Why are Strides Pharma shares down 8% today, a day after Q4 results? Explained

Shares of Strides Pharma Science fell over 8% in early trade on Tuesday, a day after the company announced its Q4 FY26 earnings and outlined its medium-term growth roadmap amid ongoing challenges in the US market.

The stock declined 8.55% to ₹1,053 on the NSE after closing at ₹1,151.4 in the previous session. The stock touched an intraday low of ₹1,035 during early trade.

Strides Pharma reported a 51% year-on-year jump in consolidated net profit for the March quarter at ₹129.2 crore, compared to ₹86 crore in the corresponding quarter last year.

Revenue from operations rose 11.2% YoY to ₹1,323.4 crore from ₹1,190.3 crore, while EBITDA increased 10% to ₹239.6 crore against ₹218 crore a year ago. EBITDA margin, however, slipped marginally to 18% from 18.3% in Q4 FY25.

The company said its US business faced headwinds during the second half of FY26 as anticipated seasonal flu demand failed to materialise. It also disclosed that the March quarter profitability was impacted by a sudden spike in logistics and air freight costs, which resulted in a ₹20 crore hit to profitability.

Strides further stated that its cash-to-cash cycle stretched by seven days to 124 days as the company intentionally increased inventory levels by 21 days to safeguard operations against global supply chain disruptions.

The company’s US market revenue stood at ₹24,897 million (approximately $284 million), reflecting a modest 2% year-on-year growth. Meanwhile, revenue from ex-US markets rose 21% YoY to ₹22,404 million (around $254 million), indicating stronger traction in international businesses outside the United States.

Despite the near-term challenges, management maintained a positive long-term outlook and said the company aspires to focus on achieving North America business revenue of nearly $400 million by FY28.

The company also said it expects growth momentum to return by the second half of FY27.

Separately, Strides Pharma also announced a major leadership reshuffle. As part of the changes, the promoter’s son will move into a non-executive role, according to the company’s regulatory filing.

The stock has remained volatile in recent sessions as investors assess the company’s near-term margin pressures, US market dynamics and inventory-related working capital impact.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.