Earnings Outlook
Solar Ind to report robust growth in Q1 PAT, net sales
This story was originally published at 11:27 IST on 4 August 2025
Register to read our real-time news.Informist, Monday, Aug. 4, 2025
By Udita S. Jaiswal
MUMBAI – Solar Industries India Ltd. is expected to post a robust on-year growth in its net profit and net sales on the back of improved exports, overseas business growth, and a strong order book, according to analysts tracking the company. The revenue growth is expected to be driven by anticipated execution of orders in the defence segment.
Only three estimates from brokerages are available for the company's June quarter earnings. Antique Stock Broking Ltd. has the highest estimate for the company's net profit at INR 3.96 billion. On other hand, Nirmal Bang Equities Pvt. Ltd. has the lowest estimate for the company's net profit at INR 3.34 billion. Solar Industries had reported a net profit of INR 2.86 billion in the year-ago quarter.
The net sales of the company are estimated at INR 23.31 billion by Antique and at INR 19.53 billion by Nirmal Bang. The company had reported net sales of INR 16.84 billion in the year-ago quarter. "Revenue growth is anticipated around 33% to Rs 100 bn in FY26," Nirmal Bang cited the company management as saying.
The company produces industrial explosives as well as explosives initiating systems such as detonators. They also manufacture high-energy materials and ammunition for the defence sector.
Supplies to the defence sector and exports are expected to be prime growth drivers. These two account for 60-65% of the company's total sales. The company expects the contribution from these areas to grow to 75-80% of its total sales. The company's fastest-growing defence segment saw its revenue increase at a 43% compounded annual growth rate from FY21-FY24. The business from the defence segment has jumped to 20% from just 2% in FY18. The surge is mainly because of large investments made by the government.
Solar Industries has received orders for defence products worth INR 1.6 billion in the reporting quarter, slated for delivery within one year, and for cartridge explosives totalling INR 4 billion, to be delivered over two years. The company's closing order book is expected to be INR 179.07 billion, Nirmal bang said.
The company's capital expenditure for 2025-26 (Apr-Mar) is expected to be INR 25 billion, which will help it unlock new opportunities by scaling existing capabilities, upgrading technologies, and expanding its product portfolio, including advance munitions and aerospace solutions. This capex will be funded partly by internal accruals and partly by raising funds, Nirmal Bang cited the company management as saying.
The highest estimate for the company's earnings before interest, tax, depreciation, and amortisation of INR 6.10 billion is from Antique and the lowest estimate for EBITDA is of INR 5.25 billion from Nirmal Bang. The company's EBITDA margin is expected to rise to 26.9%, up 40 basis point on year and up 200 bps on quarter, Nirmal Bang said.
At 0915 IST on Monday, shares of Solar Industries traded 0.2% higher at INR 13,847 on National Stock Exchange. The stock is up 2% since the company announced its March quarter earnings.
Solar Industries will announce its earnings for the June quarter Thursday. Of the five brokerage reports on the company available with Informist, four have a "buy" recommendation with an average target price of INR 16,405 and one has a "hold" recommendation on the stock.
Following are the June quarter earnings estimates for Solar Industries India Ltd., in INR million, based on reports from three brokerages in descending order of estimate of net profit:
Brokerage | Net sales | Net profit | EBITDA |
Antique Stock Broking Ltd. | 23,313.00 | 3,958.00 | 6,104.00 |
Nuvama Wealth Management Ltd. | 20,600.00 | 3,507.00 | 5,356.00 |
Nirmal Bang Equities Pvt Ltd. | 19,526.00 | 3,339.00 | 5,246.00 |
Average | 21,146.33 | 3,601.33 | 5,568.67 |
End
Edited by Subhojit Sarkar
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