The Comeback Kid of Indian Pharma That Nobody Clapped For

The Pharma Company That Spent a Decade Tripping Over Itself — And Just Stood Up

Let’s be honest about what Strides Pharma used to be: a chaotic, acquisition-happy conglomerate that couldn’t decide if it was a generic drugs company, a CDMO, an African healthcare provider, or a Bollywood sequel nobody asked for. Between FY18 and FY23, the company delivered losses, restructurings, write-offs, and boardroom drama on a rotating schedule. Fun times if you enjoy watching ₹3,025 crore of debt with very little to show for it.

And then — slowly, painfully, with the grace of someone learning to parallel park — things changed. The OneSource CDMO demerger got completed. Debt started falling. Promoter pledges (once at 72.7%) have come down to 30.6%. EBITDA margins, which looked like a dead ECG in FY22 (-4%), climbed back to 14%, then 18%, and now a record 19.8% in Q3 FY26.

This is a company that has genuinely restructured — not in the “we issued a press release about restructuring” way, but in the “we actually returned ₹500 crore of debt in FY25 and kept going” way. The US business now runs at $70 million per quarter. Ex-US markets are growing 20% YoY and inching toward US revenue parity. Nine months into FY26, operational PAT has already beaten the full year of FY25. That’s not an accident. That’s execution — finally.

Pills, Pills, and More Pills. But Make It Complicated.

At its core, Strides makes niche generic pharmaceutical formulations and sells them to over 100 countries. The magic word here is “niche” — they’re not competing in the race-to-the-bottom commoditised generic market. They specialise in soft gelatin capsules, controlled substances, liquids, nasal sprays, and other forms that require real manufacturing skill and regulatory approvals. It’s not glamorous, but the entry barriers are high enough that Gulf Oil couldn’t just walk in and ruin it.

The business has three levers. First, the US market — currently ~53% of revenue and growing at $70m per quarter, with a stated management target of $400 million by FY28 (current annual run rate: roughly $280m). They rank in the top 3 for 37 products, which together contribute ~75% of US revenue. Second, Other Regulated Markets (Europe, Australia, Canada) — $48 million this quarter, 21% YoY growth, finally breaking out of the ₹40–43m plateau that had persisted for six quarters. Third, Institutional/Access markets — donor-funded healthcare for Africa and similar regions, now subdued because global health funding (hello, US policy shifts) has tightened. Management tone: muted, may improve later. Translation: don’t hold your breath.

Seven manufacturing plants. Four USFDA-approved. 215+ approved ANDAs. 60 products to be launched over the next 36 months. A new controlled substances franchise in early innings. Nasal sprays filed and under review. And a brand-new CEO for North America with 30 years of experience. Strides is no longer just surviving — it’s building.

Q3 FY26: When the Numbers Finally Stopped Being Embarrassing