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Ibuprofen business continues to drag profitability
View Risks →Solara Active Pharma Sciences Limited — Q4 FY26
Solara delivered its strongest quarter in eight quarters, with revenue of ₹392 crore (up 12% QoQ) and EBITDA of ₹61 crore (up 65% QoQ), driven by the base business which operates at 26% EBITDA margins and 54% gross margins.
bullish
medium
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Solara delivered its strongest quarter in eight quarters, with revenue of ₹392 crore (up 12% QoQ) and EBITDA of ₹61 crore (up 65% QoQ), driven by the base business which operates at 26% EBITDA margins and 54% gross margins. The base business continues to gain momentum through new customer wins and capacity utilization improvements, with 30% spare capacity available. Ibuprofen remains a drag with negative EBITDA, but management has appointed bankers to evaluate strategic options, expecting resolution in H1 FY27. The company targets becoming debt-free by FY29 and plans 4-5 DMF filings annually, though R&D benefits will only materialize from FY29 onwards. Key risk: Ibuprofen losses could persist if strategic options are delayed or unfavorable.
सोलारा ने पिछले आठ तिमाहियों में अपना सबसे अच्छा प्रदर्शन किया। कंपनी की कमाई ₹392 करोड़ रही (पिछली तिमाही से 12% ज़्यादा) और मुनाफा ₹61 करोड़ (65% ज़्यादा) हुआ। यह मुख्य कारोबार की वजह से हुआ, जिसमें 26% का मुनाफा मार्जिन और 54% का सकल मार्जिन है। नए ग्राहकों और क्षमता के बेहतर उपयोग से यह कारोबार मज़बूत हो रहा है, और 30% अतिरिक्त क्षमता बची है। इबुप्रोफेन का कारोबार घाटे में है, लेकिन प्रबंधन ने इसके समाधान के लिए बैंकर नियुक्त किए हैं, जो FY27 की पहली छमाही तक होने की उम्मीद है। कंपनी FY29 तक कर्ज़-मुक्त होना चाहती है और हर साल 4-5 नई दवा फाइलिंग करेगी, लेकिन R&D का फ़ायदा FY29 से ही मिलेगा। खतरा: इबुप्रोफेन का घाटा जारी रह सकता है।
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Base Business EBITDA Margin
26%
Stable QoQ
Base business (excluding ibuprofen) consistently delivers 26% EBITDA margin with 54% gross margins.
Capacity Utilization
70%
30% spare capacity
Current capacity utilization is ~70%, leaving room for growth without major capex.
Debt Reduction in FY26
₹158 crore
-21% YoY
Debt reduced by ₹158 crore during FY26, with a target to become debt-free by FY29.
DMF Filing Plan
4-5 per year
New initiative
Company plans to file 4-5 DMFs annually starting FY27, with first filed in April 2026.
Fast read
Guidance and risk preview
Bankers appointed to evaluate strategic options for ibuprofen business; process expected to conclude in H1 FY27.
Ibuprofen recorded negative EBITDA again; strategic options may not yield favorable outcome, prolonging losses.
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