Solara Active Pharma Share Price Rises 5% After Q1 Profit Jumps 55% YoY

Shares of Solara Active Pharma Sciences gained 5% on the NSE after the pharmaceutical company reported a strong set of earnings for the quarter ended June 30, 2026. The company's consolidated net profit rose 55% year-on-year, supported by healthy revenue growth and resilient performance in its base business. However, profitability remained under pressure from its commodity Ibuprofen segment, prompting management to evaluate strategic options for the business.

Solara Active Pharma Reports Higher Profit and Revenue in Q1 FY27

Solara Active Pharma posted a consolidated net profit of ₹16.3 crore in the June quarter, up 55% from ₹10.5 crore reported in the corresponding quarter last year. Revenue from operations increased 19.7% year-on-year to ₹382 crore, compared with ₹319 crore in Q1 FY26.

The company's EBITDA rose 10% to ₹62.6 crore from ₹57 crore a year ago. However, the EBITDA margin narrowed to 16.4% from 17.8%, as higher raw material costs linked to geopolitical developments in West Asia weighed on profitability.

Ibuprofen Business Continues to Drag Margins

The company's commodity Ibuprofen business remained a key challenge during the quarter, recording low gross margins and a negative EBITDA margin of 12%. While management noted a marginal sequential improvement, it acknowledged that the segment continues to operate in a difficult business environment.

Solara said it is working with appointed bankers to evaluate strategic alternatives for the Ibuprofen business and expects to finalise its plans by the end of the second quarter of FY27. Consequently, the proposed carve-out of its polymers and CRAMS businesses has been deferred until strategic decisions on the Ibuprofen business are completed.

Balance Sheet Improves Despite Operational Challenges

Managing Director and CEO Sandeep Rao said the company's base business maintained strong momentum, with revenue rising 24% year-on-year to ₹307.7 crore and EBITDA increasing 8% to ₹72.2 crore.

The company also reduced its net debt by ₹134.6 crore during the quarter to ₹479.5 crore, bringing its annualised net debt-to-EBITDA ratio to around 1.9 times. Management said it remains focused on improving margins, strengthening the balance sheet, and delivering sustainable long-term growth.

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Conclusion

Despite continued weakness in its commodity Ibuprofen business, Solara Active Pharma delivered strong earnings growth in the June quarter, backed by robust revenue expansion and improved performance in its core business. Investors will closely monitor the company's strategic decision on the Ibuprofen segment, as well as its ability to sustain margin recovery and further strengthen its balance sheet in the coming quarters.

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