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Solar Industries India Limited — Q1 FY27 earnings call

Call held 15 Sep 2026

Management summary

Solar Industries announced the strategic acquisition of Omnia Holdings Limited, a diversified mining and agritech company, through its step-down subsidiary. This all-cash deal is set to transform Solar into a leading global explosives and blasting solutions provider, projecting a combined EBITDA of INR6,800-7,000 crores and revenue of INR31,000-32,000 crores by FY28. The transaction, funded by internal accruals and debt, is expected to keep the net debt to EBITDA ratio below 2x, while significantly expanding Solar's operational and market reach across Africa and other international markets.

Highlights

  • Proposed acquisition of Omnia Holdings Limited significantly expands Solar's global footprint and capabilities, particularly in Africa, with definitive agreements signed.

  • Combined EBITDA of Solar and Omnia is projected to reach INR6,800-7,000 crores by FY28, a substantial increase from Solar's standalone EBITDA of INR2,700-2,750 crores in FY25.

  • Consolidated revenue is projected to be INR31,000-32,000 crores by FY28, driven by 17-20% growth for Solar and Omnia's projected INR15,000 crores plus revenue.

  • The acquisition is expected to enhance vertical integration, supply chain resilience, and cost competitiveness through Omnia's nitric acid and ammonium nitrate production facilities.

  • The combined entity will expand its manufacturing presence from 11 to over 25 countries and its distribution network to over 100 countries globally, with African mining sales projected to grow from $300 million to $900 million-$1 billion.

Concerns

  • Management acknowledged the challenge of managing people and country risk across diverse global operations, though expressed confidence based on past experience.

  • The agriculture segment of Omnia is a new vertical for Solar, with no immediate plans to expand this business into the Indian market, focusing instead on global utilization of its knowledge-based products.

  • The acquisition is subject to customary regulatory, shareholder, and other closing approvals, which are still pending.

Key financials

  1. Combined Revenue 31000-32000 crores
  2. Combined EBITDA 6800-7000 crores
  3. Combined EBITDA Margin 22-23 %
  4. Combined EBIT 6000-6300 crores

What they filed

Q1 FY27: revenue up 70.3%, net profit up 88.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,716 1,973 2,167 2,154 2,082 +21%2,548 +29%3,053 +41%3,668 +70%
EBITDA445 527 537 535 552 +24%708 +34%826 +54%1,015 +90%
Net profit304 338 346 353 361 +19%467 +38%556 +61%666 +89%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹12,000 Cr internal accrual and debt
    • Defense sector expansion ₹12,000 Cr
    And over last 15 years, we have created one of the most integrated defense facilities across the world. And going forward, we have announced a capex program of around INR12,000 crores two years back, and we are working on that program quite aggressively.
  • Debt Net ₹10000-11000 Cr · 2.0× EBITDA
    Based on this EBITDA [division 0:14:30] which we are trying to achieve, and if you factor in the acquisition debt plus the regular debt which we have, should be around INR10,000 crores to INR11,000 crores by FY28. So in any situation, the EBITDA, if you take the EBITDA and debt position, it will always be lower than two.
  • M&A Omnia Holdings Limited Acquisition · Signed

    create a most integrated global platform for commercial explosives and blasting solutions; transformational milestone; enhance scale, market access, competitive positioning; strengthen vertical integration, enhance security of supply, improve raw material availability, increase operational flexibility, reinforce cost competitiveness.

    Combined EBITDA INR6,800-7,000 crores, Revenue INR31,000-32,000 crores by FY28. Omnia's current cash generation (profit after tax and depreciation) around $110 million based on FY26 results. Omnia EBITDA around $180 million (without synergy).

    Today marks a significant milestone in Solar Group's growth journey. We are pleased to announce that Solar Overseas Investments Proprietary Limited, our wholly owned step-down subsidiary, has signed definitive agreements for the proposed acquisition of Omnia Holdings Limited, a leading diversified mining and agritech company headquartered in South Africa.
  • Liquidity Liquidity disclosed Omnia has a cash surplus position. Solar is comfortable to manage acquisition through internal accrual and debt.
    As of now, what we have planned is basically that we have to utilize the strength of Omnia's balance sheet, which has a cash surplus position in the account.

Guidance & targets

Revenue

  • Combined Revenue Revenue · FY28 · High confidence INR31,000-32,000 crores
    So if you look at just what I answered just now, basically, the revenue of Solar and Omnia together in FY28 could be plus INR30,000 crores.

