1. At a Glance – Blink and You’ll Miss the Turnaround
Strides Pharma Science Ltd currently sits at a market cap of ~₹8,092 Cr, trading around ₹877, which is still ~14% below its 52-week high of ₹1,025 — because markets love trauma and Strides has supplied plenty over the years.
But here’s the plot twist: Q3 FY26 PAT jumped 128% YoY, EBITDA margins hit ~20%, debt is sliding down like butter on a dosa, and suddenly the same stock that investors dumped during FDA scares is back on analyst watchlists.
Revenue for the latest quarter came in at ₹1,195 Cr, while PAT clocked ₹208 Cr, delivering an EPS of ₹21.93. At a P/E of ~14.7, Strides is trading at nearly 50% discount to industry PE (~29.6) — either the market is missing something… or still holding grudges.
ROCE is at ~14.7%, debt-to-equity at 0.67, and yes — promoter pledge is still 30.6%, so don’t get emotionally attached just yet.
The question is simple: Is this a genuine pharma comeback or just a one-quarter sugar rush?
2. Introduction – Once Bitten by FDA, Twice Scared by Investors
If Indian pharma had a trauma ward, Strides Pharma would have its own reserved bed.
From Ranitidine withdrawals, Losartan recalls, and margin collapse years, to suddenly reporting ₹3,350 Cr “other income” in FY24 (thanks to restructuring), this stock has tested every investor’s blood pressure.
But pharma is cyclical, memory is short, and money flows to numbers — not emotions.
FY25 marked a structural reset for Strides after spinning off its CDMO arm into OneSource, reducing consolidated debt and cleaning up balance-sheet clutter that analysts hated explaining on TV.
The US business
is now 51% of revenue, margins are improving, ANDA approvals are flowing, and management is openly guiding for ₹750–800 Cr EBITDA for FY25.
So the question isn’t whether Strides can perform — it’s whether this performance is repeatable.
And before you nod confidently — ask yourself:
How many times have you forgiven this stock already?
3. Business Model – WTF Do They Even Do?
Strides is basically a three-headed pharma hydra, each head behaving very differently.
1) Pharma Generics (The Cash Engine)
This is the serious, suit-wearing part of the company.
Strides manufactures niche generic formulations — tablets, capsules, liquids, sachets — primarily for regulated markets like the US, Europe, and Australia.
It’s also one of the world’s largest soft gelatin capsule producers, which sounds boring until you realize these are high-entry-barrier products where competition dies quickly.
2) Branded Generics – Africa Edition
This is the “In Africa, For Africa” strategy.
Think chronic therapies — women’s health, CNS, cardiovascular, diabetes — sold under brands like Renerve, Unibrol, Combiart, Duotab, Vitafer.
Margins here are decent, volumes are sticky, but currency risk keeps CFOs awake at night.
3) Institutional Business –
