Solar Industries (SOLARINDS) Q2 FY27 Profit Jumps 80% as Defence Business Takes Over
Solar Industries' Q2 FY27 profit soared 80% YoY, powered by a surging defence segment that now contributes 29% of revenue and a massive ₹20,178 crore order book.
Solar Industries' Q2 FY27 profit surged 80% YoY to ₹650 crore, driven by a 69% revenue jump. The defence business, growing 98% YoY, is now the key growth engine, with management confident of beating its full-year guidance.
For Solar Industries, the story is no longer just about explosives. The September quarter confirmed its pivot, as defence manufacturing became the primary engine driving a profit surge that far outpaced even robust top-line growth.
The numbers show a company in transition. Revenue for Q2 FY27 stood at ₹3,519 crore, up 69% from a year ago. Net profit climbed even faster, rising 80% to ₹650 crore. While revenue dipped 4% sequentially from a record Q1, profit fell only 2.5%, and the net profit margin actually improved to 18.5%.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 3,519YoY +69% | 3,668 | 2,082 |
| Profit (₹ Cr) | 650YoY +80% | 666 | 361 |
| Net Profit Margin | 18.5%YoY +6.3% | 18.2% | 17.4% |
Why Defence Is Now the Core Story
The year-on-year explosion is rooted in a strategic shift. According to the company's investor presentation, defence revenue surged 98% to ₹1,002 crore, now making up 29% of total sales. CNBC-TV18 reported this contribution was just 24% a year ago. This higher-margin mix, alongside growth in international explosives, supported margin expansion even as interest costs rose to fund expansion.
The sequential dip is largely seasonal. Management noted on the earnings call that Q2 is typically impacted by monsoon conditions in mining regions. Yet, the domestic explosives business still grew 61% YoY, a sign of underlying demand strength.
The Order Book That Fuels Confidence
Visibility is the quarter's other headline. Solar Industries' total order book stood at ₹20,178 crore at the end of September, as reported by CNBC-TV18. A staggering ₹17,568 crore of that is for defence, providing a multi-year revenue runway. This backlog underpins management's upgraded confidence.
CEO Manish Nuwal stated the company now expects to “definitely surpass” its original FY27 revenue guidance of ₹14,000 crore. With half-year revenue already at ₹7,187 crore, and the second half historically stronger, the beat seems assured. The company also expects to average a 29% EBITDA margin for the full year, above its initial 28% target.
Key Points
- Defence revenue nearly doubled year-on-year to ₹1,002 crore, becoming the largest contributor to growth and supporting margin improvement.
- A massive ₹20,178 crore order book, 87% of which is for defence, provides clear multi-year revenue visibility.
- Management is confident of surpassing its FY27 revenue guidance of ₹14,000 crore and expects full-year EBITDA margin to average 29%.
- While revenue dipped 4% sequentially due to seasonal monsoon effects, profitability held steady, with the net margin improving to 18.5%.
Hexa Perspective
Solar Industries is executing a textbook business model transition. The quarter proves defence is no longer a side project but the core growth driver, bringing higher margins and multi-year visibility through its enormous order book.
The sustainability of this story now hinges on execution—converting that ₹17,568 crore defence backlog into revenue on schedule. With a planned FY27 capex of ₹2,050 crore and a major global acquisition pending, the company is betting its elevated valuation on its ability to scale this new identity seamlessly.
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