Slides
Page 1
Health where it matters Q1FY27 Earnings Presentation July 31, 2026 Strides Pharma Science Limited
Page 2
Health where it matters 2 Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", “seek to", "future", "objective", "goal", "likely", "project", "should", "potential", "will pursue", and similar expressions of such expressions may constitute "forward-looking statements“. These forward-looking statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Safe Harbor
Page 3
Health where it matters 3 Strides Delivers Steady Performance with Revenue at ₹12,654m, Grew 13% YoY; Ex-US Markets Grew 17% YoY EBITDA Grew 5.4% YoY to ₹2,298m, Despite a ~₹131m Impact on Freight and Operating Costs from Geopolitical Disruptions; Operational PAT at ₹1,231m with Operational EPS at ₹13.4; Reported PAT at ₹1,655m with Reported EPS at ₹17.0 12,654 7,702 60.9% 2,298 18.2% 1,231 11,197 6,755 60.3% 2,181 19.5% 1,140 YoY13.0% 14.0% 60bps 5.4% -130bps 8.0% 13.4 12.4 8.0% 1,655 1,056 56.7% Revenue (₹m) Gross Margins (₹m) Gross Margin (%) EBITDA (₹m) EBITDA Margin (%) Operational PAT (₹m) Operational EPS (₹) Reported PAT (₹m) Q1FY27 Q1FY26 YoY Change Badree Komandur MD and Group CEO Strides delivered a steady start to FY27 with revenue growth of 13% YoY. Our investments in Ex-US Markets over the past few years are now yielding strong results, delivering 17% YoY growth and reinforcing the strength of our diversified business strategy. Our focus on execution and operating discipline enabled us to grow absolute gross margins by 14% YoY. EBITDA grew ~5% YoY to ₹2,298m, despite ~₹131m impact from elevated operating and freight cost arising from the ongoing geopolitical situation. We remain focused on mitigating these pressures through continuous cost optimization initiatives. We reduced net debt by ₹119m, with Net Debt-to-EBITDA at 1.52x, despite significant working capital investments required to navigate the current business environment and growth. During the quarter, we unlocked ₹1,000m of value through the divestment of our majority stake in Pivot Path, our captive GCC, while retaining meaningful participation in its future growth. We also improved our EcoVadis sustainability score to 68/100, a 19-point increase over last year. While the external environment remains dynamic, we remain focused on delivering sustainable and profitable growth. Reported PAT includes gain on sale of majority stake in Pivot Path, Strides captive GCC Operational PAT = Reported PAT excluding exceptional items
Page 4
Health where it matters 4 Sustained YoY Growth Across P&L Metrics Profitability Focus Combined with Growth in Ex-US Markets Delivered an Operating EPS of ₹13.4 Total Revenue (₹M) Gross Margin (₹M) EBITDA (₹M) Operational PAT (₹M) ₹ 11,197 ₹ 12,208 ₹ 11,946 ₹ 13,235 ₹ 12,654 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 ₹ 12.4 ₹ 15.2 ₹ 13.9 ₹ 14.7 ₹ 13.4 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Operational EPS (₹) ₹ 6,755 ₹ 7,056 ₹ 7,317 ₹ 7,872 ₹ 7,702 60.3% 57.8% 61.2% 59.5% 60.9% 0.0 % 10. 0% 20. 0% 30. 0% 40. 0% 50. 0% 60. 0% 70. 0% 4,0 00 4,5 00 5,0 00 5,5 00 6,0 00 6,5 00 7,0 00 7,5 00 8,0 00 8,5 00 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Gross Margin Gross Margin (%) ₹ 1,140 ₹ 1,403 ₹ 1,282 ₹ 1,359 ₹ 1,231 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 ₹ 2,181 ₹ 2,316 ₹ 2,359 ₹ 2,397 ₹ 2,298 19.5% 19.0% 19.8% 18.1% 18.2% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.0% 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 EBITDA EBITDA (%) • Strong YoY growth recorded across Ex-US Markets • Consistent YoY growth in absolute gross margin • Margins profile to remain steady in ~58% to 60% • YoY Growth in absolute EBITDA • EBITDA Margin continues to be impacted by external headwinds • EBITDA to PAT conversion at ~50%+
Page 5
Health where it matters 5 Ex-US Markets Continue to Deliver Strong 17% YoY Growth Revenue Composition (₹M) US Market (₹M) Ex-US Markets (₹M) Access Market* (₹M) ₹ 6,036 ₹ 6,282 Q1FY26 Q1FY27 4% ₹ 144 ₹ 497 Q1FY26 Q1FY27 100%+ 1% 4% 45% 46% 54% 50% Q1FY26 Q1FY27 Access Market Ex-US US 17% *Tactical Business ₹ 5,017 ₹ 5,875 Q1FY26 Q1FY27
