Solara Active Pharma Sciences Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Solara Active Pharma Sciences Ltd filed with BSE on 29 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Solara Active Pharma Sciences reported Q1 FY27 revenue of INR384 crores, up 20% year-on-year, with EBITDA of INR63.5 crores and PAT of INR16.3 crores, which management said were the highest EBITDA and PAT in 18 quarters. The base business grew 24% year-on-year while the commodity Ibuprofen business reported a negative 12% EBITDA margin amid raw material cost pressures linked to the West Asia crisis. Management also reported a reduction in net debt of roughly INR135 crores during the quarter, bringing net debt to approximately INR479 crores.
Numbers mentioned
Revenue: INR384 crores (Q1 FY27)
p. 3
“Our overall revenues stand at INR384 crores, up 20% year-on-year.”
Sandeep Rao, page 3 of the filed PDF · View the filing
EBITDA: INR63.5 crores (Q1 FY27)
p. 3
“EBITDA stands at INR63.5 crores, which is up 10% year-on-year.”
Sandeep Rao, page 3 of the filed PDF · View the filing
PAT: INR16.3 crores (Q1 FY27)
p. 3
“Our PAT is at INR16.3 crores, which is up 55% year-on-year.”
Sandeep Rao, page 3 of the filed PDF · View the filing
Base business revenue: INR307 crores (Q1 FY27)
p. 3
“Our base business revenues stand at INR307 crores, up 24% year-on-year.”
Sandeep Rao, page 3 of the filed PDF · View the filing
Base business gross margin: INR158 crores (Q1 FY27)
p. 3
“Gross margins was at INR158 crores, up 10% year-on-year and EBITDA at INR72 crores, up 8% year-on-year.”
Sandeep Rao, page 3 of the filed PDF · View the filing
Ibuprofen EBITDA margin: negative 12% (Q1 FY27)
p. 3
“We reported an EBITDA margin of negative 12% amidst what we think is a difficult operating environment.”
Sandeep Rao, page 3 of the filed PDF · View the filing
EBITDA margin: 17% (Q1 FY27)
p. 4
“the business has delivered an EBITDA margin of 17% with an absolute EBITDA value of INR635 million, which reflects an improvement in EBITDA margin by 80 basis points Q-on-Q”
Sarat Kumar, page 4 of the filed PDF · View the filing
Net debt reduction: INR135-odd crores (Q1 FY27)
p. 4
“Our ongoing efforts on strengthening the balance sheet has led to a reduction of net debt by roughly INR135-odd crores during the quarter, which reflects around 22% reduction in the net debt”
Sarat Kumar, page 4 of the filed PDF · View the filing
Net debt: roughly INR479 crores (as on 30th of June)
p. 4
“As we speak, our net debt as on 30th of June stands at roughly INR479 crores, which reflects a net debt-to-EBITDA multiple of roughly 1.9x considering the annualized Q1 EBITDA numbers what we have reported.”
Sarat Kumar, page 4 of the filed PDF · View the filing
Deployed capital in Ibuprofen business: INR700-odd crores
p. 7
“So currently, our deployed capital will be close to INR700-odd crores.”
Sarat Kumar, page 7 of the filed PDF · View the filing
Base business capacity utilization: close to 70%
p. 13
“So these three sites, on an average, our average capacity utilization across sites put together is close to 70% at this point of time.”
Sarat Kumar, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Net debt — sub INR450 crores, close to INR440-odd crores · by end of March '27
stated conditionally by Sarat Kumar
p. 4
“we have a line of sight to reduce the debt to sub INR450 crores, somewhere around close to INR440-odd crores by end of March '27., considering the scheduled repayments what we have for the debt”
Sarat Kumar, page 4 of the filed PDF · View the filing
Ibuprofen strategic review — H1 FY27
stated firmly by Sandeep Rao
p. 15
“we believe we are -- I think we can say that we are on track to be resolving this matter by H1. We had given a guideline of H1.”
