Solar Industries Q2 FY27 Results (NSE: SOLARINDS)
Signal: Margin expansion
The read
The key inflection is sustained scale-up: Q2FY27 revenue of ₹3318.92 crore grew 59.4% YoY and operating margin expanded 200bps to 28.3%, extending the recent high-growth arc; the proposed approximately USD1.35 billion Omnia acquisition now introduces a major execution, funding and integration variable.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,318.92 Cr | +59.4% | -9.5% |
| Net profit | ₹606.05 Cr | +67.9% | |
| EPS | ₹65.63 | +72.0% | |
| EBIT margin | 28.3% |
P&L walk
Consolidated revenue was ₹3318.92 crore, +59.4% YoY and -9.5% QoQ, while operating margin expanded to 28.3%, +200bps YoY; PAT rose to ₹606.05 crore, +67.9% YoY, supported by operating growth rather than a disclosed one-off.
Segments
The group reports only one segment, explosives, accessories and related services; the consolidated result is therefore driven by the core explosives platform rather than a separately disclosed division.
Key positives
- Revenue reached ₹3318.92 crore, up 59.4% YoY, following ₹3668.20 crore in Q1FY27 and ₹2082.22 crore in the year-ago quarter, keeping the multi-quarter growth trajectory elevated.
- Operating margin expanded to 28.3%, up 200bps YoY, after the recent 27.9% level in Q1FY27.
- PAT rose to ₹606.05 crore, up 67.9% YoY, ahead of revenue growth and consistent with operating-margin expansion.
- PPE of ₹4055.22 crore and CWIP of ₹964.06 crore indicate that capacity and capability investments are progressing alongside growth.
Key concerns
- The proposed Omnia acquisition carries approximately USD1.35 billion of cash consideration, creating substantial execution and balance-sheet risk even though completion remains subject to regulatory approvals and customary conditions.
- Finance costs rose to ₹95.62 crore in H1FY27 from ₹58.32 crore, a 63.9% increase that could become more material as acquisition funding is implemented.
- The filing does not disclose volume, realisation, utilisation or order-book data, limiting the ability to separate underlying demand growth from mix and consolidation effects.
Research and educational content only. Not investment advice.