Solara Active Pharma Sciences Limited conducted its Q3FY26 earnings conference call on February 6, 2026, providing detailed insights into the company's strategic transformation amid challenging market conditions. The management outlined comprehensive plans to address structural issues in the ibuprofen business while strengthening its high-margin growth API portfolio.

Strategic Business Evaluation and Advisory Engagement

Founder and Non-Executive Director Arun Kumar announced the Board's decision to engage strategic advisors to evaluate options for the ibuprofen business. The company will also reassess the previously announced scheme for the CRAMS business split, with comprehensive recommendations expected by Q4FY26 results.

Business Segment Performance Analysis

The management provided unprecedented transparency by separately disclosing performance metrics for both business segments, highlighting the stark contrast between the struggling ibuprofen base business and the thriving growth API portfolio.

Growth API Business Metrics:

Base Ibuprofen API Business Challenges:

Management Commentary on Market Dynamics

Managing Director Sandeep Rao emphasized that the growth API business demonstrates "class-leading" numbers with superior profitability. The company continues serving marquee customers in the ibuprofen segment despite persistent pricing pressures and excess industry capacity.

Arun Kumar highlighted the structural challenges facing the ibuprofen business, noting that Solara's 20-year-old manufacturing processes cannot be easily changed due to regulatory constraints from long-standing big pharma customers. The company sells ibuprofen at 15-17% premium to competition but still faces margin pressures.

Financial Performance and Debt Reduction Progress

CFO Sarat Kumar reported continued progress in debt reduction initiatives:

Facility Optimization and R&D Strategy

The company outlined plans to revive the mothballed Vizag facility by converting it from a single-product ibuprofen plant to a multipurpose facility. One block will be converted for multipurpose API manufacturing while another will focus on high potent APIs.

The management confirmed increased R&D investments and new talent acquisition to support the facility conversion and feed the growth API pipeline. The company has been successfully reviving dormant Drug Master Files (DMFs) to support its small volume, high-margin API strategy.

Corporate Actions and Future Roadmap

The Board decided to delay all previously announced corporate actions pending completion of the strategic review. This includes reassessing the CRAMS business split, which was initially planned as a balance sheet optimization measure.

Arun Kumar indicated that given the strong cash generation from the non-ibuprofen business, an integrated structure combining CDMO and complex APIs under one entity may create more value than separation.

Operational Highlights and Market Position

The company maintains its strong position in developed markets, contributing 75% of overall sales. Despite facing headwinds in the commodity ibuprofen segment, the derivatives business remains profitable and forms part of the growth portfolio.

Management expressed confidence in the resilient operating model, robust compliance framework, and diversified portfolio across key markets, positioning the company for sustainable growth once structural issues are addressed.

Solara Active Pharma Sciences Limited has announced the allotment of 1,500 equity shares under its Employee Stock Option Plan 2018, as approved by the Board of Directors on December 17, 2025. The allotment was made pursuant to the exercise of vested options under the company's employee stock option scheme.

Share Allotment Details

The Board of Directors approved the allotment of 1,500 equity shares with a face value of ₹10 each, fully paid up, against the exercise of vested options. The shares were allotted at an exercise price of ₹375 per share, generating total proceeds of ₹5.63 lakhs for the company.

Impact on Share Capital Structure

Following the ESOP allotment, the company's paid-up share capital structure has been updated. The total number of issued shares increased from 4,81,70,062 to 4,81,71,562 equity shares.

Share Capital Before Allotment:

Share Capital After Allotment:

Regulatory Compliance and Rights

The allotment was made in compliance with SEBI regulations, including Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 10(c) of SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

The newly allotted equity shares rank pari-passu with existing equity shares of the company in all respects, carrying identical voting rights and dividend entitlements. The company reported diluted earnings per share of ₹0.19 per share pursuant to this equity share issuance.

Exercise Terms and Conditions

Under the Solara Employee Stock Option Plan 2018, options must be exercised within 120 days from the date of vesting. The exercise period provides employees with a defined timeframe to convert their vested options into equity shares. The options cannot be exercised after the expiry of the 120-day exercise period.

The company is listed on both the National Stock Exchange of India Limited and BSE Limited, with trading symbols SOLARA and SOLARAPP1 respectively. The original ESOP scheme filing was completed on October 24, 2018, with both exchanges.