Solar Industries India Limited Earnings Summary — Q1 FY2027
Solar Industries Delivers Robust Revenue Growth and Margin Expansion in Q1 FY2027
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹3,668 Cr is 70.3% higher year-on-year.
- Revenue has compounded at 44.2% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹653 Cr is 92.7% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 57.4% annualised across the period.
- Operating margin stands at 27.7% in Q1 FY2027.
- Operating margin expanded by 285 bps year-on-year.
- Over the last two years operating margin has expanded by 101 bps.
- PBT margin is 24.9%.
- Expense growth of 63.8% remained below revenue growth of 70.3%.
- Operating profit of ₹1,015 Cr is 89.8% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 87/100 (Excellent) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 3,668 | 3,053 | 2,548 | 2,082 | 2,154 | 2,167 | 1,973 | 1,716 | 1,685 | 1,611 |
| Expenses | Accelerating | 2,653 | 2,227 | 1,840 | 1,530 | 1,620 | 1,629 | 1,447 | 1,271 | 1,235 | 1,257 |
| Operating Profit | Strong Uptrend | 1,015 | 826 | 708 | 552 | 535 | 537 | 527 | 445 | 449 | 354 |
| Operating Margin | Stable | 27.7% | 27.1% | 27.8% | 26.5% | 24.8% | 24.8% | 26.7% | 25.9% | 26.7% | 22.0% |
| Other Income | Volatile | 17 | 46 | 25 | 29 | 29 | 7 | 11 | 36 | 26 | 20 |
| Interest | Improving | 41 | 41 | 34 | 31 | 27 | 29 | 31 | 30 | 27 | 32 |
| Depreciation | Improving | 80 | 71 | 63 | 61 | 56 | 50 | 47 | 44 | 40 | 37 |
| Profit Before Tax | Strong Uptrend | 911 | 759 | 636 | 490 | 481 | 464 | 459 | 407 | 408 | 305 |
| Tax | Improving | 245 | 203 | 169 | 128 | 128 | 118 | 122 | 103 | 108 | 63 |
| Net Profit | Strong Uptrend | 653 | 548 | 446 | 345 | 339 | 322 | 315 | 286 | 286 | 235 |
| Net Margin | Stable | 17.8% | 17.9% | 17.5% | 16.6% | 15.7% | 14.9% | 16.0% | 16.7% | 17.0% | 14.6% |
Key Takeaways
- Revenue for the quarter reached ₹3,008.20 crore, marking a significant 39.6% increase compared to the same period last year.
- Consolidated Net Profit jumped by over 77% YoY to ₹688.39 crore, driven by improved operating efficiencies and high-value product mix.
- Operating margins expanded to 25.74%, up from 22.23% in the same quarter last year, reflecting strong pricing power in the explosives segment.
- The company continues its strategic focus on the defense sector, which remains a key driver for structural margin improvements.
- Net Worth improved to ₹6,958.70 crore as of June 30, 2026, compared to ₹6,277.20 crore in the preceding quarter.
- Finance costs remained controlled at ₹37.28 crore, despite the scale of operations expanding significantly.
- Hyperinflationary accounting (Ind AS 29) was applied for Turkish subsidiaries, with a ₹25.33 crore impact recognized in other expenses.
Management Guidance
The company continues to pivot from mining dependency toward becoming a critical defense tactical partner, targeting high-order intellectual property in missiles and drones.
Sentiment Shift
Improving
Accelerating profitability and consistent margin expansion above historic 20% levels signal a successful structural shift toward high-margin defense contracts.
Outlook
Solar Industries maintains a robust outlook driven by an increasing share of defense in the revenue mix and a growing international manufacturing footprint to mitigate geographic risks.
From the Annual Report (Key Quotes)
“The Group has identified 'Explosives its accessories and related services', as its only reportable segment.”
“Sales and profits have compounded at over 20% and 26% respectively, demonstrating high-quality scalability.”
Official Quarterly Documents
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This summary is AI-generated from Solar Industries India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.