Solara Active Pharma Reports Q2 Revenue of INR 3,140 Mn, drop 10% YoY
Filing Summary
Solara Active Pharma Sciences Limited reported its Q2 FY26 financial results, showing a revenue of INR 3,140 million, a 10% decrease year-over-year. The quarter was affected by an unscheduled operational shutdown at the Mangalore facility, leading to delayed deliveries and reduced sales volumes. Gross margin stood at 51%, while EBITDA was INR 352 million, reflecting a 39% decline from the previous quarter. The company reduced its gross debt by INR 1,527 million during H1 FY26. Solara is focusing on strengthening its balance sheet and plans a demerger of its CRAMS and Polymers business.
Solara Active Pharma Sciences Limited has released its financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company reported a revenue of INR 3,140 million, marking a 10% decrease compared to the same period last year. The quarter’s performance was impacted by a temporary operational shutdown at the Mangalore facility, which led to delayed deliveries and reduced sales volumes.
The financial results indicate a gross margin of 51%, slightly up by 50 basis points year-over-year but down 264 basis points quarter-over-quarter. The EBITDA for Q2 FY26 was INR 352 million, a 39% decline from the previous quarter and a 43% decrease from the same quarter last year. Operating costs increased to INR 1,246 million, influenced by one-time costs related to the Mangalore facility’s operational shutdown.
Operationally, the company faced challenges due to the unscheduled shutdown at its Mangalore facility, which was undergoing upgrades. This disruption affected the delivery of higher-margin products, impacting the overall gross margins for the quarter. Despite these short-term disruptions, Solara maintains a focus on high-margin segments and cost optimization strategies.
During the first half of FY26, Solara reduced its gross debt from INR 7,760 million to INR 6,233 million, a reduction of INR 1,527 million. This was achieved through the realization of rights issue application money and operating cash flows. The company projects further debt reduction by May 2026, with expectations to bring net debt down to approximately INR 4,461 million.
The company is also planning a demerger of its CRAMS and Polymers business from its Legacy Catalog API business. This move is subject to statutory approvals and aims to transfer INR 2,000 million of debt to the new entity, thereby strengthening the balance sheet of the Legacy Catalog API business. The new company, Synthix Global Pharma Solutions Limited, was incorporated in April 2025 and will focus on growing the CRAMS and Polymers business.
Solara Active Pharma Sciences Limited is committed to enhancing its financial health and operational efficiency. The company continues to focus on regulated markets, which constituted 75% of its total revenues in Q2 FY26. The strategic initiatives, including the rights issue and business restructuring, are aimed at achieving a lighter and healthier financial position.
Solara Active Pharma Sciences Limited is a pharmaceutical company specializing in the development and manufacture of active pharmaceutical ingredients. The company is focused on strengthening its balance sheet and optimizing its operations to ensure sustainable growth and profitability.