Solana Biofuels Limited (formerly Southern Online Bio Technologies Limited) reported a net loss of ₹1,237.36 lakh for the financial year ended March 31, 2026, a significant widening from the ₹111.12 lakh loss recorded in FY25. Total income for the period declined to ₹9,585.26 lakh, down from ₹14,788.87 lakh in the previous fiscal year.

The Hyderabad-based biofuel producer is currently expanding its operational footprint, with commercial production commencing at its Samsthan Narayanpur plant in August 2022 and refurbishment activities underway at its 250 TPD Visakhapatnam facility. The company also noted progress on a 30 TPD plant for Indian Railways in Chennai.

Financial Performance

The decline in top-line revenue was accompanied by a contraction in total expenditure, which fell to ₹10,822.62 lakh from ₹14,964.41 lakh in FY25. Despite lower costs, the operating deficit widened due to the sharper drop in income.

Cost of materials consumed stood at ₹8,301.14 lakh, compared to ₹14,068.30 lakh in the prior year. Finance costs increased to ₹287.45 lakh from ₹233.22 lakh, reflecting higher borrowing levels.

Balance Sheet Signals

The company's debt burden has risen significantly during the period under review. Total borrowings increased to ₹17,799.56 lakh (combining long-term and short-term liabilities) from ₹17,103.26 lakh in FY25. Notably, unsecured loans from directors rose to ₹10,303.55 lakh from ₹9,611.52 lakh.

Current assets grew marginally to ₹6,157.50 lakh from ₹5,636.69 lakh, driven by an increase in trade receivables to ₹1,669.67 lakh from ₹810.66 lakh. Inventories remained relatively stable at ₹3,311.05 lakh.

What the Numbers Show

The financial data reveals a heavy reliance on promoter funding to sustain operations amidst declining revenue. Unsecured loans from directors constitute approximately 58% of the company's total borrowings as of March 31, 2026. This concentration suggests that external institutional leverage has not expanded proportionately to support the capital-intensive expansion of biodiesel plants.

Corporate Governance and AGM

The Board of Directors convened its 28th Annual General Meeting on September 30, 2026, to adopt the audited standalone financial statements. Key agenda items included:

• Reappointment of Mr Rahuldev Pagidipati as a director retiring by rotation.
• Reappointment of M/s Darapaneni & Co., Chartered Accountants, as statutory auditors for a second term of five years.

No dividend was declared for the financial year ended March 31, 2026. The company's authorized share capital remains at ₹75 crore, with paid-up equity share capital of ₹45 crore.

Solana Biofuels Limited (formerly Southern Online Bio Technologies Limited), a Hyderabad-based biofuels and internet services company, reported a sharply widened net loss for the financial year ended March 31, 2026. The Board of Directors approved the audited standalone financial results in its meeting held on May 29, 2026, which commenced at 3.30 P.M. and concluded at 4.35 P.M. The statutory auditors, M/s. Darapaneni & Co., Chartered Accountants, issued an unmodified audit opinion on the annual results.

Financial Performance: FY26 vs FY25

The company's total revenue from operations declined significantly during FY26, while losses widened considerably compared to the previous year. The following table summarises the key financial metrics for the full year:

The cost of materials consumed for FY26 stood at ₹8,301.14 lakhs compared to ₹14,068.30 lakhs in FY25. Employee benefits expenses increased to ₹377.27 lakhs from ₹347.48 lakhs, while finance costs rose to ₹287.45 lakhs from ₹233.22 lakhs. Depreciation and amortisation expense declined to ₹304.76 lakhs from ₹376.90 lakhs in the prior year.

Q4 FY26 Quarterly Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹281.81 lakhs, compared to a net profit of ₹80.43 lakhs in the corresponding quarter of the previous year. Revenue from operations for Q4 FY26 stood at ₹2,432.13 lakhs, marginally lower than ₹2,467.31 lakhs in Q4 FY25. Total expenses for the quarter were ₹2,722.03 lakhs against ₹2,393.78 lakhs in Q4 FY25.

Segment Performance

The company operates across two business segments — Bio Diesel and Internet Services. The Bio Diesel segment remained the primary revenue contributor but recorded a steep deterioration in profitability during FY26.

The Bio Diesel segment's EBITDA swung to a loss of ₹610.88 lakhs in FY26 from a profit of ₹426.51 lakhs in FY25. The Internet Services segment recorded an EBITDA loss of ₹60.75 lakhs in FY26, compared to a loss of ₹39.13 lakhs in FY25.

Balance Sheet and Cash Flow Highlights

The company's total assets stood at ₹22,503.93 lakhs as at March 31, 2026, compared to ₹21,443.84 lakhs as at March 31, 2025. Net worth declined to ₹2,424.13 lakhs from ₹3,659.87 lakhs, reflecting the accumulated losses during the year. Other equity turned more negative at ₹(2,075.87) lakhs from ₹(840.13) lakhs in the prior year.

Key balance sheet figures are presented below:

From a cash flow perspective, net cash used in operating activities was ₹(138.43) lakhs for FY26, compared to net cash generated of ₹126.65 lakhs in FY25. Net cash used in investing activities was ₹(893.15) lakhs, while net cash from financing activities was ₹1,026.42 lakhs. Closing cash and cash equivalents stood at ₹130.14 lakhs as at March 31, 2026, compared to ₹135.30 lakhs at the close of FY25.

Audit and Compliance

The financial results were prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended. The statutory auditors, M/s. Darapaneni & Co., Chartered Accountants (Firm Registration No. 00068550), issued an unmodified opinion on the standalone annual financial results for the year ended March 31, 2026. Dr. Devaiah Pagidipati, Chairman and Managing Director, issued the requisite declaration under Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, confirming the unmodified audit opinion.