Solara Active Pharma Sciences Ltd(SOLARA)

NSE: SOLARABSE: 541540

₹ 631.15+3.10%refreshed 26 Oct, 12:44 pm ISTMarket cap: ₹ 3,045 crWebsite: www.solara.co.inUpdated: 24 Oct 2026

About

Solara Active Pharma Sciences Ltd is a global pure-play active pharmaceutical ingredient (API) company that develops and manufactures APIs and also provides CDMO services to pharmaceutical companies worldwide. It runs two businesses: a diversified base API portfolio and an ibuprofen business. FY26 revenue from operations was INR 1,368.98 Cr. Its stated vision is to be among the top 10 pure-play API companies globally.^[1][2]

Business segments

Base business (excluding commodity ibuprofen) revenue was INR 1,041.40 Cr in FY26, out of total revenue from operations of INR 1,368.98 Cr. APIs are reported as a single segment.^[1]
Base business revenue rose 37% YoY to INR 327 Cr in Q2 FY27, its third straight quarter above INR 300 Cr. Its EBITDA margin was 23.6%, up about 440 bps.^[3]
Ibuprofen revenue rose 21% YoY and 18% QoQ to INR 91 Cr in Q2 FY27. EBITDA was near breakeven, compared with a loss of about INR 9 Cr in Q1 FY27.^[3]
CRAMS (contract research and manufacturing) was still small at INR 10-12 Cr of annual revenue as of Q4 FY26.^[4]

Products and portfolio

Its therapy areas include pain management, anti-infectives, anti-malarials, anthelmintics, anaesthetics, anticonvulsants, antipsychotics and anti-hyperkalemia. It also makes specialised polymer-based and iron-based products (FY26).^[1]
The company held 90-95 US DMF filings with 35-40 active products as of Q2 FY26.^[5]
10 more APIs were in the development pipeline as of FY26.^[1]
Plain ibuprofen API made up about 20-22% of revenue and ibuprofen derivatives about 8-10% as of Q2 FY26.^[5]
2 DMFs were filed in H1 FY27, with 3 more planned in H2 FY27, for 5 in FY27.^[3]
R&D spend was about INR 25 Cr a year in FY26.^[4]

Manufacturing and regulatory status

It has 6 manufacturing locations: Ambernath, Cuddalore, Mangalore, Mysore, Pondicherry and Vizag. Its R&D centre is in Chennai (FY26).^[1]
The Puducherry plant is described as one of the world's largest ibuprofen manufacturing facilities (FY26).^[1]
The Vizag facility, originally an ibuprofen plant with 10,000-12,000 tons of installed capacity, was mothballed as of Q1 FY27.^[6]
Ibuprofen output was about 3,000 tons against 10,000-12,000 tons of installed capacity as of Q3 FY26.^[7]
Base business plants ran at about 70% average capacity utilisation as of Q1 FY27.^[6]
Its facilities hold approvals from regulators including USFDA, EU GMP, Japan's PMDA, EDQM, KFDA, WHO, MHRA, COFEPRIS and TGA (FY26).^[1]
Mangalore cleared a USFDA audit in August 2025 with 2 minor procedural observations. Ambernath had a clean USFDA inspection in Q1 FY26. Mangalore also cleared an ANVISA audit in Q2 FY27.^[5][3]
The company had nearly 1,700 employees in FY26.^[1]

Key operating numbers

Consolidated gross margin was 47.2% in Q2 FY27, down about 200 bps YoY.^[3]
Base business gross margin was about 50.5% in Q2 FY27, against a historical 53-55%. The company attributes the gap to West Asia input-cost inflation that was not fully passed through to customers.^[3]
Ibuprofen gross margin recovered to 36% in Q2 FY27.^[3]
Of Q2 FY27 revenue of INR 418 Cr, only INR 25-30 Cr came from price increases. The rest came from higher volumes.^[3]
Operating expenses have held at about INR 120 Cr a quarter, roughly flat over the past several quarters to Q2 FY27.^[3]

Customers and markets

Regulated markets made up about 78% of revenue in Q2 FY27, compared with 76% in FY25 and 66% in FY24.^[3][8]
Exports made up 52% of turnover in FY26. Key markets include North America, Europe, Japan, South Korea and the Middle East & North Africa.^[1]
Customers are leading generic and innovator pharmaceutical companies worldwide (FY26).^[1]
Related party Strides is expected to account for no more than 25-26% of sales on average in FY27. The FY26 annual report sought approval for up to Rs 480 Cr of transactions with Strides, including Rs 450 Cr of API sales.^[3][1]
The company is expanding into Latin America, South Korea and the Middle East, and hired a Chief Commercial Officer to lead this (Q2 FY26).^[5]

Expansion and capex

Capex is guided at INR 40-50 Cr a year, or about INR 10-15 Cr a quarter (Q2 FY27).^[3]
Debottlenecking projects target 20-30% more capacity per product line, with payback expected within 2-3 quarters (Q1 FY27).^[6]
No greenfield or brownfield expansion was planned as of Q1 FY27. Capex is limited to debottlenecking and maintenance.^[6]

Recent developments

Net debt was about INR 500 Cr in Q2 FY27, down from INR 614 Cr in March 2026; about INR 100 Cr of the reduction came from rights issue money. Net debt/EBITDA was about 1.8x, down from 3.2x.^[3]
Net debt fell to INR 614 Cr in FY26 from INR 772 Cr in FY25.^[1]
The outcome of the strategic review of the ibuprofen business is expected in about 12 weeks from Q2 FY27, with external advisors appointed.^[3][1]
The planned demerger of the CRAMS and polymers businesses into Synthix Global Pharma Solutions is on hold until the ibuprofen review is finished.^[1]
CRISIL rating is BBB/Stable as of FY26, with the outlook revised from Negative.^[1]

Market Cap

₹3,045 Cr

High / Low

₹774 / 423

Stock P/E

80.0

Price / Book

2.0

Book Value

₹260

EPS

₹-1.5

No. of Shares

4.82 Cr

ROCE

4.9%

ROE

-0.6%

OPM

6.8%

Debt / Equity

0.53

Sales

₹1,369 Cr

Net Profit

₹-7 Cr

Promoter holding

41.9%

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