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 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 300 | 273 | 319 | 314 | 349 | 387 | 382 | 417 |
| Profit before tax | 8 | (2) | 11 | (10) | (17) | 10 | 16 | 28 |
| Net profit | 8 | (2) | 11 | (10) | (17) | 10 | 16 | 28 |
| EPS (₹) | 2.03 | (0.93) | 2.46 | (2.36) | (3.98) | 2.20 | 3.52 | 5.92 |
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 | 4,46,270 | 40.7 | 4.98 | 24.9 | 5.5 | 8.0 | 11.8 | 29.3 |
| DIVI S LABORATORIES LTD | 2,73,493 | 93.6 | 16.32 | 79.4 | 15.3 | 18.8 | 8.7 | 40.7 |
| TORRENT PHARMACEUTICALS L | 1,80,500 | 80.2 | 9.82 | 42.6 | 6.0 | 4.0 | 11.8 | 33.5 |
| LAURUS LABS LIMITED | 1,26,430 | 94.3 | 20.45 | 72.4 | 12.9 | 14.2 | 7.2 | 34.0 |
| ZYDUS LIFESCIENCES LTD | 1,19,550 | 28.8 | 3.94 | 15.4 | 6.4 | 6.8 | 12.4 | 24.0 |
| DR. REDDY S LABORATORIES | 1,14,646 | 40.9 | 2.93 | 18.5 | 3.4 | 4.2 | 12.1 | 19.9 |
| CIPLA LTD | 1,13,988 | 39.3 | 3.21 | 19.3 | 4.6 | 6.2 | 8.0 | 18.7 |
| MANKIND PHARMA LIMITED | 1,04,902 | 46.8 | 5.88 | 30.6 | 7.2 | 7.3 | — | 27.0 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 82.6 | 29.3 | 137 of 160 | 15% |
| P/B | 2.1 | 3.1 | 57 of 163 | 65% |
| ROCE | 2.6 | 8.0 | 130 of 177 | 27% |
| ROE | 3.1 | 6.8 | 124 of 165 | 25% |
| Debt / Equity | 0.4 | 0.1 | 128 of 166 | 23% |
| EBITDA margin | 18.4 | 14.6 | 72 of 178 | 60% |
| Revenue growth | 33.1 | 17.1 | 45 of 163 | 73% |
| Profit growth | 381.8 | 21.8 | 12 of 157 | 93% |
| Market cap | 3048 | 814 | 68 of 181 | 63% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 23 Oct 2026 · Q2 FY27 profit rises sharply; Ibuprofen review delayed by 12 weeks | investor communications | medium | — | — |
| 19 Oct 2026 · Final reminder for unpaid call money on partly paid shares; forfeiture risk | compliance | minimal | — | — |
| 17 Oct 2026 · Final Reminder and Forfeiture Notice for Unpaid Call Money on Rights Shares | compliance | low | — | — |
| 17 Oct 2026 · Solara files newspaper publication of Q2 FY26 results with BSE and NSE | compliance | minimal | — | — |
| 16 Oct 2026 · Monitoring Agency Report on Rights Issue proceeds for Q2 FY27 | compliance | low | — | — |
| 16 Oct 2026 · Audio recording of Q2 FY27 earnings call uploaded to website | investor communications | low | — | — |
| 16 Oct 2026 · Solara Active Pharma - No deviation in Rights Issue fund usage for Q2 FY27 | compliance | minimal | — | — |
| 16 Oct 2026 · Solara grants 4.7 lakh stock options under ESOP 2024 plan | general | low | — | — |
| 16 Oct 2026 · Solara Q2 FY27: Revenue up 33% to INR 4178 Mn, EBITDA doubles, best quarter in 5 years | results | high | — | — |
| 16 Oct 2026 · Solara Active Pharma allots 8,300 shares under ESOP 2018 | capital market events | low | — | — |
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.