Solara appoints bankers to explore options for loss-making ibuprofen unit
Base business hits eight-quarter high in revenue and EBITDA at 26% margins, but Vizag facility and ibuprofen drag persist. Debt-free target set for FY29.
What's new
- Appointed bankers to evaluate strategic options for the loss-making ibuprofen business.
- Filed first new DMF in four years.
- Aim to become debt-free by FY29.
Why it matters
Solara's core business is firing on all cylinders, but legacy issues—ibuprofen losses and a mothballed plant costing ₹12-15 crore annually—remain a drag. The strategic review suggests management is willing to cut its losses, which would sharpen the investment case.
What we're watching
- Outcome of the strategic review for the ibuprofen business.
- Timeline and success rate of the new DMF pipeline.
- Debt reduction progress toward the FY29 target.
The full read
Solara Active Pharma Sciences' base business—excluding ibuprofen—just delivered its highest quarterly revenue and EBITDA in eight quarters, with EBITDA margins at 26%. But the company isn't resting. On the earnings call, management revealed it has appointed bankers to evaluate strategic options for the loss-making ibuprofen business, which has been a persistent drag. Separately, the mothballed Vizag facility is costing ₹12-15 crore annually, and the company aims to become debt-free by FY29. A bright spot: the first new DMF in four years was filed, hinting at a pipeline revival. The transcript confirms that the core business is strong, but the real story is the willingness to restructure away the underperformers.