Solar Industries’ (SOIL) earnings surprised on the back of higher-than-expected domestic volumes and margins. SOIL has been able to pass through the RM price increase, leading to improved gross margins/te and EBITDA margins/te QoQ. FY22 volume growth of 22% (vs guidance of 20%) along with improvement in gross margins in an inflationary environment where ammonium nitrate prices have increased ~3x highlights the pricing power that SOIL enjoys.