Solara Q1 PAT up 55% YoY to ₹16.3 Cr on 20% revenue growth; net margin widens to 4.3%

Solara Active Pharma delivered a strong Q1 FY27 on a consolidated basis, with net profit rising 55% year-on-year to ₹16.31 Cr (from ₹10.52 Cr) and 70% sequentially (from ₹9.60 Cr), on revenue of ₹381.60 Cr that grew 19.6% YoY though it eased 1.5% from Q4's ₹387.29 Cr. With brought-forward losses of ₹286 Cr shielding the P&L, the tax charge was nil, so the entire pre-tax profit dropped to the bottom line and net margin widened to 4.27% from 3.29% a year ago; EPS rose to ₹3.52 from ₹2.46. The result comfortably beat modest street expectations — previews had pencilled in revenue of roughly ₹266–300 Cr against the ₹319 Cr year-ago base.

The quality of the print is mixed beneath the headline: operating margin actually compressed to ~16.2% from 17.9% a year earlier, as materials consumed climbed to ~51% of sales from ~46%, signalling gross-margin give-back even as the top line grew. The PAT jump was instead powered by operating leverage on fixed costs and a lower finance bill (₹21.6 Cr vs ₹23.9 Cr). On the Q4 call management guided to sequential improvement in the base business without a formal quantitative outlook, and the QoQ profit step-up meets that framing. There were no exceptional items this quarter, so reported and adjusted YoY growth are identical at ~55%. The standalone entity earned ₹16.99 Cr on the same ₹381.60 Cr revenue, consistent with the consolidated story. Concurrent with results, the company continues to wind down its ₹449.95 Cr rights issue (₹442.73 Cr collected, final reminder-cum-forfeiture notices issued for shortfalls); the flagged items ahead are the H1 FY27 decision on the underperforming ibuprofen business and the Vizag facility roadmap management named as priorities.

The stock went into the print at ₹546.1, down 5.7% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters.

Rights issue at ₹442.73 Cr collected of ₹449.95 Cr — company still carries ₹286 Cr accumulated losses, going-concern note reiterated