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Informist, Wednesday, May 21, 2025

By Afra Abubacker and Avishek Rakshit

NEW DELHI – Solar Industries India Ltd. expects to generate a revenue of INR 100 billion in 2025-26 (Apr-Mar) on the back of strong growth in the explosives sector and higher capacity utilisation, the company's management said in a post-earnings analyst call Wednesday. From the defence segment, the company has targeted a robust revenue of INR 30 billion in FY26, and INR 80 billion for the next four to five years, Managing Director and Chief Executive Officer Manish Nuwal said.

For the March quarter, the company's consolidated revenue rose nearly 35% on year to INR 21.67 billion, marking the fourth consecutive quarter of an on-year rise. For FY25, revenue rose 24% on year to INR 75.40 billion. The consolidated net profit rose 37% on year to INR 3.22 billion for the March quarter, and was up 45% on year to INR 12.09 billion for FY25. 

For the March quarter, the company reported consolidated earnings before interest, tax, depreciation, and amortisation, or EBITDA of INR 5.46 billion for the quarter, up 47% on year. This marked its highest ever quarterly EBITDA. Solar Industries' consolidated EBITDA for FY25 was INR 20.31 billion, up 44% on year. Its EBITDA margin for the same period improved 365 basis points on year to 26.94%.

Going forward, the company expects to maintain its EBITDA margins for FY26 as well, at 27%. "We have already achieved around 27%. We are confident that we should be able to deliver similar margins in the future," the company said.  

To unlock new opportunities, the company plans a capital expenditure of INR 25 billion in FY26, sharply up from INR 12 billion spent in FY25. "The Capex program for this year...will be arranged through our internal accruals and a little bit of debt from the bankers," it said. The company has a massive plan to scale up existing capabilities, upgrade technology, and expand the product portfolio, including advanced munitions and aerospace solutions, it said. 

"With this, defence contribution in total revenue will be crossing 30% from the current share of 18%," the company said. It has proposed a dividend of INR 10 per share for FY25, up from INR 8.5 per share in FY24. 

The company has an order book of over INR 170 billion, which includes defence orders of over INR 150 billion and industrial orders exceeding INR 18 billion. The company has received domestic orders for PINACA for over INR 60 billion and international orders of INR 85 billion, which will be delivered in 10 years and about 5 years, respectively, it said. 

"The international (orders) are around 8,500 crores (INR 85 billion). This will be delivered in the next 4-5 years," the company said. "And the domestic 6,500 crore (INR 65 billion) apart from PINACA, the other items are very small. So PINACA is a bigger program, which is over 6,000 crore (INR 60 billion)...by and large it will be delivered over the next 10 years," it added. 

The company said it expects domestic sales volume to increase in FY26 amid geopolitical tensions with Pakistan. The company has a variety of products to be delivered to the Indian defence public sector undertakings, and said it can even deliver emergency procurement orders if they have ready-made facilities to cater to them.

At 1340 IST, Solar Industries India's shares traded at INR 14,241 on the National Stock Exchange, up 5.6% from their previous close.  End

Edited by Tanima Banerjee

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