Solar Industries Q1 FY27 Results (NSE: SOLARINDS)
Signal: Margin expansion
The read
Q1FY27 marks a second consecutive quarter of YoY operating-margin expansion, with consolidated EBITDA margin rising to 27.9% from approximately 25% while revenue grew 70.3%; EBITDA growth of 81.5% outpaced revenue by 11.2 percentage points as raw-material intensity declined to 46.7%, but the trajectory is increasingly dependent on subsidiaries because standalone revenue grew only 19.4%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,668.2 Cr | 70.3% | 20.2% |
| EBIT | ₹943.97 Cr | 85.8% | |
| Net profit | ₹652.55 Cr | 92.7% | |
| EPS | ₹72.11 | 92.7% | |
| EBIT margin | 27.9% |
P&L walk
Consolidated revenue increased to ₹3668.2 crore (+70.3% YoY), gross margin expanded to approximately 51.4% from approximately 48.1% as raw-material cost fell to 46.7% of revenue from approximately 47.2%, and EBITDA rose 81.5% to ₹1023.71 crore with margin up to 27.9%; PAT growth of 92.7% remained operationally supported rather than other-income-led.
Segments
The company reports only one operating segment, but the standalone-versus-consolidated gap is material: consolidated revenue of ₹3668.20 crore grew 70.3% YoY versus standalone revenue growth of 19.4%, while consolidated PAT of ₹652.55 crore grew 92.7% versus standalone PAT growth of 28.2%, placing the growth inflection primarily in subsidiaries and overseas operations.
Key positives
- Consolidated revenue reached ₹3668.20 crore, up 70.3% YoY and 20.2% QoQ, accelerating from Q4FY26 revenue of ₹3052.75 crore.
- EBITDA grew 81.5% to ₹1023.71 crore versus revenue growth of 70.3%, with margin expanding approximately 290bps to 27.9%.
- Raw-material cost declined to 46.7% of revenue from approximately 47.2%, supporting gross-margin expansion of approximately 326bps.
- Employee cost grew approximately 39.2% and finance cost 61.5%, both below revenue growth, supporting operating-cost absorption.
- PAT and EPS both grew 92.7% to ₹652.55 crore and ₹72.11 respectively, indicating clean PAT-to-EPS conversion without a disclosed dilution issue.
Key concerns
- Standalone revenue grew only 19.4% to ₹1656.32 crore versus consolidated growth of 70.3%, increasing reliance on subsidiaries and overseas operations for group momentum.
- Consolidated finance cost rose 61.5% YoY to ₹44.28 crore, while the group issued ₹75.00 crore of commercial paper maturing on September 17, 2026.
- The filing does not disclose volumes, realisations, capacity utilisation, order book or fixed-asset/CWIP balances, limiting attribution of the revenue and margin acceleration.
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