Solara Active sinks 31% in 2 days on weak Q3, CEO exit

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Shares of Solara Active Pharma Sciences nosedived 31 percent in two sessions following the extremely weak earnings by the company in the quarter ended December and the resignation of Managing Director and Chief Executive Officer Bharath Sesha.

The stock has now lost nearly two-thirds of its value from its 52-week high hit in May last year. The fall comes after the stock rose more than 300 percent between April 2020 and May 2021.

The company on February 9 reported a 76.5 percent year-on-year decline in consolidated revenues to Rs 100 crore for the quarter ended December. The poor topline performance led the company to report a sharp consolidated net loss of Rs 139.9 crore for the quarter as against a net profit of Rs 65.8 crore.

“Q3FY22 was a challenging quarter for Solara as we took a major decision to reset our commercial business strategy. Solara has pursued a change in the commercial model from distribution-led to direct sales to customers in the less regulated markets,” said newly appointed CEO and MD Rajendra Juvvadi.

The company said that the December quarter performance was muted mainly due to subdued regulated market demand and higher costs driven by volatile material pricing environment and increased logistics cost, Juvvadi said. “That said, we believe that the situation has bottomed out on the demand side, and the business would start seeing normalcy from the Q4FY22,” he added.

Brokerage firm Antique Broking is skeptical of improvement. “With change in strategy from dedicated Ibuprofen plant at Vizag being converted to multipurpose plant for various new products, we think the company will face decline in gross margins and higher Opex (operating costs) will result in lower margins,” the brokerage firm said in a note.

The brokerage firm slashed its revenue and net profit estimates for the company by 18 percent and 62 percent, respectively, for 2022-23 as it retained a ‘sell’ rating on the scrip.

At 10:37 AM, shares of Solara Active were down 15 percent at Rs 657.95 apiece on the BSE, while the benchmark Sensex was down 910.55 points or 1.55 percent at 58,015.48.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.