Solar Industries India Limited (SOLARINDS)
₹20,011.00 +0.73% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Solar Industries' revenue was ₹3,668 Cr (+70.3% year on year, +20.2% on the previous quarter), and net profit ₹666 Cr (+89.0% year on year); the operating margin was 27.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹3,668 | +70.3% | +20.2% |
| Operating profit | ₹1,015 | +89.8% | +22.9% |
| Net profit | ₹666 | +89.0% | +19.9% |
| EPS (₹) | 72.11 | +92.7% | +19.2% |
| Operating margin | 27.7% | — | — |
SOLARINDS delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 44.9% of the SOLARINDS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 39.17%. That is close to its usual level. Volume was 0.4 times its average, well below normal. In SOLARINDS futures, open interest fell 0.68% while the futures price rose 0.27%: short covering (shorts closing out).
Delivery in the last 5 sessions: 35.6% · 35.4% · 41.0% · 47.6% · 44.9%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Solar Industries India Limited's wholly owned subsidiary, Solar Explochem Limited, has signed a Share Purchase Agreement to acquire 100% of Sivasakthi Industrial Explosives Private Limited for a cash consideration of ₹115.02 crore. The acquisition represents a small bolt-on transaction, amounting to ~1.01% of Solar Industries' TTM revenue of ₹11,351 crore and ~2.72% of its net worth. The target entity operates in the explosives manufacturing and trading space, reporting Nil turnover in FY26 and ₹0.35 crore in FY25. The transaction is aimed at business expansion and is expected to close within 12 months.
- 100% acquisition of Sivasakthi Industrial Explosives for a cash consideration of ₹115.02 crore
- Acquisition carried out via wholly owned subsidiary Solar Explochem Limited
- Target reported Nil turnover in FY 2025-26, down from ₹34,99,675 in FY 2024-25 and ₹1,26,11,375 in FY 2023-24
- Deal expected to be completed within an indicative timeframe of 12 months
- Zero promoter or related-party interest involved in the transaction
Solar Industries India Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate was issued by MUFG Intime India Private Limited, the company's Registrar and Share Transfer Agent. It confirms that share certificates received for dematerialisation during the quarter were processed, confirmed or rejected, and mutilated in accordance with prescribed timelines. This is a purely procedural regulatory disclosure with no financial impact.
- Regulation 74(5) compliance certificate filed for the quarter ended September 30, 2026
- Confirmation provided by Registrar and Share Transfer Agent, MUFG Intime India Private Limited
- RTA confirmation certificate dated October 03, 2026, submitted to exchanges on October 09, 2026
Solar Industries India Limited has incorporated a step-down subsidiary, Solar Explochem Proprietary Limited, in the Republic of Botswana on September 29, 2026. The entity was set up through wholly-owned subsidiary Solar Overseas Mauritius Limited for an initial cash subscription of USD 325,000, securing a 65% stake. The new subsidiary will operate in the explosives industry to support international business expansion. Relative to Solar Industries' TTM revenue of ₹11,351 Cr and market cap of ₹1,73,806 Cr, the financial commitment is negligible but aligns with its global mining footprint expansion strategy.
- Incorporated Solar Explochem Proprietary Limited in the Republic of Botswana on September 29, 2026
- Acquired a 65% shareholding via wholly-owned subsidiary Solar Overseas Mauritius Limited
- Initial cash consideration of USD 325,000 invested
- Entity will engage in the explosives industry for business expansion
ICRA has reaffirmed its top-tier short-term credit rating of [ICRA]A1+ for Solar Industries India Limited's ₹500.00 crore Commercial Paper programme. The rating update takes note of the material event on September 14, 2026, wherein SIIL agreed to acquire South Africa-based Omnia Holdings Limited for approximately $1.35 billion (around ₹11,200+ crore). While SIIL management intends to maintain consolidated net debt/OPBDITA below 2.0x, ICRA noted the acquisition will significantly increase consolidated debt. The transaction is subject to regulatory and shareholder approvals and is expected to close in H1 CY2027.
