Solara Active Pharma Sciences Ltd is engaged in business of manufacturing, production, processing, formulating, sale, import, export, merchandising, distributing, trading of APIs.
Q2 FY26 Earnings Results:
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Revenue from Operations: ₹314 crore, down 9.6% YoY and 1.9% QoQ from ₹320 crore in Q1 FY26.
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Net Loss: ₹10.1 crore, reversing from a profit of ₹7.9 crore in Q2 FY25 and ₹10.5 crore profit in Q1 FY26.
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EBITDA: ₹35.2 crore, down 42.8% YoY and 38.8% QoQ; EBITDA margin contracted to 11.3% from 17.7% in Q2 FY25.
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Gross Margin: 51.0%, modestly up 50 bps YoY but down 310 bps QoQ.
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Operating costs increased by 8% YoY and 10% QoQ due to one-time additional operating expenses and a temporary shutdown at Mangalore facility.
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Net debt reduced to ₹623 crore, down ₹153 crore from FY25 end.
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Focus areas on deleveraging, cost optimization, and maintaining product mix in regulated markets (~75% of revenue).
Management Commentary & Strategic Insights:
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MD & CEO Sandeep Rao stated that operational disruptions in Mangalore facility were temporary and expected to normalize soon.
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Strategic focus remains on profitable revenue growth driven by regulated markets and high-margin products.
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Emphasis on cost control and deleveraging for sustainable performance.
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The long-term outlook remains positive with ongoing investment in R&D and capacity expansion.
Q1 FY26 Earnings Results:
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Revenue: ₹320.13 crore, up 6.3% QoQ, down 12.1% YoY.
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PAT: ₹10.52 crore, recovered from loss the previous quarter.
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EBITDA: ₹57.5 crore, margin at 18%, up from 11.6% a year ago.
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Improved profitability attributed to gross margin expansion and better cost control.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.