Solara Active Pharma Sciences Ltd
NSE:SOLARA
Solara Active Pharma Sciences Ltd
Solara Active Pharma Sciences Ltd. engages in the manufacture and development of active pharmaceutical ingredient. The company is headquartered in Chennai, Tamil Nadu. The company went IPO on 2018-06-27. The firm is involved in contract manufacturing and development services for global companies. Its commercial products include Aprepitant (Antiemetic), Brivaracetam (Antiepileptic), Bumetanide (Inj) (Loop Diuretic), Buspirone Hcl (Anxiolytic), Cevimeline Hydrochloride (Muscarinic Agonist), Cinacalcet Hydrochloride (Calcimimetic Agent), Citicoline Sodium (Anticonvulsant), Colchicine (Antigout Agent), Disulfiram (Chronic Alcoholism), Edaravone (Recovery Of Stroke), Etomidate (Anesthetics), Felbamate (Anticonvulsant), Flecainide Acetate (Anti-Arrhythmic Agent), Rifaximin (Antibiotic), S-Ibuprofen (Anti-Inflammatory), Oseltamivir Phosphate(Antiviral) and Levetiracetam (Anticonvulsant). The company provides services, such as synthetic development, analytical development, process engineering, and regulatory services.
Solara Active Pharma Sciences Ltd. engages in the manufacture and development of active pharmaceutical ingredient. The company is headquartered in Chennai, Tamil Nadu. The company went IPO on 2018-06-27. The firm is involved in contract manufacturing and development services for global companies. Its commercial products include Aprepitant (Antiemetic), Brivaracetam (Antiepileptic), Bumetanide (Inj) (Loop Diuretic), Buspirone Hcl (Anxiolytic), Cevimeline Hydrochloride (Muscarinic Agonist), Cinacalcet Hydrochloride (Calcimimetic Agent), Citicoline Sodium (Anticonvulsant), Colchicine (Antigout Agent), Disulfiram (Chronic Alcoholism), Edaravone (Recovery Of Stroke), Etomidate (Anesthetics), Felbamate (Anticonvulsant), Flecainide Acetate (Anti-Arrhythmic Agent), Rifaximin (Antibiotic), S-Ibuprofen (Anti-Inflammatory), Oseltamivir Phosphate(Antiviral) and Levetiracetam (Anticonvulsant). The company provides services, such as synthetic development, analytical development, process engineering, and regulatory services.
Revenue Growth: Solara delivered 10% quarter-on-quarter revenue growth to INR 346 crores, and approximately 15% year-on-year growth for the quarter.
Ibuprofen Headwinds: The ibuprofen API business continues to face significant challenges from industry overcapacity, pricing pressures, and low capacity utilization, leading to substantial margin erosion and underperformance.
Profitability Contrast: The non-ibuprofen (growth API) business remains strong, with gross margins above 55% and EBITDA margins around 25%, notably higher than the company-wide average.
Strategic Review: Management and the Board have engaged external advisors to evaluate strategic options for the ibuprofen business, including cost reduction, technical interventions, or even asset sales, with decisions expected by Q4 results.
Debt Reduction: The company reduced its debt by INR 146 crores (19%) during the period and aims to bring it below INR 500 crores by May '26.
One-Time Costs: Q3 results were impacted by a one-time charge of INR 6.7 crores due to changes in labor regulations affecting gratuity and leave encashment liabilities.
