| 1-Year Return | 11.4%Stock performance |
|---|---|
| Market Cap | ₹3,113 CrPharmaceuticals |
| RSI | 40.2Neutral zone |
| Sector P/E | 45.3Industry average |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 417 | 382 | 314 |
| Other Income | 0.5 | 2.7 | 0.5 |
| Total Income | 418 | 384 | 314 |
| Profit Before Tax | 28.5 | 16.3 | -10.1 |
| Exceptional Items | -4.5 | 0.0 | 0.0 |
| Net Profit | 28.5 | 16.3 | -10.1 |
| Operating Margin | 6.8% | 4.2% | -3.2% |
| Net Profit QoQ | +74.8% | ||
| Net Profit YoY | +382.2% | ||
| Adj. Profit QoQ | +139.0% | ||
| Adj. Profit YoY | +406.6% | ||
Key highlights
- Net profit turned positive at ₹28.5 crore against a loss of ₹10.1 crore in the same quarter last year
- Revenue from operations grew to ₹417 crore, up from ₹314 crore in Q2-26
- Operating margin improved significantly to 6.8% from a negative 3.2% year-on-year
- Company realized an exceptional loss of ₹4.5 crore from the sale of mothballed Vizag plant assets
- Raised ₹446.62 crore through a rights issue to strengthen the balance sheet and support operations
- Proposed demerger of CRAMS and Polymers business into an independent listed entity remains on track
Profitability Rebound and Revenue Growth
Solara Active Pharma Sciences returned to profitability in the second quarter of FY27, reporting a net profit of ₹28.5 crore. This represents a significant turnaround from the ₹10.1 crore loss recorded in the corresponding quarter of the previous year and a 74.8% sequential growth from Q1-27. Revenue from operations climbed to ₹417 crore, marking a 32.8% year-on-year increase.
The growth was supported by improved business performance and anticipated volume expansion in the Active Pharmaceutical Ingredient (API) segment. For the half-year ended September 2026, the group reported a total profit of ₹44.77 crore, although it still carries accumulated losses of ₹274.16 crore.
Margin Expansion and Expense Management
The company’s operational efficiency showed marked improvement, with the operating margin reaching 6.8% compared to a negative 3.2% in the year-ago period. This recovery was driven by a decrease in the relative share of total expenses, which fell to 92.3% of total income from 103.2% last year. While the cost of materials consumed rose to ₹217.80 crore in line with higher production, finance costs were contained at ₹17.78 crore, down from ₹20.83 crore in Q2-26.
Sequential margin growth from 4.2% in the previous quarter indicates a stabilizing cost structure as the company scales its manufacturing output.
Strategic Restructuring and Capital Deployment
- Incurred an exceptional loss of ₹4.5 crore from the sale of capital work-in-progress at the mothballed Vizag plant
- Utilized proceeds from a ₹446.62 crore rights issue to reduce debt and fund working capital requirements
- Moving forward with the demerger of the CRAMS and Polymers business into a separate listed entity, Synthix Global Pharma Solutions
- Promoter holding stands at 41.93%, with 37.11% of the promoter stake currently pledged as per latest disclosures
- Formally closed the Brazil wholly-owned subsidiary effective September 16, 2025, to streamline international operations
Going Concern and Management Outlook
Considering the improvement in business performance, anticipated growth in revenues and margins, expected renewal of working capital facilities as and when required, and projected cash flows from operations, management believes that the Group will have adequate resources to meet its obligations as they fall due.
| Date | Announcement | Amount |
|---|---|---|
| 23 Jul 2026 | Q1 FY27 consolidated revenue from operationsSource: multibagg.ai | ₹384.30 Cr |
| 15 May 2026 | Q4 FY26 consolidated revenue from operationsSource: univest.in | ₹387.29 Cr |
| 06 Feb 2026 | Q3 FY26 consolidated net lossSource: fyers.in | ₹17.40 Cr |
| 05 Nov 2025 | Management FY26 outlook of ~10% sales growth and 15%-20% EBITDA marginSource: scribd.com | – |
| 25 Jul 2025 | Q1 FY26 consolidated net profitSource: fyers.in | ₹10.50 Cr |
| 24 Jan 2025 | Reaffirmed FY25 annual EBITDA guidanceSource: solara.co.in | – |
What to watch next
- Completion of the demerger process for the CRAMS and Polymers business unit
- Further reduction in debt levels as rights issue proceeds are fully deployed
- Regulatory updates regarding the US FDA EIR status for the Puducherry facility
- Announcement of Q3-27 financial results in early February 2027
“The consolidated financial results for the quarter and half year ended September 30, 2026 has been reviewed by Deloitte Haskins & Sells LLP the statutory auditors of the Company.”
| Share price | ₹647.8 |
|---|---|
| Market capitalisation | ₹3,113.20 Cr |
| Revenue (annual) | ₹1,368.98 Cr |
| Net profit (annual) | -₹7.41 Cr |
| Revenue (latest quarter) | ₹381.60 Cr-1.47% vs previous quarter |
| Net profit (latest quarter) | ₹16.31 Cr+69.90% vs previous quarter |
| P/E (TTM) | -1921.74×Sector 45.28× |
| Promoter holding | 41.93%-0.07% QoQ |
| FII holding | 11.52%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Solara Active Pharma Sciences Limited announcing its unaudited consolidated and standalone financial results for Q2 FY27. Market figures from a third-party data provider.
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