Solara’s Q2 profit was shaped by zero tax and high non-operating charges
Operating profit of Rs 76.84 cr translated into Rs 28.46 cr of pre-tax and net profit after interest, depreciation and negative other income.
Filed 16 Oct 2026, 17:58 IST · after market close · Solara Active Pharma Sciences Ltd (SOLARA)
Key takeaways
- Solara reported consolidated operating profit of Rs 76.84 cr at an 18.41% operating margin in Q2FY27.
- Interest of Rs 17.78 cr and depreciation of Rs 26.64 cr reduced operating profit to Rs 28.46 cr before tax.
- Net profit was Rs 28.46 cr because the tax rate was 0%, while other income was negative at Rs -3.96 cr.
Price around the results
Operating profit did not translate fully to pre-tax profit
Solara reported consolidated revenue of Rs 417.34 cr and operating profit of Rs 76.84 cr in Q2FY27. Interest of Rs 17.78 cr and depreciation of Rs 26.64 cr absorbed a substantial part of operating profit, leaving profit before tax at Rs 28.46 cr. Negative other income of Rs -3.96 cr provided no support below the operating line.
Zero tax lifted the conversion from pre-tax to net profit
The company reported a 0% tax rate, so net profit was unchanged from profit before tax at Rs 28.46 cr. This makes the quarter’s net profit dependent on the absence of a tax charge, rather than reflecting a tax deduction from pre-tax earnings. EPS was Rs 5.92.
The results were filed after market close
The consolidated results were filed at 17:58 IST on 16 October 2026, after the market closed. There is no immediate market reaction to assess in this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹417 cr |
| Other income | ₹-4 cr |
| Expenses | ₹341 cr |
| Operating profit | ₹77 cr |
| Operating margin (%) | 18.41% |
| Interest | ₹18 cr |
| Depreciation | ₹27 cr |
| Profit before tax | ₹28 cr |
| Tax | ₹0 cr |
| Net profit | ₹28 cr |
| EPS (₹) | ₹5.92 |
What to watch
- Whether consolidated operating margin remains at 18.41% in the next reported quarter.
- The next quarter’s interest and depreciation compared with Rs 17.78 cr and Rs 26.64 cr.
- Whether the tax rate remains at 0% and other income moves above Rs -3.96 cr.