Solar Industries India LimitedChemicalsSOLARINDS
Q1 FY27 concall · earnings callSolar Industries India Limited
Solar Industries agreed to acquire South Africa's Omnia Holdings for cash funded by debt and internal accruals to build an integrated global explosives and blasting solutions platform with backward integration into ammonium nitrate.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Solar projected current year revenue | ₹14,000 Cr | — | |
| Solar projected FY28 revenue | ₹16,500 Cr | — | |
| Omnia expected EBITDA without synergies | $180 million | — | |
| Combined FY28 EBITDA target | ₹7,000 Cr | — | |
| Expected total debt by FY28 | ₹10,000 Cr to ₹11,000 Cr | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹1,973.08 Cr+38.1% YoY+15% QoQ | ₹337.50 Cr+52.1% YoY+11.1% QoQ | ₹0.00-100% YoY-100% QoQ |
| Q2 FY25 | ₹1,715.83 Cr+27.3% YoY+1.2% QoQ | ₹303.78 Cr+45.4% YoY+1.1% QoQ | ₹31.59+42.8% YoY-0.2% QoQ |
| Q1 FY25 | ₹1,694.78 Cr+0.7% YoY+5.2% QoQ | ₹300.54 Cr+49.1% YoY+23.8% QoQ | ₹31.66+45.1% YoY+21.9% QoQ |
| Q4 FY24 | ₹1,610.71 Cr-16.5% YoY+12.7% QoQ | ₹242.71 Cr+10% YoY+9.4% QoQ | ₹25.98+14% YoY+15.6% QoQ |
| Q3 FY24 | ₹1,429.14 Cr-21.1% YoY+6.1% QoQ | ₹221.94 Cr+1.1% YoY+6.2% QoQ | ₹22.47-0.6% YoY+1.6% QoQ |
TL;DR
- Solar Overseas Investments signed definitive agreements to acquire 100% of Omnia Holdings, subject to regulatory and shareholder approvals, with both companies to operate independently until closing
- Rationale is to create an integrated explosives and blasting platform combining Solar's initiating systems and ProBlast services with Omnia's BME mining business and ammonium nitrate and nitric acid infrastructure including a new 5,000-ton storage tank
- Management targets FY28 combined revenue around INR31,000 crores, INR32,000 crores and EBITDA around INR6,800 crores to INR7,000 crores with leverage below two times EBITDA
- Omnia's agriculture business will be retained as a complementary technology-driven vertical and management has no intention to expand it into India
Said on the call
“The proposed transaction marks a transformational milestone in Solar Group's strategic ambition to become a leading global explosives and mining solutions provider by enhancing its scale, market access, and competitive positioning across Africa and other international markets.”
From the Q&A
| Topic | What management said |
|---|---|
| Value chain integration | Management said Omnia brings large ammonium nitrate manufacturing and explosives handling capacity, while Solar's initiating systems fill Omnia's gap and ProBlast adds down-the-hole services. |
| Funding and leverage | Management guided to FY28 Solar revenue around INR16,500 crores and combined revenue around INR31,000 crores, INR32,000 crores, with combined EBITDA around INR6,800 crores to INR7,000 crores implying 22% to 23% margin, and debt always lower than two times EBITDA. |
| Agriculture business | Management said agriculture is a technology-driven complementary vertical with nitric acid, ammonium nitrate and Nutriology and AgriBio solutions, to be continued, with no current intention to expand it into India. |
| Equity issuance and defense focus | Management said no equity dilution is planned in parent or subsidiary and defense focus and capex will not go down. |
| Geography and market reach | Management said Africa mining sales would rise from around $300 million to 900 million to $1 billion, distribution would expand from 90 countries to more than 100 countries and manufacturing from 11 to 25-plus countries. |
| Margin synergy | Management said global explosives margins are 18%, 19% while BME is 13% to 14%, with headroom from ammonium nitrate integration, Solar initiating systems sales and ProBlast services. |
Guidance
- Benefits of expanded footprint, industrial base and broader customer access are expected to become increasingly visible from FY '28 itself
- Net debt to EBITDA to remain below two times through FY28, with total debt around INR10,000 crores to INR11,000 crores by FY28
- No equity issuance planned; acquisition to be funded through internal accruals and debt, including debt on Omnia's books
- Defense capex program of around INR12,000 crores and product pipeline to continue with no reduction in focus or capital allocation
Source
Summary written from the transcript filed by Solar Industries India Limited for the call held on 15 Sept 2026; published 17 Sept 2026, 16:07 IST.
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