Solara Active Pharma Sciences filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026. The disclosure outlines the company's environmental performance, workforce metrics, and governance practices across its standalone operations.

Environmental Performance

The company reported that 81% of its total energy consumption came from renewable sources in FY26, up slightly from 81.07% in FY25. Total energy consumption rose to 9,61,670.15 GJ from 9,49,376.74 GJ in the prior year. This increase was accompanied by an improvement in energy intensity per rupee of turnover, which fell to 0.000070 GJ/₹ from 0.000074 GJ/₹.

Greenhouse gas emissions also saw a decline. Scope 1 and Scope 2 emissions intensity per rupee of turnover dropped to 0.0000027 tCO₂e/₹ from 0.0000032 tCO₂e/₹. The company achieved an 8.5% reduction in Scope 1 and Scope 2 GHG emissions during the reporting period.

Water withdrawal increased to 3,81,529 KL from 3,17,477 KL in FY25. The company noted the use of Secondary Treated Effluent Water (STEW) at its Puducherry facility to reduce freshwater dependence.

Workforce Metrics

As of March 31, 2026, Solara employed 1,032 permanent employees and 2,076 workers. The turnover rate for permanent employees fell significantly to 13% from 30% in FY25. Female representation among permanent employees stood at 10%.

The company reported zero fatalities and zero lost-time injuries for employees during the year. However, workers recorded a Lost Time Injury Frequency Rate (LTIFR) of 0.80, compared to zero in the previous year.

Governance and Related Parties

Sales to related parties accounted for 25% of total sales in FY26, up from 17.6% in FY25. Investments in related parties constituted 100% of total investments made by the entity. The company received one shareholder complaint regarding a rights issue, which was resolved with no pending cases at year-end.

What the Numbers Show

The divergence between rising absolute water withdrawal (3,81,529 KL) and stable water intensity per rupee of turnover (0.000027 KL/₹) suggests that operational scale expanded in FY26 without a proportional increase in revenue generation efficiency relative to water usage. While renewable energy adoption remained high at 81%, the absolute rise in total energy consumption indicates increased manufacturing activity or capacity utilization despite efficiency gains in intensity metrics.

Solara Active Pharma Sciences reported consolidated revenue of ₹1,375.14 crores for FY2025-26, a 7% increase over ₹1,292.08 crores in FY2025, while posting a net loss of ₹7.41 crores against a marginal profit of ₹0.54 crores in the prior year.

The company has convened its Ninth Annual General Meeting on Friday, September 18, 2026, at 10.30 AM (IST) through Video Conferencing/Other Audio-Visual Means. The cut-off date for voting eligibility is September 11, 2026, with remote e-voting open from September 15 to September 17, 2026.

FY2025-26 Financial Performance

The following table summarises key consolidated financial metrics over five fiscal years:

Consolidated EBITDA declined 10% to ₹191.54 crores from ₹213.84 crores in FY25, with EBITDA margin contracting to 13.9% from 16.5%. The net loss was primarily impacted by continued weakness in the commodity Ibuprofen segment and a ₹5.89 crores exceptional item relating to past service cost from employee benefit plan amendments under the new Labour Codes.

Business Segment Performance

Base API Business

The base business — excluding commodity Ibuprofen — delivered revenue of ₹1,041.40 crores in FY2025-26, up 6% from ₹985 crores in FY25. Gross profit grew 6% to ₹573.20 crores, with gross margins at 55.0%. EBITDA remained stable at ₹244.50 crores, reflecting a 0.25% increase, with EBITDA margins of 23.5%. Regulated markets contributed nearly 75% of base business revenues.

Ibuprofen Business

The commodity Ibuprofen segment reported revenue of ₹333.74 crores, up 9% from ₹307 crores in FY25. However, gross profit declined 12% to ₹92.66 crores, and EBITDA deteriorated to ₹(52.96) crores — a 76% decline — reflecting persistent global oversupply and pricing pressure. The Board has initiated a strategic review of options for this business; the previously announced carve-out of the Polymers and CRAMS businesses has been deferred pending completion of this review, expected during H1 FY27.

Key Financial Ratios

Net debt reduced to ₹614 crores from ₹772 crores in FY25, supported by disciplined repayments, improved cash management, and Rights Issue proceeds. As of March 31, 2026, total funds received from the Rights Issue stood at ₹309.79 crores, including ₹155.31 crores from the First Call. Subsequent to the financial year close, the company received ₹1,29,94,28,775 towards the Second and Final Call on 1,15,50,478 partly paid-up Rights Equity Shares, converting them to fully paid-up shares on May 15, 2026.

Operational Highlights

• Six manufacturing facilities and one R&D centre, with approximately 1,700 employees
• 75% of revenues derived from regulated markets across 60+ countries
• Three successful USFDA audits across different sites in FY2025-26
• 50+ scientists advancing innovation and product development
• Renewable energy constituted approximately 50% of overall power consumption in FY26
• CSR investment of ₹0.76 crores in FY2025-26, focused on health, hygiene, and education

AGM Schedule

The Board did not recommend a final dividend for FY2025-26. Key AGM agenda items include adoption of audited financial statements, re-appointment of Mr. Arun Kumar Pillai as Non-Executive Director, ratification of Cost Auditor remuneration of ₹4.75 lakhs for FY27, and approval of material related party transactions with Strides Pharma Science Limited up to ₹480 crores.