Solara Active Pharma Sciences Limited has informed the Stock Exchange regarding the Earnings Call Transcript for the Analysts/Investors Conference Call held on Friday, July 25, 2025.
SOLARA · price
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Awaiting price reaction for this filing.
Solara Active Pharma Sciences reported a strong Q1 FY26 with revenue of INR 320 crores, up 15% quarter-on-quarter. Gross margin stood at a healthy 54% (down marginally from 57% in Q4), and EBITDA grew 13% QoQ and 36% YoY to INR 57 crores, with an 18% EBITDA margin. The company posted its highest PAT in 12 quarters at INR 10.5 crores, with EPS of INR 2.5. Developed markets contributed 77% of sales, and reliance on ibuprofen fell from ~50% earlier to 30% of business (21% plain, 9% derivatives). The CFO outlined a debt reduction roadmap, with INR 143 crores reduced in Q1 (18% of opening debt) bringing net debt/EBITDA to 2.7x, targeting sub-INR 450 crores debt and 1.5x net debt/EBITDA by Q1 FY27, and below 1x after pushing INR 200 crores to the new CRAMS entity. Management retained FY26 guidance of ~10% revenue growth and 15-20% EBITDA growth (implying INR 240-250 crores range).
Positive quarter with margin and profitability showing 'green shoots' of a turnaround, supported by debt reduction and a shift toward higher-margin regulated market business. Stock may react positively to the strong execution against the reset plan, but the pushback on CRAMS capex funding needs (INR 200 crores injection) signals future equity dilution risk for the demerged entity.