Solar Industries India Limited has reported strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics. The company's Board of Directors has also approved unaudited financial results for the quarter and half year ended September 30, 2025, and taken important decisions regarding director appointments.

Revenue and Profit Surge

The company's consolidated revenue from operations rose to ₹2,082.22 crore in Q2 FY2026, marking a 21% increase from ₹1,715.83 crore in the same quarter of the previous year. This robust top-line growth was accompanied by a notable improvement in profitability:

• Net profit increased to ₹361.45 crore, up from ₹303.78 crore year-on-year, representing a 19% growth.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew to ₹581.97 crore from ₹475.22 crore, a 22.5% increase.
• EBITDA margin improved to 27.95% from 27.70% in the previous year's quarter.

Segment Performance

The company's performance was particularly strong in key business segments:

• International business revenue reached a record high of over ₹960 crore in Q2, showing a year-on-year growth of 21%.
• Defence revenue crossed ₹500 crore, reflecting a substantial year-on-year growth of 57%.

Half-Yearly Performance

For the first half of FY2026, Solar Industries India reported:

• Consolidated revenue of ₹4,236.67 crore, up 25% from ₹3,400.63 crore in H1 FY2025.
• Net profit of ₹714.07 crore, an 18% increase from ₹604.32 crore in the previous year.

Management Commentary

Manish Nuwal, Managing Director & CEO, commented on the results: "The second quarter of this year once again brings us the privilege of announcing record achievements across key metrics. We are pleased to announce that we have achieved our highest-ever quarterly EBITDA of ₹582 crore and PAT of ₹361 crore in Q2."

Regarding the defence vertical, Mr. Nuwal added, "We are pleased to report that our defence revenue crossed ₹500 crore this quarter & ₹900 crore in half year, reflecting a year-on-year growth of 57% & 79% respectively. Solar group is strategically positioning itself as a 'global supply chain partner' in the defence sector."

Outlook

The company maintains a positive outlook, supported by:

• A strong defence order book of around ₹15,500 crore+.
• The commencement of Pinaka rocket sales starting in the third quarter.
• Continued growth momentum in international markets.

Challenges

Despite the strong performance, the company faced some challenges:

• Heavy and prolonged monsoons impacted demand in the mining sector.
• Macroeconomic volatility and geopolitical frictions created a challenging business environment.

Corporate Governance and Financial Management

In addition to the financial results, the Board of Directors has taken several important decisions:

• Approval of a postal ballot notice seeking shareholder consent for the appointment of Smt. Girija Balakrishnan and Shri Viswanathan Lakshmanan as Non-Executive Directors for a five-year term.
• Partial redemption of non-convertible debentures worth ₹15.84 crore during the half-year period.
• Interest payments totaling ₹1.42 crore on the non-convertible debentures.
• The outstanding NCD amount as of September 30, 2025, stands at ₹22.50 crore.

The Board meeting was held on November 10, 2025, and the statutory auditors conducted a limited review of the financial results.

Solar Industries India remains committed to its high-performance culture and continues to focus on creating value for stakeholders amidst a dynamic market landscape.

Note: All figures are based on consolidated financial results for Q2 FY2026 and H1 FY2026.

Solar Industries India Limited , a key player in the Indian industrial explosives sector, has received a revalidation of its credit rating for its commercial paper program. The rating agency ICRA Limited has maintained the company's [ICRA]A1+ rating, signaling strong creditworthiness in the short-term financial market.

Rating Details

Implications of the Rating

The [ICRA]A1+ rating, which is the highest rating for short-term debt instruments, indicates:

• Very strong degree of safety regarding timely payment of financial obligations
• Lowest credit risk

This reaffirmation of the top-tier rating underscores Solar Industries' robust financial health and its ability to meet short-term financial commitments.

Key Points to Note

• The rating is valid for commercial paper issuance with a maximum maturity of twelve months.
• If the instrument is not issued within three months from the date of revalidation, the rating would need to be revalidated before issuance.
• ICRA reserves the right to review and revise the rating based on new information or circumstances that may impact the rating.

Company's Disclosure

Solar Industries has duly informed the National Stock Exchange of India Limited and BSE Limited about this rating revalidation, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The reaffirmation of Solar Industries' commercial paper rating reflects positively on the company's financial stability and may contribute to maintaining investor confidence in its short-term debt instruments.