Solar Industries India: Defence Stock with ₹3,000 Cr Revenue Guidance for FY25 – A Multibagger in the Making?
Introduction
Solar Industries India : India’s defence and explosives sector is entering a high-growth trajectory, with Solar Industries India Ltd (SIIL) leading the charge. With a robust revenue forecast of ₹3,000 crore from its defence segment for FY25, more than double of FY24, Solar Industries is fast emerging as a must-watch stock for investors eyeing long-term growth in the defence space.
As India’s military explosives market dominates over 81% of the country’s USD 399.1 million explosives sector in 2024 and is projected to reach USD 516.4 million by 2030, companies like Solar Industries are perfectly positioned to benefit from the defence and infrastructure boom.
Massive Growth Ahead in Defence Segment
Solar Industries, known for its integrated explosives manufacturing capabilities, expects its defence business revenue to more than double from ₹1,355 crore in FY24 to ₹3,000 crore in FY25. This massive jump will propel the defence contribution to 30% of total revenues by FY27 — a significant rise from the current 18%. The company’s aggressive growth plan indicates a major transformation towards becoming a full-scale defence and aerospace player.
To support this exponential growth, Solar Industries has announced a ₹2,500 crore capital expenditure (capex) for FY26, over twice the ₹1,200 crore spent in the previous fiscal. The focus is clear — scale up, boost capacity, and invest in advanced technologies, including next-gen munitions, drones, and aerospace systems.
Strategic Government Collaboration and Future Prospects
In a landmark move, the company signed an MoU worth ₹12,700 crore with the Maharashtra government to invest in defence and aerospace projects over the next 10 years. This long-term investment will further solidify Solar Industries’ leadership position in India’s strategic defence manufacturing ecosystem and unlock new markets, both domestic and international.
Strong Financial Performance
Solar Industries continues to impress with strong financial metrics. In Q4FY25, the company reported a 35% YoY growth in revenue — from ₹1,611 crore to ₹2,167 crore. Net profit also surged by 42% from ₹243 crore to ₹346 crore during the same period, indicating improved operational efficiency and product mix.
Explosives volume increased by 6% YoY in Q4FY25, reaching 1,77,216 metric tonnes (MT). Realisation per tonne also improved by 7%, resulting in a 14% jump in overall value — from ₹736 crore to ₹839 crore — showcasing Solar Industries’ strong grip on both volume and pricing.
Robust Order Book – A Clear Visibility into the Future
The company’s current order book exceeds ₹17,000 crore, with ₹15,200+ crore coming directly from the defence sector. This includes cutting-edge projects in drones, guided bombs, rocket systems, and other advanced munitions. The remaining ₹1,800+ crore includes bulk orders from industrial giants such as Coal India and SCCL, ensuring that the company’s core industrial explosives business remains equally resilient.
Key Financial Ratios of Solar Industries India Ltd
| Metric | Value |
|---|---|
| Market Capitalisation | ₹1,38,757 Cr |
| Current Share Price | ₹15,334 |
| 52-Week High / Low | ₹15,399 / ₹7,888 |
| Stock P/E Ratio | 115 |
| Book Value | ₹485 |
| Dividend Yield | 0.06% |
| ROCE (Return on Capital Employed) | 36.8% |
| ROE (Return on Equity) | 31.4% |
| Face Value | ₹2.00 |
Conclusion
Solar Industries India Ltd is rapidly evolving from a traditional explosives manufacturer into a cutting-edge defence and aerospace powerhouse. With a ₹3,000 crore defence revenue forecast for FY25, massive upcoming capex, a ₹17,000+ crore order book, and strong financial metrics, this stock should be on every investor’s radar — especially those seeking exposure to India’s self-reliant defence and manufacturing ecosystem.
As the demand for advanced munitions, security solutions, and industrial explosives rises, Solar Industries is well-positioned to ride this wave of strategic growth.
Q&A Section: Quick Insights for Investors
Q1: Why is Solar Industries India considered a promising defence stock?
Solar Industries expects defence revenue to grow from ₹1,355 crore in FY24 to ₹3,000 crore in FY25, showcasing its aggressive expansion into the high-margin defence segment.
Q2: How much capex is planned for future growth?
The company has planned ₹2,500 crore capex for FY26, more than twice the ₹1,200 crore spent last year, aimed at scaling operations and enhancing defence manufacturing.
Q3: What is the size of the company’s current order book?
Solar Industries holds orders worth over ₹17,000 crore, with ₹15,200+ crore from the defence sector and ₹1,800+ crore from industrial clients.
Q4: What are the recent financial highlights for Solar Industries?
Revenue in Q4FY25 rose 35% YoY to ₹2,167 crore, and net profit jumped 42% to ₹346 crore, reflecting robust performance.
Q5: How does the company plan to sustain growth beyond FY25?
Apart from increased capex, Solar Industries has signed a ₹12,700 crore MoU with Maharashtra to invest in defence and aerospace over the next decade.
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