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Solar Industries India share price movement: Solar Industries India share price hit a new high of ₹15,917.20; gaining 4 per cent on the BSE in Monday's intraday trade, on a healthy growth outlook. Thus far in the month of May 2025, Solar Industries stock price has rallied 21 per cent. Since March, the stock of India's largest manufacturer of industrial explosives has zoomed 83 per cent from a level of ₹8,692.60.
Thus far in calendar year 2025 (CY25), Solar Industries shares have soared 62 per cent as compared to 5 per cent rise in the BSE Sensex. Notably, in the past four straight calendar years, between 2021 and 2024, Solar Industries shares outperformed the market. In CY21, the stock more-than-doubled, zooming 122 per cent, while it surged 82 per cent in CY22. Solar Industries stock gained 53 per cent in CY23, and 46 per cent in CY24. Follow Latest Stock Market Updates Today LIVE
Solar Industries Q4 results
Solar Industries achieved the highest-ever quarterly earnings before interest, taxes, depreciation and amortisation (Ebitda) and profit after tax (PAT) at ₹546 crore and ₹371 crore, respectively, registering a growth of 47 per cent and 42 per cent year-on-year (Y-o-Y) in Q4FY25. The company also logged the highest-ever yearly Ebitda and PAT at ₹2,031 crore and ₹1,288 crore in FY25, registering a robust growth of 44 per cent and 47 per cent, respectively. The company achieved around 27 per cent Ebitda margin, which was more than its annual guidance.
Solar's international business is gaining good momentum and as a result, registered an 18 per cent Y-o-Y growth. Solar's ability to expand its global footprint and forging strong relationships with its customers as a trusted partner underscores the company's strength in identifying and capitalising on global opportunities.
Strong Order Book Position
The defence sector revenue increased from a small base of ₹517 crore to ₹1,355 crore, showing a growth of 162 per cent. According to the management, years of strategic efforts in building state-of-the-art facilities, developing a wide range of products, and qualifying products across the customers has positioned Solar Industries as a strong player in defence in the global market.
This is reflected in the substantial increase in the company's order book to over ₹15,000 crore, including a landmark order of ₹6,084 crore for Pinaka rockets and contracts of around ₹8,500 crore from international markets.
Aligned with India's Atmanirbhar Bharat initiative, Solar has signed a ₹12,700-crore MoU with the Government of Maharashtra to invest in defence and aerospace over the next decade. Now, Solar is entering FY26 on a strong footing, driven by growth of 15 per cent to 20 per cent from the explosive sector and a robust target to surpass ₹3,000 crore from defence. Supported by this momentum, the management said the company is targeting total revenues of ₹10,000 crore in FY26. ALSO READ | GE Vernova T&D India freezes in 10% upper limit today; key details inside
Strong growth expected in defence segment
Defence remains the fastest growing segment for the company (revenue CAGR 68 per cent over FY21-25), led by strong order inflows, healthy execution and focus on continuously expanding portfolio.
With an order backlog of ~₹15,200 crore (11.2x FY25 defence revenue) along with a robust pipeline, ICICI Securities believes that there is a strong growth visibility in this segment. The company anticipates huge opportunity for its defence products across global markets and expects defence revenue at ₹8,000 crore in the next 4-5 years (40 per cent plus CAGR).
Solar Industries has planned a capex of ₹2,500 crore for FY26 with a focus on further expansion of product portfolio. The company had also signed a 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. The brokerage firm estimates defence segment revenue share to increase substantially to 31 per cent by FY27E (from 18 per cent in FY25).
With a market leading share of ~25 per cent in the domestic industrial explosives market, analysts at the brokerage firm 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 over ₹1800 crore in explosives and stable raw material prices, the brokerage firm expects ~15 per cent revenue CAGR in this segment over FY25- 27E. In the exports/overseas segment also, analysts expect a further recovery over FY26-27E, led by rising exports inflows with further sizable opportunities.
ICICI Securities rating & price target on Solar Industries
Analysts at the brokerage firm believe Solar Industries is well positioned to witness healthy growth in the coming period, led by strong sector tailwinds. "We estimate revenue & PAT to grow at ~26 per cent & ~31 per cent CAGR respectively over FY25-27E," analysts said. The brokerage firm recommended a 'Buy' rating on Solar Industries with a share price target of ₹16,310 (based on 72x P/E on FY27E EPS). ALSO READ | JK Cement shares hit life-high after Q4 results; stock up 10% today
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.
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