Summary

Solara Active Pharma Sciences has reported a strong Q1 performance for the quarter ended June 30, 2025. The company's revenue stands at INR 3,201 Mn, showing a QoQ growth of 15% and a YoY decline of 12%. The gross margin has improved significantly by 960 bps YoY, attributed to a higher regulated market mix and focus on profitable products. Operating costs have been tightly controlled, with a marginal increase QoQ due to increased level of operations. The EBITDA stands at INR 575 Mn (18%), showing a significant improvement of 639 bps YoY due to improved gross margins and tight control on operating costs. The gross debt has been reduced to INR 4,461 Mn (Net Debt / EBITDA at ~2 times). The Q1'26 PAT stands at INR 105 Mn, which is the highest in the last 12 quarters.

Key Highlights

1. 1

   Q1’26 Revenue at INR 3,201 Mn vs INR 3,641 Mn in Q1’25; down by 12% YoY

2. 2

   Q1’26 Revenue at INR 3,201 Mn vs INR 2,790 Mn in Q4’25; and 15% growth QoQ

3. 3

   Q1’26 Gross Margin at INR 1,732 Mn (54.1%) vs INR 1,622 Mn (44.5%) in Q1’25 and INR 1,605 Mn (57.5%) in Q4’25; Significant improvement by 960 bps YoY

4. 4

   Operating Costs at INR 1,157 Mn in Q1’26 vs INR 1,200 Mn in Q1’25 and INR 1,095 Mn in Q4’25; reduced by INR 43 Mn YoY

5. 5

   Q1’26 EBITDA at INR 575 Mn (18%) vs INR 422 Mn (11.6%) in Q1’25 and INR 510 Mn (18.3%) in Q4’25; Significant improvement by 639 bps YoY

6. 6

   Gross Debt as on 30-Jun-25 at INR 6,327 Mn vs INR 7,760 Mn in FY25; reduced by INR 1,433 Mn

7. 7

   Q1’26 PAT at INR 105 Mn; Highest in the last 12 quarters