The company posted a net profit of ₹16.3 crore for the quarter ended June 30, compared with ₹10.5 crore a year earlier. Revenue from operations rose 19.7% to ₹382 crore, up from ₹319 crore in the corresponding quarter last year.
EBITDA increased 10% year-on-year to ₹62.6 crore from ₹57 crore, while the EBITDA margin narrowed to 16.4% from 17.8% a year ago.
The company said EBITDA was “marginally impacted” by higher input costs resulting from the ongoing geopolitical developments in West Asia.
The company said its commodity Ibuprofen business continued to weigh on profitability, reporting another quarter of low gross margins and negative EBITDA. It added that management is working with appointed bankers to evaluate strategic options for the business and expects to finalise the next steps by the end of the second quarter of FY27.
Solara also said the proposed carve-out of its polymers and CRAMS businesses has been put on hold until strategic decisions regarding the Ibuprofen business are completed during the first half of FY27.
“Our Base Business continues to exhibit robust momentum, supported by consistent operational execution and a focus on profitable growth,” Managing Director and CEO Sandeep Rao said in the filing.
Rao said the base business reported revenue of ₹307.7 crore, up 24% year-on-year, while gross margins rose 10% to ₹158 crore and EBITDA increased 8% to ₹72.2 crore, despite higher raw material costs linked to geopolitical developments in West Asia.
“The Commodity Ibuprofen business continues to face profitability challenges, reporting an EBITDA margin of negative 12% amid a difficult operating environment. While profitability remains under pressure, we witnessed a marginal sequential improvement during the quarter,” he added.
The company also said it reduced net debt by ₹134.6 crore during the quarter to ₹479.5 crore, bringing its annualised net debt-to-EBITDA ratio to around 1.9 times. Rao said Solara remains focused on driving sustainable growth, improving margins and strengthening its balance sheet through disciplined execution and prudent capital allocation.
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