Solar Industries Financial Breakdown: Revenue, Profit, Ratios
Solar Industries India, the Nagpur-based maker of industrial explosives and defence products, reported a blockbuster September quarter on 3 November 2026. Consolidated revenue jumped 69% year-on-year to ₹3,519 crore in Q2 FY27, while profit after tax rose about 80% to ₹650 crore. Defence revenue nearly doubled to ₹1,002 crore, and the order book stood at ₹20,178 crore. The stock rose about 7% on the day to around ₹20,750–20,860. This breakdown looks at the five-year financial trend, margins, balance sheet, shareholding and the risks behind the rally.
Q2 FY27: The Quarter in Numbers
All figures below are consolidated, for the quarter ended 30 September 2026, as reported by the company and covered by CNBC-TV18, Business Today and the company's press release.
| Metric (Q2 FY27) | Value | Year-on-year |
|---|---|---|
| Revenue from operations | ₹3,519 crore | +69% (vs ₹2,082 crore) |
| EBITDA | ₹1,021 crore | +75% (vs ₹582 crore) |
| EBITDA margin | 29.02% | Up from 27.95% |
| Profit after tax (total) | ₹650 crore | +80% (vs ₹361 crore) |
| Net profit attributable to owners | ₹617 crore | +79% (vs ₹345 crore) |
| Defence revenue | ₹1,002 crore | +98%, about 29% of sales |
| Total order book (30 Sep 2026) | ₹20,178 crore | Defence ₹17,568 crore; CIL & SCCL ₹2,610 crore |
For the first half of FY27, revenue reached ₹7,187 crore (+70% year-on-year) and total PAT was ₹1,316 crore (+84%). Management said it expects to surpass its earlier FY27 revenue guidance of about ₹14,000 crore, against ₹9,838 crore in FY26.
Business Overview
Solar Industries India, incorporated in 1995 and headquartered in Nagpur, Maharashtra, is one of India's largest manufacturers of bulk and cartridge explosives, detonators, detonating cords and initiating systems. Its products serve mining, infrastructure and construction customers, and it also makes high-energy explosives, delivery systems, ammunition filling and pyrotechnic fuses for the defence sector. The company has manufacturing and operating presence across Africa, Turkey, Indonesia and Australia, apart from India.
The story of the last three years is a shift in mix: from a domestic explosives company to a defence-led manufacturer. Defence revenue was only about 5% of sales in FY21, rose to about 18% in FY25 and about 27% in FY26, and hit about 29% in Q2 FY27. Key programmes include the Pinaka rocket system order of about ₹6,080 crore from the Ministry of Defence, and an international defence order book of roughly ₹12,000 crore executable over three to four years.
Revenue and Profit Trend: FY22–FY26
Consolidated sales (Screener.in, based on company filings) show a volatile but strongly upward path. FY23 spiked 75% as ammonium nitrate price inflation passed through explosives realisations; FY24 revenue fell 12% as prices normalised, even as operating profit rose on a richer defence mix. FY25 and FY26 were clean compounding years.
| Financial year | Revenue (₹ crore) | Operating profit (₹ crore) | Operating margin | PAT (₹ crore) | EPS (₹) |
|---|---|---|---|---|---|
| FY22 | 3,948 | 748 | 19% | 455 | 48.77 |
| FY23 | 6,918 | 1,336 | 19% | 811 | 83.68 |
| FY24 | 6,070 | 1,482 | 24% | 875 | 92.38 |
| FY25 | 7,540 | 2,026 | 27% | 1,288 | 133.65 |
| FY26 | 9,838 | 2,717 | 28% | 1,737 | 185.38 |
Profit has compounded at about 45% a year over five years and sales at about 31% a year over the same period, per Screener. FY26 total income including other income was ₹9,966 crore, and consolidated net profit was ₹1,736.64 crore, up 35% from ₹1,287.93 crore in FY25.
Profitability and Margins
- Operating margin: expanded from 19% in FY22–FY23 to 28% in FY26, and 29.02% in Q2 FY27 on the company's EBITDA definition.
- Net margin: about 17.7% in FY26 (PAT ₹1,737 crore on sales ₹9,838 crore).
- Return on equity (ROE): 32.6% (Screener, as of 3 November 2026); three-year average ROE about 32.2%.
- Return on capital employed (ROCE): 38.1% in FY26, up from 25% in FY22.
- Debt-to-equity: about 0.23x at March 2026.
- Valuation marker: stock P/E of about 89x on Screener (3 November 2026) and a market capitalisation of about ₹1.78–1.84 lakh crore.
Balance Sheet Strength and Cash Flow
At March 2026, total assets were about ₹10,733 crore, reserves and surplus about ₹6,259 crore against equity capital of just ₹18 crore, and borrowings of about ₹1,524 crore. The watch item is working capital: inventory days rose to 130 in FY26 from 95 in FY25, the cash conversion cycle stretched to 152 days from 110, and operating cash flow fell to ₹621 crore in FY26 from ₹2,468 crore in FY25 even as profit rose. Capital expenditure was ₹1,556 crore in FY26 against ₹1,182 crore in FY25, and management has set a ₹2,050 crore capex target for FY27. Free cash flow was therefore negative in FY26 (about −₹1,072 crore on Screener's definition).
Separately, in September 2026 the company signed a definitive agreement to acquire South Africa-based Omnia Holdings for about ₹12,951 crore (about $1.355 billion) in an all-cash deal through overseas subsidiaries, expected to close in early to mid-2027 subject to approvals.
