WatchTalking point
Profit and cash flow diverged
Reported profit rose 34.8% but operating cash flow fell 74.8% — worth investigating whether the profit is being collected.
Importance 75 / 95 · cash quality
Solar Industries India Limited · Research view
Solar Industries India Limited
NSE: SOLARINDSBSE: 532725ISIN INE343H01029Face value ₹2standalone
₹19,355
+0.44% · 2026-10-01 · 52-wk ₹11,772–₹22,455
Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
StrengthTalking point
Book value compounding
Net worth compounded at 34.3% a year over 4 years (₹2,015 → ₹6,549).
Importance 64 / 95 · financial health
WatchTalking point
Growing, but light on cash
Revenue grew 30.5% but only 0.36× of reported profit came through as operating cash.
Importance 62 / 95 · cash quality
ContextTalking point
High returns, and the market pays up for them
ROE of 31.3% is well above the chemicals and petrochemicals median (23.5%), and the P/E of 85.42× is above it too (55.91×).
Importance 60 / 95 · valuation
Section 03 · The company
Who is this company?
Classified by the exchange under Commodities › Chemicals › Chemicals & Petrochemicals › Explosives.
- Market cap
- ₹1.75 L cr
- FY2026 revenue
- ₹5,579 cr
- FY2026 net profit
- ₹1,222 cr
- Net worth
- ₹4,227 cr
- Total debt
- ₹142 cr
- EPS (basic)
- ₹135.01
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 3 chemicals & petrochemicals.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Strength
Over 4 years profit compounded at 39.7% a year while revenue compounded at 25.6% a year — though FY2023 saw a one-off step-change of 78% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Rule PROFIT_CAGR_VS_REVENUE_CAGR
- Revenue growth per year
- +21.9%over 4 years
- Revenue growth
- +25.2%vs last year
- Net profit growth
- +52.1%vs last year
- Change in net profit since FY22
- +367%
Revenue compounded at 25.6% a year over 4 years (₹3,948 → ₹9,838) — though FY2023 saw a one-off step-change of 75% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Net profit grew 34.8% year on year (FY2025 → FY2026).
Revenue grew 30.5% year on year (FY2025 → FY2026).
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q1 FY27 net profit was ₹666 cr, up 89.0% from ₹353 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Strength
Q1 FY27 revenue was ₹3,668 cr, up 70.3% from ₹2,154 cr in Q1 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
Strength
Q1 FY27 EBIT was ₹944 cr, up 85.8% from ₹508 cr a year earlier.
Rule QTR_OPERATING_PERFORMANCE_CHANGE_YOY
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 1,716 | — | 304 | — | 17.7% |
| Q3 FY25 | 1,973 | +38.1% | 338 | +52.1% | 17.1% |
| Q4 FY25 | 2,167 | +34.5% | 346 | +42.6% | 16.0% |
| Q1 FY26 | 2,154 | +27.1% | 353 | +17.3% | 16.4% |
| Q2 FY26 | 2,082 | +21.4% | 362 | +19.1% | 17.4% |
| Q3 FY26 | 2,548 | +29.2% | 467 | +38.2% | 18.3% |
| Q4 FY26 | 3,053 | +40.9% | 556 | +60.7% | 18.2% |
| Q1 FY27 | 3,668 | +70.3% | 666 | +89.0% | 18.2% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹11,351 crTTM
- EBITDA
- ₹3,209 crTTM
- EBIT
- ₹2,935 crTTM
- PBT
- ₹2,786 crTTM
- Net profit
- ₹2,051 crTTM
C. Corporate actions
28 Jul 2026DividendFinal Dividend - Rs. - 11.0000 — ₹11.00/share
8 Jul 2025DividendFinal Dividend - Rs. - 10.0000 — ₹10.00/share
4 Jul 2024DividendFinal Dividend - Rs. - 8.5000 — ₹8.50/share
9 Jun 2023DividendFinal Dividend - Rs. - 8.0000 — ₹8.00/share
27 May 2022DividendFinal Dividend - Rs. - 7.5000 — ₹7.50/share
18 Aug 2021DividendFinal Dividend - Rs. - 6.0000 — ₹6.00/share
3 Sept 2020DividendFinal Dividend - Rs. - 6.0000 — ₹6.00/share
18 Jul 2019DividendFinal Dividend - Rs. - 7.0000 — ₹7.00/share
18 Jul 2018DividendFinal Dividend - Rs. - 6.0000 — ₹6.00/share
9 Aug 2017DividendFinal Dividend - Rs. - 3.0000 — ₹3.00/share
20 Feb 2017DividendInterim Dividend - Rs. - 2.0000 — ₹2.00/share
13 Jul 2016Stock splitStock Split From Rs.10/- to Rs.2/- — 10:2
16 Mar 2016DividendInterim Dividend - Rs. - 13.5000 — ₹13.50/share
9 Nov 2015DividendInterim Dividend - Rs. - 9.0000 — ₹9.00/share
27 Aug 2015DividendFinal Dividend - Rs. - 9.0000 — ₹9.00/share
19 Nov 2014DividendInterim Dividend - Rs. - 8.0000 — ₹8.00/share
22 Aug 2014DividendFinal Dividend - Rs. - 7.0000 — ₹7.00/share
13 Nov 2013DividendInterim Dividend - Rs. - 5.0000 — ₹5.00/share
30 Aug 2013DividendFinal Dividend - Rs. - 6.0000 — ₹6.00/share
15 Nov 2012DividendInterim Dividend - Rs. - 5.0000 — ₹5.00/share
1 Aug 2012DividendFinal Dividend - Rs. - 5.0000 — ₹5.00/share
22 Nov 2011DividendInterim Dividend - Rs. - 5.0000 — ₹5.00/share
29 Jul 2011DividendFinal Dividend - Rs. - 4.0000 — ₹4.00/share
11 Nov 2010DividendInterim Dividend - Rs. - 4.0000 — ₹4.00/share
11 Aug 2010DividendFinal Dividend - Rs. - 3.5000 — ₹3.50/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Strength
EBITDA margin of 28.0% is the widest in 4 years (prior range 19.1% to 26.9%).