- Reaffirmed [ICRA]A1+ rating for ₹500.00 crore Commercial Paper programme
- Omnia Holdings acquisition consideration stands at approximately $1.35 billion
- Management targets keeping consolidated net debt/OPBDITA below 2.0x
- Acquisition completion expected in H1 CY2027 subject to approvals
CRISIL Ratings has placed its 'CRISIL AA+' ratings on Solar Industries India Limited's (SIIL) ₹1,479.50 crore bank facilities and ₹35 crore NCDs on 'Rating Watch with Developing Implications'. The action follows the company's proposed acquisition of South Africa-based Omnia Holdings Limited for an enterprise value of ~$1.355 billion (₹12,951 crore), representing ~114% of SIIL's TTM revenue (₹11,351 crore). The mega buyout will be funded primarily via debt and internal accruals, with management projecting net debt to EBITDA to remain below 2.0x by FY28 post-closing. CRISIL noted that while debt will increase, SIIL's financial risk profile is supported by healthy cash accruals (₹1,872 crore in FY26) and a robust order book exceeding ₹21,350 crore.
- Ratings on ₹1,479.50 Cr bank facilities and ₹35 Cr NCDs placed on 'Watch Developing'
- Proposed acquisition of Omnia Holdings at an enterprise value of ~$1.355 billion (₹12,951 Cr)
- Omnia deal size represents ~114% of TTM revenue (₹11,351 Cr) and is expected to close in Q1 FY28
- Net debt to EBITDA expected by management to remain under 2x post-acquisition by end of FY28
- Total consolidated order book stood strong at over ₹21,350 Cr as of June 30, 2026, including over ₹18,000 Cr in defence
Solar Industries India Limited confirmed the complete redemption of its ₹75 Crore Commercial Paper issued on June 19, 2026. The full repayment obligation was fulfilled on its scheduled maturity date of September 17, 2026, to Kotak Mahindra Bank Limited. Given the company's annual revenue of ₹11,351 Crore and low total debt of ₹149 Crore, this is a standard liquidity management action.
- Redeemed commercial paper worth ₹75 Crores in full
- Issued on June 19, 2026, and matured on September 17, 2026
- Repayment made on schedule to Kotak Mahindra Bank Limited
- Relates to ISIN INE343H14220
Solar Industries has signed definitive agreements through its step-down subsidiary, Solar Overseas Investments Proprietary Limited, to acquire South Africa-based Omnia Holdings Limited. Management expects combined African mining sales to scale from current levels of $300 million to $900 million–$1 billion. The acquisition integrates Omnia's mining arm (BME) and its agricultural operations, which include key nitric acid and ammonium nitrate manufacturing infrastructure. The deal is subject to customary regulatory and shareholder approvals, with full strategic benefits expected to materialize from FY28.
- Targets combined African mining sales of $900 million to $1 billion, up from current $300 million levels
- Omnia's mining division BME currently operates at 13% to 14% EBITDA margins, with scope to expand toward global industry averages of 18% to 19%
- Omnia recently doubled storage capacity via a new 5,000-ton ammonium nitrate storage tank
- Definitive agreements executed via step-down subsidiary Solar Overseas Investments Proprietary Limited, pending closing and regulatory approvals
- Management anticipates financial and scale benefits from the transaction to be visibly reflected from FY28
Solar Industries India Limited released the audio recording of its investor call held on September 15, 2026, hosted by ICICI Securities. The call addressed the proposed acquisition of Omnia Holdings Limited through Solar SA Investments Proprietary Limited. Specific acquisition costs, valuation metrics, and funding mechanisms were not disclosed in this filing. The company previously clocked TTM revenue of ₹11,351 Cr and net profit of ₹2,051 Cr.
- Conference call was held on Tuesday, September 15, 2026, at 10:30 AM IST
- Audio recording of the call was made available on the company website on September 15, 2026
- The call discussed the proposed acquisition of Omnia Holdings Limited via Solar SA Investments Proprietary Limited
- Call hosted by ICICI Securities following initial intimation on September 14, 2026
Solar Industries India Limited has scheduled an institutional investor and analyst conference call on September 15, 2026, at 10:30 AM IST. The call will discuss the proposed acquisition of Omnia Holdings Limited through Solar SA Investments Proprietary Limited. Key top management, including MD & CEO Manish Nuwal and both Joint CFOs, will host the call. Transaction size and specific deal terms have not been disclosed in this intimation.
