Solara has closed FY26 on a high note, posting its strongest quarterly performance in two years as core operations accelerated sharply despite continued pressure in its commodity Ibuprofen business.
Q4’26 revenue surged 12% sequentially and 40% year-on-year, delivering the company’s highest revenue, gross margin and EBITDA performance in the last eight quarters. The base business emerged as the key growth engine, powered by strong margins, resilient operations and healthy demand across regulated markets.
“Our overall performance for Q4'26 reflects a sequential growth of 12% and YoY growth of 40%. We recorded the highest Revenue, Gross margin & EBITDA in the last eight quarters,” said Sandeep Rao, Managing Director & CEO.
The company’s core or “Base Business” — excluding commodity Ibuprofen — posted Q4 revenue of Rs. 3,070 million, up 24% quarter-on-quarter and 36% year-on-year. EBITDA climbed 53% sequentially to Rs. 796 million, while gross margins remained strong at approximately 54%.
“Notably, the Base business is already demonstrating superior profitability, operating at a ~26% EBITDA margin with gross margins of ~54% which reinforces the objective we established at the start of the year to pivot the business from a phase of reset to one defined by sustainable, profitable and reliable growth,” Rao said.
For the full fiscal year, the base business generated Rs. 10,414 million in revenue, with EBITDA holding steady at Rs. 2,445 million and margins remaining robust at around 24%.
But the commodity Ibuprofen segment continued to weigh heavily on overall profitability.
The Ibuprofen business posted a negative EBITDA of Rs. 179 million in Q4 despite revenue rising 61% year-on-year to Rs. 849 million. Gross margins remained weak at roughly 23%, underscoring ongoing pricing and profitability pressures in the segment.
“However, we continue to be challenged by the Ibuprofen business which is demonstrating weak profitability, operating at a negative 21% EBITDA margin with gross margins of ~23%,” Rao said.
In a significant strategic move, the company has appointed bankers to explore options for the struggling Ibuprofen business.
“Given the persistent headwinds on this business, we have appointed bankers to evaluate strategic options for this business to ensure optimal long-term value creation,” he added.
For FY26, the Ibuprofen division reported revenue of Rs. 3,336 million but remained deep in the red with a negative EBITDA of INR 527 million.
The company also acknowledged geopolitical disruption stemming from the Middle East crisis but maintained that the fundamentals of its core operations remain intact.
“Despite the significant crisis in the middle east and its impact on global business, the underlying fundamentals of the base business continue to remain strong, supported by a resilient operating model and a healthy product mix across regulated markets,” Rao said.
