Solara Active Pharma Sciences Limited has informed the Exchange about Earnings Call Transcript of Analysts/Investors Conference Call held on May 15, 2025
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Solara reported FY25 as a 'reset year' where it missed its revenue and EBITDA guidance, largely due to intense competition in its Ibuprofen franchise. Despite the miss, gross margins expanded sharply from 37.8% in FY24 to 51.5% in FY25, and EBITDA margin moved from negative to 16.5%, helped by a shift toward regulated markets (now 76% of business) and value-added Ibuprofen derivatives. Operating costs were cut by ~₹130 crore (22% YoY), and debt has been brought down from ~₹1,000 crore in FY24 to ~₹776 crore, with a target of ~₹647 crore by end-May 2025. Management has set an FY26 outlook of ~10% revenue growth and 15-20% EBITDA growth, with a long-term goal of improving EBITDA margin by another 200-300 bps. A new CRAMS and Polymers entity, 'Synthix Global Pharma Solutions', was incorporated in April 2025 and is awaiting regulatory approvals.
The sharp margin expansion and debt reduction are positive signs, but the admission of missing guidance and continued pressure in the core Ibuprofen business may weigh on sentiment. The FY26 outlook is modest (single-digit revenue growth), and management avoided giving product-level or CRAMS-specific growth numbers, which may limit near-term re-rating potential.