Stock Report

Solara Active Pharma Reports Q1 FY27 PAT Up 55% YoY to ₹163 Million; Highest EBITDA in 18 Quarters

Posted On : 2026-07-24 10:25:45( TIMEZONE : IST )

Active Pharmaceutical Ingredients (API) manufacturer Solara Active Pharma Sciences Limited (BSE: 541540; NSE: SOLARA) today released its press release and earnings update for the first quarter of Financial Year 2026-2027 (Q1 FY27) ended June 30, 2026.

Driven by strong base business momentum across regulated markets and debt reduction efforts, the company delivered its highest quarterly EBITDA and Profit After Tax (PAT) in eighteen quarters, overcoming cost pressures in its commodity Ibuprofen segment.

Executive Financial Summary

Overall Revenues: Stood at ₹3,843 million (₹384.3 crore) for Q1 FY27, registering a 20% YoY growth compared to ₹3,201 million in Q1 FY26.

Overall EBITDA: Reached ₹635 million, up 10% YoY from ₹575 million in Q1 FY26, with an overall EBITDA margin of 16.6%.

Net Profit After Tax (PAT): Surged 55.2% YoY to ₹163 million (₹16.3 crore), compared to ₹105 million in Q1 FY26 and ₹96 million in Q4 FY26, boosted by reduced finance costs.

Earnings Per Share (EPS): Basic EPS for the quarter rose to ₹3.52 per share, up from ₹2.46 in Q1 FY26 and ₹2.20 in Q4 FY26.

Performance Breakdown by Segment

1. Base Business (Excluding Commodity Ibuprofen)

Revenues: Scaled 24% YoY to ₹3,077 million (₹307.7 crore), up from ₹2,487 million in Q1 FY26.

Gross Margins: Stood at ₹1,580 million (51.3% gross margin), reflecting an 8.6% YoY growth, despite raw material and solvent cost spikes linked to geopolitical developments in West Asia.

EBITDA: Rose 8% YoY to ₹722 million, maintaining a healthy 23.5% EBITDA margin.

Geographic Mix: Regulated markets continued to generate over 75% of revenues.

2. Commodity Ibuprofen Business

Revenues: Came in at ₹765 million, up 7% YoY compared to ₹714 million in Q1 FY26.

Gross Margins: Reported at ₹222 million (29.0% gross margin).

EBITDA: Recorded an EBITDA loss of ₹(87) million (-11.4% margin), showing sequential improvement over an EBITDA loss of ₹(179) million in Q4 FY26.

Strategic Updates:

Management is working with appointed bankers to evaluate strategic options for the commodity Ibuprofen business, expected to be finalized by the end of Q2 FY27. The proposed carve-out of the polymers and CRAMS business remains on hold until the Ibuprofen strategy is finalized.

Debt Deleveraging & Balance Sheet

Solara achieved significant debt reduction during the quarter, strengthening its balance sheet metrics:

Net Debt Reduction: Reduced net debt by ₹1,346 million in Q1 FY27 (₹1,000 million via rights issue proceeds and ₹346 million from operational cash flows).

Net Debt Level: Stood at ₹4,795 million as of June 30, 2026, down from ₹6,141 million as of March 31, 2026.

Leverage Metrics: Net Debt to EBITDA ratio improved to ~1.9x (annualised).

Debt Outlook: Management expects net debt to further drop to ~₹4,406 million by March 2027 following scheduled repayments.

Sandeep Rao - Managing Director & CEO, "Q1 FY27 was another quarter of resilient execution. Our overall Revenues stood at INR 3,843 Mn, up 20% YoY; EBITDA at INR 635 Mn, up 10% YoY and PAT at INR 163 Mn, up 55% YoY. This is the highest EBITDA and PAT achieved in the last eighteen quarters. These results underscore the strength of our core business, disciplined execution and our continued focus on profitable growth.

Our Base Business continues to exhibit robust momentum, supported by consistent operational execution and a focus on profitable growth. Our Base business Revenues stood at INR 3,077 Mn, up 24% YoY; Gross margins of INR 1,580 Mn, up 10% YoY and EBITDA at INR 722 Mn, up 8% YoY; in spite of input cost pressures resulting from higher raw material prices on account of the ongoing geopolitical developments in West Asia. The sustained performance of the Base business reinforces our confidence in its long-term growth potential.

The Commodity Ibuprofen business continues to face profitability challenges, reporting an EBITDA margin of negative 12% amid a difficult operating environment. While profitability remains under pressure, we witnessed a marginal sequential improvement during the quarter.

Our ongoing efforts on strengthening the Balance sheet has led to reduction of net debt by INR 1,346 Mn during the quarter bringing our net debt to INR 4,795 Mn, resulting in a Net debt to EBITDA ratio of ~1.9 (annualised).

Looking ahead, we remain committed to building on this strong foundation by driving sustainable growth, enhancing margins, and creating long-term value for our stakeholders through disciplined execution, operational excellence, and prudent capital allocation."

Shares of Solara Active Pharma Sciences Limited was last trading in BSE at Rs. 524.10 as compared to the previous close of Rs. 535.45. The total number of shares traded during the day was 40444 in over 1198 trades.

The stock hit an intraday high of Rs. 574.00 and intraday low of 519.20. The net turnover during the day was Rs. 21993044.00.