported consolidated net profit of ₹574.52 crore versus ₹3,597.51 crore in FY25, with FY25 boosted by profit after tax from discontinued operations of ₹3,188.11 crore. Revenue from operations in FY26 rose to ₹4,858.68 crore from ₹4,565.34 crore. Another data point in the provided material described FY26 net profit as ₹574.5 crore and characterised it as a 40.3% year-on-year rise, while a separate snippet mentioned FY26 profit at ₹556.19 crore. The common thread across the supplied context is that FY25 included a large discontinued-operations gain, which distorts simple year-on-year comparisons of reported net profit. On the revenue line, the direction is clearer: FY26 operating revenue increased versus FY25.

US versus ex-US mix for FY26

The provided material also included a FY26 geographic snapshot. It said the US business remained muted at ₹2,489 crore (US$184 million), while ex-US sales increased 21% year-on-year to ₹2,240 crore (US$154 million). This mix supports the quarter-level narrative that non-US markets are currently providing stronger momentum. With the US still the single largest geography by revenue, any sustained improvement in US demand can materially move consolidated growth. But for FY26, ex-US growth appears to have done more of the heavy lifting.

Key financial highlights at a glance

FY26 summary table

Why the quarter matters for investors

The quarter’s numbers show that Strides is currently getting its growth from non-US markets, which can reduce dependence on the US generic cycle. At the same time, the US business remains a large revenue base, so prolonged flatness can cap consolidated growth even when ex-US performs well. Margin movement was modest, with EBITDA margin broadly stable around 18%, but higher expenses and exceptional items featured in the quarter’s profitability bridge. The sequential PAT decline also reinforces the importance of separating operational performance from quarters that include one-time gains. For investors tracking the stock, the key variables remain the pace of recovery in the US, sustainability of ex-US growth, and how cost trends evolve.

Closing note

Strides’ Q4 FY26 results reflected a clear geographic split: strong growth outside the US and a muted US quarter linked to a weak flu season. The company’s FY26 revenue increased year-on-year, while the net profit comparison versus FY25 is heavily affected by discontinued-operations gains recorded in the prior year. Investors will watch for further updates on the US business trajectory and whether ex-US momentum sustains into the next financial year.