Solara Active Pharma Sciences Limited announced its unaudited financial results for the quarter ended December 31, 2025, revealing a strategic transformation story amid mixed financial performance. The pharmaceutical company reported a net loss during the quarter while demonstrating strong momentum in its high-growth API business segment, validating its strategic shift away from commodity-driven operations.

Financial Performance Overview

The company's quarterly performance showed contrasting trends across key metrics:

Strategic Business Transformation

Managing Director & CEO Sandeep Rao highlighted the company's strategic pivot, stating that the performance reflects modest sequential growth as the build-out in the growth business continues to gain momentum while the Ibuprofen base business experiences persistent challenges and pricing pressure. The Growth API business demonstrates superior profitability, operating at approximately 25% EBITDA margin with gross margins of around 55%.

Business Segment Analysis

The company's strategic decoupling from commodity reliance is yielding measurable results:

Growth API Business Performance:

Base Ibuprofen API Business Performance:

Nine-Month Performance Analysis

For the nine-month period, the company faced revenue decline while reporting losses:

Strategic Initiatives and Future Roadmap

Recognizing the structural challenges of commodity Ibuprofen base APIs, the Board is engaging strategic advisors to evaluate options for the Ibuprofen business. The company will also re-assess the previously announced scheme for the CRAMS business split, with a comprehensive roadmap for both initiatives to be presented in the subsequent quarter.

Financial Position and Debt Management

The company continues its focus on debt reduction through accelerated repayment:

Despite accumulated losses of ₹329.64 crores and net current liabilities exceeding assets by ₹92.44 crores, the Board approved results on a going concern basis, expecting to raise ₹134.99 crores through the pending final call of its rights issue.

Exceptional Items and Corporate Developments

The company reported exceptional items worth ₹6.75 crores during Q3FY26, related to gratuity and compensated absences impact under new labour codes. The company incorporated Synthix Global Pharma Solutions Limited as a wholly owned subsidiary and closed its Brazil subsidiary operations during the period.

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.