Solara Active Pharma Sciences delivered a remarkable financial turnaround in Q4FY26, posting a net profit of ₹9.7 crore compared to a loss of ₹4.8 crore in the corresponding quarter last year. According to reports from CNBC TV18, the company's revenue surged 42% year-on-year to ₹387.3 crore from ₹273 crore, while EBITDA increased 35.3% to ₹58 crore from ₹43 crore a year earlier. The company recorded its highest revenue, gross margin and EBITDA in the last eight quarters, with sequential growth of 12% and year-on-year growth of 40%.
Following the earnings announcement, shares of Solara Active Pharma Sciences surged nearly 15% to ₹583 on the NSE during afternoon trade, as reported by CNBC TV18. Managing Director and CEO Sandeep Rao highlighted that the company's base business continued to demonstrate stronger profitability, operating at around 26% EBITDA margin with gross margins of nearly 54%. The company's strategy to shift away from a reset phase towards sustainable and profitable growth was beginning to deliver results, with the focus on expanding the base business helping reduce exposure to commodity pricing volatility in the global Ibuprofen market.
Despite the overall positive performance, Solara flagged continued challenges in the commodity Ibuprofen segment, which reported negative EBITDA margins of 21% amid weak pricing and global oversupply pressures, according to CNBC TV18. The company has appointed bankers to evaluate strategic options for the business to ensure long-term value creation. Regulated markets continued to contribute nearly 75% of total revenue, supported by a healthy product mix and resilient demand across key geographies.
While the company achieved strong revenue growth and profitability, EBITDA margin narrowed slightly to 14.9% from 15.6% in the year-ago quarter, as reported by CNBC TV18. The persistent weakness in the Ibuprofen business continued to weigh on overall margins and profitability, despite the company's efforts to diversify its revenue streams and focus on higher-margin regulated markets.
