Solar Industries lifts margin year on year, but sequential expansion pauses
Revenue growth outpaced costs annually, while the stock's 3.89% initial rise was close to its typical post-results move.
Filed 15 May 2026, 14:26 IST · Solar Industries India Ltd (SOLARINDS)
Key takeaways
- Consolidated revenue grew 40.90% year on year, while operating margin widened 2.15 percentage points to 27.06%.
- Sequential momentum remained positive, but expenses grew 21.01% against 19.79% revenue growth, trimming operating margin by 0.73 percentage points.
- Other income contributed 6.03% of pre-tax profit, while the tax rate rose 1.27 percentage points year on year to 26.74%.
Price around the results
Annual growth brought operating leverage
Solar Industries reported consolidated revenue growth of 40.90% year on year, ahead of the 36.87% increase in expenses. That cost discipline widened operating margin by 2.15 percentage points, helping pre-tax profit rise 63.45% and net profit 60.65%. The company also outperformed the Commodities sector median operating margin of 18.77% across 51 reported peers by 8.29 percentage points.
Quarterly margin slipped after two improving quarters
Revenue rose 19.79% sequentially, but expenses grew faster at 21.01%, narrowing operating margin by 0.73 percentage points. This follows an improvement from 24.83% in Q1FY26 to 26.55% in Q2FY26 and 27.79% in Q3FY26, so Q4FY26 interrupted a two-quarter upward run. Interest expense also increased 20.04% sequentially.
Other income and tax reduced profit quality
Other income was 6.03% of pre-tax profit, making a meaningful contribution beyond operations; it also rose 83.44% sequentially and 1052.39% year on year. The tax rate increased 0.11 percentage points sequentially and 1.27 percentage points year on year to 26.74%, limiting the conversion of pre-tax growth into net-profit growth.
Management sets higher FY27 revenue and capex markers
Management said its FY27 outlook calls for revenue of Rs 14,000 cr versus Rs 9,838 cr in FY26. The company also said FY27 capex is set at Rs 2,050 cr, compared with Rs 1,556 cr in FY26. These stated targets put both growth execution and capital deployment in focus.
Initial stock reaction was within its usual range
The stock rose 3.89% on the results date, with a 4.18-times volume ratio and a 4.09% move relative to the benchmark. Its median absolute move after the past eight results was 4.50%, with five rises and three declines, making this reaction broadly ordinary rather than unusual.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,053 cr | ₹2,548 cr | +19.79% | +40.90% |
| Other income | ₹46 cr | ₹25 cr | +83.44% | +1052.39% |
| Expenses | ₹2,227 cr | ₹1,840 cr | +21.01% | +36.87% |
| Operating profit | ₹826 cr | ₹708 cr | +16.63% | +53.05% |
| Operating margin (%) | 27.06% | 27.79% | — | — |
| Interest | ₹41 cr | ₹34 cr | +20.04% | +43.40% |
| Depreciation | ₹71 cr | ₹63 cr | +13.64% | +41.45% |
| Profit before tax | ₹759 cr | ₹636 cr | +19.36% | +63.45% |
| Tax | ₹203 cr | ₹169 cr | +19.86% | +71.66% |
| Net profit | ₹556 cr | ₹467 cr | +19.18% | +60.65% |
| EPS (₹) | ₹60.52 | ₹49.31 | +22.73% | +69.95% |
Operating margin of 27.06% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.89% | +4.09% |
| Next session | +8.12% | — |
| 5 sessions | +8.80% | +8.68% |
| 15 sessions | +8.69% | — |
| 30 sessions | +12.19% | — |
Volume on the results session was 4.18× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company’s FY27 outlook sets revenue at Rs 14,000 crore versus Rs 9,838 crore in FY26.
Expansion
- The company’s FY27 outlook sets capex at Rs 2,050 crore versus Rs 1,556 crore in FY26.
What to watch
- Whether operating margin recovers from 27.06% after the 0.73-percentage-point sequential decline.
- Whether other income remains below or around its 6.03% share of pre-tax profit.
- Progress against management's stated FY27 markers of Rs 14,000 cr revenue and Rs 2,050 cr capex.