Segment Split
| Segment / customer group | FY26 share / value | Latest signal |
|---|---|---|
| Defence | ₹2,634 crore, about 27% of revenue | ₹1,002 crore in Q2 FY27 (+98%); order book ₹17,568 crore |
| International explosives & exports | About 39% of FY26 revenue | ₹1,364 crore in Q1 FY27 (+65%) |
| Domestic explosives (incl. Coal India) | Coal India about 9% of FY26 revenue | Domestic explosives ₹1,361 crore in Q1 FY27; domestic mining market flat in FY26 |
Within the order book, defence dominates: ₹17,568 crore of the ₹20,178 crore total at 30 September 2026, with Coal India and Singareni Collieries (SCCL) accounting for ₹2,610 crore. The book is about 1.8 times trailing-twelve-month revenue.
Shareholding Pattern (September 2026)
| Holder | September 2026 |
|---|---|
| Promoters | 73.15% |
| Foreign institutional investors | 6.13% |
| Domestic institutional investors | 13.55% |
| Public and others | 7.15% |
Promoter holding has been steady at 73.15% for several years, and the shareholder count rose to 1,39,491 by September 2026 from 1,15,917 in March 2026.
Dividend History
Solar Industries pays one final dividend a year and no interim dividend in recent years. The board recommended a final dividend of ₹11 per share (550% on the ₹2 face value) for FY26, up from ₹10 for FY25 and ₹8.50 for FY24. At a share price near ₹20,000, the dividend yield is only about 0.06% — this is a growth stock, not an income stock, and the payout ratio was just about 6% in FY26.
Peer Comparison
There is no exact listed peer that combines industrial explosives and defence at Solar's scale. The table below positions it against the closest comparators by business, not by valuation.
| Company | What it does | How it differs from Solar |
|---|---|---|
| Solar Industries India | Industrial explosives + defence (ammunition, rockets, drones) | Largest private explosives franchise; defence now ~29% of sales |
| Premier Explosives | Industrial explosives and defence explosives | Far smaller scale; pure-play explosives peer |
| GOCL Corporation | Energetics and explosives (Hinduja group) | Smaller, diversified energetics business |
| Bharat Dynamics | Missiles and defence systems (PSU) | Defence-only, government-owned; no commercial explosives arm |
| Bharat Electronics | Defence electronics (PSU) | Electronics, not explosives; a defence-sector valuation benchmark |
The key valuation point is simple: at roughly 89x earnings, Solar trades well above typical PSU defence names and industrial peers. The market is paying for defence growth that has not yet fully flowed through earnings — the ₹17,568 crore defence order book has to convert into revenue and, crucially, into cash.
Key Risks
- Execution risk: the defence order book is large but lumpy; delays in trials, clearances or deliveries can stall revenue.
- Working capital: inventory days at 130 and a 152-day cash conversion cycle in FY26, with operating cash flow sharply lower despite higher profit.
- Omnia acquisition: a ₹12,951 crore all-cash deal would add debt and integration risk.
- Raw material prices: ammonium nitrate drives explosives realisations — FY24 showed how quickly revenue can fall when prices normalise.
- Customer concentration: defence and Coal India together dominate the order book.
- Valuation: at ~89x earnings, even a small miss on the FY27 ₹14,000 crore revenue guide could trigger a sharp correction.
FAQs
What did Solar Industries report in Q2 FY27?
Revenue ₹3,519 crore (+69% YoY), EBITDA ₹1,021 crore at 29.02% margin, and total PAT ₹650 crore (+80% YoY); net profit attributable to owners was ₹617 crore (+79%).
How big is Solar Industries' order book?
₹20,178 crore at 30 September 2026, of which defence is ₹17,568 crore and Coal India plus SCCL is ₹2,610 crore.
What is Solar Industries' FY26 revenue and profit?
Consolidated sales ₹9,838 crore and PAT ₹1,737 crore in FY26, with an operating margin of 28%.
Does Solar Industries pay a dividend?
Yes — a final dividend of ₹11 per share for FY26 (face value ₹2), but the yield is only about 0.06% at current prices.
Who owns Solar Industries?
Promoters hold 73.15% (September 2026), domestic institutions 13.55%, foreign institutions 6.13% and the public about 7.15%.
Is Solar Industries a defence stock or an explosives stock?
Both — it started as an industrial explosives maker, but defence was about 27% of FY26 revenue and about 29% in Q2 FY27, and most of its order book is defence.
Conclusion
Solar Industries' Q2 FY27 numbers confirm the transformation: defence has gone from a side business to the growth engine, margins are expanding, and the order book offers visibility few Indian manufacturers can match. The FY22–FY26 record — sales up from ₹3,948 crore to ₹9,838 crore, PAT from ₹455 crore to ₹1,737 crore, ROE above 32% and debt-to-equity of just 0.23x — is genuinely strong. The caveats are equally clear: working capital is absorbing cash, the Omnia acquisition will test the balance sheet, and the ~89x earnings multiple leaves little room for disappointment. For readers tracking the company, the next checkpoints are Q3 FY27 defence execution, cash conversion, and the Omnia deal's funding plan.
Disclaimer: This article is for educational purposes only and is not investment advice. Figures are sourced from the company's filings and press release, exchange coverage and Screener.in; definitions of EBITDA and PAT can differ slightly between sources, as noted above. Please consult a SEBI-registered investment adviser before making any investment decision.
Related reading: JSW Steel Financial Breakdown | Hindustan Zinc Financial Breakdown | UltraTech Cement Financial Breakdown