Solara Active Pharma Sciences has announced its audited financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results at its meeting held on May 15, 2026. The company subsequently published an extract of the audited financial results (Standalone & Consolidated) for the year ended March 31, 2026, and unaudited financial results for the quarter ended March 31, 2026, as a newspaper advertisement in 'Business Standard' and 'Pratahkal' on May 16, 2026.

On a consolidated basis, the company reported a net profit of Rs. 9.60 crores for the quarter ended March 31, 2026, compared to a net loss of Rs. 2.10 crores in the corresponding quarter of the previous year. For the full financial year, the company reported a net loss of Rs. 7.41 crores, compared to a net profit of Rs. 0.54 crores in the previous year. Revenue from operations for the year grew to Rs. 1,368.98 crores from Rs. 1,283.76 crores, while total income stood at Rs. 1,375.14 crores.

Management Commentary

MD & CEO Sandeep Shashikantha Rao stated that Q4 FY26 overall performance reflects a sequential growth of 12% and a year-on-year growth of 40%, adding that the company recorded its highest revenue, gross margin, and EBITDA in the last eight quarters. The management's remarks underscore the significance of the quarter's results as a meaningful operational milestone for the company.

Consolidated Financial Performance

Revenue from operations for Q4 FY26 stood at Rs. 387.29 crores, up from Rs. 273.01 crores in the same period of the previous year, reflecting a strong 40% year-on-year growth. Q4 EBITDA rose to Rs. 61 crores from Rs. 45.70 crores in Q4 FY25, though the EBITDA margin contracted to 14.90% from 16.62% over the same period. The statutory auditors, M/s. Deloitte Haskins & Sells LLP, issued an unmodified opinion on the audited consolidated and standalone financial results. Total expenses for the full year were Rs. 1,376.66 crores, against Rs. 1,291.54 crores in the previous year. Finance costs for the year declined to Rs. 94.75 crores from Rs. 114.81 crores, while depreciation and amortisation expenses stood at Rs. 99.68 crores. An exceptional loss of Rs. 5.89 crores for the year related to the impact of gratuity and compensated absences under new labour codes.

The following table summarises the key consolidated financial metrics for the quarter and full year:

Standalone Financial Performance

On a standalone basis, the company reported total income from operations of Rs. 381.66 crores for the quarter ended March 31, 2026, compared to Rs. 812.14 crores for the quarter ended March 31, 2025. For the full year ended March 31, 2026, standalone total income from operations stood at Rs. 1,372.80 crores, against Rs. 1,388.50 crores in the previous year. Standalone net profit after tax for the full year was Rs. 31.90 crores, compared to Rs. 36.23 crores in the previous year. The following table presents the key standalone financial metrics:

Segment Performance

The company's operations relate to a single reportable segment — Active Pharmaceutical Ingredient (API). The Base business, excluding commodity Ibuprofen, demonstrated strong momentum in Q4 FY26 with revenue growth of 24% QoQ and 36% YoY. This segment reported a Gross margin of ~54% and EBITDA of ~26%. In contrast, the commodity Ibuprofen business faced persistent headwinds, reporting a negative EBITDA of Rs. 17.90 crores for the quarter. The Board has appointed bankers to evaluate strategic options for the Ibuprofen business to ensure optimal long-term value creation. Consequently, the carve-out of the polymers and CRAMS business has been put on hold until strategic options for the Ibuprofen business are finalised in H1 FY27.

Balance Sheet and Rights Issue

As at March 31, 2026, consolidated total assets stood at Rs. 2,332.59 crores. Total equity increased to Rs. 1,255.55 crores from Rs. 1,096.91 crores. Current borrowings declined to Rs. 554.09 crores from Rs. 662.20 crores. To address accumulated losses of Rs. 319.33 crores and net current liabilities exceeding net current assets by Rs. 35.81 crores, the company has sent a second and final call notice for the balance amount of Rs. 134.99 crores under its rights issue. The rights issue, offered at Rs. 375 per equity share, has so far raised Rs. 312.79 crores out of a total issue size of Rs. 449.95 crores, comprising Rs. 157.48 crores from application money and Rs. 155.31 crores from the first call made on May 6, 2025, with Rs. 2.17 crores still unpaid. The Board of Directors has approved the preparation of financial results on a going concern basis.

Solara Active Pharma Sciences informed the stock exchanges on May 15, 2026, that its Board of Directors met on the same date and approved revisions to certain company policies, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Policy Updates Approved by the Board

The Board meeting resulted in two significant governance-related decisions, both aimed at aligning the company's internal framework with applicable regulatory standards. The details of the approved matters are outlined below:

Board Evaluation Policy Adoption

The Board formally adopted the Board Evaluation Policy in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and any amendments thereto. The policy has been made available on the company's website under the investor relations section covering policies and guidelines.

Whistle Blower Policy Amendment

The Whistle Blower Policy was amended to incorporate necessary revisions and modifications in line with applicable requirements. The updated policy is also accessible on the company's official website at the investor relations section. The intimation was signed by Pooja Jaya Kumar, Company Secretary and Compliance Officer, on May 15, 2026.