Solar Industries India (SOLARINDS) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly EBITDA of INR 582 crore and PAT of INR 361 crore for Q2 FY26; half-year EBITDA at INR 1,146 crore and PAT at INR 714 crore, reflecting strong operational performance despite domestic market challenges.

• Consolidated revenue grew 21% year-over-year to INR 2,082 crore for Q2 and 25% to INR 4,237 crore for H1, driven by robust international and defense segments.

• Defense revenue surged 57% year-over-year to INR 500 crore in Q2 and 79% to INR 900 crore in H1, with a strong order book of INR 15,500 crore and new product launches expected to drive future growth.

• International business posted record quarterly sales of INR 960 crore, up 21% year-over-year, with strong performance in South Africa, Turkey, Ghana, Nigeria, and Tanzania.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board and reviewed by statutory auditors.

Financial highlights

• Q2 consolidated revenue: INR 2,082 crore (vs INR 1,716 crore YoY); H1: INR 4,237 crore (vs INR 3,401 crore YoY).

• Q2 EBITDA: INR 582 crore (vs INR 475 crore YoY); H1 EBITDA: INR 1,146 crore (vs INR 949 crore YoY).

• Q2 PAT: INR 361 crore (vs INR 304 crore YoY); H1 PAT: INR 714 crore (vs INR 604 crore YoY).

• Q2 EBITDA margin at 27.95%; H1 EBITDA margin at 27.05%.

• Basic and diluted EPS (consolidated) for H1 FY26 was ₹75.55, up from ₹63.25 year-over-year.

Outlook and guidance

• Confident of achieving FY26 guidance, with Q3 expected to mark a new growth phase in defense as Pinaka rocket commercial sales begin.

• Defense revenue target of INR 3,000 crore for FY26, with expectations to cross INR 1,000 crore in the next two quarters.

• International business expected to maintain 15% annualized growth, with new operations planned in Australia, Kazakhstan, and Saudi Arabia.

• Order book exceeds ₹17,100 crore, with ₹15,500 crore from Defence and ₹1,600 crore from CIL & SCCL.

• Domestic explosive market projected to achieve double-digit growth in H2, offsetting H1 weakness.