SIIL expects to surpass FY27 guidance after 69% Q2 growth

Solar Industries India Limited said it expects to surpass its FY2026-27 annual guidance after reporting consolidated Q2 FY27 revenue of Rs 3,519 crore, up 69% year on year, and an order book of Rs 20,178 crore. SIIL attributed the September-quarter momentum to Domestic Explosives, International Explosives and Defence.

What did SIIL report for Q2 and H1 FY27?

SIIL reported consolidated net revenue of Rs 3,519 crore in Q2 FY27, compared with Rs 2,082 crore in Q2 FY26, an increase of 69%. For H1 FY27 ended September 30, 2026, revenue reached Rs 7,187 crore against Rs 4,237 crore a year earlier, representing 70% growth.

SIIL reported Rs 2,045 crore of earnings before interest, tax, depreciation and amortisation, or EBITDA, in H1 FY27, compared with Rs 1,146 crore in H1 FY26. The November 3, 2026 update described the performance as broad-based and said revenue was supported by contributions from Domestic Explosives, International Explosives and Defence.

SIIL did not provide revenue or growth figures separately for the three operating businesses in the announcement. The disclosed consolidated comparison shows Q2 revenue increased by Rs 1,437 crore and H1 revenue increased by Rs 2,950 crore versus the corresponding FY26 periods.

How did SIIL’s profitability and margins change?

SIIL’s Q2 FY27 EBITDA rose 75% year on year to Rs 1,021 crore from Rs 582 crore, while its EBITDA margin increased to 29.02% from 27.95%. The 107-basis-point expansion means the margin rose by 1.07 percentage points, as one basis point is one-hundredth of a percentage point.

For H1 FY27, EBITDA rose 78% to Rs 2,045 crore from Rs 1,146 crore in H1 FY26. The H1 EBITDA margin increased 140 basis points to 28.45% from 27.05%, a larger margin increase than the 107-basis-point change reported for Q2 alone.

Profit before tax increased 79% to Rs 877 crore in Q2 FY27 from Rs 490 crore a year earlier. Profit after tax, or PAT, rose 80% to Rs 650 crore from Rs 361 crore, while H1 PAT increased 84% to Rs 1,316 crore from Rs 714 crore.

PAT growth exceeded revenue growth in both disclosed periods, with Q2 PAT up 80% against revenue growth of 69%, and H1 PAT up 84% against revenue growth of 70%. SIIL did not provide a numerical bridge identifying the individual cost, tax or other factors behind the PAT changes.

Which SIIL businesses supported the September-quarter result?

SIIL said Domestic Explosives, International Explosives and Defence contributed to Q2 FY27 performance ended September 30, 2026. Management linked the Domestic Explosives result to mining and infrastructure demand, stronger customer engagement, an expanded manufacturing footprint and technical-service capabilities.

For International Explosives, management cited deeper customer relationships, improved market penetration and sustained demand across key operating geographies. SIIL said its portfolio includes explosives, initiating systems and technical mining solutions, and that it plans to scale international operations through acquisitions and greenfield expansions in growing markets.

SIIL said Defence continued to grow through execution of its existing order book, a broader portfolio of indigenously developed products and opportunities in domestic and international markets. Management said SIIL was likely to receive large orders from Indian and international defence customers, including guided Pinaka rockets, in the near future; this was management’s expectation, not a reported order award.

The announcement does not allocate the Rs 3,519 crore Q2 revenue or Rs 7,187 crore H1 revenue among the three businesses. It therefore establishes that each segment contributed, but does not identify which segment generated the largest share of the reported growth.

What does SIIL’s Rs 20,178 crore order book indicate?

SIIL reported an order book of Rs 20,178 crore, which management said provides visibility for future execution. The order book is greater than the Rs 7,187 crore consolidated revenue reported for H1 FY27, but SIIL did not disclose its delivery schedule or the portion expected to be recognised in FY2026-27.

SIIL also did not disclose the order book’s customer mix or segment composition. The Rs 20,178 crore figure therefore quantifies work available for execution, but the release does not support a calculation of future quarterly revenue, margin or PAT from that order book.

In its Defence commentary, SIIL connected growth with execution of the existing order book, its ammunition value-chain capabilities, an order pipeline and customer engagement. That discussion places the disclosed Rs 20,178 crore total alongside prospective programmes, although the announcement quantifies only the total order book.

The order book is relevant to SIIL’s FY2026-27 outlook because management cited it alongside first-half results and opportunities across explosives and Defence. It is not revenue already included in the Rs 7,187 crore H1 FY27 result, as SIIL described it as support for future execution.

Why does SIIL expect to surpass FY27 guidance?

SIIL expects to surpass its stated annual guidance for FY2026-27, according to Managing Director and Chief Executive Officer Manish Nuwal’s November 3, 2026 commentary. He based that view on first-half performance, the Rs 20,178 crore order book and momentum across Domestic Explosives, International Explosives and Defence.

SIIL had delivered Rs 7,187 crore of revenue, Rs 2,045 crore of EBITDA and Rs 1,316 crore of PAT in H1 FY27. The announcement does not state the numerical annual guidance that SIIL expects to exceed, so the extent of prospective outperformance cannot be measured from this release.

Management identified an expanding manufacturing footprint, disciplined capital allocation, technology-led product development and a broader domestic and international presence as foundations for growth. SIIL also said it would focus on operational excellence, timely execution and prudent growth, making order-book delivery central to the stated outlook.

The outlook depends on the opportunities management described, including potential large Defence orders and international expansion through acquisitions or greenfield projects. Neither the prospective guided Pinaka orders nor any acquisition or greenfield transaction was reported as completed in the September-quarter update.

Conclusion

SIIL’s Q2 and H1 FY27 results showed increases in revenue, EBITDA and PAT versus FY26, alongside EBITDA-margin expansion from 27.95% to 29.02% in Q2 and from 27.05% to 28.45% in H1. Management attributed the performance to contributions across explosives and Defence, with the Rs 20,178 crore order book providing its stated basis for future execution.

The next issue is whether SIIL converts the Rs 20,178 crore order book and the opportunities in Domestic Explosives, International Explosives and Defence into delivery during the rest of FY2026-27. Management expects to surpass annual guidance, but the release does not disclose the guidance’s numerical level or a timetable for potential large guided Pinaka and other Defence orders.