Sandeep Rao, page 15 of the filed PDF · View the filing
Base business gross margin range — 50% to 55%
stated as an aspiration by Sandeep Rao
p. 7
“We are comfortable with the 50% to 55% range. Of course, the aspiration is to try and get as close to 55% as possible.”
Sandeep Rao, page 7 of the filed PDF · View the filing
Net debt — 0 net debt · FY '29
stated as an aspiration by Sarat Kumar
p. 10
“Obviously, we will have certain debt on the book. But from a net debt standpoint, by FY '29, we should be 0 net debt.”
Sarat Kumar, page 10 of the filed PDF · View the filing
Base business EBITDA margin — 25% plus/minus 1% · FY '27
stated conditionally by Sarat Kumar
p. 10
“Gautami, again, we will be slightly shying away from giving an outlook, but 25% plus/minus 1% should be the margin profile what we're looking at in terms of EBITDA profile.”
Sarat Kumar, page 10 of the filed PDF · View the filing
Ibuprofen EBITDA loss — INR10 crores to INR15 crores negative EBITDA per quarter
stated conditionally by Sarat Kumar
p. 8
“we will be comfortable to have a kind of a run rate somewhere between INR10 crores to INR15 crores of EBITDA level loss each quarter.”
Sarat Kumar, page 8 of the filed PDF · View the filing
Capex — INR55-60-odd crores · FY '27
stated firmly by Sarat Kumar
p. 11
“FY '27, we have already committed to close to INR55 - INR60-odd crores of capex.”
Sarat Kumar, page 11 of the filed PDF · View the filing
Capex — INR40 crores to INR50-odd crores per year · FY '28 and FY '29
stated conditionally by Sarat Kumar
p. 11
“we expect on an average close to INR40 crores to INR50-odd crores of capex year-on-year from FY '28 and FY '29 as well.”
Sarat Kumar, page 11 of the filed PDF · View the filing
Base business revenue growth — at least 10% year-on-year
stated conditionally by Sarat Kumar
p. 14
“we are fairly confident of growing this business by at least 10% year-on-year kind of number.”
Sarat Kumar, page 14 of the filed PDF · View the filing
Base business margin range — 52% to 55%
stated conditionally by Sarat Kumar
p. 14
“So we are actually comfortable of maintaining close to 52% to 55% kind of a margin range depending on the product profile what we'll have for that particular quarter.”
Sarat Kumar, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management named three priorities: expanding existing business, driving operational efficiency through debottlenecking, and optimizing working capital.
Answered by Sandeep Rao
Asked by Sajal Kapoor: What are the top operational priorities for the turnaround over the next 12-18 months?
p. 5
“First is expanding our existing business and seeding new businesses.”
Sandeep Rao, page 5 of the filed PDF · View the filing
Management confirmed they expect an update in H1 and are working towards an optimum solution.
Answered by Sandeep Rao
Asked by Sajal Kapoor: Is the Q2 FY27 timeline for the Ibuprofen strategic review still on track?
p. 5
“All we can say today is we are working towards what we think is a optimum solution to the issue.”
Sandeep Rao, page 5 of the filed PDF · View the filing
Management attributed the variation to pass-through cost adjustments and said adjusted margins are consistent with historical levels.
Answered by Sarat Kumar
Asked by Akash Jain: Why has base business gross margin fluctuated across quarters?
p. 7
“So if you adjust for that particular number, you will be already talking about a number 54.5% kind of a level in terms of gross margin profile as compared to what we have reported in terms of 51.3%.”
Sarat Kumar, page 7 of the filed PDF · View the filing
Management said the quarter benefited from a temporary supply shortfall and expects ongoing quarterly EBITDA losses in a specific range.
Answered by Sarat Kumar
Asked by Anand Mundra: Are current Ibuprofen profitability levels likely to sustain?
p. 8
“we will be comfortable to have a kind of a run rate somewhere between INR10 crores to INR15 crores of EBITDA level loss each quarter.”
Sarat Kumar, page 8 of the filed PDF · View the filing
Management said the tariff announcement lacks a formal implementing framework and clarity on product scope.
