Earnings Review
Solar Ind consol PAT, sales highest in at least 10 yrs
This story was originally published at 18:44 IST on 20 May 2025
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--Solar Ind Jan-Mar consol net profit INR 3.22 bln vs INR 2.35 bln year ago
--Solar Ind Jan-Mar consol revenue INR 21.67 bln vs INR 16.11 bln year ago
--Solar Ind to pay INR 10 per share final dividend
--Solar Ind FY25 consol net profit INR 12.09 bln vs INR 8.36 bln year ago
--Solar Ind FY25 consol revenue INR 75.40 bln vs INR 60.70 bln year ago
--Solar Ind Jan-Mar consol operating margin 22.46% vs 19.82% year ago
--Solar Ind FY25 consol operating margin 23.67% vs 20.20% year ago
--Solar Ind Jan-Mar consol EBITDA INR 5.46 bln vs INR 3.71 bln year ago
--Solar Ind Jan-Mar consol EBITDA margin 25.21% vs 23.06% year ago
--Solar Ind: Aim for revenues of INR 100 bln in FY26
--Solar Ind: Plan capex of INR 25 bln in FY26 vs INR 12 bln in FY25
--Solar Ind: See defence mix in total sales to cross 30% in FY26 vs 18% now
--Solar Ind Jan-Mar India explosives volume 177,216 tn, up 6% on year
--Solar Ind Jan-Mar India explosives realisation INR 47,340/tn, up 7% on yr
--Solar Ind Jan-Mar international sales INR 7.64 bln, up 30% on year
--Solar Ind Jan-Mar defence sales INR 4.30 bln, up 122% on year
--Solar Ind: Current order book over INR 170 bln
By Arya S. Biju
MUMBAI – Solar Industries India Ltd. reported robust earnings for the March quarter, with the explosives-maker reporting its highest bottom line and top line in at least over 10 years. The company's bottom line for the latest quarter was supported by a slower pace of increase in expenses compared with the rise in revenue.
The company's consolidated net profit for the quarter rose 37% on year to INR 3.22 billion. This marked the fifth consecutive quarter of on-year growth in the bottom line for the company. Its consolidated revenue for the quarter rose nearly 35% on year to INR 21.67 billion, marking the fourth consecutive quarter of an on-year rise. Sequentially, the bottom line was up over 2% and revenue was up nearly 10%.
The company reported consolidated earnings before interest, tax, depreciation, and amortisation of INR 5.46 billion for the quarter, up 47% on year. This marked its highest ever quarterly EBITDA, the company said in a press release. The company's EBITDA margin for the quarter improved 215 basis points on year to 25.21%. Its consolidated operating margin for the quarter was 22.46% compared to 19.82% in the year-ago quarter. During FY25, the company had a capital expenditure of around INR 12 billion and it plans to do a capital expenditure of INR 25 billion in FY26.
For the financial year ended March, the company reported a consolidated net profit of INR 12.09 billion, up nearly 45% from a year ago. Its revenue for the same period rose 24% on year to INR 75.40 billion. For 2024-25 (Apr-Mar), the company reported a consolidated EBITDA of INR 20.31 billion, up 44% on year. Its EBITDA margin for the same period improved 365 bps on year to 26.94%. The company's consolidated operating margin for FY25 was 23.67%, up from 20.20% in the previous year.
For FY26, the company targets a total revenue of INR 100 billion, with contribution from the defence segment crossing 30% from the current share of 18% in FY25, Solar Industries said in a press release. "Solar enters FY26 on a strong footing, driven by growth of 15-20% from explosives sector and a robust target to surpass INR 30 billion from Defence," said Manish Nuwal, managing director and chief executive officer of the company, in the release.
During the quarter under review, defence revenue more than doubled on year to INR 4.30 billion. Revenue from international business rose 30% on year to INR 7.64 billion. During the March quarter, revenue from defence customers contributed 20% of the company's total revenue, while revenue from international customers contributed 36%.
The company's explosives volume for the quarter rose 6% on year to 177,216 tonnes, while realisation rose 7% on year to INR 47,340 per tonne. For FY25, the explosives volume rose 7% to 588,834 and realisation rose 1% on year to INR 48,353 per tonne. The company has an order book of over INR 170 billion, which includes defence orders of over INR 152 billion and industrial orders exceeding INR 18 billion.
The company's total expenditure for the quarter rose nearly 29% on year to INR 17.06 billion. This was driven by a 24% on-year rise in raw material costs to INR 9.27 billion. The raw material costs accounted for over 54% of the company's total expense. The company's expenses related to purchases of stock-in-trade saw a nearly fourfold increase on a year-on-year basis to INR 1.86 billion. Other expenses for the quarter, however, fell nearly 7% on year to INR 2.88 billion.
Along with the March quarter earnings, the company announced a final dividend of INR 10 per share for FY25. If approved by the shareholders during the company's annual general meeting, the company will pay it within 30 days of the meeting. The results were disclosed during market hours. Tuesday, shares of the company closed at INR 13,489 on the National Stock Exchange, down 1.6%. End
Edited by Akul Nishant Akhoury
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