- Conference call scheduled for September 15, 2026 at 10:30 A.M. IST
- Call hosted by ICICI Securities Limited to discuss the proposed acquisition of Omnia Holdings Limited
- Acquisition to be executed via Solar SA Investments Proprietary Limited
- Senior management including MD & CEO Manish Nuwal, two Executive Directors, and two Joint CFOs participating
- Financial deal size and valuation multiples were not disclosed in the filing
Solar Industries India Limited has entered into a definitive agreement via step-down subsidiaries to acquire 100% of South Africa-based Omnia Holdings Limited for a cash consideration of $1.355 billion (ZAR 134.5 per share). Omnia reported revenue of $1.41 billion (over ₹11,700 Cr) for FY26, making this a transformational acquisition comparable in size to Solar Industries' own TTM revenue of ₹11,351 Cr. The deal will be executed via cash and will delist Omnia from the Johannesburg Stock Exchange upon completion expected in early to mid 2027.
- Total cash consideration of US$ 1.355 billion at ZAR 134.5 per share to acquire 100% of Omnia Holdings (excluding treasury shares)
- Target Omnia Holdings reported revenue of USD $1.41 billion in FY26, up from $1.25 billion in FY25 and $1.18 billion in FY24
- Omnia operates across 23 countries with physical presence, serving over 40 countries via 70+ distribution centres and 3,500+ employees
- Acquisition completion targeted for early to mid 2027, followed by Omnia delisting from the JSE and A2X Markets
Solar Industries' step-down subsidiary, Solar SA Investments, has signed definitive agreements to acquire 100% of South Africa-listed Omnia Holdings Limited in an all-cash deal valued at approximately ₹12,951 crore ($1.355 billion). Omnia reported FY26 revenue of approximately ₹13,307 crore ($1.41 billion) and operates across 23 countries in mining solutions (BME brand) and agriculture. The deal value is massive, representing ~114% of Solar's TTM revenue (₹11,351 crore) and ~3.06x its current net worth (₹4,227 crore). The acquisition provides vertical integration in nitric acid and ammonium nitrate while significantly scaling Solar's global explosives platform.
- Definitive agreement to acquire Omnia Holdings for an all-cash consideration of ~₹12,951 crore ($1.355 billion)
- Omnia reported FY26 revenue of ~₹13,307 crore ($1.41 billion) and remained net cash positive
- Omnia operates in 23 countries with over 70 distribution centres across Southern and Western Africa and other global markets
- Deal adds integrated nitric acid and ammonium nitrate manufacturing, including a newly added 5,000-tonne storage tank
ICRA has reaffirmed its highest short-term rating of [ICRA]A1+ for Solar Industries India Limited's Rs 500.00 crore Commercial Paper programme. The rating agency highlighted SIIL's strong market position in commercial explosives and a burgeoning defense order book exceeding Rs 21,000 crore as of March 31, 2026 (including a Rs 6,084 crore Pinaka rocket order). Operating margins stood healthy at ~26% in FY26, with defense revenue share rising to 27% (up from 9% in FY24). Strong leverage metrics, with total debt/OPBDITA at 0.6x and interest coverage at 19.6x, support the reaffirmed top-tier rating.
- Commercial Paper programme of Rs 500.00 crore reaffirmed at '[ICRA]A1+' by ICRA.
- Consolidated defense order book stood at over Rs 21,000 crore as of March 31, 2026, including a Rs 6,084 crore Pinaka order.
- Defence sector revenue contribution expanded to ~27% of consolidated revenue in FY26 compared to 18% in FY25 and 9% in FY24.
- Mining sector order book from CIL and SCCL stood at Rs 3,500 crore as of March 31, 2026.
- Strong credit profile with FY26 Total Debt/OPBDITA of ~0.6x and interest coverage ratio of 19.6x.
Solar Industries India responded to an NSE clarification request regarding media reports claiming the company is likely to acquire a large global firm in South Africa. The company stated that while it evaluates strategic opportunities in the ordinary course of business, there is currently no material event requiring disclosure under Regulation 30. Solar Industries characterized the media reports as speculative and non-specific, confirming there is no undisclosed information or material financial impact at this stage.
- NSE issued reference NSE/CM/Surveillance/17468 on September 3, 2026, seeking clarification on South Africa acquisition reports.
- Company clarified that statements in the news article are speculative and lack specific details.
- Stated there is no material event or information requiring disclosure under Regulation 30 of SEBI LODR Regulations at this stage.
- Confirmed zero undisclosed information explaining trading volume or price movements (reports noted shares rose 4.5%).
Solar Industries India Limited (SOLARINDS) reported a robust Q1 FY27 with net sales growing 70% YoY to ₹3,668 Cr. The growth was primarily driven by a 123% surge in the Defense segment and a 65% increase in International Explosives. Profitability saw a significant jump as PAT rose 89% YoY to ₹666 Cr, supported by EBITDA margins expanding to 27.91%. The company maintains a massive order book of ₹21,350 Cr, providing strong revenue visibility for the coming quarters.