    — Manish Nuwal

  • African Mining Sales Revenue · Post-acquisition · High confidence $900 million to $1 billion
    If you club together, definitely, the current level of 300 million will reach to 900 million to a $1 billion sales from African market itself.

    — Manish Nuwal

Profitability

  • Combined EBITDA Profitability · FY28 · High confidence INR6,800-7,000 crores
    And if you take EBITDA of INR6,800 crores to, say, INR7,000 crores, which we are targeting, so that will give you a range of 22% to 23% on EBITDA margin percentage.

    — Manish Nuwal

  • Combined EBITDA Margin Profitability · FY28 · High confidence 22-23%

    — Manish Nuwal

  • Combined EBIT Profitability · FY28 · High confidence INR6,000-6,300 crores
    And even if you look at EBIT numbers, in '25-'26, Solar was around INR2,500 crores, and if you just do the math of combining the Omnia with Solar, EBIT level will be around INR6,000 crores plus. So those are the margins that will achieved by Solar and Omnia combined entity, and that gives a trajectory that how Solar is moving towards.

    — Manish Nuwal

Debt

  • Net Debt to EBITDA Ratio Debt · FY28 · High confidence below 2x
    So in any situation, the EBITDA, if you take the EBITDA and debt position, it will always be lower than two.

    — Manish Nuwal

Capex

  • Defense Capex Program Capex · multi-year (announced two years back) · High confidence INR12,000 crores
    And over last 15 years, we have created one of the most integrated defense facilities across the world. And going forward, we have announced a capex program of around INR12,000 crores two years back, and we are working on that program quite aggressively.

    — Manish Nuwal

Market Reach

  • Distribution Presence Market Reach · Post-acquisition · High confidence >100 countries (around 110)
    So our distribution presence will increase to more than 100 countries. And manufacturing presence, which we have as of now is in 11 countries, so that will expand to 25 countries.

    — Manish Nuwal

  • Manufacturing Presence Market Reach · Post-acquisition · High confidence 25+ countries
    And manufacturing presence, which we have as of now is in 11 countries, so that will expand to 25 countries.

    — Manish Nuwal

What to watch in Q2 FY27

Progress on Omnia acquisition approvals

Next quarter / as transaction progresses
Current Definitive agreements signed, subject to regulatory and shareholder approvals.
Target Regulatory and shareholder approvals secured.

Why it matters

Essential for the completion of the strategic acquisition and realization of projected synergies.

The proposed transaction remains subject to customary regulatory, shareholder, and other closing approvals and conditions.

Risks & concerns

  • Integration challenges and country-specific risks in managing a globally diversified business

    medium

    Management acknowledged that managing people and country risk across diverse global operations is challenging but expressed confidence based on 15-20 years of experience.

    Management acknowledged

  • Regulatory and shareholder approval for the 100% acquisition of Omnia

    medium

    The agreement for 100% stake is subject to approval from shareholders and government authorities.

    Management acknowledged

Q&A highlights

8 direct
Value chain integration benefits from Omnia acquisition Direct
If you look at Omnia's current strength, they have a large, state-of-the-art facilities for manufacturing ammonium nitrate. They also have a large capacities to handle explosives, which Solar also have. Apart from that, Solar's initiating system business will also fill up the vacuum which Omnia have at this moment. And if you integrate all these three basic business value sections, along with the down-the-hole services through ProBlast, definitely this will add lots of value for Solar in the future.

Clarifies the strategic synergies and operational benefits of the acquisition beyond just market expansion.

Asked by Amit Dixit

Funding strategy for the all-cash acquisition and leverage targets Direct
Based on this EBITDA [division 0:14:30] which we are trying to achieve, and if you factor in the acquisition debt plus the regular debt which we have, should be around INR10,000 crores to INR11,000 crores by FY28. So in any situation, the EBITDA, if you take the EBITDA and debt position, it will always be lower than two.

Provides crucial financial guidance on debt levels and leverage post-acquisition, reassuring investors about financial health.

Asked by Amit Dixit

Impact of Omnia's agriculture business on Solar's strategy and potential for equity issuance Direct
So definitely, it's a new vertical for us, but definitely it's add complementary support for the Solar ambition of becoming a global explosive company... We are not planning to raise any equity through any kind of dilution in any of the parent company or subsidiary. We are quite comfortable to manage this acquisition through our internal accrual and debt, which can be available to Solar.

Addresses concerns about diversification into a new sector and confirms funding strategy without equity dilution.

