What's behind Solar Ind stock's 25% surge in 2 weeks? Mcap crosses ₹1.5 trn

Solar Industries India share price today

 

Shares of Solar Industries India hit a new high of ₹16,814.3, up 3 per cent on the BSE in Tuesday’s intra-day trade in an otherwise weak market. The BSE Sensex was trading 0.4 per cent or 347 points lower at 81,026 at 12:34 PM.

 

The stock price of India's largest manufacturer of industrial explosives surpassed its previous high of ₹16,374.30, touched on May 30, 2025.  In the past two weeks, the market price of Solar Industries has surged 25 per cent. Further, it has nearly doubled or zoomed 98 per cent from its February low price of ₹8,479.30 on the BSE.

 

A sharp surge in stock price has seen the market capitalisation (market cap) of Solar Industries touch ₹1.5 trillion mark for the frist-ever time. The company’s market cap hit ₹1.52 trillion in intra-day trade today.

 

What’s driving the rally in Solar Industries?

 

Analysts believe Solar Industries is well positioned to witness healthy growth in the coming period, led by strong sector tailwinds.

 

On Saturday, May 31, 2025, Solar Industries announced that the company received orders worth ₹402 crore from its customer Coal India for supply of Cartridge Explosives & Accessories, to be delivered over a period of two years.  ALSO READ | Breakout stocks! Max Financial, Hitachi, Solar Inds may rally up to 23%

 

Strong Q4 & FY25 results

 

Solar Industries achieved its highest-ever quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) and profit after tax (PAT) at ₹546 crore and ₹371 crore, registering a growth of 47 per cent and 42 per cent year-on-year (YoY) and highest-ever yearly EBITDA and PAT at ₹2,031 crore and ₹1,288 crore, registering a robust growth of 44 per cent and 47 per cent in the year FY'25. The company achieved around 27 per cent EBITDA margin, which is more than its annual guidance.

 

Strong growth expected in defence segment 

 

The defence sector revenue has increased from ₹517 crore to ₹1,355 crore showing growth of 162 per cent in Q4FY25. With an order backlog of ~₹15,200 crore (11.2x FY25 defence revenue) along with robust pipeline, the management believes that there is strong growth visibility in this segment. Supported by momentum, Solar Industries targeting total revenues of ₹10,000 crore in FY26. With this defence contribution in total revenue will be crossing 30 per cent from the current share of 18 per cent. 

 

The company anticipates huge opportunity for its defence products across global markets and expects defence revenue at ₹8,000 crore in next 4-5 years (40 per cent plus CAGR). 

 

Solar Industries has planned a capex of ₹2,500 crore for FY26 with focus on further expansion of product portfolio. The company had also entered into an MoU with the Government of Maharashtra to initiate the Anchor Mega Defence & Aerospace Project in Nagpur with an investment of around ₹12,700 crore (over the next 10 years), aimed at enhancing defence products like Drones, UAVs, Counter Drone systems, energetic materials, New Generation Explosives, and new Military transport Aircraft.

 

ICICI Securities view on Solar Industries

 

With a market leading share of ~25 per cent in the domestic industrial explosives market, analysts at ICICI Securities believe that the company is well poised to grow steadily led by healthy demand prospects from segments like mining, housing and infrastructure. The company witnessed some recovery in the explosives segment during FY25, led by 7 per cent volume growth with improvement in realisation. 

 

With an order backlog of ₹1,800+ crore in explosives and stable raw material prices, the brokerage firm expects ~15 per cent revenue compounded annual growth rate (CAGR) in this segment over FY25- 27E. In exports/overseas segment also; analysts expect a further recovery over FY26-27E, led by rising exports inflows with further sizable opportunities. However, the stock has achieved the brokerage’s target price of ₹16,310 per share.

 

About Solar Industries

 

Solar Industries India, along with its subsidiaries, manufactures bulk explosives, packaged explosives and initiating systems, which find application in the mining, infrastructure and construction industries. The Group forayed into the defence sector in 2010 and diversified into the manufacturing of propellants for missiles and rockets, warheads and warhead explosives. At present, there are 32 manufacturing plants across nine states in India, in addition to seven overseas units in Zambia, Ghana, Nigeria, Turkey, South Africa, Tanzania and Indonesia.