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Informist, Wednesday, Feb. 4, 2026

--Solar Ind: Expect to see contribution from Pinaka from Q4 

--CONTEXT: Comments by Solar Ind's mgmt in post-earnings analyst concall 

--Solar Ind: Majority of orders in defence order book from overseas markets 

--Solar Ind: Expect to maintain EBITDA margin around 27-28% going forward 

By P. Madhu Kumar and Shakshi Jain

MUMBAI – Owing to the rise in geopolitical tensions around the world and increase in demand for defence equipment, Solar Industries India Ltd. is confident of maintaining its earnings before interest, tax, depreciation and amortisation margin around 27-28% going forward, the company's management said in a post-earnings conference call with analysts Wednesday. The company's EBITDA margin expanded by 160 basis points on year to 28.77% in the December quarter. The management added that a majority of orders in its defence order book is from the overseas market. In the December quarter, international customers accounted for 40% of the company's total sales. 

The explosives and defence equipment maker plans to begin supplies of its indigenous multi-barrel rocket launcher Pinaka in the March quarter and expects to see contribution from it from the same period. The management said it is planning to introduce new variants of Pinaka and those will also become part of their overall basket of Pinaka series of products. 

When asked about the softness in demand within its domestic business, the management said, "India business, definitely in the first nine months the demand was greatly impacted due to heavy monsoon and some slowdown in the economy." The company said that these are dull periods and it firmly believes that the demand will pick up soon. 

The company's defence order book adds up to around INR 180 billion, out of which INR 65 billion-INR 70 billion worth of orders are from the Indian market and the remaining worth INR 110 billion are from the international market. The management doesn't see much challenge in converting these orders into revenue as it is continuously ramping up its facilities, and it was also confident that the products are well qualified for the market. 

Talking about the company's growth going forward, Managing Director and Chief Executive Officer Manish Nuwal said, "...on volume terms, we should grow at 10% to 12% per annum and that will help us to grow our business, especially in mining side, by around 15% per annum. So, we believe that this is quite very much possible to grow at around 15% on annualised basis.

Nuwal added, "if you combine the mining and defence (operations) together, definitely growing at 20% plus is not at all difficult for Solar (Industries) at this stage for next three to five years down the line."

Solar Industries reported a jump of about 42% on year in its consolidated net profit to INR 4.46 billion for the quarter ended December. The company's top line rose over 29% on year to INR 25.48 billion during the quarter. It reported international sales of INR 10.20 billion for the December quarter, up from INR 7.58 billion a year ago. The company's defence operation sales rose a whopping 72% on year to INR 7.02 billion. 

As of 1355 IST, shares of the company traded down more than 1% at INR 13,605 on the National Stock Exchange. End

Edited by Deepshikha Bhardwaj

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