Solara Active Pharma Sciences Ltd Share Price – NSE  / BSE

Pharmaceuticals, Small Cap

Crisil Ratings stated that the rating upgrade reflects the substantial improvement in the company?s financial and liquidity risk profile in the past two fiscals, supported by sustained focus on deleveraging.

Total debt reduced significantly to around Rs. 500?530 crore as on 31 May 2026, from Rs. 999 crores as on 31 March 2024, aided by equity infusion of approximately Rs. 445 crores through rights issues in three tranches over the last two years.

The lower debt levels, coupled with improved operating performance over the past two fiscals, have resulted in a recovery in debt protection metrics, with interest coverage improving to around 2 times in fiscal 2026 from negative levels earlier.

The business risk profile, however, witnessed marginal moderation in fiscal 2026 following strong performance in fiscal 2025. Operating margin declined to around 13.64 percent in fiscal 2026 from 16.23 percent in fiscal 2025, though it remains healthy. The moderation is attributable to structural challenges in the Ibuprofen API segment, which has reported negative operating margins over the past two fiscals.

The company?s board has appointed bankers to evaluate strategic options for the Ibuprofen business, with a resolution expected by Q2 of the current fiscal. Crisil Ratings will continue to monitor developments in this segment and assess their impact on the overall credit profile.

The ratings continue to reflect Solara's established market position in its key active pharmaceutical ingredients (APIs) along with strong relationships with customers and suppliers and moderate financial risk profile.

These strengths are partially offset by susceptibility to regulatory change and volatility in operating profitability and negative EBITDA margin in the ibuprofen business.

Solara was formed through the demerger of the API business of Strides Shasun (currently named Strides Pharma Sciences). Solara acquired the human API business from Sequent Scientific during the same time, and hence, is a pure play API company.

The company had reported consolidated net profit to Rs 9.60 crore in Q4 FY26 compared with net loss of Rs 2.10 crore in Q4 FY25. Revenue from operations jumped 41.86% to Rs 387.29 crore in Q4 FY26.

The scrip shed 0.98% to currently trade at Rs 573.25 on the BSE.

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Solara Active Pharma Sciences has allotted 2,200 equity shares under ESOP on 15 May 2026. With this allotment, the paid up equity share capital has increased to 4,81,73,762 equity shares at Rs. 10/- each.

Net profit of Solara Active Pharma Sciences reported to Rs 9.60 crore in the quarter ended March 2026 as against net loss of Rs 2.10 crore during the previous quarter ended March 2025. Sales rose 41.86% to Rs 387.29 crore in the quarter ended March 2026 as against Rs 273.01 crore during the previous quarter ended March 2025.

For the full year,net loss reported to Rs 7.41 crore in the year ended March 2026 as against net profit of Rs 0.54 crore during the previous year ended March 2025. Sales rose 6.64% to Rs 1368.98 crore in the year ended March 2026 as against Rs 1283.76 crore during the previous year ended March 2025.

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Revenue from operations jumped 41.86% to Rs 387.29 crore in Q4 FY26.

The company reported a profit before exceptional items and tax of Rs 8.74 crore in Q4 FY26 compared with a loss before exceptional items and tax of Rs 2.10 crore in Q4 FY25. It reported exceptional gain of Rs 0.86 crore during the quarter.

EBITDA increased 21% to Rs 61.7 crore in Q4 FY26, compared with Rs 51 crore in Q4 FY25. EBITDA margin redcued to 15.8% in Q4 FY26 compared with 18.3% in Q4 FY25.

During the quarter, revenue from base business jumped 36% YoY to Rs 307 crore while revenue from Ibuprofen business climbed 61% YoY to Rs 849 crore.

On full year basis, the company reported consolidated net loss of Rs 7.41 crore in FY26 compared with net profit of Rs 0.54 crore in FY25. Revenue from operations rose 6.64% YoY to Rs 136.89 crore in FY26.

Sandeep Rao, managing director & CEO, said, ?Our overall performance for Q4'26 reflects a sequential growth of 12% and YoY growth of 40%. We recorded the highest Revenue, Gross margin & EBITDA in the last eight quarters.

Notably, the Base business is already demonstrating superior profitability, operating at a ~26% EBITDA margin with gross margins of ~54% which reinforces the objective we established at the start of the year to pivot the business from a phase of reset to one defined by sustainable, profitable and reliable growth.

However, we continue to be challenged by the Ibuprofen business which is demonstrating weak profitability, operating at a negative 21% EBITDA margin with gross margins of approximately 23%. Given the persistent headwinds on this business, we have appointed bankers to evaluate strategic options for this business to ensure optimal long-term value creation.?

Solara Active Pharma Sciences is a pure play global API manufacturer supported by R&D and manufacturing facilities.

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