Solar Industries India Limited H1 profit rose 84% on defence mix

Solar Industries reported HYFY27, the presentation’s half-year period ended September 30, 2026, profit after tax of Rs 1,316 crore, up 84% from HYFY26, as defence revenue rose 109% to Rs 1,935 crore and reached 27% of sales. First-half net sales increased 70% to Rs 7,187 crore.

How much did Solar Industries' first-half profit grow?

Solar Industries' HYFY27 profit after tax rose 84% year on year to Rs 1,316 crore from Rs 714 crore in HYFY26. Profit before tax increased at the same 84% rate, reaching Rs 1,789 crore from Rs 970 crore, while net sales grew 70% to Rs 7,187 crore from Rs 4,237 crore.

The faster increase in earnings than sales coincided with a higher earnings before interest, tax, depreciation and amortisation, or EBITDA, margin. EBITDA rose 78% to Rs 2,045 crore in HYFY27 from Rs 1,146 crore, and its share of net sales increased by 1.40 percentage points to 28.45% from 27.05%.

Solar Industries' cost mix also changed in the first half. Material consumed increased 70% to Rs 3,533 crore and was almost unchanged as a sales share at 49.16%, compared with 49.15% in HYFY26. Employee cost rose 38% to Rs 522 crore, but its sales share declined to 7.26% from 8.93%, while other expenses increased 62% to Rs 1,111 crore and declined to 15.46% of sales from 16.25%.

How did defence change Solar Industries' revenue mix?

Solar Industries' defence revenue rose 109% year on year to Rs 1,935 crore in HYFY27 from Rs 925 crore, increasing its share of sales to 27% from 22%. The Rs 1,010 crore increase made defence the fastest-growing disclosed customer category during the half year.

Domestic explosives generated Rs 2,324 crore in HYFY27, up 55% from Rs 1,495 crore, although its sales contribution declined to 32% from 35%. International explosives remained the largest disclosed category at Rs 2,879 crore, rising 61% from Rs 1,789 crore, but its share decreased to 40% from 42% as defence expanded faster.

The revenue mix was therefore more weighted toward defence without a decline in either explosives category. Domestic and international explosives together contributed Rs 5,203 crore in HYFY27, compared with Rs 3,284 crore in HYFY26, while defence’s portion of total sales gained 5 percentage points. Other revenue was Rs 49 crore, up 82% from Rs 28 crore, and accounted for 1% in both periods.

What happened in Solar Industries' second quarter?

Solar Industries' Q2FY27, the presentation’s second-quarter period, profit after tax increased 80% to Rs 650 crore from Rs 361 crore in Q2FY26, on net sales growth of 69% to Rs 3,519 crore. Q2FY27 EBITDA rose 75% to Rs 1,021 crore from Rs 582 crore, while profit before tax increased 79% to Rs 877 crore from Rs 490 crore.

Quarterly margins also moved higher from the prior-year period. EBITDA represented 29.02% of Q2FY27 net sales, compared with 27.95% in Q2FY26, and profit after tax margin increased to 18.47% from 17.36%. Material consumed was 47.63% of sales, 0.19 percentage points above the prior-year quarter, while employee cost fell to 7.57% from 9.35%.

Defence revenue was Rs 1,002 crore in Q2FY27, up 98% from Rs 506 crore in Q2FY26, and accounted for 29% of sales versus 24%. International explosives rose 57% to Rs 1,515 crore and remained the largest quarterly category at 43% of sales; domestic explosives increased 61% to Rs 963 crore, but represented 27% compared with 29% a year earlier.

What do Solar Industries' order book and funding figures show?

Solar Industries disclosed an order book of Rs 20,178 crore, comprising Rs 17,568 crore of defence orders and Rs 2,610 crore outside the defence category. The defence order component was substantially larger than the Rs 1,935 crore of defence revenue reported for HYFY27.

Net debt was Rs 1,177 crore in HYFY27, compared with Rs 867 crore in FY26, the presentation’s full-year comparator. Capital expenditure was Rs 873 crore in HYFY27 versus Rs 1,556 crore in FY26. The presentation reported a net debt-to-equity ratio of 0.15, compared with 0.13 in FY26, and a net debt-to-EBITDA ratio of 0.29, compared with 0.32.

Working-capital days declined to 108 in HYFY27 from 130 in FY26. Interest or finance cost increased 67% to Rs 97 crore from Rs 58 crore during the first half, but decreased as a share of sales to 1.34% from 1.38%; depreciation rose 44% to Rs 168 crore and fell to 2.33% of sales from 2.75%.

Conclusion

Solar Industries' HYFY27 results show earnings growing faster than revenue, with profit after tax up 84% to Rs 1,316 crore and EBITDA margin up 1.40 percentage points to 28.45%. Defence was the main mix change, rising 109% to Rs 1,935 crore and adding 5 percentage points to its share of sales, while domestic and international explosives together still produced Rs 5,203 crore of revenue.

The next disclosed item to watch is execution of the Rs 20,178 crore order book, of which Rs 17,568 crore is defence-related. Investors can also monitor whether working-capital days, reported at 108 versus 130 in FY26, and net debt, reported at Rs 1,177 crore versus Rs 867 crore in FY26, move alongside future capital expenditure and sales growth.