Solara Active Pharma Sciences Ltd. (IN:SOLARA)
:SOLARA
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Solara Active Pharma Sciences Ltd.
(SOLARA)
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Rating:53Neutral
Price Target:
₹570.00
▼(-2.20% Downside)
Action:Reiterated
Date:05/19/26
The score is held back primarily by uneven financial performance—volatile margins, a small FY2026 net loss, and sharply weaker free cash flow—despite improving leverage. Technicals are a clear positive with the stock above major moving averages and strong MACD/RSI momentum. Valuation is the main downside on metrics provided because earnings are negative (P/E not supportive) and no dividend yield is available.
Positive Factors
Revenue recovery
Rebounding revenue (+13.5% in FY2026) signals regained demand and market share for Solara’s API and CDMO offerings. Durable top-line recovery supports capacity utilization and long-term customer relationships, underpinning sustainable scale economics if the firm maintains quality and regulatory compliance.
Negative Factors
Net loss / inconsistent profitability
A residual net loss despite revenue growth indicates earnings instability and weak returns on capital. Persistent or recurring small losses can erode investor confidence, limit retained earnings accumulation, and constrain reinvestment capacity critical for regulatory compliance and capacity upgrades required in pharma manufacturing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery
Rebounding revenue (+13.5% in FY2026) signals regained demand and market share for Solara’s API and CDMO offerings. Durable top-line recovery supports capacity utilization and long-term customer relationships, underpinning sustainable scale economics if the firm maintains quality and regulatory compliance.
Read all positive factors
Solara Active Pharma Sciences Ltd. (SOLARA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹27.69B
Dividend YieldN/A
Average Volume (3M)37.94K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth6.64%
EPS Growth-177.19%
CountryIN
Employees2,156
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.59
Shares Outstanding48,171,562
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 manufactures, produces, processes, formulates, sells, imports, exports, merchandises, distributes, trades in, and deals in active pharmaceutical ingredients (API) in India. The company offers APIs for anesthet...
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 | 12.06B | 13.69B | 12.84B | 12.89B | 14.27B | 12.68B |
| Gross Profit | 6.53B | 3.66B | 6.57B | -1.30B | 1.25B | 5.60B |
| EBITDA | 2.04B | 1.87B | 2.06B | -2.82B | 1.52B | 793.30M |
| Net Income | 64.10M | -74.10M | 5.40M | -5.67B | -221.70M | -581.50M |
Balance Sheet | ||||||
| Total Assets | 22.93B | 23.33B | 22.32B | 23.51B | 28.99B | 29.53B |
| Cash, Cash Equivalents and Short-Term Investments | 169.30M | 533.40M | 41.10M | 84.40M | 87.30M | 463.80M |
| Total Debt | 6.46B | 6.87B | 7.96B | 10.12B | 10.13B | 10.37B |
| Total Liabilities | 10.36B | 10.77B | 11.35B | 14.14B | 13.97B | 14.18B |
| Stockholders Equity | 12.55B | 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. Technical Analysis
Positive
582.80
Price Trends
483.71
Positive
502.10
Positive
553.64
Positive
Market Momentum
22.59
Negative
66.49
Neutral
73.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOLARA, the sentiment is Positive. The current price of 582.8 is above the 20-day moving average (MA) of 517.06, above the 50-day MA of 483.71, and above the 200-day MA of 553.64, indicating a bullish trend. The MACD of 22.59 indicates Negative momentum. The RSI at 66.49 is Neutral, neither overbought nor oversold. The STOCH value of 73.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SOLARA.
Solara Active Pharma Sciences Ltd. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹105.27B | 10.27 | ― | 0.41% | 4.88% | 66.43% | |
66 Neutral | ₹187.93B | 18.85 | ― | 0.24% | 19.73% | 18.17% | |
61 Neutral | ₹26.43B | 2.94 | ― | ― | 18.18% | ― | |
60 Neutral | ₹35.09B | 29.38 | ― | 0.97% | 8.37% | 19.15% | |
55 Neutral | ₹25.23B | -118.51 | ― | 0.58% | -4.17% | -117.43% | |
53 Neutral | ₹27.69B | -253.30 | ― | ― | 6.64% | -177.19% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Solara Active Pharma Sciences Ltd. Corporate Events
Solara Active Pharma Receives Call Money, Converts Partly Paid Rights Shares
Mar 4, 2026
Solara Active Pharma Sciences Ltd. has received first call money totaling about Rs. 93.7 lakh for 71,402 partly paid-up rights equity shares following a second reminder to shareholders. The Rights Issue Committee has approved converting these shar...
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.