Are Strides Pharma Science Ltd latest results good or bad?

Strides Pharma Science Ltd's latest financial results for Q3 FY26 present a mixed picture of performance. The company reported a consolidated net profit of ₹202.11 crores, reflecting a significant year-on-year growth of 129.80%. This sharp increase is noteworthy, especially when compared to the previous year's profit of ₹87.95 crores. However, the revenue for the same quarter stood at ₹1,194.65 crores, which indicates a modest year-on-year growth of 3.55%, a decline from the previous year's growth rate of 14.71%. The operating margin, excluding other income, reached 19.75%, marking the highest level in seven quarters and an improvement from 18.23% in Q3 FY25. This margin expansion suggests enhanced operational efficiency, driven by controlled employee costs and declining interest expenses. However, the company's reliance on exceptional other income, which constituted 42.95% of profit before tax, raises concerns about the sustainability of these earnings. In the nine-month period ending December 2025, Strides Pharma's consolidated net profit declined by 22.46% to ₹446.82 crores compared to the same period in FY25, highlighting the volatility in its earnings trajectory. This decline underscores the challenges the company faces in maintaining consistent profitability, particularly in the absence of exceptional gains that previously bolstered results. Overall, while Strides Pharma has demonstrated operational improvements through margin expansion, the quality of its earnings is under scrutiny due to significant reliance on non-operating income. The company saw an adjustment in its evaluation, reflecting the complexities of its financial performance amidst these operational trends.