The stock was trading at ₹20,210 at 11:11 am on the NSE. The company’s market capitalisation stood at ₹1.84 lakh crore, while the stock has gained over 39% in the past year.
The Nagpur-based company expects the acquisition to receive regulatory approvals before finalising the funding structure. Nuwal said the combined business could generate ₹30,000-32,000 crore in revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ₹6,800-7,000 crore in the next two years. “If both entities generate EBITDA of around ₹7,000 crore, then definitely profit after tax will be more than ₹3,500 crore in 2027-28,” he added.
To put it in perspective, Solar Industries reported a revenue of nearly ₹10,000 crore and a profit after tax of around ₹1,800 crore in the financial year ended March 2026. The earnings per share could increase by 11-15% by March 2028.
Nuwal said Solar Industries expects to report ₹14,000 crore in revenue in FY27 with an EBITDA margin of around 29% from the current business, generating sufficient cash to support the acquisition.
Even if it borrows money to fund the acquisition, management expects to keep the net debt-to-EBITDA ratio below 2x. The increased operating cash flow post-acquisition and the synergies will bring it down eventually.
Omnia acquisition to expand global presence
The latest acquisition plan aims to significantly increase Solar Industries’ international reach. The company’s manufacturing footprint will expand from 11 countries to 25 countries, while its distribution network will cover more than 100 countries.
The brokerage said the proposed acquisition would give Solar access to one of the largest players in South Africa and create a global platform for commercial explosives and blasting solutions, analysts at Goldman Sachs said earlier.
Addressing concerns over Omnia’s agriculture business, Nuwal said Solar Industries has no plans to sell the segment. He described it as a technology-led agritech platform focused on biological solutions and crop nutrition that complements Solar Industries’ existing businesses.
The company believes the business will create additional opportunities alongside Omnia’s mining explosives operations.
Message to shareholders
Nuwal said the acquisition will not affect Solar Industries’ proposed ₹12,000 crore of investment to expand product portfolio and manufacturing capabilities in defence. The company intends to continue paying dividends despite the additional debt, he added.Responding to investor concerns after the share price decline, Nuwal said the acquisition should be viewed as a long-term strategic move rather than a short-term expansion.
“We are creating a platform for the future. This acquisition is quite strategic in nature… it will help us to enhance our EBITDA margins and profit after tax.”
He added that the Omnia acquisition would also strengthen Solar Industries’ presence in Africa and create new growth opportunities for the combined business.
For the full interview, watch the accompanying video
Solar Industries’ stock has multiplied nearly ten times in value over the last five years, making the Nuwal family among the country’s wealthiest promoters, with a net worth of over $6 billion, according to Forbes. They own over 73% of the company that started in 1995 as a firm trading industrial explosives. Today it’s the country’s biggest maker and exporter of industrial explosives.
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