• The document contains the transcript of the earnings conference call for the quarter ended September 30, 2026 (Q2 FY27), conducted on Friday, October 16, 2026, after the meeting of the Board of Directors.
  • The call was moderated and included management participants: Mr. Sandeep Rao (Managing Director and Chief Executive Officer), Mr. Sarat Kumar (Chief Financial Officer), and Mr. Abhishek Singhal (Investor Relations).
  • The stated purpose of the call was to discuss the highlights of the business and financials for the quarter and half year ended September 30, 2026.
  • The transcript was made available on the company's website at https://solara.co.in/investor-relations/investor-update.
  • The company indicated that the discussion may be forward-looking in nature and must be viewed in relation to the risks pertaining to the business.

Financial Highlights Discussed:

  • Q2 FY27 was described as the company's best quarter in about five years on all profitability metrics.
  • Overall revenue grew 33% year-on-year to INR418 crores.
  • EBITDA more than doubled to INR77 crores, up 118% year-on-year.
  • PAT was INR28.5 crores against a loss of approximately INR10 crores in the same quarter last year.
  • The base business revenue grew 37% year-on-year to INR327 crores, with EBITDA growing 68% to INR77 crores and margins expanding 440 basis points to 23.6%.
  • Regulated markets contributed 78% of revenues.
  • The Ibuprofen business revenue grew 21% year-on-year and 18% quarter-on-quarter to INR91 crores, with EBITDA losses narrowing to near breakeven from a loss of roughly INR9 crores in Q1.
  • Gross margin for the overall business was INR197 crores (47.2%), while the base business gross margin was 50%+ and Ibuprofen gross margin recovered to 36%.
  • Net debt reduced to approximately INR500 crores from INR614 crores as of March 2026, improving the Net Debt to EBITDA ratio to 1.8x from 3.2x.
  • The company recorded an exceptional loss item of INR45 million due to the sale of unutilized equipment at the Vizag facility.

Strategic and Operational Updates:

  • Management announced that the strategic review of the Ibuprofen business is ongoing and estimated to be completed in 12 weeks.
  • The company filed its second DMF for the year and plans to file three more before the end of FY27, targeting a total of five DMF filings.
  • The Mangalore facility successfully completed an ANVISA audit in August 2026.
  • CRISIL upgraded the company's ESG rating from 'adequate' to 'strong'.

Additional Notes Section

  • The document is a regulatory filing submitted pursuant to Regulation 30 and Regulation 46(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
  • The enclosed transcript was the only attachment mentioned.
  • The document contained extensive financial data from the earnings call discussion.