STRIDES PHARMA SCIENCE Q2 CONCALL: RETAINS OVERALL FY28 GROWTH ASPIRATION; EX-US REVENUE TARGET ABOVE $375 MILLION, US TARGET DELAYED TO FY29 & STRONGER H2 EXPECTED

• FY28 Growth Outlook: Management reiterated its overall FY28 revenue growth aspiration, supported by faster expansion in ex-US markets and continued growth in the US business. • Ex-US Revenue Target: Management expects ex-US revenue to exceed $375 million by FY28, supported by geographic expansion, new product launches and the Sandoz transaction. • US Revenue Target Revised: Management expects to achieve its earlier $375 million US revenue aspiration beyond FY28, with FY29 now the expected timeframe. • H2 FY27 Outlook: Management expects H2 revenue and profitability to be stronger than H1, supported by new launches, business wins and improved supply chain execution. • Profitability Outlook: Management expects bottom-line growth to outpace revenue growth as operating leverage improves and differentiated products contribute. • Gross Margin Outlook: Management expects consolidated gross margins to remain in the 58–60% range, supported by alternate sourcing, procurement efficiencies and cost optimization. • Ex-US Growth Outlook: Management expects ex-US markets to continue growing faster than the company average over the medium to long term. • Ex-US Profitability: Management expects the ex-US business to maintain healthy profitability, with EBITDA margins potentially slightly above the company average. • US Growth Strategy: Management is prioritizing margin-accretive products, including nasal sprays, transdermal patches, films and controlled substances, rather than pursuing volume growth at lower margins. • US Business Performance: Q2 US revenue increased 9% YoY and 9% QoQ to ₹685.5 Cr. Revenue was broadly flat YoY in US dollar terms at approximately $73 million. • US H2 Launch Guidance: Management expects to launch approximately 4–6 products during H2 FY27, with a full-year revenue contribution from these launches in FY28. • US Product Portfolio: Company has filed 230 ANDAs, of which 212 have been approved, covering 154 products as of October 26, 2026. • Commercial US Portfolio: Company launched three products during Q2, increasing its commercialized portfolio to 75 products from 72 in Q1. • US Market Position: Company holds top-three market positions in 38 products, which collectively contribute approximately 70% of its US revenue. • Differentiated Product Pipeline: Company has more than 40 value-accretive products under active development, with phased commercialization planned through FY30. • Controlled Substances Business: Five commercialized controlled-substance products currently address an estimated market opportunity of approximately $750 million. • Controlled Substances Expansion: Company has more than 10 additional controlled-substance products in its pipeline, potentially expanding the addressable market to approximately $4.5 billion. • Controlled Substances Quota: Management expects gradual improvements in regulatory quota allocations and believes newer differentiated products can scale with relatively limited API quotas. • Nasal Spray Pipeline: Company filed its third nasal spray product in September 2026 and expects approval for another nasal spray product in Q4 FY27. • Transdermal Patch Launch: Company expects to launch a controlled-substance patch in Q3 FY27, with the full revenue benefit expected in FY28. • US Differentiated Portfolio Contribution: Management expects meaningful contributions from its new differentiated product pipeline during FY28–FY29. • Ex-US Revenue Performance: Q2 ex-US revenue increased 31% YoY to ₹696.3 Cr, while H1 revenue increased 24% YoY to ₹1,283.8 Cr. • Ex-US Revenue Milestone: Ex-US business reached approximately 102% of US business revenue in Q2, achieving the company's earlier regional diversification aspiration ahead of FY28. • UK Business: Management highlighted healthy prescription business growth, supported by pricing, volumes and new product launches. • European Business: Growth was supported by higher demand from partners, new out-licensing agreements and expansion of private-label OTC products in Germany. • Nordics Business: Management expects higher branded prescription product contributions during H2, supported by increasing market uptake and launches. • Australia Business: Company reported improved supply execution and additional projects with existing partners, currently at various stages of implementation. • Africa Business: Branded pharmaceutical business in Francophone Africa continued to outperform its underlying market, supported by product launches and distribution expansion. • Sandoz Transaction: Management expects the transaction to close in Q3 FY27, subject to pending antitrust approvals in certain countries. • South Africa: Management highlighted growth in independent pharmacy channels and new business opportunities with a leading retail pharmacy chain. • Latin America Outlook: Company is building its regulatory and product portfolio presence in LATAM but does not expect meaningful revenue contribution before approximately FY29–FY30. • FY27 Capex Outlook: Management expects capital expenditure and intangible investments of approximately ₹300 Cr for FY27. • FY28 Capex Outlook: Management expects FY28 investment levels to be slightly lower than FY27, with spending primarily focused on maintenance and selected intangible assets. • H1 Investments: Company deployed approximately ₹208 Cr during H1 toward capital expenditure and intangible assets, including nasal spray and patch development programmes. • Working Capital: Cash-to-cash cycle increased to 137 days, up 13 days from March 2026, primarily due to higher inventories and longer supply chain lead times. • Working Capital Increase: Absolute working capital increased by ₹307 Cr during H1, including approximately ₹174 Cr from higher inventory and ₹133 Cr related to business growth. • Working Capital Outlook: Management expects improvement in the cash conversion cycle over the coming quarters as supply chain conditions normalize. • Net Debt Outlook: Management expects net debt-to-EBITDA to stabilize and improve by FY27-end, supported by working capital normalization and stronger H2 earnings. • Net Debt Position: Net debt-to-EBITDA stood at 1.72x, with net debt increasing approximately ₹211 Cr during H1, mainly due to working capital requirements. • Finance Cost Outlook: Management expects quarterly finance costs to remain approximately ₹40–45 Cr over the near term. • ROCE Outlook: Trailing 12-month ROCE stood at 14.4%, with management expecting improvement as recent investments mature. • Q2 Revenue: Revenue increased 17% YoY and 13% QoQ to a record ₹1,429.7 Cr. • Q2 EBITDA: EBITDA increased approximately 8% YoY to ₹250.9 Cr, with EBITDA margin at 17.6%, compared with 19% YoY and 18.2% QoQ. • Q2 Gross Margin: Gross margin stood at 56%, compared with 57.8% YoY and 60.9% QoQ, reflecting higher material, freight and logistics costs. • Q2 Profitability: Operational PAT increased approximately 12% YoY to ₹135.8 Cr, while reported PAT stood at approximately ₹134 Cr. • H1 FY27 Financials: Revenue increased 15.1% YoY to ₹2,695 Cr, EBITDA increased 6.9% to ₹481 Cr, and operational PAT increased 9.8% to ₹259 Cr. • H1 Reported PAT: Reported net profit increased 26.4% YoY to ₹300 Cr, including a gain from the Pivot Path divestment recognized in Q1. • Key Challenges: US generic pricing pressure, normalization of oral-solid drug shortages, controlled-substance quota limitations, elevated material costs, freight inflation and higher working capital requirements remain key factors to monitor.

STRIDES PHARMA SCI LTD

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