Solara Q2 FY27 Revenue Up 33%, EBITDA Doubles to INR 769Mn

Date: October 16, 2026

Overall Financial Performance

Solara Active Pharma Sciences Limited reported its financial results for the second quarter and half year ended September 30, 2026 (Q2 FY27). This was described as the company's best quarter in five years.

Overall Business (Q2'27 vs Q2'26):

Revenue: INR 4,178 Million, up 33% Year-over-Year (YoY) and 9% Quarter-over-Quarter (QoQ)
Gross Margin: INR 1,972 Million (47.2%), up 28% YoY and 9% QoQ
EBITDA: INR 769 Million, up 118% YoY and 21% QoQ
EBITDA Margin: 18.4%, expanded from 11.2% in Q2'26 (+720 basis points)
Profit After Tax (PAT): INR 285 Million, compared to a loss of INR 101 Million in Q2'26
Earnings Per Share (EPS): INR 5.92 per share

Overall Business (H1'27 vs H1'26):

Revenue: INR 8,021 Million, up 26% YoY
Gross Margin: INR 3,774 Million (47.1%), up 17% YoY
EBITDA: INR 1,404 Million, up 51% YoY
EBITDA Margin: 17.5%, up from 14.7% in H1'26
PAT: INR 448 Million, compared to INR 1 Million in H1'26
EPS: INR 9.49 per share

Exceptional items of INR 45 Million were recorded in Q2'27, relating to a loss on the sale of unusable plant and equipment at the Vizag facility.

Base Business Performance (Ex-Ibuprofen)

The Base business, which excludes the commodity Ibuprofen operation, was the primary driver of growth.

Base Business (Q2'27 vs Q2'26):

Revenue: INR 3,273 Million, up 37% YoY and 6% QoQ
Gross Margin: INR 1,645 Million (50.3%), up 29% YoY and 4% QoQ
EBITDA: INR 771 Million, up 68% YoY and 7% QoQ
EBITDA Margin: 23.6%, expanded from 19.2% in Q2'26 (+440 basis points)

This marked the third consecutive quarter where Base business revenue stayed above INR 3,000 Mn. Regulated markets contributed approximately 78% of revenues. The company noted that gross margins were impacted by continued inflationary pressure on select raw materials and solvents linked to the West Asia crisis.

Ibuprofen Business Performance

The commodity Ibuprofen business showed significant improvement, moving close to breakeven.

Ibuprofen Business (Q2'27 vs Q2'26):

Revenue: INR 905 Million, up 21% YoY and 18% QoQ
Gross Margin: INR 327 Million (36.1%), up 20% YoY and 47% QoQ
EBITDA: Loss of INR 2 Million, improved from a loss of INR 106 Million in Q2'26 (97% improvement)
EBITDA Margin: -0.2%, improved from -14.2% in Q2'26

The improvement was attributed to better price realizations and higher volumes. The business is primarily focused on servicing large brands and marquee customers. The loss narrowed significantly from INR 87 Million in Q1'27.

Balance Sheet and Debt Position

The company strengthened its balance sheet significantly through debt reduction.

Net Debt as of September 30, 2026: INR 5,000 Million
Net Debt Reduction during H1'27: INR 1,141 Million
Gross Debt: Reduced by INR 944 Mn in H1'27 to INR 5,700 Mn
Working Capital Loans: Reduced by INR 1,597 Mn
Term Loans: Increased by INR 653 Mn for funding Growth & Maintenance Capex
Net Debt to EBITDA: Improved to approximately 1.8x (on H1'27 annualised EBITDA) from 3.2x at the end of FY26

The net debt reduction was funded by INR 1,000 Mn from Rights issue proceeds and INR 141 Mn from operating cash flows.

Management Commentary and Strategic Update

Sandeep Rao, Managing Director & CEO, stated that this was the company's best quarter in five years, with improvement coming from every part of the business.

Regarding the strategic review of the Ibuprofen business:

The review, run with the Board's strategic advisors, has reached an advanced stage.
The company expects to share further updates with shareholders within the next 12 weeks.
The update will set out a clear path on future business strategy and value creation outcomes.

The company began decoupling from commodity exposure to focus on its higher-margin Base business, which is built on R&D, complex chemistry, and lower competitive intensity.

Corporate Participants

The earnings presentation included participation from:

Sandeep Rao, Managing Director & CEO
Sarat Kumar, Chief Financial Officer