Solara Reports Strong Q1'27 Performance: Achieves Highest EBITDA and PAT in Last 18 Quarters

Solara Reports Strong Q1'27 Performance: Achieves Highest EBITDA and PAT in Last 18 Quarters​

Solara Active Pharma Sciences Ltd has reported resilient operating performance for the first quarter of the financial year 2027 (Q1'27), achieving its highest Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and Profit After Tax (PAT) in the last eighteen quarters.

The overall business demonstrated consistent growth, with revenues reaching INR 3,843 Mn, marking a 20% year-over-year (YoY) increase. EBITDA stood at INR 635 Mn, an increase of 10% YoY, while PAT reached INR 163 Mn, up 55% compared to the previous year's corresponding period.

Sandeep Rao, Managing Director and CEO, highlighted that these results reflect disciplined execution and strong core business performance. The company also reported a significant reduction in its net debt during the quarter.

Base Business Delivers Resilient Growth​

The core business (excluding Ibuprofen) exhibited robust momentum, generating revenues of INR 3,077 Mn, which is up 24% YoY. EBITDA for the base business was recorded at INR 722 Mn, a rise of 8% YoY.

Despite challenges arising from higher input costs due to ongoing geopolitical developments in West Asia, the base segment maintained strong profitability. The company reported that regulated markets contributed over 75% of revenues, contributing to the resilient operating platform.

The performance metrics for the Base business are summarized below:

Commodity Ibuprofen Business Faces Headwinds​

The commodity Ibuprofen business continues to face operating challenges, reporting revenues of INR 765 Mn. This segment registered an EBITDA loss of INR 87 Mn, representing a negative 11.4% margin in Q1'27.

Despite the profitability strain on the Ibuprofen segment, management stated that the business is currently focused on servicing large brands and strategic customers to achieve better pricing realizations. The company noted that it is working with appointed bankers to evaluate strategic options for the Ibuprofen business and expects to finalize the next steps by the end of Q2'27. Furthermore, the carve-out of the polymers and CRAMS business has been placed on hold until the strategic review of the Ibuprofen business is complete in H1'27.

Performance data for the Ibuprofen segment:

Financial Strength and Debt Reduction​

The focus on strengthening the balance sheet resulted in a substantial reduction of net debt by INR 1,346 Mn during the quarter, bringing the company's current net debt to INR 4,795 Mn. This action has improved financial leverage, resulting in an annualized Net debt to EBITDA ratio of approximately 1.9 times.

The movement in gross debt throughout the period is as follows:


The company intends to continue its focus on reducing gross debt through accelerated term loan repayment and improved internal accruals.

SOLARA Stock Price Movement​

As of 1:53 PM, shares of Solara Active Pharma Sciences Limited are slipping by 0.6% in live trading, currently priced at ₹532.95 after shedding ₹3.20. The stock traded 641,673 shares during the session, bouncing back toward the intraday range following early weakness.