Solar Industries lifts profit 89% as operating margin reaches 27.68%
Revenue growth outpaced expenses, while the stock's 8.51% rise was unusually large against its post-results history.
Filed 13 Aug 2026, 14:26 IST · Solar Industries India Ltd (SOLARINDS)
Key takeaways
- Consolidated net profit rose 88.98% year on year as revenue grew 70.26% and operating profit increased 89.81%.
- Operating margin expanded 2.85 percentage points year on year because expenses grew slower than revenue, and rose 0.62 percentage points sequentially.
- The stock gained 8.51% on the results date, more than twice its 3.89% median absolute move after the previous eight results.
Price around the results
Profit growth outpaced revenue in Q1FY27
Solar Industries reported consolidated revenue of Rs 3,668.20 cr and net profit of Rs 666.37 cr for Q1FY27. Revenue grew 70.26% year on year and 20.16% sequentially, while net profit increased 88.98% and 19.84%, respectively. Operating profit grew faster than revenue in both comparisons, rising 89.81% year on year and 22.91% sequentially.
Lower cost intensity lifted the operating margin
Expenses grew 63.81% year on year against 70.26% revenue growth, expanding operating margin by 2.85 percentage points to 27.68%. Sequentially, expenses rose 19.14% while revenue increased 20.16%, adding 0.62 percentage points to the margin. Interest rose 50.42% year on year, but it was offset by the stronger operating performance; other income contributed only 1.89% of profit before tax, limiting its influence on earnings quality. The tax rate rose 0.24 percentage points year on year, so the net-profit growth was not driven by a lower tax rate.
Margin recovered after the Q4FY26 dip
Operating margin increased from 24.83% in Q1FY26 to 26.55% in Q2FY26 and 27.79% in Q3FY26, before slipping to 27.06% in Q4FY26 and recovering to 27.68% in Q1FY27. The latest margin was 10.12 percentage points above the 17.56% median for 79 Commodities-sector peers that had reported the quarter. This places Solar Industries above the sector median, though below its 27.79% Q3FY26 peak.
Results-day reaction was larger than Solar Industries' usual move
The stock rose 8.51% on the results date, with a 0.60% opening gap and an 8.67% relative return. After its previous eight results, the stock rose five times and fell three times, with a median absolute move of 3.89%. The latest gain was therefore unusually large relative to its recent post-results pattern.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,668 cr | ₹3,053 cr | +20.16% | +70.26% |
| Other income | ₹17 cr | ₹46 cr | -62.25% | -41.10% |
| Expenses | ₹2,653 cr | ₹2,227 cr | +19.14% | +63.81% |
| Operating profit | ₹1,015 cr | ₹826 cr | +22.91% | +89.81% |
| Operating margin (%) | 27.68% | 27.06% | — | — |
| Interest | ₹41 cr | ₹41 cr | -0.02% | +50.42% |
| Depreciation | ₹80 cr | ₹71 cr | +11.65% | +42.44% |
| Profit before tax | ₹911 cr | ₹759 cr | +20.08% | +89.59% |
| Tax | ₹245 cr | ₹203 cr | +20.73% | +91.27% |
| Net profit | ₹666 cr | ₹556 cr | +19.84% | +88.98% |
| EPS (₹) | ₹72.11 | ₹60.52 | +19.15% | +92.65% |
Operating margin of 27.68% compares with a Commodities sector median of 17.56% across 79 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +8.51% | +8.67% |
Volume on the results session was 8.37× its 20-day average.
What to watch
- Whether operating margin holds above 27.68% after the recovery from 27.06% in Q4FY26.
- Whether expenses continue to grow more slowly than revenue after the 63.81% versus 70.26% year-on-year comparison.
- Whether other income remains a small contributor to profit before tax after accounting for 1.89% in Q1FY27.