Defence Giant Eyes ₹10,000 Cr Revenue in FY26: Solar Industries India Ltd Emerges as a Must-Watch Stock for Long-Term Investors
Solar Industries India Ltd: In the dynamic Indian stock market, Solar Industries India Limited is turning heads with its bold revenue projection of ₹10,000 crore for FY26. With a focus on explosive growth—literally and financially—this defence-focused company is positioning itself as a future multibagger, especially as India pushes for greater self-reliance in defence manufacturing.
Let’s explore what makes this defence stock a standout pick for savvy investors.
A Defence Powerhouse on the Rise
Solar Industries India Limited, headquartered in Nagpur, has evolved into a major player in the global explosives market. The company manufactures high-energy materials, propellants, and complex defence systems used in mining, construction, infrastructure, and more recently, national defence.
On the back of a strategic vision and increasing government support for defence manufacturing, the company has announced an ambitious revenue guidance of ₹10,000 crore for FY26, up from ₹7,540 crore in FY25. This marks a growth of 32.6% year-on-year.
Defence Segment – The Key Growth Engine
The real game-changer for Solar Industries is its defence vertical. In FY26 alone, the company expects the defence segment to contribute over ₹3,000 crore—more than 30% of total revenues. Looking forward 4–5 years, management has set an aggressive goal: ₹8,000 crore in defence revenue, nearly 40% of projected revenues of ₹20,000 crore by FY30.
This strategic shift towards high-margin defence products will also help Solar Industries improve or maintain its current EBITDA margins of around 27%, powered by advanced technologies and value-added offerings.
Capex Plans & Government Collaboration
To support this massive scale-up, the company plans a capital expenditure of ₹2,500 crore in FY26, more than double the ₹1,200 crore it spent in FY25. Importantly, this expansion is being funded through internal accruals and minimal debt, with no equity dilution planned.
A critical development includes a 10-year MoU with the Maharashtra Government involving a staggering ₹12,700 crore investment in the defence and aerospace sector. The planned spend will go towards new technology, land acquisition, automation, and product development, setting the stage for long-term value creation.
Aggressive Global Expansion
Solar Industries is not limiting its vision to India. The company’s international roadmap is equally compelling. A new manufacturing plant in Kazakhstan is expected to go live in the next 3–4 months, while another is under construction in Saudi Arabia. Operational units in Thailand and Indonesia, as well as projects under development in Tanzania, Ghana, Nigeria, and Zimbabwe, underline the company’s goal to become a truly global defence and industrial explosives provider.
Strong Order Book Shows Solid Visibility
The company’s order book stands at ₹17,000 crore, with ₹15,200 crore from the defence sector and ₹1,800 crore from industrial clients like Coal India and SCCL (Singareni Collieries Company Limited). This provides a solid revenue pipeline and reflects the strong trust major public sector units and defence entities place in Solar Industries.
Robust Financial Performance
Here’s a snapshot of the company’s strong financial position:
| Financial Metric | Value |
|---|---|
| Market Capitalization | ₹1,58,213 Cr |
| Current Share Price | ₹17,484 |
| 52-Week High / Low | ₹17,795 / ₹8,479 |
| Stock P/E | 131 |
| Book Value | ₹485 |
| Dividend Yield | 0.06% |
| Return on Capital Employed (ROCE) | 36.8% |
| Return on Equity (ROE) | 31.4% |
| Earnings Per Share (EPS) | ₹134 |
| Debt-to-Equity Ratio | 0.22x |
| Face Value | ₹2.00 |
In Q4 FY25, revenue grew 34.51% YoY to ₹2,167 crore, while net profit increased 42.39% to ₹346 crore. Over the last five years, revenue and net profit have grown at a CAGR of 27.51% and 35.79%, respectively.
Why Investors Should Watch Solar Industries Closely
- ✅ Strong revenue growth driven by India’s growing defence needs
- ✅ Expanding global footprint across Asia and Africa
- ✅ Robust order book ensuring revenue visibility
- ✅ Debt-light, high-margin business model
- ✅ Long-term capex plan fully aligned with government’s Make in India & Atmanirbhar Bharat mission
Frequently Asked Questions (FAQs)
Q1: What makes Solar Industries India Limited a strong investment pick?
A1: Its aggressive revenue growth target of ₹10,000 crore in FY26, high-margin defence business, expanding global presence, and strong financials make it a compelling long-term investment.
Q2: How important is the defence segment to the company’s growth?
A2: Very crucial. The defence segment is expected to contribute ₹3,000 crore in FY26 (30% of revenue), with a long-term goal of ₹8,000 crore (40% of revenue).
Q3: Is Solar Industries financially sound?
A3: Yes. With a debt-to-equity ratio of just 0.22x and ROCE of 36.8%, the company is highly efficient and conservatively financed.
Q4: What is the capex plan for FY26?
A4: The company has planned ₹2,500 crore in capital expenditure for FY26, up from ₹1,200 crore in FY25, with no equity dilution involved.
Q5: How is the company performing globally?
A5: It is expanding operations in Kazakhstan, Saudi Arabia, and several African countries, complementing existing plants in Thailand and Indonesia.
Conclusion:
Solar Industries India Ltd stands out as a robust defence stock poised for explosive growth (pun intended). With its ₹10,000 crore revenue vision, global expansion strategy, and sharp financial metrics, this is a defence stock that every investor should keep on their radar for FY26 and beyond.
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