India’s explosives sector is valued at USD 399.1 million in 2024, with the military segment accounting for over 81 percent of the market. Driven by mining, infrastructure, and defence needs, the sector is projected to reach USD 516.4 million by 2030, growing at a CAGR of 4.1 percent. Civilian applications represent the fastest-growing segment.
With a market capitalisation of Rs 1.38 lakh crore, the shares of Solar Industries India Ltd closed at Rs 15,328.65 per share, increased around 2.06 percent as compared to the previous closing price of Rs 15,019.85 apiece.
The company expects its defence business to generate Rs 3,000 crore in revenue, more than double the Rs 1,355 crore reported in FY25. This would raise the defence’s contribution to the overall topline to 30 percent by FY27, up from 18 percent at the end of the same year.
To support growth, the company has planned a Rs 2,500 crore capex for FY26, more than twice the Rs 1,200 crore spent the previous year. This increased investment is aimed at scaling operations, boosting capacity, and supporting its expanding defence and core business lines, aligning with the company’s aggressive growth strategy over the next two years.
Additionally, the capex will focus on unlocking new opportunities, enhancing existing capabilities, upgrading technology, and expanding the product range, including advanced munitions and aerospace solutions. Additionally, the company signed a Rs. 12,700 crore MoU with the Maharashtra government to invest in defence and aerospace over the next 10 years.
Financial & operational highlights
Looking forward to the company’s financial performance, revenue increased by 35 percent from Rs 1,611 crore in Q4FY24 to Rs 2,167 crore in Q4FY25. Further, during the same time frame, net profit increased by 42 percent from Rs 243 crore to Rs 346 crore.
In Q4FY25, Solar Industries reported a 6 percent YoY rise in domestic explosives volume to 1,77,216 MT. Realisations per tonne increased 7 percent to Rs 47,340, leading to a 14 percent jump in total value to Rs 839 crore compared to Rs 736 crore in Q4FY24, reflecting strong growth across metrics.
Solar Industries holds an order book exceeding Rs 17,000 crore, with Rs 1,800+ crore from industrial clients like Coal India and SCCL, and a dominant Rs 15,200+ crore from the defence sector. The strong defence pipeline reflects the company’s growing focus on advanced munitions, drones, and security solutions.
Solar Industries India Limited is an India-based integrated global explosives company. The Company is primarily involved in the manufacturing of a complete range of industrial explosives and explosive initiating devices. Its segment is Explosives and its accessories.
Written by Abhishek Singh
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