NSE: SOLARA · BSE: 541540
SOLARA ACTIVE PHA SCI LTD
Manufactures active pharmaceutical ingredients (APIs), reporting Q1 FY27 revenue of INR 384 cr (+20% YoY) and EBITDA of INR 63.5 cr. The business is described in two parts: a "base business" of non-Ibuprofen APIs that posted INR 307 cr of revenue (+24% YoY) with INR 72 cr of EBITDA (+8% YoY), and an Ibuprofen commodity business running at -12% EBITDA margin with an EBITDA loss of INR 87 mn in the quarter and under strategic review targeted for resolution by H1 FY27. Management has guided the base business to 25% plus/minus 1% EBITDA margin and 52-55% gross margin, with FY27 capex of INR 55-60 cr going entirely to maintenance and debottlenecking (20-30% capacity uplift, no greenfield). Raw materials are the largest cost at 49.1% of FY26 revenue, with the West Asia crisis cited as a current input-cost and supply headwind. Net debt stood at INR 479 cr at end-June 2026 (1.9x EBITDA), reduced by ~INR 135 cr in the quarter via rights-issue call money and operating cash flow, with the company also progressing a CRAMS and Polymers demerger into a separate listed entity. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Base business (non-Ibuprofen APIs), Ibuprofen commodity API. API manufacturer; asset-heavy, currently deleveraging with Ibuprofen business under strategic review and CRAMS/Polymers demerger in progress
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 1,268 | 1,444 | 1,289 | 1,284 | 1,369 |
| EBITDA (ex other income) | 76 | 134 | (285) | 206 | 181 |
| margin % | 6.0 | 9.3 | (22.1) | 16.1 | 13.2 |
| Owners' profit | (58) | (22) | (567) | 1 | (7) |
| EPS, as reported (₹) | (16.18) | (6.16) | (157.62) | 0.14 | (1.68) |
| ROE % · ROCE % | (3.8) · (0.8) | (1.5) · 2.5 | (60.5) · (34.6) | 0.0 · 9.0 | (0.6) · 6.1 |
| Debt / equity (x) | 0.67 | 0.67 | 1.07 | 0.71 | 0.53 |
| Cash from operations | (242) | 156 | 109 | 213 | 153 |
| Capex | (209) | (111) | (41) | (40) | (53) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 347 | 300 | 273 | 319 | 314 | 349 | 387 | 382 |
| Profit before tax | 8 | 8 | (2) | 11 | (10) | (17) | 10 | 16 |
| Net profit | 8 | 8 | (2) | 11 | (10) | (17) | 10 | 16 |
| EPS (₹) | 2.54 | 2.03 | (0.93) | 2.46 | (2.36) | (3.98) | 2.20 | 3.52 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| SUN PHARMACEUTICAL IND L | 4,49,869 | 37.2 | 5.36 | 24.1 | 13.7 | 17.5 | 11.8 | 32.3 |
| DIVI S LABORATORIES LTD | 2,49,683 | 85.5 | 14.90 | 64.4 | 15.3 | 18.8 | 8.7 | 42.8 |
| TORRENT PHARMACEUTICALS L | 1,68,282 | 79.4 | 9.57 | 41.6 | 12.2 | 8.0 | 11.8 | 33.1 |
| ZYDUS LIFESCIENCES LTD | 1,16,367 | 26.0 | 3.93 | 15.0 | 17.3 | 18.0 | 12.4 | 25.2 |
| CIPLA LTD | 1,11,403 | 33.0 | 3.23 | 17.1 | 11.2 | 14.7 | 8.0 | 19.7 |
| LAURUS LABS LIMITED | 1,08,995 | 99.6 | 20.07 | 60.7 | 16.4 | 17.2 | 7.2 | 32.0 |
| MANKIND PHARMA LIMITED | 1,00,400 | 49.1 | 6.06 | 27.6 | 11.7 | 10.8 | — | 27.3 |
| DR. REDDY S LABORATORIES | 1,00,367 | 31.1 | 2.63 | 13.5 | 10.9 | 13.0 | 12.1 | 15.0 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/B | 2.9 | 3.3 | 76 of 164 | 54% |
| ROCE | (0.5) | 10.8 | 154 of 183 | 16% |
| ROE | (0.6) | 10.4 | 148 of 171 | 14% |
| Debt / Equity | 0.5 | 0.1 | 143 of 171 | 17% |
| EBITDA margin | 16.9 | 17.5 | 84 of 165 | 49% |
| Revenue growth | 19.6 | 16.3 | 72 of 161 | 55% |
| Profit growth | 55.0 | 30.9 | 61 of 158 | 62% |
| Market cap | 3619 | 770 | 67 of 184 | 64% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | 1-day % | 5-day % |
|---|---|---|---|---|
| 18 Sept 2026 · Solara Active Pharma: 9th AGM held; 5 resolutions passed including Rs 480 cr RPT with Strides | board shareholder meetings | medium | — | — |
| 28 Aug 2026 · Income tax demand of Rs. 161.92 Cr dropped via Rectification Order | regulatory legal | high | — | — |
| 26 Aug 2026 · Solara Active 9th AGM notice and annual report dispatch completed | compliance | minimal | — | — |
| 25 Aug 2026 · Solara files FY2025-26 BRSR with stronger renewable energy use | compliance | low | — | — |
| 25 Aug 2026 · Notice of 9th AGM and Annual Report FY2025-26 | board shareholder meetings | medium | — | — |
| 25 Aug 2026 · AGM notice dispatched for September 18, 2026 - FY26 accounts and Strides RPT on agenda | board shareholder meetings | low | — | — |
| 24 Aug 2026 · Notice of 9th AGM on September 18, 2026 via video conferencing | compliance | minimal | — | — |
| 19 Aug 2026 · Solara converts 2.79 lakh partly paid rights shares to fully paid-up | fund raising | medium | — | — |
| 18 Aug 2026 · Allotment of 2,250 equity shares under ESOP 2018 | capital market events | low | — | — |
| 7 Aug 2026 · CIO joining date revised to August 17, 2026 | management changes | medium | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.