Solar Industries India Ltd (SOLARINDS) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Solar Industries India Limited Q2 FY '27 earnings conference call, hosted by Motilal Oswal Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Tina Virmani from Motilal Oswal Financial Services. Thank you, and over to you, ma'am.
Tina Virmani (Motilal Oswal Financial Services): Thank you, Neeraj. Good morning, everyone. On behalf of Motilal Oswal Financial Services, we welcome you all for Solar Industries' Q2 FY '27 result conference call. We would like to thank the management for giving us an opportunity to host the call. And from the management side, we have with us Mr. Manish Nuwal, Managing Director and CEO; Mr. Suresh Menon, Executive Director; Mr. Milind Deshmukh, Executive Director; Mr. Moneesh Agrawal, Joint CFO; and Ms. Shalinee Mandhana, Joint CFO. Without taking much time, I hand it over to Ms. Shalinee Mandhana for the opening remarks, and then we will open the floor for Q&A. Over to you, ma'am.
Shalinee Mandhana (Solar Industries India Ltd): Thank you, Tina. A very good morning to all our dear stakeholders and well-wishers. I would like to welcome you all to the Solar Industries' second quarter and half-year conference call of financial year 2027. This call's recording, including the transcript, will be available on the site. To begin with, I'd like to remind that during this call, we might make projections or other forward-looking statements regarding future events and about the future financial performance. Please remember that such statements are only predictions. Actual events or results may differ materially, and our website will be updated with all the relevant information. Now, I would request Solar Industries' Managing Director and CEO, Mr. Manish Nuwal, for his opening remarks on the company's performance, followed by Q&A.
Manish Nuwal (Solar Industries India Ltd): A very good morning to all our valued stakeholders. We are pleased to report another quarter of strong and broad-based performance. Consolidated revenue was Rs. 3,519 crores for the quarter and Rs. 7,187 crores for the first half, representing year-on-year growth of 69% and 70%, respectively. Quarterly EBITDA was Rs. 1,021 crore, with the margin of 29.02%, and profit after tax was Rs. 650 crores. For the first half, EBITDA and profit after tax were
Manish Nuwal (Solar Industries India Ltd): 2,045 crores and 1,316 crores respectively. Performance was supported by contribution from domestic market, international business, and defense. The result reflect the resilience of our business model, disciplined execution, and the benefits of our strategic investments. On domestic explosive front, our business has delivered a healthy performance during the quarter, supported by demand from the mining and infrastructure sectors, stronger customer engagement and expanded manufacturing footprints and technical services capabilities, which is enabling us to serve our customer efficiently and participate in India's long-term mining and infrastructure growth. Although this quarter is a monsoon period, but our company has delivered a super performance from domestic market. Our international explosive business maintained its momentum, supported by deeper customer relationship, improved market penetration, and sustained demand across key operating geographies. Our integrated portfolio of explosives, initiating systems, and technical services supports our position as a long-term partner to global mining customers. We remain focused on scaling our international operations through acquisitions and greenfield expansions. As far as defense is concerned, this business from defense has grown, supported by execution of the existing orders book and an expanding product portfolio, which are being indigenously developed, and opportunities in domestic and international markets. Our capabilities across the ammunition value chain, the order pipeline, execution of key programs, and ongoing customer engagement support our confidence in our long-term prospects. We are likely to get large orders from international and Indian defense sectors, which includes Guided Pinaka Rockets in near futures. On outlook for the company's second-half performance, if we look at the company's first-half performance together with momentum across domestic, international, and defense, it has in- reinforced our confidence in its growth trajectory. Based on results, what we achieved, the strength of the order book, and the opportunity available for us, we expect to surpass our stated annual guidance, which we have given at the start of the financial year FY '27. Our expanding manufacturing footprints, discipline capital allocation, technology-led product developments, and broader presence in domestic and international markets provides a foundation for sustainable growth. We will remain focused on operational excellence, timely executions, prudent growth, and the creation of long-term value for our stakeholders. Now I hand it over to Shalinee to take you through the financials. Thank you.
Shalinee Mandhana (Solar Industries India Ltd): Thank you, sir. The numbers for the quarter and half year are as follows. The consolidated revenue for the quarter is 3,519 crores versus 2,082 crores, and for half year stands at 7,187 crores versus 4,237 crores. Similarly, the EBITDA for the quarter stands at 1,021 crores versus 582 crores, and for half year at 2,045 crores versus 1,146 crores. The consolidated PBT for the quarter is 877 crores versus 490 crores, and for half year it is 1,789 crores versus 970 crores. The consolidated PAT for the quarter is 650 crores versus 361 crores, and for half year it's 1,316 crores versus 714 crores. The percentages of the sectors in the customer basket for quarter-on-quarter basis are as follows: domestic explosives stands at 29% from 20 stands at 27% from 29%, international explosives to 43% from 46%, and defense revenue has increased to 29% from 24% and stands at 1,002 crores. The percentage sector of the customer basket for half year are as follows: domestic explosives at 32% from 35%, international explosives 40% from 42%, and defense
Shalinee Mandhana (Solar Industries India Ltd): has increased to 27% from 22% and stand at stands at Rs. 1,935 crores for the half year. Raw material: the raw material consumption for the quarter stands at Rs. 1,676 crores versus Rs. 988 crores and for half year at Rs. 3,533 crores versus Rs. 2,082 crores. Employee cost: for the quarter stands at Rs. 266 crores versus Rs. 195 crores and for half year at Rs. 522 crores versus Rs. 378 crores. Other expenses: the other expenses for the quarter stands at Rs. 571 crores versus Rs. 347 crores and for half year, it stands at Rs. 1,111 crores versus Rs. 688 crores. Interest and finance cost: the interest and finance cost stands at Rs. 55 crores versus Rs. 31 crores and for half year at Rs. 97 crores versus Rs. 58 crores. Depreciation stands at Rs. 88 crores versus Rs. 61 crores and for half year it stands at Rs. 168 crores versus Rs. 117 crores. These were the updates for the quarter and half year. This is all from our side. Now, we would be happy to take any questions, comments or suggestions that you may have. Over to you.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. First question is from the line of Amit Dixit from Goldman Sachs. Please go ahead.
Amit Dixit (Goldman Sachs): Yeah. Hi. Good morning, everyone, and thanks for the opportunity. Congratulations for a very strong set of numbers. A couple of questions from my side. The first question is essentially on non-defense part of the business. If you look at in- international business, it has shown, I mean, very strong growth this quarter, both on YoY and the QoQ pers- perspective as well as we- in domestic explosives business, we also see that Coal India has reported record offtake. So, things are picking up there also. What would be your guidance in terms of, you know, let us say, volume growth or how do you see this non-defense part of the business growing for rest of the year and and maybe to FY '28? That is the first question, sir.
Manish Nuwal (Solar Industries India Ltd): Yeah, as far as this Thank you, Amit. As far as this non-defense section is concerned, definitely the growth was pretty good in the in this quarter and in the first half, and looking at the growing demand from coal mining in Indian market, definitely we see that the growth momentum will be better in the second half of the year. If you look into this quarterly results, the demand was quite good due to the lower monsoon or below average monsoon in most of the mining market. The demand was pretty good and that has resulted into the better sales from domestic market. And as we move forward, definitely we have based on our estimation, we see that there will be good growth from domestic market in the second half also.
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