Rule MARGIN_AT_MULTI_YEAR_HIGH
- EBITDA margin now
- 31.7%
- 5-year range
- 16.3–31.7%
- ROE FY2026
- 33.5%
- ROCE FY2026
- 43.7%
ROE of 31.3% is well above the chemicals and petrochemicals median of 23.5%.
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Watch
Reported profit rose 34.8% but operating cash flow fell 74.8% — worth investigating whether the profit is being collected.
Rule PROFIT_UP_CASH_DOWN
Operating cash flowNet profit
- Total debt
- ₹142 cr
- Operating cash flow ÷ net profit
- 0.76×FY2026
- Free cash flow
- ₹530 cr
- Current ratio
- 2.21×
Net worth compounded at 34.3% a year over 4 years (₹2,015 → ₹6,549).
Revenue grew 30.5% but only 0.36× of reported profit came through as operating cash.
Operating cash flow was only 0.36× reported profit (FY2026).
Free cash flow has been positive in 4 of the last 5 years.
Section 08 · Relative position
How does it compare with peers?
Ranked against 3 chemicals & petrochemicals (FY2026, consolidated).
Revenue growth
SOLARINDS · 1st of 3 · set median 11.1%
EBITDA margin
SOLARINDS · 1st of 3 · set median 25.9%
Return on equity
SOLARINDS · 1st of 3 · set median 23.5%
P/E ratio
SOLARINDS · 3rd of 3 · set median 55.9×
Context
ROE of 31.3% is well above the chemicals and petrochemicals median (23.5%), and the P/E of 85.42× is above it too (55.91×).
Rule STRONG_RETURNS_AT_PREMIUM
- P / E
- 85.4×TTM to Jun 26
- P / B
- 26.7×latest book
- P / S
- 15.4×TTM sales
- Earnings yield
- 1.2%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 100.9× · P/S 17.6× · ROE 31.3%. TTM and full-year profit and EBITDA differ by more than 15% — a one-off in a recent quarter is moving the trailing figure; weigh it against the full year.
Section 09 · The stock
How has the stock performed?
Context
Over 4 years the stock returned 58.9% a year while profit compounded at 39.7% a year — but FY2022 profit (₹455) was well below the through-cycle level (~₹875), so this rate is inflated by the recovery from a low base.
Rule STOCK_RAN_AHEAD · recovery
- 1-year return
- +44.7%
- 3-year return
- +301.6%
- 5-year return
- +793.2%
- From 52-wk high
- −13.8%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹19,685
- vs 200-day avg
- Above₹16,118
- RSI (14)
- 43.9neutral
- MACD histogram
- -230.1
- From 52-wk high
- −13.8%
- From 52-wk low
- +64.4%
- 30-day volatility
- 55.1%ann.
- 6-month return
- +54.2%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchProfit and cash flow divergedReported profit rose 34.8% but operating cash flow fell 74.8% — worth investigating whether the profit is being collected.PROFIT_UP_CASH_DOWN · conviction 75
- WatchGrowing, but light on cashRevenue grew 30.5% but only 0.36× of reported profit came through as operating cash.GROWTH_WITH_WEAK_CASH · conviction 62
- ConcernWeak cash conversionOperating cash flow was only 0.36× reported profit (FY2026).WEAK_CASH_CONVERSION · conviction 55
Data coverage is complete — 5 years of financials (FY2022–FY2026), full P&L, balance sheet and cash-flow statement, sector metrics fully mapped.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 2,528 | 4,162 | 3,718 | 4,457 | 5,579 |
| Total income | 2,565 | 4,218 | 3,776 | 4,540 | 5,786 |
| EBITDA | 411 | 685 | 893 | 1,181 | 1,766 |
| Profit before tax | 353 | 600 | 800 | 1,077 | 1,641 |
| Net profit | 262 | 445 | 596 | 803 | 1,222 |
| EPS (₹) | 0.0 | 0.0 | 65.9 | 88.8 | 135.0 |
| Net worth | 1,366 | 1,767 | 2,346 | 3,067 | 4,227 |
| Total debt | 155 | 421 | 312 | 195 | 142 |
| Operating cash flow | 294 | 133 | 770 | 1,054 | 927 |
| Free cash flow | 165 | −38 | 533 | 777 | 530 |
| Ratio | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth YoY | — | 64.6 | -10.7 | 19.9 | 25.2 |
| Profit growth YoY | — | 70.3 | 33.9 | 34.7 | 52.1 |
| Profitability | |||||
| EBITDA margin % | 16.3 | 16.4 | 24.0 | 26.5 | 31.7 |
| Net margin % | 10.2 | 10.6 | 15.8 | 17.7 | 21.1 |
| Return on equity % | 19.2 | 28.4 | 29.0 | 29.7 | 33.5 |
| Return on capital % | 23.8 | 33.8 | 34.2 | 37.4 | 43.7 |
| Leverage & cash | |||||
| Debt to equity | 0.11 | 0.24 | 0.13 | 0.06 | 0.03 |
| Cash flow ÷ profit | 1.12 | 0.30 | 1.29 | 1.31 | 0.76 |
| Current ratio | 1.71 | 1.80 | 2.50 | 2.20 | 2.21 |