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Solara Active Pharma Sciences Ltd.
(SOLARA)
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Rating:49Neutral
Price Target:
₹545.00
▲(11.15% Upside)
Action:Reiterated
Date:08/19/26
The score is held back primarily by uneven financial performance—volatile margins, a small FY2026 net loss, and sharply lower free cash flow—despite improving leverage and renewed revenue growth. Technicals are moderately supportive (RSI/Stoch near 58 and price above key longer-term averages), but valuation remains challenged due to negative earnings and no indicated dividend yield.
Positive Factors
Revenue recovery
FY2026 revenue growth indicates that demand and shipment activity recovered after a flat prior year. If sustained, higher volumes can improve manufacturing-cost absorption and support operating leverage, though profit conversion remains important.
Negative Factors
Unprofitable earnings
The recent net loss shows that revenue growth is not yet translating into dependable shareholder returns. Continued weak earnings could constrain internal funding, reduce resilience during cost pressure, and delay the benefits of the company’s improved balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery
FY2026 revenue growth indicates that demand and shipment activity recovered after a flat prior year. If sustained, higher volumes can improve manufacturing-cost absorption and support operating leverage, though profit conversion remains important.
Read all positive factors
Solara Active Pharma Sciences Ltd. (SOLARA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹24.34B
Dividend YieldN/A
Average Volume (3M)37.94K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth15.49%
EPS Growth-108.86%
CountryIN
Employees2,156
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.56
Shares Outstanding47,792,330
10 Day Avg. Volume26,889
30 Day Avg. Volume37,944
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.50
Price to Sales (P/S)1.37
P/FCF Ratio211.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)31.4
Revenue Forecast (FY)₹17.95B
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
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.31B | 13.69B | 12.84B | 12.89B | 14.27B | 12.68B |
| Gross Profit | 4.52B | 3.66B | 6.57B | -1.30B | 1.25B | 5.60B |
| EBITDA | 1.94B | 1.87B | 2.06B | -2.82B | 1.52B | 793.30M |
| Net Income | -16.20M | -74.10M | 5.40M | -5.67B | -221.70M | -581.50M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 23.33B | 22.32B | 23.51B | 28.99B | 29.53B |
| Cash, Cash Equivalents and Short-Term Investments | 533.40M | 533.40M | 41.10M | 84.40M | 87.30M | 463.80M |
| Total Debt | 0.00 | 6.87B | 7.96B | 10.12B | 10.13B | 10.37B |
| Total Liabilities | -12.56B | 10.77B | 11.35B | 14.14B | 13.97B | 14.18B |
| Stockholders Equity | 12.56B | 12.53B | 10.94B | 9.34B | 15.00B | 15.25B |
Cash Flow | ||||||
| Free Cash Flow | 454.60M | 88.80M | 1.73B | 678.10M | 449.40M | -4.51B |
| Operating Cash Flow | 740.60M | 617.00M | 2.13B | 1.09B | 1.56B | -2.42B |
| Investing Cash Flow | -273.60M | -998.60M | -368.30M | -35.10M | -811.40M | -2.43B |
| Financing Cash Flow | -469.60M | 386.90M | -1.80B | -1.06B | -1.13B | 3.34B |
Solara Active Pharma Sciences Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ₹90.98B | 14.83 | ― | 0.39% | 7.28% | 68.82% | |
67 Neutral | ₹38.21B | 12.55 | ― | ― | 9.43% | 132.94% | |
64 Neutral | ₹213.55B | 31.84 | ― | 0.18% | 24.83% | 36.88% | |
63 Neutral | ₹47.40B | 28.20 | ― | 0.97% | 18.56% | 60.06% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ₹26.23B | -77.67 | ― | 0.46% | -5.37% | -153.35% | |
49 Neutral | ₹24.34B | -909.11 | ― | ― | 15.49% | -108.86% |
* General Sector Average
IN:SOLARA
Solara Active Pharma Sciences Ltd.
547.55
-99.10
-15.33%
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IN:HIKAL
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217.35
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66.39%
IN:STAR
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945.60
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IN:UNICHEMLAB
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530.55
20.80
4.08%
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.