Transcript of Earnings Conference call pertaining to financial results of the Company for the quarter ended September 30, 2026

Corporate Office: Solara Active Pharma Sciences Limited TICEL Bio Park, 6th Floor, Module No. 601, 602, 603, Phase II – CSIR Road, Taramani, Chennai, Tamil Nadu – 600113. Tel: +91 44 4344 6700 Fax: +91 44 47406190 E-mail: investors@solara.co.in Website: www.solara.co.in Date: October 23, 2026 The BSE Limited The National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Bandra-Kurla Dalal Street, Mumbai – 400 001 Complex, Bandra (E), Mumbai – 400 051 Scrip Code: 541540, 890202 Symbol : SOLARA, SOLARAPP1 Dear Sir / Madam, Subject: Transcript of the earnings conference call for the quarter ended September 30, 2026. Pursuant to Regulation 30 and Regulation 46(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the transcript of earnings conference call for the quarter ended September 30, 2026, conducted on Friday, October 16, 2026, after the meeting of Board of Directors. The above information is also available on the website of Company at: https://solara.co.in/investor- relations/investor-update This is for your kind information and records. Thanking you, Yours faithfully, For Solara Active Pharma Sciences Limited Pooja Jaya Kumar Company Secretary & Compliance Officer ICSI Membership No.: A57415 Encl.: As above Solara Active Pharma Sciences Limited - CIN: L24230MH2017PLC291636 Registered Office: ‘Cyber One’, Unit No. 902, Plot No. 4 & 6, Sector 30A, Vashi, Navi Mumbai - 400 703 / Tel: +91-22- 20870033 “Solara Active Pharma Sciences Limited Q2 FY27 Earnings Conference Call” October 16, 2026 MANAGEMENT: MR. SANDEEP RAO – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER– SOLARA ACTIVE PHARMA SCIENCES LIMITED MR. SARAT KUMAR – CHIEF FINANCIAL OFFICER– SOLARA ACTIVE PHARMA SCIENCES LIMITED MR. ABHISHEK SINGHAL – INVESTOR RELATIONS – SOLARA ACTIVE PHARMA SCIENCES LIMITED Page 1 of 15 Solara Active Pharma Sciences Limited October 16, 2026 Moderator: Ladies and gentlemen, good day and welcome to Solara Active Pharma Sciences Limited Q2 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr. Abhishek Singhal. Thank you, and over to you, sir. Abhishek Singhal: Thank you, Iqra. Good evening and thank you all for joining us today for Solara's Earnings Call for the second quarter and half year ended September 30, 2026. Today, we have with us Sandeep, MD and CEO and Sarat, CFO of the company to share the highlights of the business and financials for the quarter and H1 FY27. I hope you've gone through our results release and quarterly investor presentation that have been uploaded on our website as well as stock exchange website. The transcript for this call will be available in a week's time on the company's website. Please note today's discussion may be forward-looking in nature and must be viewed in relation to the risks pertaining to our business. After the call, in case you have any further questions, please feel free to reach out to the Investor Relations team. I now hand over the call to Sandeep to make his opening comments. Sandeep Rao: Thank you, Abhishek. Good morning, good afternoon, good evening, and thank you all for joining us today for our Q2 FY27 Earnings Call. I sincerely appreciate your time and presence on this call. To start with Q2 FY27 has been our best quarter in about five years. And surprisingly, it's been on all the profitability metrics, gross margin, EBITDA and PAT. Overall, revenue grew 33% year-on-year to INR418 crores. EBITDA more than doubled to INR77 crores, up 118%. And PAT was at INR28.5 crores against a loss of around INR10 crores in the same quarter last year. And the good part is we delivered this quarter as the West Asia crisis continued. We continue to face pricing pressures and raw material availability challenges, which led to intermittent production stoppages. But despite that, I think we recorded a good set of numbers. Some commentary on our base business. Our base business continues to lead our growth. Revenue grew 37% year-on-year to INR327 crores, staying above the INR300 crores number for the third quarter in a row. EBITDA grew 68% to INR77 crores, with the margin up about 440 basis points to 23.6%. Regulated markets continue to contribute about 78% of revenues, which reflects a very healthy product mix. Some commentary on the Ibuprofen business. Ibuprofen this quarter has performed better than expectations, driven primarily by market dynamics. Revenue grew 21% year-on-year and 18% quarter-on-quarter to INR91 crores, supported by better price realizations as also higher volumes. The EBITDA loss has narrowed. You can see we are almost breakeven compared to the roughly INR9 crores loss that we had in Q1. The business is now close to breakeven from a loss margin of around 21% just two quarters ago. Having said this, I will reiterate that the overall environment around Ibuprofen still remains challenging, and we haven't lost our focus on Page 2 of 15 Solara Active Pharma Sciences Limited October 16, 2026 servicing large brands and marquee customers with whom traditionally we've had long-term associations. Other highlights outside of the base business, business, other highlights. On the regulatory front, we filed our second DMF for the year. If you remember, I had mentioned that we should be filing five DMFs in this financial year. So we filed in quarter 1, one now, and we are hoping to file three more before the end of this financial year. Our Mangalore facility successfully completed an ANVISA audit in August. If you recollect, we had a successful ANVISA audit of our Cuddalore facility in May. I am also pleased to share that CRISIL has upgraded our ESG rating from adequate to strong. That just shows about the improving health of our business. On a very important point, I'm sure a lot of you are expecting us to talk about the strategic review of the Ibuprofen business, so I will address it upfront. This process is taking us time. We estimate that we will be able to close this in 12 weeks. So we will come back to you with an update on the outcome of the review and the next steps, as I said, in a period of 12 weeks. I personally sincerely appreciate your patience. You really supported us and be patient with us as we build our base business. And I will request a similar patience as we close out on the Ibuprofen strategic review. Our balance sheet has strengthened meaningfully during the first half of FY '27, and Sarat will take you through the financial details. As always, I would like to thank our shareholders for your continued support and trust. And I would also like to thank the Solara teammates for all the effort that is being put in. Before I hand over to Sarat for his opening remarks, a happy festive season to all. Over to you, Sarat. Sarat Kumar: Thank you, Sandeep. Good morning, good afternoon, and a very good evening to everyone, and thank you for joining our Q2 FY27 Earnings Call. Sandeep had already covered the headline results and the highlights of the business. So I will actually focus on the broad level financial metrics. For this quarter, Q2 FY27, the overall business has clocked a gross margin of INR197 crores, which is roughly 28% increase over Y-o-Y as well as 9% improvement on a Q-o-Q basis. And this gross margin came at a 47.2% of gross margin profile, which is slightly higher than Q1. But albeit it is slightly lower by roughly 200 basis points as compared to last year, which was predominantly driven by incremental raw material costs as well as input costs driven due to the West Asia crisis. Having said that, our base business has clocked gross margin of 5 [Showing first 8,000 characters — download PDF for full document]