Strides Pharma Science Limited Posts ₹14,297 Million Q2 Revenue

Strides Pharma Science Limited posted record Q2 FY27 revenue of INR 14,297 million, up 17% year on year, while ex-US revenue reached INR 6,963 million and surpassed its US business for the first time. EBITDA rose 8% to INR 2,509 million despite lower gross margin.

What drove Strides' record second-quarter revenue?

Strides' record quarterly revenue was led by growth in its ex-US business, which increased 31% year on year during the quarter ended September 2026. Consolidated revenue rose 13% sequentially from the preceding quarter, alongside the 17% year-on-year increase.

The company described the performance as occurring against a challenging macro backdrop. Its ex-US operations generated INR 6,963 million, accounting for 49% of total quarterly revenue. This was the first quarter in which ex-US revenue exceeded revenue from the US business, marking an earlier-than-expected strategic milestone for the company.

The Q2 results were approved by Strides' board on October 29, 2026, and the earnings call was held on October 30. The company reported that its operational profit after tax increased 12% year on year to INR 1,358 million.

How did margins and EBITDA perform in Q2 FY27?

Strides' EBITDA increased 8% year on year to INR 2,509 million, crossing INR 2,500 million in a quarter for the first time. The increase in EBITDA was slower than revenue growth, reflecting a reduction in gross margin during the period.

Gross profit rose 13% year on year to INR 8,003 million in absolute terms. However, gross margin declined to 56.0%, compared with 57.8% in Q2 FY26 and 60.9% in Q1 FY27. Management attributed the margin movement to higher input costs linked to the geopolitical situation.

The sequential change in gross margin is notable because revenue rose 13% quarter on quarter while margin fell from the first-quarter level. The result shows that higher sales supported absolute gross profit and EBITDA, but cost conditions affected profitability as a proportion of revenue.

Why is ex-US revenue overtaking US revenue significant?

Ex-US revenue overtaking US revenue is significant because Strides has identified the ex-US business as a key area of growth, and the milestone was achieved ahead of schedule. At INR 6,963 million, the segment represented nearly half of quarterly revenue and grew faster than the consolidated business.

The company had reported a 13% year-on-year topline increase in Q1 FY27, also supported by ex-US performance. The 31% growth recorded by the ex-US business in Q2 indicates that this momentum strengthened in the following quarter.

For investors, the mix shift provides context for the record revenue result. It reduces the quarter's dependence on a single geography and puts greater weight on operating execution across markets outside the US. The earnings call did not provide a country-level split or separate revenue figure for the US business.

What does the updated US aspiration mean for investors?

Strides has pushed its aspiration to reach USD 375 million in US revenue beyond FY28, according to the earnings-call highlights. The company did not state a replacement deadline in the information provided, so the timing of that goal remains unresolved.

The update matters because the US remains a material business for Strides even though it was surpassed by ex-US revenue in Q2. Investors will therefore assess future quarterly disclosures for the pace of US sales, the development of the ex-US mix, and whether input costs continue to pressure gross margin.

The current results show a combination of record revenue and EBITDA with a lower margin percentage. That makes revenue growth, gross-margin movement and EBITDA conversion the key reported measures for tracking the balance between scale and profitability in subsequent quarters.

Conclusion

Strides delivered its highest quarterly revenue of INR 14,297 million in Q2 FY27, supported by 31% growth in ex-US revenue. EBITDA rose to a quarterly record of INR 2,509 million, although gross margin declined to 56.0% as the company cited higher input costs.

The next items to watch are the company's subsequent quarterly disclosures on US revenue progress, ex-US growth and gross-margin recovery. Strides has stated that its USD 375 million US aspiration is now beyond FY28, but it has not disclosed a revised target date in the available earnings-call information.