- Net Sales increased by 70% YoY to ₹3,668 Cr in Q1 FY27
- Defense segment revenue grew 123% YoY to ₹933 Cr, now contributing 26% of total sales
- Order book stands at ₹21,350 Cr, which is approximately 2.17x the TTM revenue
- EBITDA margins expanded by 173 basis points YoY to 27.91%
- PAT grew 89% YoY to ₹666 Cr compared to ₹353 Cr in the previous year's quarter
Solar Industries reported a record-breaking Q1 FY27 with revenue surging 70% YoY to ₹3,668 cr, primarily driven by a 123% explosion in its defence business. Net profit (PAT) grew 89% YoY to ₹666 cr, significantly outpacing the ₹353 cr reported in the same quarter last year. The company has issued an ambitious revenue guidance of ₹14,000 cr for FY27, supported by a massive order book of ₹21,350 cr. Management is backing this growth with a ₹2,050 cr capex plan, of which ₹450 cr was already deployed in Q1.
- Net Revenue grew 70% YoY to ₹3,668 cr, the highest-ever quarterly turnover for the company.
- Defence business segment recorded a 123% YoY growth, becoming a primary growth engine.
- Total order book stands at ₹21,350 cr, representing approximately 217% of TTM revenue.
- FY27 revenue guidance set at ₹14,000 cr, implying a 42% growth over FY26 revenue of ₹9,838 cr.
- EBITDA margins improved to 27.9% in Q1 FY27 compared to 26.2% in Q1 FY26.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 24.23% to INR 7,540.26 Cr in FY25. In H1 FY26, Defense revenue surged 79% YoY to INR 900 Cr, while International business grew 21% YoY to INR 960 Cr in Q2 FY26. The revenue mix shifted significantly with Defense increasing to 22% of the basket in H1 FY26 from 15% YoY, while Coal India (CIL) share dropped to 9% from 12%.
Geographic Revenue Split
Exports and Overseas operations accounted for 40% of total revenues in FY24 and 41% in H1 FY25. International business reached record quarterly sales of INR 960 Cr in Q2 FY26, representing approximately 46% of the quarterly revenue basket. The company operates in over 75 countries, with significant presence in South Africa, Turkey, Ghana, Nigeria, and Tanzania.
Profitability Margins
Adjusted Net Profit Margin improved to 17.08% in FY25 from 14.42% in FY24. Adjusted Operating Profit Margin rose to 23.67% in FY25 from 20.20% in FY24. The improvement is driven by a higher contribution from high-margin defense and international segments and moderating raw material costs.
EBITDA Margin
The company achieved its highest-ever quarterly EBITDA of INR 582 Cr in Q2 FY26 and INR 1,146 Cr in H1 FY26. Operating margins reached 26.4% in 9MFY25, up from 24.4% in FY24, due to the ramp-up of the defense vertical which carries superior margins compared to industrial explosives.
Capital Expenditure
Annual capital expenditure is maintained at approximately INR 1,200 Cr. This investment is focused on ramping up international facilities, entering new markets like Australia and Kazakhstan, and expanding defense manufacturing capabilities for products like Pinaka rockets.
Credit Rating & Borrowing
ICRA reaffirmed [ICRA]A1+ for Commercial Paper, enhancing the rated amount to INR 250 Cr. The company maintains a strong capital structure with a gearing of 0.3 times as of September 30, 2024, and an interest coverage ratio that improved to 15.50 in FY25 from 12.50 in FY24.
Operational Drivers
Raw Materials
Ammonium Nitrate (AN) is the primary raw material, with raw material consumption totaling INR 988 Cr in Q2 FY26 (47.4% of revenue) and INR 2,082 Cr in H1 FY26 (49.1% of revenue).
Import Sources
Not explicitly disclosed in available documents, though the company operates backward-integrated facilities in India and manufacturing units in select overseas countries to secure supply.
Capacity Expansion
The company is currently ramping up facilities in South Africa and establishing new operations in Australia, Kazakhstan, and Saudi Arabia. It is also expanding capacity for Pinaka rockets to meet a massive INR 6,084 Cr order from the Ministry of Defence.
Raw Material Costs
Raw material costs stood at INR 2,082 Cr for H1 FY26, a 21.5% increase from INR 1,713 Cr YoY. Margins are protected by price escalation clauses in key client agreements, which allow for a pass-through of Ammonium Nitrate price volatility, albeit with a lag.
