Solara Active Pharma Sciences has received a rectification order from the Income Tax Department, effectively dropping a tax demand of ₹161.92 crore for Assessment Year 2019-20. The order resolves a dispute initiated by a demand notice received in March 2026.

The Assistant Commissioner of Income Tax, Central Circle 3, Thane, issued the order under Section 154 read with Section 147 of the Income Tax Act, 1961. The authority accepted the company’s application filed on March 18, 2026, which argued that the initial tax computation contained errors requiring correction.

Resolution Details

The rectification order confirms that the tax demand raised pursuant to the notice dated March 17, 2026, was incorrectly computed. Consequently, the pending demand has been reduced to nil. The company stated that there is no impact on its financials or operations as a result of this development.

Regulatory Compliance

The communication does not identify any aberrations, non-compliances, violations, or defaults on the part of Solara Active Pharma Sciences. No penalties, restrictions, or sanctions were imposed. The company confirmed that no further action is required regarding the said demand. The filing was signed by Pooja Jaya Kumar, Company Secretary and Compliance Officer, on August 28, 2026.

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.