Solara Active Pharma Sciences Limited, has informed the exchange regarding the Press release in connection with Financial Results for the quarter and year ended March 31, 2025.
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Awaiting price reaction for this filing.
Solara Active Pharma Sciences reported Q4 FY25 revenue of ₹2,790 Mn, down 7% YoY, while gross margin expanded sharply to 57.5% (up 1,063 bps) and EBITDA came in at ₹510 Mn (18.3% margin) versus ₹112 Mn in Q4 FY24. For full-year FY25, revenue was largely flat at ₹12,921 Mn vs ₹12,943 Mn in FY24, but gross margin jumped from 37.8% to 51.5% and EBITDA swung from a loss of ₹917 Mn to a profit of ₹2,138 Mn, with PAT turning positive at ₹6 Mn. The company missed its revenue and EBITDA guidance due to intense price competition on its Ibuprofen range of products, though it performed better than expected on the rest of the portfolio. Gross debt was cut from ₹9,994 Mn to ₹7,760 Mn in FY25, with further reductions planned using Rights Issue proceeds, and management announced the carve-out of the CRAMS and Polymers business into a new entity called Synthix Global Pharma Solutions Limited.
The significant margin expansion and debt reduction are positives for shareholders, but the revenue miss on Ibuprofen and below-guidance performance may weigh on the stock. FY26 outlook of 10% revenue growth and 15-20% EBITDA growth signals management confidence in a recovery, while the CRAMS/Polymers demerger could unlock additional value if approvals come through.