Solar Industries lifts margin to 28.58% as profit jumps 79.72%
Revenue growth outpaced expenses YoY, but higher interest and depreciation weighed on sequential profit despite a wider operating margin.
Filed 03 Nov 2026, 14:08 IST · Solar Industries India Ltd (SOLARINDS)
Key takeaways
- Consolidated net profit rose +79.72% YoY to Rs 650.04 cr as revenue grew +69.00% while expenses grew +64.32%.
- Operating margin expanded 2.03 percentage points YoY to 28.58%, and was 13.97 percentage points above the 14.61% median for 78 reported sector peers.
- Sequentially, revenue declined -4.07% but expenses fell faster at -5.27%, while higher interest costs of +34.17% limited profit growth.
Price around the results
Revenue growth stayed ahead of costs YoY
On a consolidated basis, revenue grew +69.00% YoY to Rs 3,518.92 cr, while expenses increased at a slower +64.32%. This spread drove operating profit growth of +81.95%, ahead of revenue growth. Sequentially, revenue declined -4.07%, although expenses fell faster at -5.27%.
Operating margin reached a new high in the reported five-quarter run
Operating margin expanded 2.03 percentage points YoY and 0.90 percentage points QoQ to 28.58%, as costs grew more slowly than revenue in both comparisons. The margin has risen from 24.83% in Q1FY26, despite a dip to 27.06% in Q4FY26. It is now above the 27.68% recorded in Q1FY27, rather than marking a third straight quarterly decline.
Higher interest costs offset part of the operating gain
Interest expense rose +79.22% YoY and +34.17% QoQ, while depreciation increased +45.08% YoY and +10.30% QoQ. That helped push sequential profit before tax down -3.73% and net profit down -2.45%, even with the wider operating margin. Other income was only 1.71% of pre-tax profit, so reported earnings were not materially dependent on it; the tax rate also fell 0.97 percentage points QoQ to 25.92%.
Margin remained well above the sector median; reaction is still pending
Solar Industries' 28.58% operating margin was 13.97 percentage points above the 14.61% median for 78 Commodities peers that had reported the same quarter. The stock has not yet had a post-results reaction to assess. After the last eight results, it rose five times and fell three times, with a median absolute move of 4.50%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,519 cr | ₹3,668 cr | -4.07% | +69.00% |
| Other income | ₹15 cr | ₹17 cr | -13.03% | -46.81% |
| Expenses | ₹2,513 cr | ₹2,653 cr | -5.27% | +64.32% |
| Operating profit | ₹1,006 cr | ₹1,015 cr | -0.93% | +81.95% |
| Operating margin (%) | 28.58% | 27.68% | — | — |
| Interest | ₹55 cr | ₹41 cr | +34.17% | +79.22% |
| Depreciation | ₹88 cr | ₹80 cr | +10.30% | +45.08% |
| Profit before tax | ₹877 cr | ₹911 cr | -3.73% | +79.26% |
| Tax | ₹227 cr | ₹245 cr | -7.20% | +77.93% |
| Net profit | ₹650 cr | ₹666 cr | -2.45% | +79.72% |
| EPS (₹) | ₹68.19 | ₹72.11 | -5.44% | +78.88% |
Operating margin of 28.58% compares with a Commodities sector median of 14.61% across 78 peers that have reported Q2FY27.
What to watch
- Whether consolidated operating margin holds above 28.58% after the 0.90-point QoQ expansion.
- Whether interest growth moderates from +34.17% QoQ and +79.22% YoY.
- Whether revenue momentum improves from the -4.07% QoQ decline while expenses continue to grow more slowly than revenue.