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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 46 (OpenAI - Gpt-5.6Sol)
Rating:46Neutral
Price Target:
₹537.00
▲(9.51% Upside)
Action:Reiterated
Date:08/19/26
The score is held down primarily by uneven financial performance—volatile margins, a small net loss in FY2026, and sharply weaker free cash flow—despite improving leverage and returning revenue growth. Technical signals are mixed and do not provide strong confirmation of an uptrend. Valuation is also a headwind due to the negative P/E and lack of dividend yield data.
Positive Factors
Revenue Recovery
The return to double-digit revenue growth indicates improving demand and customer activity. Sustained growth would support better operating leverage and strengthen Solara’s position across global API and contract manufacturing markets.
Negative Factors
Unstable Profitability
The continuing net loss shows that revenue growth has not yet translated into dependable shareholder returns. Persistent weak bottom-line performance could constrain reinvestment, weaken return metrics, and limit financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The return to double-digit revenue growth indicates improving demand and customer activity. Sustained growth would support better operating leverage and strengthen Solara’s position across global API and contract manufacturing markets.
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
Revenue returned to growth in FY2026 (+13.5%), and leverage improved (debt-to-equity down to ~0.55x). However, profitability remains unstable (FY2026 still a small net loss with sharp gross-margin compression from ~51% to ~27%), and cash generation weakened materially (free cash flow down ~80% YoY to 88.8m).
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
74
Outperform
₹87.16B14.390.39%7.28%68.82%
64
Neutral
₹210.90B31.080.18%24.83%36.88%
63
Neutral
₹46.86B27.430.97%18.56%60.06%
57
Neutral
₹37.35B11.859.43%132.94%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
₹26.80B-78.140.46%-5.37%-153.35%
46
Neutral
₹26.17B-982.2315.49%-108.86%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SOLARA
Solara Active Pharma Sciences Ltd.
549.90
-79.65
-12.65%
IN:GRANULES
Granules India Limited
838.10
378.01
82.16%
IN:HIKAL
Hikal Limited
214.45
-43.15
-16.75%
IN:IOLCP
IOL Chemicals & Pharmaceuticals Ltd.
157.00
60.31
62.37%
IN:STAR
Strides Pharma Science Ltd
957.00
84.53
9.69%
IN:UNICHEMLAB
Unichem Laboratories Limited
511.70
-0.10
-0.02%

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 19, 2026