CRISIL Ratings has placed the long-term bank loan facilities and non-convertible debentures of Solar Industries India Limited (SIIL) on ‘Rating Watch with Developing Implications’ following the company’s proposed acquisition of South Africa-based Omnia Holdings Limited.
SIIL plans to acquire Omnia for an enterprise value of approximately $1.355 billion, equivalent to around ₹12,951 crore. The transaction is expected to be completed in the first quarter of fiscal 2028, subject to regulatory and shareholder approvals. The acquisition is proposed to be funded through a combination of debt and internal accruals.
According to CRISIL Ratings, the acquisition will result in an increase in SIIL’s debt levels. However, the company’s financial risk profile is expected to remain comfortable, with net debt to EBITDA projected to remain below 2 times after the transaction.
The proposed acquisition is aimed at strengthening SIIL’s presence in Southern Africa. It will provide the company access to Omnia’s mining explosives platform, integrated manufacturing assets and agriculture business. CRISIL said it will resolve the rating watch after the transaction is completed and there is greater clarity on the integration strategy and final transaction structure.
SIIL has continued to report strong business growth. Its consolidated revenue increased to ₹9,837 crore in fiscal 2026 from ₹7,551 crore in fiscal 2025. The growth was supported by strong performance in its international explosives and defense businesses.
The company’s defense business has also expanded significantly, accounting for 27% of consolidated revenue in fiscal 2026, compared with 5% in fiscal 2021. This momentum continued into the first quarter of fiscal 2027, when revenue increased 70% year-on-year to ₹3,668 crore.
As of June 30, 2026, SIIL had a consolidated order book of more than ₹21,350 crore. Defense orders accounted for over ₹18,000 crore of the order book, providing visibility for medium-term growth.
Operating profitability also improved, with EBITDA margins reaching 27.7% in the first quarter of fiscal 2027. CRISIL attributed the improvement to a higher contribution from margin-accretive defense products and deep backward integration.
CRISIL also highlighted SIIL’s exposure to regulatory risks in the explosives sector and foreign exchange volatility. It noted that litigation involving the KC Nuwal group was disposed of by the Supreme Court in August 2025 without affecting the company’s operations.
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