Solara Active Pharma Sciences Q2 FY27: PAT ₹16.3 & Rev ₹384 Cr

Investor Takeaways

Reported Q1 FY27 PAT of ₹16.3 crores (+55% YoY) driven by 24% YoY growth in base business revenue to ₹307 crores.

Reduced net debt to ₹479 crores (22% decrease) amid raw material cost pressures from West Asia.

Targeted sub-INR450 crores net debt by March 2027; maintained EBITDA margin guidance of 25%±1% for base business.

FY27 capex of ₹55-60 crores focused on debottlenecking to expand capacity by 20-30% for high-margin products.

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹384 Cr	+20%
Net Profit	₹16.3 Cr	+55%
EBITDA	₹63.5 Cr	+10%
OPM	16.5%	N/A
EPS	[amount not verified]	+127%

What Changed

Net debt declined 22% to ₹479 crores, while base business revenue grew 24% YoY to ₹307 crores. PAT surged 55% YoY to ₹16.3 crores, supported by operational improvements despite raw material volatility. FY27 capex of ₹55-60 crores shifted focus to maintenance and brownfield expansion to enable 20-30% capacity expansion for high-margin products. Gross margins stabilized at 54.5% excluding cost pass-through.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Solara Active Pharma Sciences Limited	-8.3	N/A	N/A	2,097.66
Sun Pharmaceutical Industries Limited	41.28	15.11%	20.34%	4,50,643.09
Divi's Laboratories Limited	72.41	16.56%	22.09%	1,79,470.03
Torrent Pharmaceuticals Limited	80.06	N/A	N/A	1,49,108.91

Solara’s P/E ratio is significantly negative compared to peers, reflecting market skepticism on profitability trajectory despite strong PAT growth.

Risks & Concerns

Ibuprofen business strategic review targeting quarterly EBITDA loss of [amount context mismatch]-15 crores, indicating ongoing operational challenges in a key segment.

Raw material cost volatility from West Asia continues to pose margin pressure despite gross margin stabilization at 54.5%.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	300.31	8.09	19.21
Q2FY25	346.95	8.01	17.67
Q1FY25	363.49	-13.46	11.53
Q4FY24	299.43	-255.45	3.26

The company reversed from consecutive quarterly losses in Q4FY24 and Q1FY25 to achieve profitability in Q1FY27, with PAT turning positive after a ₹255.45 crore loss in the prior quarter. OPM improved from 3.26% in Q4FY24 to 16.5% in Q1FY27, reflecting operational stabilization.

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About Solara Active Pharma Sciences Limited (SOLARA)

Healthcare · Pharmaceuticals · Listed on NSE

Market Cap: ₹3,451.04 Cr ROE: -0.1% ROCE: 4.7%

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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