Strides Pharma Science Limited (NSE: STAR) has recommended a final dividend of ₹5 per equity share for the financial year ended March 31, 2026, its board decided at a meeting held on May 18, 2026. The payout represents a 25% increase over the ₹4 per share declared for FY25 and continues an unbroken streak of annual dividend hikes stretching back to FY23.

Dividend Details

Dividend History and Trend

The company's dividend record shows a consistent upward trajectory over recent years. After paying ₹1.50 per share in FY23, Strides raised the payout to ₹2.50 in FY24, then to ₹4.00 in FY25, and now to ₹5.00 in FY26. This four-year compounded growth in dividends reflects improving earnings visibility at the specialty pharma company. Prior to this run, dividends had been erratic, ranging from ₹2.00 in FY20 to ₹2.50 in FY21, with no payout recorded for FY22. The FY19 cycle was notably higher, with a ₹3.00 final dividend supplemented by a ₹12.00 interim dividend declared in July 2019, a one-time event tied to a specific corporate transaction at the time.

Market Context and Valuation

STAR shares closed at ₹1,143.80 on May 18, 2026, down ₹9.90 or 0.86% for the session. The stock is trading within proximity of its 52-week high of ₹1,231.00 reached on May 12, 2026, and is significantly above its 52-week low of ₹654.40 recorded on May 15, 2025, reflecting a sharp recovery of approximately 75% from the trough over the past year. The stock is a constituent of the NIFTY MICROCAP 250, NIFTY TOTAL MARKET, and NIFTY SMALLCAP 500 indices.

At current prices, STAR trades at a price-to-earnings ratio of 20.11x, a modest premium to the sector PE of 18.56x, indicating the market is ascribing a slight growth premium to the stock relative to its pharmaceutical peers.

Trading Activity

Trading volumes on May 18 stood at 96,478 shares, with a delivery percentage of 58.37%. A delivery ratio above 50% typically indicates that a meaningful proportion of buyers intend to hold the shares rather than square off intraday positions, suggesting genuine investor interest around the dividend announcement date. Daily volatility for the stock stands at 2.62%, broadly in line with mid-tier pharma names.

What Investors Should Note

Strides Pharma's FY26 financial results for the period ended March 31, 2026, were also submitted to the exchange on the same day. The dividend recommendation, subject to shareholder approval at the upcoming annual general meeting, signals continued confidence from the board in the company's cash generation capacity. Investors tracking the record date and payment schedule should monitor further exchange filings from the company for those specifics.