Last Updated2026-06-02

Market View

₹543.05(▼0.79%)

Reporting PeriodQ4 FY26

SOLARASOLARA Forensic Risk Analysis

Name: SOLARA Structural Risk Analysis
Creator: Flagium AI
License: https://creativecommons.org/licenses/by-nc-nd/4.0/

Pharmaceuticals

Risk ClassWatch

Market CapN/A

Primary DriverBalance Sheet Stress

Flagium AI Risk Score

30 / 100

-5 QoQ

Improving

Sentinel Insight

Financial profile remains stable for now. Pressure is receding in balance sheet stress. This suggests the risk profile is currently stabilizing. Risk levels are improving.

72.7th %ile (Sector)Accel: +0 Qtrs

Updated2026-06-02

Market View

₹543.05▼0.79%

PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Balance Sheet Stress

+11.5 pts

Stability Adjustment

+18.0 pts

Final Composite Risk30 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 11 → 30 over 13 quarters.

Expected Direction

🟢 Improving

Primary Deterioration Drivers

Margin Compression
Inventory Stress
Relative Growth Weakness

What to Watch Next Quarter

Operating profit margins
Debt growth
Inventory turnover

Active Risk Objects (8)

CriticalHigh

Relative Growth Weakness

📊 Earnings QualityAnnualActive for 1 Years

More Detail

Impact Weight12/15

MomentumAccelerating

Last SignalQ2 FY2026

Revenue growth consistently lags behind sector median (12.8%).

"Early signs of earnings quality decay. Profitability is being driven by non-core items."

Industrial Margin Stress

📊 Earnings QualityAnnualActive for 3 Years

More Detail

Impact Weight12/15

MomentumPersistent

Last SignalQ3 FY2026

SOLARA: EBITDA margin compressed by 3.7 bps YoY.

"Margins are in freefall. Operating costs are growing significantly faster than revenue."

Low Interest Coverage

💧 Liquidity & CoverageQuarterlyActive for 12 Qtrs

More Detail

Impact Weight8/15

MomentumPersistent

Last SignalQ4 FY2026

SOLARA: Low Interest Coverage Ratio of 1.35x in FY2026 Q4 (Threshold: 2.5x).

"Interest coverage is dangerously low. Even a minor fall in profit could trigger a default."

Margin Compression

📊 Earnings QualityAnnualActive for 1 Years

More Detail

Impact Weight15/15

MomentumAccelerating

Last SignalQ3 FY2026

Operating margin declined by 5.7 bps YoY for two consecutive quarters.

"Margins are in freefall. Operating costs are growing significantly faster than revenue."

Profit Collapse

📊 Earnings QualityQuarterlyActive for 4 Qtrs

More Detail

Impact Weight8/15

MomentumDecaying

Last SignalQ3 FY2026

SOLARA: Net Profit collapsed by 315.5% from FY2025 Q3 to FY2026 Q3.

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Operating Leverage Stress

📊 Earnings QualityAnnualActive for 1 Years

More Detail

Impact Weight10/15

MomentumAccelerating

Last SignalQ3 FY2026

Expenses are consistently growing faster than revenues, creating operational pressure.

"The balance sheet is heavily over-leveraged. Interest payments are consuming most of the profit."

Inventory Stress

📊 Earnings QualityAnnualActive for 1 Years

More Detail

Impact Weight15/15

MomentumAccelerating

Last SignalQ2 FY2026

Inventory growth (27.3%) significantly outpaced revenue growth (-9.6%).

"Stock is piling up in the warehouse. Inventory turnover is slowing down dangerously."

Working Capital Expansion

💧 Liquidity & CoverageAnnualActive for 1 Years

More Detail

Impact Weight10/15

MomentumDecaying

Last SignalQ4 FY2025

Working capital expansion detected: Receivable days increased by 1.1%.

"Working capital pressure is receding. Cash previously locked in operations is being released."

Risk Trajectory

Loading Chart

Resilience Matrix

Metric	Value	vs Sector	Signal
Volatility (σ)	6.08	7.70	✅ RESILIENT
Sensitivity (ε_s)	1	1.00	✅ RESILIENT
Escalation Prob.	5%	5%	✅ NEUTRAL
Safety Buffer	+36.0	+47.0	📈 CRITICAL

Forensic Benchmark Context: Pharmaceuticals (n=99 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart

Share Price

Risk Score (0-100)

Market Performance

₹543.05(-0.79%)

1M Divergence+7.26%

1 Week-2.77%

1 Month+9.53%

6 Months-1.27%

1 Year+13.69%

2 Year+29.89%

3 Year+53.4%

Sector Average (1M)+2.27%

Sentinel Forensic Assessment

ALGORITHMIC RISK PROFILE • NON-ADVISORY

The risk profile is Early Signals and currently improving. Recent structural triggers in balance sheet stress suggest a building pressure on the underlying framework. Material forensic traces are visible in core structural metrics, indicating a progressive erosion of structural stability. Initial structural recovery is visible; monitor for a sustained return to resilience.

SOLARA • MARKET STRUCTURE

Stage 1 — Accumulation

The company is in a foundational phase. Risk metrics are stabilizing as the company builds a base for potential future fundamental improvement.

Stage Transition Prob.9%

Trend QualityEarly Base

Phase Progression

Phase Progression Score40%

Readiness LabelLow (Early Base Consolidation)

Probability of Advancing9%

CoinTree Momentum

Composite Z-Score+0.0932σ

Improving momentum strength

Universe Rank#826 of 2716

Top 30.41% in momentum strength

Timeframe Sparklines

1W-2.8%

1M+9.5%

6M-1.3%

Weinstein Indicators

150 DMA₹522.71

200 DMA₹549.34

150 DMA Slope-1.7258%Declining

Relative Strength+4.22%Leading

Relative Turnover (RTR)1.7327

ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

This company shows higher risk compared to the Sector Mean (19).

Ticker	Risk Score	Sector %ile	Delta	Flags	Accel	Primary Driver
AARTIDRUGSAarti Drugs Limited	19	51th	-5	11	+0	Competitive PositionStable
AAREYDRUGSAarey Drugs & Pharmaceuticals Limited	23	63th	-5	20	+0	Balance Sheet StressWatch
SOLARASOLARA	30	73th	-5	8	+0	Balance Sheet StressWatch
BALAXIBALAXI PHARMACEUTICALS LIMITED	45	96th	+10	40	+1	Balance Sheet StressModerate Deterioration