Limited has reported its financial results for the second quarter of the fiscal year 2026, highlighting a period marked by short-term operational disruptions but underscored by strong long-term fundamentals.
The company, which is listed on both the and , disclosed a decline in revenue and profitability due to an unscheduled operational shutdown at its Mangalore facility, according to an exchange filing dated November 5, 2025.
The pharmaceutical company reported a revenue of ₹3,140 million for Q2 FY26, a 10% decrease from ₹3,472 million in the same quarter of the previous year. The quarter-on-quarter comparison also showed a slight decline of 2% from ₹3,201 million in Q1 FY26. The decrease in revenue was primarily attributed to delayed deliveries and reduced sales volumes resulting from the temporary shutdown at the Mangalore facility for facility upgradation, which affected the company’s ability to meet its sales targets.
Margin & operational performance
Gross margins also took a hit, falling to 51% in Q2 FY26 from 54.1% in the previous quarter, although they showed a slight improvement from 50.5% in Q2 FY25. Despite these setbacks, the company emphasised that its long-term focus on high-margin segments and cost optimisation remains intact.
Operating costs for the quarter increased to ₹1,246 million, up from ₹1,138 million in Q2 FY25 and ₹1,157 million in Q1 FY26. This rise was partly due to one-time costs of approximately ₹40 million associated with the operational shutdown at the Mangalore facility. Consequently, the company’s EBITDA for Q2 FY26 stood at ₹352 million, representing an EBITDA margin of 11.3%, down from 17.7% in the same quarter last year and 18% in the previous quarter.
Against this backdrop, the company recorded a loss of ₹101 million as against a profit of ₹79 million a year ago and ₹105 million a quarter ago.
In terms of debt management, Solara reported a reduction in gross debt from ₹7,760 million at the end of FY25 to ₹6,233 million as of September 30, 2025. This reduction was achieved through the realisation of rights issue application money and regular debt repayments.
The company expects its gross debt to further decrease to ₹4,461 million.
Despite the challenges faced in the second quarter, Solara’s management remains optimistic about the company’s future prospects. Sandeep Rao, Managing Director and CEO, stated, “We commenced FY26 with a clear objective: to pivot the business from a phase of reset to one characterised by sustainable, scalable, and reliable growth. Whilst our transformation journey remains intact, our financial performance during this quarter was primarily impacted by short-term disruptions arising from an unscheduled operational shutdown at Mangalore on account of facility upgradation resulting in delayed deliveries and reduced sales volumes during the quarter.”
He said that while these factors influenced current quarter results, they are transitory. The underlying fundamentals of the business remain strong, supported by a resilient operating model, robust compliance framework, and a diversified portfolio across key markets,” Rao added.
Disclaimer: This article was generated using AI tools and has undergone editorial review for clarity and coherence.