Solar Industries India Ltd is a global manufacturer of commercial explosives and blasting solutions with a fast-growing defence products business, reporting into a quarter shaped by a sharp rise in ammonium nitrate prices and a coal overburden-removal recovery. The print will speak to whether the defence run-rate can step up toward the >Rs. 4,500 Cr FY27 target and whether the 27.91% EBITDA margin holds the guided 28-29% band, all against the backdrop of the Rs. 12,951 Cr Omnia Holdings acquisition announced in September.
| Results date | November 03, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 3,668.20 Cr |
| Previous quarter PAT | Rs. 666.37 Cr |
| Previous quarter EBITDA margin | 27.91% |
| Market cap | Rs. 176,188.48 Cr |
| CMP | Rs. 19,430.0 |
The board of Solar Industries India Ltd meets on November 3, 2026 at 12:45 p.m. to consider the Q2/H1 FY27 results with Limited Review. The trading window remains shut from October 1 to November 5, 2026 and reopens on November 6.
An investor call hosted by MOFSL is scheduled for November 4, 2026 at 11:00 a.m. IST to discuss the Q2/H1 FY27 results. Speakers include Manish Nuwal (MD & CEO), Suresh Menon and Milind Deshmukh (Executive Directors), and Joint CFOs Moneesh Agrawal and Shalinee Mandhana.
The quarter's central test is whether Solar Industries can hold its EBITDA margin in the guided 28-29% FY27 band after Q1FY27 printed 27.91%, with ammonium nitrate prices in India up as much as 70% to more than Rs. 72,000/tonne since February 2026 against a material-cost base of about 50.6% of sales. Two offsets matter: the company entered the quarter holding Rs. 1,742 Cr of inventory (roughly 141 days on FY26 material consumption), and management has said an inventory gain is expected in the coming quarters, while the ammonia feedstock correction — Tampa contract down $110/mt month-on-month plus a further $30/mt cut, with NW Europe spot about 25% below peak — suggests the input curve was flattening through the quarter. On demand, Coal India's July 2026 overburden removal jumped 21.11% YoY to 120.35 MCuM after a negative FY26, a favourable swing for the domestic explosives business that was monsoon-hit in the year-ago base quarter of Rs. 2,082 Cr. The defence run-rate is the guidance line most at risk: the >Rs. 4,500 Cr FY27 target needs about Rs. 1,125 Cr per quarter versus Rs. 933 Cr in Q1, though dispatch evidence is active with Pinaka and Armenia deliveries since Q4FY26 and a 450-unit Nagastra-1R batch sent to the Army in October. The Omnia acquisition, announced September 14, 2026 at US$1.355 billion (Rs. 12,951 Cr), remains pending — the scheme requires a special resolution at the Omnia scheme meeting plus competition-authority approvals, with Solar SA's guarantee running to September 9, 2027 — so a key call question is whether FY27 standalone guidance of Rs. 14,000 Cr revenue is reaffirmed or re-based toward the combined Solar+Omnia FY28 framing of Rs. 31,000-32,000 Cr revenue and Rs. 6,800-7,000 Cr EBITDA at 22-23% margin.
Performance vs Guidance Tracking: Management's FY27 and FY28 markers and where tracking stood after Q1FY27:
Omnia deal updates: The US$1.355 billion (Rs. 12,951 Cr) acquisition dominates the inter-quarter period:
Defence ramp and order book: Defence is the largest and fastest-growing vertical:
Margin bridge and commodity pass-through: Input inflation is the quarter's key margin variable:
Domestic monsoon quarter and capex cadence: The base quarter (Q2FY26, Rs. 2,082 Cr) was monsoon-hit:
Management has guided total debt (acquisition plus regular) at around Rs. 10,000-11,000 Cr by FY28, funded entirely through debt and internal accruals with no equity raise planned. MD & CEO Manish Nuwal has said, "in any situation, the debt will not cross the two times of EBITDA generation."
CRISIL placed Rs. 1,479.50 Cr of term loans and Rs. 35 Cr of NCDs on 'AA+/Watch Developing', while ICRA reaffirmed A1+ on Rs. 500 Cr of commercial paper but flagged a 'significant increase in consolidated debt'. ICRA's key monitorable is consolidated net debt/OPBDITA below 2.0x.
Management has said defence and international strength should let the company "maintain the current EBITDA margins", noting that price pass-through is sometimes difficult but rise-and-fall clauses exist in contracts. Q1FY27 EBITDA margin was 27.91% against the guided 28-29% FY27 band.
Management guided FY27 revenue of Rs. 14,000 Cr, and the Q1FY27 annualised run-rate of Rs. 14,672.80 Cr sits about 4.8% above that guidance (company computation). The defence line is the tighter one — the >Rs. 4,500 Cr FY27 target needs about Rs. 1,125 Cr per quarter versus Rs. 933 Cr in Q1.
Completion is expected early-to-mid 2027, subject to regulatory, statutory, competition and shareholder approvals, after which Omnia delists from the JSE and A2X. As of the October 6, 2026 combined circular, the scheme requires a special resolution at the Omnia scheme meeting plus competition-authority approvals, with Solar SA's guarantee running to September 9, 2027.