Q2 FY27 results analysis · November 03, 2026
Solar Industries India Ltd (SOLARINDS) Q2 FY27 Results Analysis: PAT Surges 79.8%, Revenue Climbs 69%
+79.8%PAT year on year, Rs. 650.04 Cr
Source: Quarterly results filing (BSE)
Quick summary
Solar Industries India Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 3,518.92 Cr (+69.00% YoY) and PAT growth of +79.84% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 3,518.92 Cr (+69.00% YoY) |
| PAT (Q2) | Rs. 650.04 Cr (+79.84% YoY) |
| EBITDA margin | 28.57% (+207 bps YoY) |
| EPS (Q2) | Rs. 68.19 (+78.90% YoY) |
Quarter Snapshot
Q2 FY27 delivered 69.0% YoY revenue growth to Rs.3,518.92 Cr and 79.8% PAT growth to Rs.650.04 Cr, with EBITDA margin of 28.57% inside management's 28-29% FY27 band and H1 annualized revenue tracking 2.67% above the Rs.14,000 Cr guidance. Margin pass-through held despite ammonium-nitrate inflation, and leverage of 0.59x net debt/H1 EBITDA leaves headroom for the pending ~USD 1.35 bn Omnia acquisition. Watch items are cash conversion (CFO/PAT 0.69x), the growing Turkish hyperinflation charge, and the H2 capex step-up required under the Rs.2,050 Cr plan.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "likely ahead on a very weak base" (monsoon-hit Q2FY26) | +69.00% YoY (Rs.3,518.92 Cr) | Played out |
| Margin vs AN input shock | "the Q2 print tests whether pass-through plus inventory gain holds the band" (28–29%) | EBITDA margin 28.57%, up from 27.91% Q1; material cost 45.60% of revenue | Played out |
| Defence run-rate | "the guidance line most at risk"; needs a step-up from Q1's Rs.933 Cr | Single-segment disclosure — not observable in the filing | Not observable |
| Inventory gain promised in May '26 | Watch whether it shows up | Filing shows a further Rs.(106.12) Cr build, no disclosed gain — not addressed in the filing; remains open for the call | Not observable |
| Omnia debt drawn post-Sep 14 would show in later filings | "would only show in later filings" | Borrowings Rs.1,704.65 Cr vs Rs.1,467.84 Cr at Mar-26; no bulk deal debt visible | Played out |
| Omnia completion-timeline update | "which completion timeline management now guides to" | Filing repeats only "subject to receipt of applicable regulatory approvals" — remains open for the call | Not observable |
| Capex cadence vs Rs.2,050 Cr plan | FY26 pattern of underspend | 43.31% deployed in H1 | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 revenue Rs.14,000 Cr | Q4 FY26 earnings call (May 15, 2026); reiterated at Q1 FY27 | H1 consolidated Rs.7,187.12 Cr; annualized Rs.14,374.24 Cr, +2.67% above guidance (management's own tracking basis per its Q1 run-rate math). On the standalone reading, H1 standalone Rs.3,101.95 Cr annualizes to only… —… | On Track |
| FY27 EBITDA margin ~maintain FY26 / 28–29% band | Q4 FY26 call; Q1 FY27 call | 28.57% in Q2; 28.24% H1 (vs 25.65% H1FY26) — above FY26's 27.95% (incl-OI basis) — H1-to-date | Met |
| FY27 capex Rs.2,050 Cr | Q4 FY26 call; reiterated Aug 13, 2026 | Rs.887.81 Cr in H1 = 43.31% of plan | On Track |
| Combined Solar+Omnia FY28: >Rs.30,000 Cr revenue, Rs.6,800–7,000 Cr EBITDA | Omnia deal call (Sep 15, 2026) | Deal pending completion; no P&L impact yet | Too Early |
| Net debt/EBITDA < 2x by FY28 | Q1 FY27 call Q&A | 0.59x net debt/H1 EBITDA pre-deal | On Track |
| "Maintain the current EBITDA margins" via rise-and-fall clauses and defence/international mix | Q4 FY26 call (May 15, 2026) | Margin 28.57% vs 26.50% yr-ago; material cost held at 45.60% of revenue | Confirmed |
| FY26 marked record quarterly/annual sales; growth momentum into FY27 | FY26/Q1 FY27 commentary | H1 FY27 revenue +69.6% YoY, EBITDA +86.7% YoY | Confirmed |
| Inventory gain expected in coming quarters | Q4 FY26 call | Filing shows a further build; no gain disclosed | Too Early |
| Debt will not cross 2x EBITDA "in any situation" | Q1 FY27 call Q&A | 0.59x pre-deal; deal debt not yet drawn — direction intact | Too Early |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| Revenue (Rs. Cr) | 2,082 | 2,548 | 3,053 | 3,668 | 3,518.92 |
| EBITDA margin | 27.95% (incl-OI, per notes) | 28.77% | 28.51% | 27.91% | 28.57% (excl-OI, this analysis) |
| PAT (Rs. Cr) | 361 | 467 | 556 | 666 | 650 |
Key Investment Insights
Key Positives
- Consolidated revenue grew 69.0% YoY to Rs.3,518.92 Cr; H1 revenue up 69.6% YoY to Rs.7,187.12 Cr
- PAT grew 79.84% YoY to Rs.650.04 Cr; EPS of Rs.68.19 vs Rs.38.12 (+78.9% YoY)
- EBITDA margin expanded ~207 bps YoY to 28.57%, above Q1's 27.91% and within management's 28-29% FY27 band
- H1 annualized revenue of Rs.14,374.24 Cr runs 2.67% above management's Rs.14,000 Cr FY27 guidance
- Material cost held at 45.60% of revenue (down 311 bps QoQ) despite ammonium-nitrate input inflation
- Net debt/H1 EBITDA at 0.59x pre-Omnia, well below management's committed <2x path; D/E improved to 0.22
- H1 operating cash before working-capital changes more than doubled YoY to Rs.2,153.68 Cr from Rs.1,163.26 Cr
- Standalone EBITDA margin of 29.05% vs 25.76% a year ago
Risk Factors
- H1 CFO/PAT at 0.69x with FCF near breakeven (Rs.20.47 Cr) due to receivables outflow of Rs.558.77 Cr and inventory build of Rs.517.48 Cr
- IndAS 29 hyperinflation charge for Turkish subsidiaries of Rs.18.37 Cr in Q2 (Rs.43.70 Cr H1), recurring in nature and growing from Rs.36.50 Cr in H1FY26
- Finance costs rose 79.2% YoY to Rs.55.36 Cr; H1 impairment loss on financial assets of Rs.67.62 Cr depresses reported earnings by an unquantified quarterly amount
- H2 capex of Rs.1,162.19 Cr required vs Rs.887.81 Cr deployed in H1; internal accruals alone will not cover it ahead of the all-debt-funded Omnia consideration of ~Rs.12,951 Cr
- QoQ revenue declined 4.07% and PAT declined 2.45% QoQ, consistent with monsoon seasonality
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.