Manufacturing Efficiency
Inventory turnover ratio improved significantly to 20.86 in FY25 from 15.29 in FY24, indicating enhanced operational efficiency and faster movement of goods.
Logistics & Distribution
The company maintains a well-integrated logistics network to support distribution to over 75 countries. Distribution and other expenses accounted for approximately 14% of the cost structure in FY25.
Strategic Growth
Expected Growth Rate
15%
Growth Strategy
Growth will be driven by the defense sector, specifically the commercialization of Pinaka rockets starting Q3 FY26 and a defense order book of INR 15,500 Cr. Internationally, the company is targeting 15% annualized growth by operationalizing units in Australia and Kazakhstan and entering the Saudi Arabian market.
Products & Services
Industrial explosives, bulk explosives, packaged explosives, Pinaka rockets, guided Pinaka rockets, energetic materials, and ammunition for defense applications.
Brand Portfolio
Solar Industries, Solar Defence and Aerospace Limited, Economic Explosives Limited (former name of subsidiary).
New Products/Services
Commercial sales of Pinaka rockets (starting Q3 FY26) and guided Pinaka rockets (expected orders in 1-2 quarters) are key new revenue contributors. Defense revenue grew 79% in H1 FY26 due to these expansions.
Market Expansion
Targeting Australia, Kazakhstan, and Saudi Arabia for new manufacturing and sales operations to diversify beyond the current 75-country footprint.
Market Share & Ranking
The company holds a leadership position in the Indian industrial explosives industry and is a dominant player globally.
Strategic Alliances
Maintains global tie-ups for defense product development and has a 45.99% stake in Zmotion Autonomous Private Limited and 49% in Astra Resources Pty Limited.
External Factors
Industry Trends
The industry is shifting toward increased private participation in defense manufacturing in India. Solar Industries is positioned to capitalize on this through its 'Power to Propel the Future' initiative and growing defense order book.
Competitive Landscape
Key competitors include other global explosive manufacturers, but Solar's leadership is maintained through its massive scale and specialized defense portfolio (e.g., Pinaka rockets).
Competitive Moat
The moat is built on high entry barriers in the explosives and defense sectors, backward integration, and a vast global distribution network. These are sustainable due to the stringent regulatory and safety certifications (ISO 9001, 14001) required.
Macro Economic Sensitivity
Revenue is sensitive to global mining activity and infrastructure spending. A 21% growth in international business despite global headwinds shows resilience to regional macro shifts.
Consumer Behavior
Increased government focus on 'Atmanirbhar Bharat' is shifting demand from imported defense systems to domestic players like Solar Industries.
Geopolitical Risks
Operations in regions like Turkey, Nigeria, and South Africa expose the company to local geopolitical instability, though geographic diversification across 75 countries mitigates single-country risk.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013, SEBI Regulations 2015, and stringent safety norms for explosive manufacturing. Compliance with Section 177 of the Companies Act ensures internal financial controls are adequate.
Environmental Compliance
Solar Group adheres to ISO 14001:2004 and OHSAS 18001:2007 standards. It is committed to reducing emissions and conserving resources as part of its sustainability pillar.
Taxation Policy Impact
The company's tax expense was approximately 4% of the total cost structure in FY25, with a consolidated PAT of INR 1,011.67 Cr on a PBDT of INR 1,914.69 Cr.
Legal Contingencies
Ongoing legal proceedings in the Supreme Court regarding the vacation of office of Executive Director Mr. Kailash Chandra Nuwal. The management states this has not impacted business operations, but it remains a monitored development.
Risk Analysis
Key Uncertainties
The primary uncertainty is the volatility of Ammonium Nitrate prices and the timing of defense order executions. The legal dispute at the board level also presents a governance uncertainty.
Geographic Concentration Risk
40-41% of revenue is concentrated in international markets, with the remaining 59-60% in India. Within India, there is a historical concentration in mining regions.
Third Party Dependencies
Dependency on Coal India Limited (CIL) for 15-18% of revenue, although this is decreasing as the defense segment grows.
Technology Obsolescence Risk
The company mitigates technology risk through ongoing R&D in weaponry, ammunition, and aerospace systems, ensuring products like Pinaka remain state-of-the-art.
Credit & Counterparty Risk
Debtors' turnover ratio of 6.67 indicates healthy collection cycles. The company deals with reputed clients like the Ministry of Defence and CIL, reducing credit risk.