Page 6
Health where it matters US Market
Page 7
Health where it matters 7 Q1FY27 Revenue Remains Steady at ₹6,282m ($68m), H2 Expected to be Stronger with New Launches • Q1FY27 revenue at $68m, remained steady despite new entrants in recent launches • Launched 2 products in Q1FY27 • Total number of commercialized products stood at 72 • Slower than expected quota allocation is impacting Controlled Substances revenue growth • New product approvals are expected in H2FY27 • Continue to rank amongst the top 3 in 37 products, enjoying a market-leading position, contributing ~70% of our total US revenue Generics • Aspire to focus on North America Business Revenue of ~$375m by FY28 despite current external headwinds • Multiple products have been identified from our dormant and acquired ANDAs portfolio, which are under various regulatory phases of PAS (prior approvals supplements) for source change and cost leadership to be relaunched to achieve the stated aspiration • 228 ANDAs filed, 210 ANDAs approved (152 products) as of Jun’26 New Updates • Investing in building a portfolio of Control Substances, Nasal Sprays, Transdermal Patches and Films as part of a long-term strategy • Filed Second Nasal Spray product (Controlled substance) in May’26 • Continuing to build on these domains with additional filings and approvals expected in the near term. Comments Business Outlook Year-on-Year Comparison (₹/$M) ₹ 6,036 ₹ 6,289 ₹ 6,105 ₹ 6,467 ₹ 6,282 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 ₹ 6,036 ₹ 6,282 Q1FY26 Q1FY27 YoY 4% Quarterly Trend (₹/$M) $71 $68 $71 $73 $70 YoY growth are on ₹ reported numbers $70 $68
Page 8
Health where it matters Ex-US Markets
Page 9
Health where it matters 9 Ex-US Markets Revenue at ₹5,875m ($63m), Grew 17% YoY, Driven by Strong Performance Across Markets Year-on-Year Comparison (₹/$M) ₹ 5,017 ₹ 5,310 ₹ 5,619 ₹ 6,458 ₹ 5,875 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 ₹ 5,017 ₹ 5,875 Q1FY26 Q1FY27 YoY 17% Quarterly Trend (₹/$M) $59 $63 $59 $61 $64 YoY growth are on ₹ reported numbers $70 $63 • All markets except US and institutional business form part of the Ex -US Markets • Strong customer advocacy and dependable supply enabled us to expand our front -end markets of UK and Nordics • Africa operations led by the Brands business delivered stellar growth • Continue to add new customers in Europe by leveraging strong commercial presence and robust supply chain • New filing and launch momentum continues across the region • Expansion of product portfolio and new customer acquisitions to drive growth • Conversion of the existing strong funnel of new opportunities to deliver growth • Significant regulatory filings in new territories have commenced; however, the regulatory timelines in most markets are longer • Focus on portfolio maximization strategies, and astute channel partner expansion will drive the future growth Comments Business Outlook
Page 10
Health where it matters Financial Performance Strong Financial Discipline Enabled Profitable Growth
Page 11
Health where it matters 11 Income Statement – Q1FY27 Operational PAT at ₹1,231m; EPS at ₹13.4 Income statement (₹M) Particulars Q1FY27 Q1FY26 YoY Q4FY26 QoQ I. Revenue 12,654 11,197 13.0% 13,235 -4.4% II. Material Costs 4,952 4,443 5,362 III. Gross Margin (I- II) 7,702 6,755 14.0% 7,872 -2.2% Gross Margin % 60.9% 60.3% 60 bps 59.5% 140 bps a. Personnel Cost 2,430 2,255 2,471 b. Other Opex 2,975 2,319 3,004 IV. Total Opex (a+b) 5,404 4,574 5,475 V. EBITDA (III-IV) 2,298 2,181 5.4% 2,397 -4.1% EBITDA Margin % 18.2% 19.5% -130 bps 18.1% 10 bps c. Depreciation and amortisation 564 489 532 d. Net Finance Cost 361 406 373 e. Other Income (5) (18) (39) f. Exceptional items – net (gain) / loss (632) 84 64 g. JV share of loss 13 (1) (14) VI. Profit/ (loss) before tax (V-c-d-e-f-g) 1,996 1,220 63.6% 1,481 34.8% h. Tax 341 165 188 VII. Profit/(loss) after tax For the Period 1,655 1,056 56.7% 1,293 28.0% VIII. Reported EPS (₹) 17.0 10.8 57.6% 13.8 23.6% Q1FY27 Tax includes Tax on Sale of Pivot Path of ₹208m Operational PAT = Reported PAT excluding exceptional items