Answered by Sandeep Rao
Asked by Parth Mehta: What impact do new U.S. tariffs have on the business?
p. 8
“There is no legal implementing framework, and we are still awaiting clarification on what the product scope is.”
Sandeep Rao, page 8 of the filed PDF · View the filing
Management attributed the flat sequential number to industry seasonality and product mix, noting stronger year-on-year growth.
Answered by Sarat Kumar
Asked by Aman Chakraborty: Is the flat quarter-on-quarter revenue a sign of demand issues or capacity constraints?
p. 9
“So when I look from our Q1 FY '26 to Q1 FY '27, growth in revenue is significantly higher in terms of 24%.”
Sarat Kumar, page 9 of the filed PDF · View the filing
Management confirmed an internal aspiration to reach zero net debt by FY29.
Answered by Sarat Kumar
Asked by Gautami Agarwal: Will Solara achieve net debt free status by 2029 or earlier?
p. 10
“But from a net debt standpoint, by FY '29, we should be 0 net debt.”
Sarat Kumar, page 10 of the filed PDF · View the filing
Management said all decisions can be reconsidered if profitable, but does not expect the commodity dynamics of the business to change.
Answered by Sandeep Rao
Asked by Zakir Naseer: Would Solara reconsider its decision on the Ibuprofen unit if pricing improves?
p. 10
“Well, in business, all decisions can be reconsidered as long as something makes money for us and the shareholders.”
Sandeep Rao, page 10 of the filed PDF · View the filing
Management said greenfield expansion is not currently planned, with capex focused on debottlenecking and maintenance.
Answered by Sarat Kumar
Asked by Sajal Kapoor: What is the capital allocation plan for the next three years between maintenance and brownfield capex?
p. 11
“So greenfield is something which we are currently not actively looking at this point of time.”
Sarat Kumar, page 11 of the filed PDF · View the filing
Management said Vizag remains mothballed and unused for both base business and CRAMS pending strategic decisions.
Answered by Sandeep Rao
Asked by Akash Jain: What is the capacity utilization and status of the Vizag facility?
p. 13
“So Vizag continues to be mothballed.”
Sandeep Rao, page 13 of the filed PDF · View the filing
Management reaffirmed it expects resolution within H1 as previously guided.
Answered by Sandeep Rao
Asked by Neeraj Shah: Is the Ibuprofen strategic review on track for H1 FY27 completion?
p. 15
“We had given a guideline of H1. We are hopeful we can find a solution to it in that time.”
Sandeep Rao, page 15 of the filed PDF · View the filing
Management identified the West Asia crisis and its impact on raw material availability and pricing as the primary uncontrollable risk.
Answered by Sandeep Rao
Asked by Abhay Amrutiya: What are the biggest risks to the turnaround over the next 12-24 months?
p. 16
“Well, the first and foremost risk is what will happen in the West Asia crisis.”
Sandeep Rao, page 16 of the filed PDF · View the filing
Risks flagged
Raw material availability disruption due to the West Asia crisis
p. 16
“What this crisis has done for us is raw material availability has become a challenge.”
Sandeep Rao, page 16 of the filed PDF · View the filing
Raw material price increases not fully accepted by all customers
p. 16
“Some customers have been kind enough to accept these price rises. Some customers have not been so willing.”
Sandeep Rao, page 16 of the filed PDF · View the filing
Ibuprofen business remains under profitability pressure due to commodity dynamics
p. 3
“This business continues to face profitability challenges. We reported an EBITDA margin of negative 12% amidst what we think is a difficult operating environment.”
Sandeep Rao, page 3 of the filed PDF · View the filing
Uncertainty around new U.S. tariff policy and its scope
p. 8
“the current status for me is the intent has been announced. There is no legal implementing framework, and we are still awaiting clarification on what the product scope is.”
Sandeep Rao, page 8 of the filed PDF · View the filing
Solvent and petroleum-linked raw material shortages affecting manufacturing
p. 8
“there's an overall shortage in terms of all the solvents what we use in our manufacturing process or what our vendors use in their manufacturing processes.”
Sarat Kumar, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.