This defence related stock nears record high; zooms 50% in 2 months

Shares of Solar Industries India are up 2.4 per cent to ₹13,140.55, and are trading close to its all-time high level of ₹13,300.

Solar Industries India share price today: Shares of Solar Industries India hit a nine-month high of ₹13,140.55, up 2.4 per cent on the BSE in Wednesday’s intra-day trade. The stock price of India's largest manufacturer of industrial explosives is trading close to its all-time high level of ₹13,300, which it touched on July 11, 2024. 

 

In the past two weeks, the market price of Solar Industries surged 21 per cent. Further, in the last two months, it zoomed 50 per cent from a level of ₹8,756 on the BSE.

 

Healthy 9MFY25 results

 

Solar Industries reported a highest ever nine monthly earnings before interest, taxes, depreciation, and amortization (Ebidta) and profit after tax (PAT) of ₹1,485 crore and ₹942 crore, respectively, registering a growth of 43 per cent and 49 per cent in nine months (April to December) of the financial year of 2024-25 (9MFY25). Net revenue grew 21 per cent year-on-year (Y-o-Y) at ₹5,374 crore during the period. 

 

 

While domestic demand has been subdued due to the general and state elections in many parts and the heavy monsoon season, the company’s long-term growth trajectory remains robust, driven by strategic diversification. The international business has delivered an exceptional third-quarter performance, growing 21 per cent Y-o-Y and reaching a best-ever ₹758 crore in revenue.

 

Strong Order Book Positions

 

Solar Industries has a strong order book position of nearly ₹10,000 crore. As of December 31, 2024, the company has the highest ever order book of over ₹7,100 crore.

 

Last month, on March 4, 2025, Solar Defence and Aerospace Limited (formerly known as Economic Explosives Limited) a wholly owned subsidiary of Solar Industries India Limited signed a contract worth ₹239 crore with Ministry of Defence, Government of India for the supply of multi mode hand grenade, to be delivered over a period of one year. 

 

Earlier, on February 28, Solar Industries and its subsidiary received export orders worth ₹ 2,150 crore for the supply of defence products, to be delivered over six years. 

 

On February 5, Ministry of Defence inked contracts with economic explosive for the procurement of Area Denial Munition (ADM) Type-1 (DPICM) and High Explosive Pre Fragmented (HEPF) Mk-1 (Enhanced) rockets respectively for PINAKA Multiple Launcher Rocket System (MLRS), the biggest contract in the history of Solar Group.

 

Defence Research and Development Organisation (DRDO) has nominated Economic Explosives Limited (EEL) as the production agency for all the variations of the Pinaka Rocket System. This contract will not only drive revenue growth of defence products, but also open new opportunities and establish the company’s prominence in indigenous defence manufacturing, the management said. 

 

Revolution in India's defence market

 

The government's active promotion of private sector participation, driven by the "Atmanirbhar Bharat" initiative, is fueling modernisation and innovation. Solar Industries, recognising the potential of this sector early on, strategically made a huge investment in building its defence capabilities, securing an early mover advantage.

 

Solar's defence business quarterly performance picked up the splendid growth of 570 per cent Y-o-Y, reaching the highest ever Defence revenue in the quarter at ₹409 crore. The strong results and strong orders in hand are providing the necessary thrust for upcoming initiatives. On this backdrop company has signed an MOU with the Government of Maharashtra for investing ₹12,700 crore in the next 10 years to establish an Anchor Mega Project. 

 

Exports of subsystems and components present a sizeable opportunity

 

There has been a rising interest among global defence original equipment manufacturers (OEM) to look at domestic public and private defence manufacturers to outsource and procure subsystems for defence equipment, according to Elara Securities.

 

Currently, the US, France and Armenia are the top three export countries for India; domestic companies to date have supplied weapons and equipment, such as the 155mm artillery guns, Akash air defence missile, Pinaka multi-launch rocket system, the BrahMos missile, artillery guns, Dornier-228 aircraft, radars, armored vehicles, fuselage and wings for aircraft and helicopters, bulletproof vests, night vision equipment and electronics, the brokerage firm said in March month defense sector report.

 

India's defence exports have increased significantly in recent years, reaching a record ₹21,000 crore in FY24, according to the defence ministry. This is a 33 per cent increase from the previous fiscal year. India has set a defence exports target of ₹30,000 crore by FY26. In this context, the new $850 billion plan by the European Union (EU) provides a major opportunity for domestic public and private defence companies, especially for exports of subsystems and components to EU OEM, analysts at the brokerage firm said. 

 

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.