Page 12
Health where it matters 12 Reported Net Debt at ₹14,246m with a Net Debt/EBITDA of 1.52x Received Credit Rating Upgrade for Long-Term Bank Facilities to CARE A+; Stable from CARE A; Positive #Investment held in OneSource is not considered for Net debt computation FY26 Update • Net Debt reduced by ₹119m during the quarter • Q1FY27 Operating cashflow at ₹1,087m • CARE Ratings upgraded our Long-Term Bank Facilities rating to CARE A+; Stable from CARE A; Positive. • Strides retained interest in OneSource is currently worth ₹3,100m (30 July’26) (not adjusted from Net Debt) • Focus on operating cashflow generation • While there is external challenging environment leading to elongated cash to cash cycles , we remain focused on improving the Net Debt/EBITDA ratio • Committed to drive long term growth through impactful R&D and Capex programs Outlook Particulars (In ₹m) Mar’26 June’26 Working Capital Loans 10,393 10,940 Long Term Loans 6,294 6,145 Gross Debt 16,687 17,086 Cash and Cash Equivalents (2,322) (2,840) Reported Net Debt# 14,365 14,246 Finance cost (In ₹m) Q4FY26 Q1FY27 Interest Cost on Borrowings (A) 327 325 Other Finance Charges (B) 89 81 Finance Income (C) 43 44 Net Finance Cost (A+B-C) 373 361
Page 13
Health where it matters 13 Continued Steady Performance Across Key Metrics, Despite Adverse Impact of External Headwinds Net Debt to Equity (x) Net Debt to EBITDA (x) Cash to Cash Cycle (Days) Current Ratio (x) RoCE (%) Fixed Asset Turnover Ratio (x) 0.98 0.59 0.46 0.43 FY24 FY25 FY26 Q1FY27 3.47 1.90 1.55 1.52 FY24 FY25 FY26 Q1FY27 129 117 124 123 FY24 FY25 FY26 Q1FY27 1.10 1.24 1.28 1.33 FY24 FY25 FY26 Q1FY27 9.74% 14.86% 15.76% 15.25% FY24 FY25 FY26 Q1FY27 4.42 4.95 4.52 4.56 FY24 FY25 FY26 Q1FY27 All ratios are on TTM basis; For RoCE, Capital Employed = Equity + Net Debt
Page 14
Health where it matters 14 ` Q1FY27 Earnings Call Details invites you to interact with the senior management on Q1FY27 Performance July 31, 2026 5:00 pm IST / 12:30 pm BST / 7:30 am EDT / 7:30 pm HKT Participants from the Management would be: Click Here pre-register and join without the operator Join through an operator using dial in numbers India Primary +91 22 6280 1434 / +91 22 7115 8838 USA 18667462133 Singapore 8001012045 UK 08081011573 Hongkong 800964448 Vikesh Kumar Group CFO Badree Komandur Managing Director & Group CEO
Page 15
Health where it matters To know more: www.strides.com Stay Connected © 2026 Strides Pharma All Rights Reserved. This presentation is intended solely for the use of the individual or entity to whom it is addressed. If you are not the intended recipient, please notify the sender immediately and delete the presentation from your system. Any unauthorized use, disclosure, copying, or distribution of this presentation is strictly prohibited. The information contained in this presentation is for informational purposes only and is provided "as is" without any warranties, express or implied. Strides makes no representations as to the accuracy or completeness of the information in this presentation or any consequences resulting from the use of such information. This presentation may contain confidential and privileged information. Unauthorized disclosure or use of such information is strictly prohibited. Strides reserves the right to make changes to this presentation at any time without notice. The views and opinions expressed in this presentation are those of the author(s) and do not necessarily reflect the official policy or position of Strides. Strides accepts no liability for any damage caused by any virus transmitted by this presentation. It is the responsibility of the recipient to ensure that the presentation is virus-free before opening. By viewing or using this presentation, you agree to be bound by the terms and conditions of this disclaimer. Youtube logo Images - Free Download on Freepik Thank You Investor-relations@strides.com