Solar Pharmaceutical Industries Ltd’s income from operations for the April-June interval beat Road expectations to rise 9.4% year-on-year to ₹13,851 crore. Nevertheless, the drugmaker’s internet revenue fell on distinctive objects together with settlement prices in a pricing antitrust litigation within the US and discontinuing scientific research on one among its medication.
The corporate posted a internet revenue of ₹2,279 crore in Q1FY26, down 20% from a yr earlier.
A wholesome double-digit progress in its India enterprise and modern medicines pipeline boosted its income and Ebitda margins in the course of the quarter. The drugmaker has been banking on each segments to drive progress in FY26.
Its adjusted internet revenue, excluding the distinctive objects, for Q1FY26 was ₹2,996 crore, up 5.7%, Solar Pharma stated in an trade submitting on Thursday.
“Solar had a powerful efficiency in the course of the quarter, the place the general progress displays regular progress throughout all our markets. India continues to point out sturdy momentum, contributing meaningfully to our efficiency,” chairman and managing director Dilip Shanghvi stated within the assertion.
Solar Pharma and its subsidiary Taro Prescription drugs agreed to pay $200 million to settle a generics antitrust pricing litigation within the US earlier this month. The corporate additionally introduced that it was discontinuing research on its drug candidate SCD-044 for atopic dermatitis, after the drug didn’t meet main targets in phase-2 trials.
A Bloomberg ballot of 14 brokerages had estimated the agency’s income to be ₹13,699 crore, and its revenue after tax at ₹3,042 crore.
Solar Pharma reported an Ebitda (earnings earlier than curiosity, taxes, depreciation, and amortisation) of ₹4,302 crore, up 19.2%, with the margin increasing to 31.1%.
The rise in Ebitda margin was on account of enchancment in uncooked materials prices, in addition to increased gross sales of its global specialty merchandise and home branded formulations, the corporate’s chief monetary officer Jayashree Satagopan advised buyers in a post-earnings name on Thursday night.
Solar Pharma’s share value settled 2% decrease at ₹1,700 on the NSE on Thursday.
Strong India, specialty progress
Solar Pharma’s home enterprise noticed strong double-digit progress, sustaining its momentum. India formulation gross sales rose 13.9% YoY to ₹4,721 crore. The expansion was pushed by a rise in quantity in addition to new product launches, versus the general Indian pharmaceutical market which is basically rising on the again of value will increase.
The corporate noticed an uptick in its international specialty or modern medicines gross sales, rising 16.9% to $311 million. This section accounted for 19.3% of its quarterly gross sales and drove up the general US gross sales.
The corporate reported total US gross sales of $473 million, up 1.4%. “This progress is pushed by our modern medicines portfolio with all of our progress merchandise contributing, together with Ilumya, Cequa, Winlevi, and Odomzo, however offset by decline in our generics enterprise because of further competitors in sure merchandise,” Richard Ascroft, North America chief government officer, advised buyers, including that the corporate is seeing contingent pricing strain from blood most cancers drug Revlimid, which is about to lose exclusivity subsequent yr.
The US accounted for 29.3% of consolidated gross sales for the quarter.
Solar Pharma launched its drug for extreme alopecia areata, Leqselvi, within the US in the course of the quarter. “We’re very inspired by early outcomes, we’ve seen good receptivity with healthcare professionals and sufferers, and we have already got our preliminary industrial prescriptions,” stated Ascroft.
Solar Pharma is gearing up for the launch of most cancers drug Unloxcyt within the second half of FY26, the corporate stated.
