Solara Active Pharma Reports Q2 FY26 Results: Short-Term Challenges Impact Performance

Solara Active Pharma Sciences - PP , a leading pharmaceutical company, has released its unaudited financial results for the second quarter and half-year ended September 30, 2025. The results, approved by the Board of Directors on November 5, 2025, reveal a challenging quarter for the company, primarily due to short-term operational disruptions.

Key Financial Highlights

Particulars (INR Crores)	Q2 FY26	Q1 FY26	QoQ Change	Q2 FY25	YoY Change
Revenue	314.00	320.10	-1.9%	347.30	-9.6%
Gross Margin	159.90	173.20	-7.7%	175.30	-8.8%
Gross Margin %	51.00%	54.10%	-310 bps	50.50%	+50 bps
EBITDA	35.20	57.50	-38.8%	61.50	-42.8%
EBITDA Margin %	11.30%	18.00%	-670 bps	17.70%	-640 bps
Net Profit/(Loss)	(10.10)	10.50	-196.2%	7.90	-227.8%

Performance Analysis

Solara Active Pharma faced significant challenges in Q2 FY26, primarily due to an unscheduled operational shutdown at its Mangalore facility for upgradation purposes. This disruption led to delayed deliveries and reduced sales volumes during the quarter.

Revenue and Profitability

Q2 FY26 revenue stood at INR 314.00 crores, down 9.6% year-on-year and 1.9% quarter-on-quarter.
The company reported a net loss of INR 10.10 crores in Q2 FY26, compared to a profit of INR 7.90 crores in Q2 FY25.
EBITDA margin contracted to 11.30% in Q2 FY26 from 17.70% in Q2 FY25, primarily due to the operational disruptions and one-time additional operating costs.

Market Focus

Regulated markets continued to be a key focus, constituting 75% of total revenues in Q2 FY26.

Balance Sheet Management

Gross debt as of September 30, 2025, was INR 623.30 crores, reduced by INR 152.70 crores from the end of FY25.
The company aims to further reduce debt through a combination of rights issue proceeds and operating leverage.

Strategic Initiatives

Rights Issue: Solara has raised INR 311.85 crores through a rights issue, with plans to raise an additional INR 134.99 crores in the final call.
Business Restructuring: The company is exploring the demerger of its CRAMS (Contract Research and Manufacturing Services) and Polymers business into an independent listed entity, Synthix Global Pharma Solutions Limited.
Facility Upgradation: Despite short-term impacts, the company continues to invest in facility upgrades to enhance long-term operational efficiency.

Management Commentary

Sandeep Rao, MD & CEO, stated, "While these factors influenced current quarter results, they are transitory. The underlying fundamentals of the business remain strong, supported by a resilient operating model, robust compliance framework, and a diversified portfolio across key markets."

Outlook

Despite the short-term challenges, Solara Active Pharma maintains a positive long-term outlook. The company expects to leverage its strong presence in regulated markets, focus on high-margin segments, and ongoing cost optimization efforts to drive future growth and profitability.

Investors and stakeholders will be closely watching how Solara navigates these short-term disruptions and executes its strategic initiatives in the coming quarters.

Note: All financial figures are in Indian Rupees (INR) and are on a consolidated basis unless otherwise stated.

Solara - PP has announced the receipt of Rs. 4.88 crore as first call money for its outstanding partly paid-up rights equity shares. This development marks a significant step in the company's ongoing rights issue process.

Key Highlights

Solara Active Pharma received Rs. 4.88 crore for 3,71,779 partly paid-up rights equity shares.
The Rights Issue Committee approved the conversion of these shares from Rs. 3.50 paid-up to Rs. 7.00 paid-up per share.
The first call amount was set at Rs. 131.25 per share on the outstanding partly paid-up equity shares.
These shares were originally allotted on June 19, 2024, as part of a rights issue.

Impact on Share Capital

Following this conversion, Solara Active Pharma's paid-up capital has increased to Rs. 44.47 crore. The new capital structure comprises:

Share Type	Rs.	Number of Shares
Fully paid-up equity shares	Rs.	3,61,54,267
Partly paid-up rights shares (Rs. 7.00)	Rs.	1,17,61,546
Partly paid-up rights shares (Rs. 3.50)	Rs.	2,37,209

Next Steps

The company has stated that it will take necessary steps for corporate actions and obtain listing approvals for the converted shares. This process is crucial for ensuring that the newly converted shares are properly recognized and tradable in the market.

Background

The first call money collection is part of a larger rights issue process that Solara Active Pharma initiated earlier. The company had issued a First Reminder Notice on July 1, 2025, for the payment of the first call on 6,08,988 partly paid-up equity shares.

Regulatory Compliance

This announcement was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has duly informed both the BSE Limited and the National Stock Exchange of India Limited about this development.

Investors and market participants will be keenly watching for further updates on the listing and trading approvals for these converted rights equity shares, as it may impact the overall liquidity and trading dynamics of Solara Active Pharma's stock.