Shares of Solara Active Pharma Sciences Ltd surged by 18.33 percent to Rs 599.75 in Friday's trading session. This significant rally followed the company's announcement of a return to profitability in the fourth quarter of fiscal year 2026 (Q4 FY26), driven by robust revenue growth and improved operational performance.
Return to Profitability Fuels Rally
During the quarter under review, Solara Active Pharma, a key manufacturer of Ibuprofen, reported a net profit of Rs 9.60 crore. This marks a substantial turnaround from the net loss of Rs 2.10 crore recorded in the corresponding period of the previous year. The company's revenue from operations also saw a significant increase, climbing 41.86 percent year-on-year to Rs 387.29 crore, up from Rs 273.01 crore in the year-ago period.
Operational metrics further underscored the positive performance. Gross margin reached Rs 164.8 crore, a 16 percent increase year-on-year, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also rose by 16 percent year-on-year to Rs 79.6 crore. The company highlighted that Q4 FY26 recorded its highest revenue, gross margin, and EBITDA in the past eight quarters, signaling strong momentum.
Strategic Review for Ibuprofen Business
The Ibuprofen business segment, a core part of Solara Active Pharma's operations, contributed significantly to the revenue growth. This segment's revenue increased by 61 percent year-on-year to Rs 84.9 crore, with its gross margin improving by 32 percent year-on-year to Rs 19.2 crore. Despite this growth, the Ibuprofen segment's EBITDA remained negative at Rs 17.9 crore.
In a strategic move, Solara Active Pharma announced that its Board of Directors has appointed bankers to evaluate various strategic options for its Ibuprofen business. The company noted that this business currently focuses on servicing large brands and marquee customers, maintaining long-term relationships and achieving relatively better pricing. Consequently, the previously planned carve-out of the polymers and CRAMS (Contract Research and Manufacturing Services) business has been put on hold until the strategic options for the Ibuprofen business are finalized in the first half of FY27.