Bengaluru-based Strides Pharma Science has reached a milestone in its effort to reduce its dependence on the US generics market. In its results for the quarter ended 30 September 2026, announced on 29 October, the company said revenue from markets outside the United States grew faster than its US business and, for the first time, was larger than it in a single quarter.

The quarter in numbers

• Revenue from operations: ₹1,429.7 crore, up 17.1% from ₹1,220.8 crore a year earlier and up 13% from the June quarter.
• EBITDA: ₹250.9 crore, up 8.4% year on year. The company said this is the first quarter in which EBITDA has crossed ₹250 crore.
• EBITDA margin: 17.6%, down from 19.0% in Q2 FY26.
• Profit: reported profit after tax rose 2% to ₹134.1 crore, while operational PAT grew 11.5% to ₹135.8 crore.

Ex-US markets take the lead

Revenue from ex-US markets rose 31% year on year to ₹696.3 crore. The US business grew 9% to ₹685.5 crore, helped by three product launches during the quarter. The crossover is notable because only a quarter earlier the order was reversed: in Q1 FY27, ex-US markets brought in ₹587.5 crore against ₹628.2 crore from the US.

“Our diversification strategy continues to play out, with Ex-US Markets growing 31% YoY to ₹6,963m and, for the first time, surpassing our US business in quarterly revenue,” said Badree Komandur, Managing Director and Group CEO of Strides Pharma Science. “Our US business delivered 9% YoY growth.”

Costs and working capital

Growth came with pressure on margins. Total expenses rose 18.2% to ₹1,282.6 crore, and the company said input costs were higher because of geopolitical disruptions, which it is working to offset through cost optimisation. In the June quarter, Strides had flagged about ₹13 crore in additional operating and freight costs linked to the same situation.

Net debt rose by ₹211.4 crore during the first half of FY27. Komandur attributed this to a longer cash-to-cash cycle and to the company holding more inventory to manage current market conditions, adding that Strides expects its net debt to EBITDA ratio to stabilise by the end of the year.

Why it matters for Indian pharma

For many Indian generics makers, the US remains the single largest market, and its pricing pressure has long shaped their earnings. A business mix in which regulated and emerging markets outside the US now carry more of the revenue gives Strides a wider base to grow from, while the margin squeeze and higher inventory show what it costs to keep supply chains steady when freight and inputs become less predictable.

Strides shares closed 1.41% higher at ₹1,100.90 on the BSE on 29 October.

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