Reporting Boundary and Scope

The report covers Strides Pharma Science Limited including all manufacturing facilities, R&D centre, and Corporate Office in India and subsidiaries across USA, UK, Switzerland, Germany, Denmark, South Africa, Kenya, Canada, Singapore, and Cyprus, representing ~97% of consolidated revenue (11% increase from FY25). Occupational Health & Safety reporting covers all manufacturing facilities, R&D operations, and Corporate Office within India, contributing ~81% of manufacturing revenue.

Key Quantitative Figures

  • Revenue: ₹48,587 Mn (FY26) vs ₹45,653 Mn (FY25) | ₹50,093 Mn consolidated including other income
  • EBITDA: ₹9,253 Mn (FY26) vs ₹8,028 Mn (FY25)
  • PAT: ₹5,181 Mn (FY26) vs ₹3,447 Mn (FY25)
  • ROCE: 15.8% (FY26) vs 14.9% (FY25)
  • Net debt to EBITDA: 1.6x (FY26) vs 1.9x (FY25)
  • R&D Expenditure: ₹1,820 Million (3.7% of revenue)
  • Total Workforce: 6,478 employees (4,009 permanent, 2,469 non-permanent)
  • Women Representation: 29% of total workforce
  • Human Capital ROI: 3.15
  • Effective Tax Rate: 13.55%

Environmental Performance

  • Renewable Energy: 44.19% of total energy consumption in India
  • Total Energy Consumption: 105,996.45 MWh (71,366.93 MWh non-renewable, 34,629.52 MWh renewable)
  • Emissions Reduction: Scope 1 & 2 emissions intensity reduced from 1.24 tCO₂e/₹ Mn (FY23) to 1.16 tCO₂e/₹ Mn (FY26) in India
  • GHG Emissions: Scope 1 - 9,204.71 tCO₂eq, Scope 2 - 24,213.81 tCO₂eq, Scope 3 - 383,615.29 tCO₂eq
  • Total Emissions: 417,060.45 tCO₂e
  • Water Management: Total withdrawal 296,972.56 m³, intensity 6.11 m³/₹Mn revenue
  • Waste Management: ~20% waste co-processed in India, >40% diverted from landfill | Total waste generated: 2,712.23 tonnes
  • Zero environmental violations recorded

Governance Structure

  • Board Composition: 9 members (5 Independent Directors, 2 Executive Directors, 2 Non-Executive Directors)
  • Board Independence: 62.5% independent directors
  • Women Directors: 25% representation (2 out of 8 directors)
  • Board Attendance: 97.92% average attendance rate across 6 meetings
  • CEO Compensation: ₹65.6 Mn total annual compensation
  • CEO-to-Employee Ratio: 33.82 (mean employee compensation: ₹1,940,262)

Quality and Compliance

  • Regulatory Inspections: 13 completed with zero critical observations
  • Customer Audits: 15 completed with zero critical observations
  • Product Recalls: Zero Class I recalls over four years, 2 Class II recalls in FY26 valued at $0.05 Mn
  • Invalid OOS: Reduced to 1.1 per 1,000 tests from 1.8 in FY25
  • Training Hours: 150,000+ total learning hours delivered, 40.9 hours per employee average

Human Resources Development

  • Total Permanent Employees: 4,009 (29% women representation)
  • New Hires: 985 employees onboarded globally
  • Turnover Rate: 15% total, 13.6% voluntary
  • Employee Net Promoter Score: 82.4% with 70% response rate
  • Training Investment: ~₹50 Mn spent on L&D initiatives
  • Parental Leave: 134 male and 43 female employees took parental leave with high retention rates

Climate Risk and Financial Implications

  • Transition Risks: ₹1,040,125 Mn potential exposure if no action taken (per IEA STEPS scenario)
  • Physical Risks: ₹127.49 Mn estimated financial implications
  • Mitigation Cost: ₹12.6 Mn annually
  • Carbon Pricing Impact: India's planned Carbon Markets launch in 2026 may increase production costs

Forward-looking Commitments

  • Emission Reduction Targets: 42% reduction in absolute Scope 1 & 2 emissions by FY2030 from FY2023 baseline
  • Net Zero Commitment: 90% reduction in Scope 1, 2 & 3 emissions by FY2050
  • SBTi Validation: Publicly committed to seek validation of GHG emissions target by Science Based Targets initiative
  • Water Management: Target water withdrawal of 182,755 m³ for India operations
  • Employee Engagement: Target eNPS of 85%

Responsibility Statement

The Board of Directors and Management confirm that the Sustainability Report reflects a true and fair view of Strides' sustainability performance including ESG aspects, with appropriate systems and controls in place to monitor and manage sustainability risks.