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Solara Active Pharma Sciences Ltd. (IN:SOLARA)
:SOLARA
India Market
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Solara Active Pharma Sciences Ltd. (SOLARA) AI Stock Analysis

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IN:SOLARA

Solara Active Pharma Sciences Ltd.

(SOLARA)

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Neutral 50 (OpenAI - Gpt-5.6Sol)
Rating:50Neutral
Price Target:
₹638.00
▲(30.11% Upside)
Action:Reiterated
Date:08/21/26
The score is held back mainly by uneven financial performance: profitability is still inconsistent, margins are volatile, and FY2026 free cash flow fell sharply despite improving leverage. Technicals are a positive (price above key moving averages with positive MACD), but overbought indicators temper the boost. Valuation is also a drag because earnings are negative (P/E is not meaningful) and no dividend yield is provided.
Positive Factors
Revenue Recovery
FY2026 revenue returned to 13.5% growth after a flat FY2025, indicating demand and commercial activity regained traction. Sustained growth could improve absorption of the API manufacturing base and support earnings recovery.
Negative Factors
Persistent Net Loss
Despite operating improvement, Solara remained loss-making at the net level in FY2026 and generated negative shareholder returns. Continued losses could constrain internally funded investment and weaken confidence in sustainable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
FY2026 revenue returned to 13.5% growth after a flat FY2025, indicating demand and commercial activity regained traction. Sustained growth could improve absorption of the API manufacturing base and support earnings recovery.
Read all positive factors

Solara Active Pharma Sciences Ltd. (SOLARA) vs. iShares MSCI India ETF (INDA)

Solara Active Pharma Sciences Ltd. Business Overview & Revenue Model

Company Description
Solara Active Pharma Sciences Limited is an Indian-based pharmaceutical company primarily involved in the comprehensive development, production, and global trade of active pharmaceutical ingredients (APIs). Their activities span the manufacturing,...
How the Company Makes Money
Solara primarily makes money by selling pharmaceutical ingredients and associated manufacturing services to other drug companies. Key revenue streams include: (1) Sales of generic APIs: Solara manufactures APIs at scale and sells them to pharmaceu...

Solara Active Pharma Sciences Ltd. Financial Statement Overview

Summary
Financials show partial recovery but remain unstable. Revenue returned to growth in FY2026 (+13.5%), and operating profit improved versus the FY2024 shock, but FY2026 still had a small net loss and gross margin swung sharply (about 51% in FY2025 to ~27% in FY2026). Cash generation weakened materially in FY2026, with free cash flow down ~80% YoY, despite leverage improving (debt-to-equity down to ~0.55x).
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
40
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue14.31B13.69B12.84B12.89B14.27B12.68B
Gross Profit4.52B3.66B6.57B-1.30B1.25B5.60B
EBITDA1.94B1.87B2.06B-2.82B1.52B793.30M
Net Income-16.20M-74.10M5.40M-5.67B-221.70M-581.50M
Balance Sheet
Total Assets0.0023.33B22.32B23.51B28.99B29.53B
Cash, Cash Equivalents and Short-Term Investments533.40M533.40M41.10M84.40M87.30M463.80M
Total Debt0.006.87B7.96B10.12B10.13B10.37B
Total Liabilities-12.56B10.77B11.35B14.14B13.97B14.18B
Stockholders Equity12.56B12.53B10.94B9.34B15.00B15.25B
Cash Flow
Free Cash Flow454.60M88.80M1.73B678.10M449.40M-4.51B
Operating Cash Flow740.60M617.00M2.13B1.09B1.56B-2.42B
Investing Cash Flow-273.60M-998.60M-368.30M-35.10M-811.40M-2.43B
Financing Cash Flow-469.60M386.90M-1.80B-1.06B-1.13B3.34B

Solara Active Pharma Sciences Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
₹207.55B30.740.18%24.83%36.88%
64
Neutral
₹55.90B32.930.97%18.56%60.06%
61
Neutral
₹94.33B15.740.39%7.28%68.82%
57
Neutral
₹39.22B12.939.43%132.94%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
₹30.71B-1,143.4815.49%-112.78%
50
Neutral
₹24.48B-73.210.46%-5.37%-153.40%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SOLARA
Solara Active Pharma Sciences Ltd.
641.65
-36.20
-5.34%
IN:GRANULES
Granules India Limited
831.25
314.28
60.79%
IN:HIKAL
Hikal Limited
201.05
-66.69
-24.91%
IN:IOLCP
IOL Chemicals & Pharmaceuticals Ltd.
188.30
88.32
88.33%
IN:STAR
Strides Pharma Science Ltd
1,047.30
154.63
17.32%
IN:UNICHEMLAB
Unichem Laboratories Limited
558.10
56.55
11.28%

Solara Active Pharma Sciences Ltd. Corporate Events

Solara Allots 2,250 Shares Under Employee Stock Option Plan
Jun 16, 2026
Solara Active Pharma Sciences Ltd. has approved the allotment of 2,250 fully paid equity shares of face value ₹10 each, following the exercise of accelerated vested options under its 2018 Employee Stock Option Plan. The newly issued shares w...
Solara Allots 70,000 Shares Under ESOP 2024, Expands Equity Base
Jun 16, 2026
Solara Active Pharma Sciences Ltd. has approved the allotment of 70,000 fully paid equity shares at a face value of Rs. 10 each under its Solara Employee Stock Option Plan 2024, following the exercise of vested options by employees. The newly issu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2026