Asked by Sanjaya Satapathy

Expansion of Omnia's agriculture business into India and leverage structure Direct
but we have no intention as of now to expand agriculture business into the Indian market... As of now, what we have planned is basically that we have to utilize the strength of Omnia's balance sheet, which has a cash surplus position in the account. And on top of that, we will definitely take debt on Omnia's books.

Clarifies market focus for the new agriculture segment and the planned debt allocation strategy.

Asked by Pinakin Parekh

Potential worries or watch points for managing a large, geographically diverse acquisition Direct
So as a company, having the presence in different, different business vertical across the globe, definitely is a challenging task. So, managing the people, managing the country risk is definitely a risk factor which anybody can assume. But we have been managing these kind of factors from last 15 to 20 years, so I'm confident we will be able to handle this.

Acknowledges inherent risks of global expansion and management's confidence in mitigating them.

Asked by Bharat Shah

Omnia's listed status and the certainty of a 100% stake acquisition Direct
We have made the agreement for buying 100% stake and we said, subject to the approval from the shareholders and government authorities. So let us wait for that.

Confirms the intent for full acquisition while highlighting the remaining approval processes.

Asked by Chirag Muchhala

Headroom for margin improvement in the combined entity, especially for BME's current 13-14% EBITDA margins Direct
And if you consider the kind of synergetic benefits in the form of ammonium nitrate to Solar also, in the form of initiating system sales from Solar to BME... So definitely, we see a lot of headroom in enhancing the margins into the explosive business.

Provides insight into how the acquisition will drive margin expansion for the lower-margin Omnia business.

Asked by Bhavin Vithlani

Future geographic expansion strategy and 'white spaces' beyond India and Africa Direct
As of now, our focus was on India and expanding footprints in Africa by and large, so most of our overseas business come from Africa... So this acquisition will help us to enhance our or strengthen our market presence. So there is enough headroom available for us to increase the business further. So we will be focusing on these two markets significantly.

Clearly outlines the company's strategic geographic priorities post-acquisition.

Asked by Bhavin Vithlani

2 min read 6 chapters

Detailed narrative

Strategic Acquisition of Omnia Holdings Limited

Solar Industries India Limited, through its step-down subsidiary Solar SA Investments Proprietary Limited, announced the proposed acquisition of Omnia Holdings Limited, a diversified mining and agritech company headquartered in South Africa. This all-cash deal is a transformational milestone aimed at creating a globally integrated platform for commercial explosives and blasting solutions. The transaction is subject to customary regulatory, shareholder, and other closing approvals.

Financial Projections and Synergies Post-Acquisition

The combined entity is projected to achieve a revenue of INR31,000-32,000 crores and an EBITDA of INR6,800-7,000 crores by FY28, resulting in an EBITDA margin of 22-23%. This represents a significant jump from Solar's standalone EBITDA of INR2,700-2,750 crores in FY25. Omnia's mining business alone is expected to contribute over INR7,000 crores in revenue in the next couple of years.

Funding Strategy and Leverage Outlook

The acquisition will be funded through a combination of internal accruals and debt, leveraging Omnia's existing cash surplus and taking on debt on Omnia's books, with any shortfall covered by the acquiring company. Management projects that the combined acquisition and regular debt will be around INR10,000-11,000 crores by FY28. Despite this, the net debt to EBITDA ratio is expected to remain below 2x, demonstrating financial prudence.

Enhanced Operational Capabilities and Market Reach

The acquisition will significantly strengthen vertical integration, enhance security of supply, and improve raw material availability through Omnia's nitric acid and ammonium nitrate production facilities. The combined entity's manufacturing presence will expand from 11 to over 25 countries, and its distribution network will grow from 90 to approximately 110 countries. This expansion is expected to boost Solar's revenue in Africa's mining market from $300 million to $900 million-$1 billion.

Role of Omnia's Agriculture Business

Omnia's agriculture segment, offering technology-driven crop nutrition, biological, and agritech solutions, is considered a complementary business vertical for Solar. While it's a new area, Solar intends to utilize Omnia's knowledge-based products globally. However, there are no immediate plans to expand this agriculture business into the Indian market, with the focus remaining on leveraging its technology and expertise across existing and new geographies.

Strategic Focus on India and Africa

Post-acquisition, Solar's primary strategic focus will remain on strengthening its market presence in India and Africa. The acquisition is seen as a key enabler for this strategy, significantly enhancing capabilities and market share in the African continent. While other regions like Australia (where BME has some presence) may offer opportunities, they are not part of the immediate strategic roadmap for significant investment.

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