Solar Industries Q2 revenue rises 69% as defence reaches 29%

Solar Industries India Limited reported Q2 FY27 consolidated revenue of Rs 3,519 crore, up 69% year on year, while defence contributed Rs 1,002 crore, or 29%, of its customer basket. Quarterly EBITDA was Rs 1,021 crore at a 29.02% margin, and profit after tax reached Rs 650 crore.

How fast did Solar Industries grow in Q2 FY27?

Solar Industries grew consolidated revenue by 69% year on year to Rs 3,519 crore in Q2 FY27, compared with Rs 2,082 crore in the prior-year quarter. EBITDA increased to Rs 1,021 crore from Rs 582 crore, and management reported an EBITDA margin of 29.02% on the November 4, 2026 earnings call.

Profit before tax increased to Rs 877 crore in Q2 FY27 from Rs 490 crore, while profit after tax rose to Rs 650 crore from Rs 361 crore. The higher sales base extended into the first half: revenue was Rs 7,187 crore against Rs 4,237 crore, representing 70% year-on-year growth.

Solar Industries reported first-half EBITDA of Rs 2,045 crore, compared with Rs 1,146 crore a year earlier, while first-half profit after tax was Rs 1,316 crore versus Rs 714 crore. That comparison shows that the Q2 increase was accompanied by growth across the April-to-September FY27 period rather than being limited to one quarter.

Why did defence reach 29% of Solar Industries sales?

Solar Industries’ defence revenue reached Rs 1,002 crore in Q2 FY27 and made up 29% of the customer basket, compared with 24% in management’s stated comparison. Management attributed the increase to execution of its existing order book, a broader indigenously developed product portfolio, and opportunities in domestic and international defence markets.

The increase in defence’s share coincided with lower shares for both explosives segments. Domestic explosives represented 27% of the Q2 FY27 customer basket, down from 29%, and international explosives represented 43%, down from 46%; defence therefore rose by 5 percentage points while the two explosives categories fell by a combined 5 percentage points.

Solar Industries also reported a broader half-year shift in the mix. Defence revenue was Rs 1,935 crore, or 27% of the first-half FY27 basket, compared with 22%; domestic explosives were 32% versus 35%, and international explosives were 40% versus 42%.

What supported Solar Industries’ explosives business in Q2 FY27?

Solar Industries said domestic explosives performed well during the Q2 FY27 monsoon period because of mining and infrastructure demand, customer engagement, an expanded manufacturing footprint and technical-services capabilities. Management also said below-average monsoon conditions in most mining markets supported demand and sales in the domestic business.

International explosives remained the largest Q2 FY27 customer-basket segment at 43%, although its share declined from 46% in the comparison provided by management. Solar Industries cited deeper customer relationships, market penetration and sustained demand in key geographies, supported by its portfolio of explosives, initiating systems and technical services for mining customers.

For the second half of FY27, management said it expects better domestic growth momentum based on demand from coal mining in India. Solar Industries also said it is pursuing international expansion through acquisitions and greenfield projects, but the November 4 call did not provide a financial contribution, completion date or investment amount for those initiatives.

How did costs move alongside Solar Industries’ earnings?

Solar Industries’ Q2 FY27 raw-material consumption rose to Rs 1,676 crore from Rs 988 crore, employee cost increased to Rs 266 crore from Rs 195 crore, and other expenses rose to Rs 571 crore from Rs 347 crore. Revenue increased by Rs 1,437 crore over the same comparison, while EBITDA increased by Rs 439 crore.

Interest and finance cost was Rs 55 crore in Q2 FY27, compared with Rs 31 crore, while depreciation was Rs 88 crore versus Rs 61 crore. Despite these higher expense lines, profit before tax rose by Rs 387 crore and profit after tax increased by Rs 289 crore from the prior-year quarter.

For the first half, raw-material consumption was Rs 3,533 crore against Rs 2,082 crore, employee cost was Rs 522 crore versus Rs 378 crore, and other expenses were Rs 1,111 crore compared with Rs 688 crore. First-half interest and finance cost rose to Rs 97 crore from Rs 58 crore, while depreciation increased to Rs 168 crore from Rs 117 crore.

What has Solar Industries said about the second half of FY27?

Solar Industries management said it expects to surpass the annual guidance issued at the start of FY27, citing first-half results, order-book strength and opportunities in domestic explosives, international explosives and defence. Management did not restate a numerical annual revenue, EBITDA or profit target in its prepared remarks on November 4, 2026.

Management said it was likely to receive large orders from Indian and international defence customers, including Guided Pinaka rockets. In the question-and-answer session, management said the Guided Pinaka order was in final-stage negotiations and could be about Rs 3,000 crore, following an earlier Pinaka order of about Rs 6,000 crore received roughly 1.5 years earlier; the potential Guided Pinaka order was not presented as confirmed.

Solar Industries also said it plans to complete internal and field trials for Bhargavastra during calendar 2026. Management said commercialisation would begin after those trials, while noting that defence conversion from trials to commercial orders can take years.

Conclusion

Solar Industries’ Q2 FY27 performance combined a 69% increase in consolidated revenue to Rs 3,519 crore with a material change in revenue composition. Defence supplied Rs 1,002 crore and 29% of the customer basket, while international and domestic explosives accounted for 43% and 27%, respectively; quarterly EBITDA was Rs 1,021 crore and profit after tax was Rs 650 crore.

The next disclosures to watch are execution in the second half of FY27, management’s expectation of surpassing its initial annual guidance, and progress on the potential Guided Pinaka order. Management also plans to complete Bhargavastra internal and field trials in calendar 2026, although it did not provide a date for commercial orders or a revised full-year financial target.