Solar Industries Q1FY27: PAT up 89% YoY to ₹666 Cr, revenue surges 70%, margins expand

Solar Industries' consolidated Q1 FY27 revenue came in at ₹3,668.20 Cr, up 70.3% YoY (₹2,154.45 Cr) and 20.2% QoQ (₹3,052.75 Cr), with consolidated PAT of ₹666.37 Cr, up 89.0% YoY (₹352.62 Cr) and 19.8% QoQ (₹556.03 Cr); EPS nearly doubled to ₹72.11 from ₹37.43 a year ago. NPM expanded to 18.17% from 16.15% YoY, and OPM to 25.74% from 24.83% YoY, though OPM eased from 27.06% in the seasonally strong March quarter. Standalone growth was far more muted — revenue ₹1,656.32 Cr (+19.4% YoY) and PAT ₹358.38 Cr (+28.2% YoY) — a wide divergence from the consolidated print that points to subsidiaries (defence, mining services and overseas units) driving the bulk of the quarter's growth rather than the core domestic explosives business. On the cost side, materials consumed rose 75.6% YoY to ₹1,786.76 Cr and other expenses 69.7% YoY to ₹540.23 Cr, both growing faster than revenue, yet blended margins still expanded YoY on operating leverage and a richer mix from the higher-growth subsidiaries; the Ind AS 29 hyperinflation restatement on the Turkish step-down subsidiaries added a modest ₹25.33 Cr drag to other expenses this quarter. No exceptional items featured in either the current or comparable periods, so the growth is on a like-for-like basis. Management's FY27 guidance (from the Q4 FY26 call) targeted ₹14,000 Cr revenue at ~28% EBITDA margin, with defence crossing ₹4,500 Cr and continued international momentum, backed by ₹2,050 Cr of capex. This quarter's revenue annualises to roughly ₹14,670 Cr — already ahead of the full-year target after just one quarter — though the 25.74% OPM still trails the ~28% margin guided, leaving margin catch-up as the swing factor for the guidance to be met in full. Street positioning (a trailing-growth model from Univest, since no formal brokerage consensus was found) had pencilled in just ₹2,754 Cr revenue (+27.8% YoY) and ₹414 Cr PAT (+17.3% YoY); the actual print beat both by a wide margin. The quarter also saw the FY26 AGM approve financials and dividend (Aug 12) and a new South Africa subsidiary incorporated (Jul 9), consistent with the guided international push. Going into Q2, the print sets up two things to track: whether OPM converges toward the guided ~28% level as the higher-growth segments scale, and whether the consolidated-standalone growth gap persists — which would confirm subsidiaries, not the domestic base, as the primary FY27 growth engine.