Solar Industries Q2 FY27 Earnings Call: To Surpass Rs. 14,000 Cr FY27 Guidance, Rs. 3,000 Cr Pinaka Order Near (SOLARINDS)

Solar Industries India Ltd held its Q2 FY27 earnings call on November 03, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Broad-Based Beat Across All Three Segments

• Q2 FY 2026-2027 consolidated revenue of Rs.3,519 cr — up ~69% YoY vs Rs.2,082 cr in Q2 FY 2025-2026; EBITDA at Rs.1,021 cr (+75% YoY) with ~29% margin vs ~28% a year ago.
• Q2 PAT of Rs.650 cr — up ~80% YoY vs Rs.361 cr; PBT at Rs.877 cr vs Rs.490 cr.
• H1 FY 2026-2027 revenue of Rs.7,187 cr — up ~70% YoY vs Rs.4,237 cr; H1 EBITDA at Rs.2,045 cr and PAT at Rs.1,316 cr (+84% YoY vs Rs.714 cr).
• Performance was broad-based — across domestic, international, and defense segments; domestic explosives delivered strongly despite a monsoon quarter, aided by mining/infrastructure demand and a below-average monsoon across most mining markets.
• Cost lines scaled with growth — Q2 raw material consumption Rs.1,676 cr (vs Rs.988 cr), employee cost Rs.266 cr (vs Rs.195 cr), finance cost Rs.55 cr (vs Rs.31 cr), depreciation Rs.88 cr (vs Rs.61 cr).

Defense Now Nearly a Third of the Basket

• Defense revenue share rose to 29% in Q2 FY 2026-2027 — from 24% in Q2 FY 2025-2026, with defense revenue at Rs.1,002 cr; H1 share at 27% (from 22%) at Rs.1,935 cr.
• Domestic explosives share slipped to 27% — from 29% YoY in Q2; international explosives at 43% (from 46%). H1 mix: domestic 32% (from 35%), international 40% (from 42%).
• Defense revenue cadence — Rs.1,000 cr in Q2 vs Rs.900 cr in Q1 FY 2026-2027 (~Rs.1,900-2,000 cr in H1); management believes it should cross the FY 2026-2027 defense guidance of Rs.4,500 cr.
• Domestic market now ~27-28% of revenue mix — as of Q2 FY 2026-2027, and expected to deliver more in H2 FY 2026-2027.

Rs.20,178 Cr Book; Guided Pinaka Order in Final Negotiation

• Total order book of ~Rs.20,178 cr — as of the Q2 FY 2026-2027 call, of which defense is ~Rs.17,568 cr; the majority of orders are from international markets, with supplies going to 90+ countries.
• Guided Pinaka order of ~Rs.3,000 cr — in the final stage of negotiation; management is optimistic of securing the contract before end of FY 2026-2027, noting defense contract finalization typically takes a couple of months.
• Base Pinaka order of ~Rs.6,000 cr — received almost 1.5 years back (≈FY 2025-2026); all Pinaka variants together take the family order size to ~Rs.9,000 cr (period unspecified). Management highlighted this is the first time such rocket/missile orders have come from the private sector.
• International defense orders keep coming regularly — some contracts with international customers are under negotiation; details will be shared once orders are received (no quantum disclosed).
• Export policy discipline — the company entertains only customers permitted by the Government of India and excludes countries on the Government of India's banned/notified restriction list.

155mm Line Set Up; Bhargavastra and Missiles on Multi-Year Timelines

• 155mm product line facilities already set up — management expects more orders from international markets for these products going forward; it declined product-level clarity on the 155 shells program, including on commencement of intermediate-product deliveries and the end-of-FY27 (FY 2026-2027) readiness timeline for the final product, saying details will be shared "at an appropriate stage."
• Bhargavastra trials targeted in CY2026 — all internal trials likely to conclude in CY2026, with management "still very optimistic" of completing field trials also in CY2026; commercialization begins only after trials, and the defense cycle from trials to commercial orders takes years — no clarity yet on commercial order size or timing (period unspecified).
• Missile opportunity aligned with capabilities — on the government recently making missile technologies available to the private sector, management said the opportunity fits Solar's capabilities across energetic materials, propellants, warheads, and rocket integration; Solar is part of some critical missile development programs (in public domain).
• Missile orders expected around or after ~2 years — trials for some programs may complete within 6-12 months (i.e., by FY 2027-2028), with RFP and contract finalization taking another 1-1.5 years; orders from new missile programs expected around or after ~2 years (i.e., FY 2028-2029 or later).
• MALE UAV is a strategic indigenous program — management said it will take its own time and is not concerned about, or impacted by, current procurement program developments, though it has participated in them.
• Capability gaps are "a continuous process" — MD & CEO Manish Nuwal said Solar has built one of the most integrated, state-of-the-art large facilities capable of handling practically every kind of ammunition, and is developing programs with DRDO and on its own; the company entered defense ~15 years back.

FY27 Guidance to Be Surpassed, But No Formal Upgrade

• Management reaffirmed it will "definitely surpass" the FY 2026-2027 revenue guidance of Rs.14,000 crore — citing H1 revenue already above Rs.7,000 cr, order book strength, and available opportunities; H2 sales are always stronger due to monsoon and higher domestic demand.
• EBITDA margin expected to cross 29% for FY 2026-2027 — vs the ~28% guided at the start of FY 2026-2027 (H1 FY 2026-2027 at ~28.45%); management did not commit to the analyst's >30% scenario despite defense share rising beyond 30% of revenue.
• No formal upward revision of guidance — management cited geopolitical issues, supply chain disruptions and fluctuating commodity prices, but remains confident of crossing FY 2026-2027 annual guidance on both top line and bottom line.
• FY28/FY29 defense sizing declined — management restricted discussion to Q2 FY 2026-2027 and half-yearly results; clarity for FY27-28 (and an attempt at clarity for FY28-29) will be offered only after FY27 financial results are shared.
• No FY 2027-2028 volume-growth guidance for non-defense — despite the analyst's query; management expects better growth momentum in H2 FY 2026-2027 driven by growing coal-mining demand in the Indian market.

Domestic Targeting 10-15% Volume Growth; Omnia Still Pending Approvals

• Industry growth seen at ~6-7% (period unspecified) — for domestic commercial explosives, supported by capacity additions across the country and demand from housing, infrastructure and coal mining; Solar is targeting 10-15% volume growth per annum (period unspecified; could be 15-17%, 10-12%, or flat in a given year as business dynamics change).
• Too early for FY 2027-2028 or FY 2028-2029 domestic guidance — management said, but expressed confidence in growing the domestic business year on year, citing a 27-29 year track record of doing so.
• Analyst context on mining demand — Amit Dixit (Goldman Sachs) noted international business grew sharply YoY and QoQ and cited Coal India's record offtake as a sign of improving domestic mining demand.
• Omnia acquisition update deferred — management declined to give a closing timeline; the transaction remains subject to approvals, and an update will be provided once all approvals are received. Questions on the agri business's value accretion and post-merger ramp-up/mix impact will be answered only once the acquisition is completed.