Solara Active Pharma Sciences Q4'26 Results: Revenue Up 40% YoY to ₹3,919 Million
Solara Active Pharma Sciences reported Q4'26 revenue of ₹3,919 million, a 40% YoY increase. The Base business showed strong growth with Q4'26 revenue at ₹3,070 million (up 36% YoY). The company is evaluating strategic options for its Ibuprofen business. Net debt is expected to reduce to ₹5,030 million by May 2026.
The announcement details significant financial performance for the quarter and year, including revenue growth and EBITDA improvements. The strategic decision to evaluate options for the Ibuprofen business and the projected debt reduction have a material impact on the company's future financial health and strategy.
The company reported strong Q4'26 results with significant year-on-year revenue growth driven by its Base business. Despite challenges in the Ibuprofen segment, the overall performance and strategic initiatives towards debt reduction and evaluating options for the struggling segment indicate a positive outlook.
Solara Active Pharma Sciences Limited announced strong financial results for the fourth quarter and full year ended March 31, 2026. The company reported its highest revenue, gross margin, and EBITDA in the last eight quarters for Q4'26.
The Base business demonstrated robust momentum, with Q4'26 revenue growing 24% sequentially and 36% year-on-year to ₹3,070 million. This segment achieved a gross margin of approximately 54% and an EBITDA margin of around 26%. For the full fiscal year FY26, the Base business revenue increased by 6% YoY to ₹10,414 million, with a gross margin of approximately 55% and EBITDA of ₹2,445 million.
Conversely, the commodity Ibuprofen business continued to face headwinds, reporting negative EBITDA margins. In Q4'26, this segment's revenue was ₹849 million, with a gross margin of approximately 23% and a negative EBITDA of ₹179 million. For FY26, Ibuprofen business revenue grew 9% YoY to ₹3,336 million, but gross margins were approximately 27% and EBITDA was negative ₹527 million.
Overall, Solara's Q4'26 revenue increased by 12% sequentially and 40% year-on-year to ₹3,919 million. The company recorded a PAT of ₹96 million for the quarter. The company has appointed bankers to evaluate strategic options for the Ibuprofen business, with a decision expected in H1'27. Consequently, the carve-out of the polymers and CRAMS business has been put on hold.
Solara also reported a continued focus on debt reduction, with net debt expected to be around ₹5,030 million by May 2026, resulting in a Net Debt to EBITDA ratio of approximately 2.6 times.
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