Solar Industries India (SOLARINDS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was ₹3,518.92 crore and net profit ₹650.04 crore; H1 revenue was ₹7,187.12 crore and net profit ₹1,316.41 crore.

• Q2 EBITDA was ₹1,021 crore (+75% YoY); H1 EBITDA was ₹2,045 crore (+78% YoY).

Financial highlights

• Q2 consolidated PBT was ₹877 crore (+79% YoY) and PAT ₹650 crore (+80%); H1 PBT was ₹1,789 crore (+84%) and PAT ₹1,316 crore (+84%).

• EBITDA margin was 29.02% in Q2 and 28.45% in H1; Q2 PAT margin was 18.47% and H1 PAT margin was 18.32%.

• Standalone Q2 revenue was ₹1,445.63 crore and net profit ₹320.21 crore; H1 revenue was ₹3,101.95 crore and net profit ₹678.59 crore.

• H1 net debt was ₹1,177 crore, net debt/EBITDA 0.29x, working capital 108 days and capex ₹873 crore.

Outlook and guidance

• Management expects FY27 revenue to exceed ₹14,000 crore guidance and defense revenue to exceed ₹4,500 crore guidance; FY27 EBITDA margin is expected to average above 29%.

• Order book stood at ₹20,178 crore, including ₹17,568 crore in defense and ₹2,610 crore in CIL & SCCL.

• Domestic explosives are expected to grow in H2; long-term domestic volume growth target is 10%-15% annually versus estimated industry growth of 6%-7%.

• Geopolitical issues, supply-chain disruptions and commodity-price volatility were cited as reasons for not revising guidance.