The shares of a defence company specializing in the manufacturing of industrial explosives, initiating systems, and defence products have gained attention due to its global presence and diversified offerings across sectors due to its massive orderbook pipeline. In this article, we will explore whether Solar Industries’ order book is driven more by Defence or Mining Explosives.
With a market capitalization of Rs. 1,25,283 crores on Wednesday, the shares of Solar Industries India Ltd jumped upto 3.52 percent, making a high of Rs. 13,845 per share compared to its previous closing price of Rs. 13,374 per share.
Solar Industries at Glance
Solar Industries India Limited is a leading global manufacturer specialising in commercial explosives, blasting solutions, and ammunition for both industrial and defence applications. Founded in 1995 and based in Nagpur, Maharashtra, the company has evolved from developing explosive devices for the Indian market to delivering cutting-edge products for industries such as mining, construction, seismic exploration, tunnelling, and hydro projects
The company operates two main verticals: industrial and thermal. The industrial segment features products like SuperPower 90, Solargel, and EcoPower, which are widely used in mining and construction.
The thermal division is oriented toward military and defence solutions, producing items such as drones (UAS), ammunition, military explosives, rockets, missiles, and warheads. Solar Industries holds the distinction of being India’s first private supplier of advanced explosives like HMX and RDX to the defence sector, supporting major projects including Pinaka and BrahMos.
Solar Industries India has 27 manufacturing plants in India spread over Maharashtra, Rajasthan, Tamil Nadu, Jharkhand, and West Bengal. Additionally, it has 9 international plants in countries like Nigeria, Turkey, Thailand, and Australia, and its products can be found in more than 80 countries all over the world.
Revenue Mix (Customer-wise)
In Q1FY26, Solar’s total revenue stood at Rs. 2,154 Cr, reflecting a strong 28% year-on-year growth compared to Rs. 1,685 Cr in Q1FY25. The largest contributor continued to be the International segment, which grew from Rs. 579 Cr in Q1FY25 to Rs. 826 Cr in Q1FY26, registering a 43% YoY rise.
Defence showed the sharpest increase, more than doubling from Rs. 194 Cr in Q1FY25 to Rs. 418 Cr in Q1FY26, delivering a 115% growth. The Housing & Infra segment also declined from Rs. 353 Cr in Q1FY25 to Rs. 312 Cr in Q1FY26.
The Non-CIL & Institutional segment improved steadily from Rs. 304 Cr in Q1FY25 to Rs. 348 Cr in Q1FY26, a 14% growth, while CIL witnessed a slight decline from Rs. 246 Cr in Q1FY25 to Rs. 238 Cr in Q1FY26, falling by 3%. The Others category increased modestly from Rs. 9 Cr to Rs. 12 Cr , reflecting 43% growth but with a very small overall contribution.
Overall, Q1FY26 performance was driven by strong growth in the International and Defence segments, which together accounted for nearly 57% of revenues, compensating for the weakness in CIL and the relative slowdown in Housing & Infra.
Order Book Status
The order book status of Solar Industries, which stands at over Rs. 16,800 crore, is clearly powered more by Defence rather than Mining Explosives. Out of the total, Defence contributes a massive Rs. 15,000 crore+, accounting for nearly 90 percent of the order book, while CIL & SCCL together contribute only Rs. 1,800 crore+, or about 10 percent.
Solar has a strong Defence order book of about Rs. 15,000 crore, with nearly Rs. 8,000 crore of this coming from international orders (excluding Pinaka). The company has secured a record-breaking order for Pinaka rockets valued at exceeding Rs. 6,000. The Pinaka program is expected to begin commercial execution by the end of Q2 or early Q3, making it an important growth driver in the second half of FY26.
In addition, the company has already set up facilities for 155 mm artillery ammunition, started initial work, and plans to begin commercial production soon. The company is progressing from Nagastra 1/2/3 to higher-altitude, long-endurance drones, signalling its next growth phase. In a Rs. 200 crore drone program, management noted strong competition, with Solar Industries participating.
While it’s too early to compare pricing with foreign systems, the company was both technically qualified and the lowest bidder in the earlier Nagastra project. Notably, Nagastra drones were also deployed during Operation Sindoor.
The company’s future revenues mainly depend on Defence, which makes up most of its order book through big contracts for ammunition, rockets, and defence systems. Mining Explosives from CIL & SCCL still provide steady and reliable income, but the real growth and focus are in Defence because it offers larger opportunities, better margins, and strong government support for local manufacturing.
Financials & Others
The company’s revenue rose by 27.88 percent from Rs. 1,685 crore to Rs. 2,154 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 301 crore to Rs. 353 crore during the same period.
The company has delivered strong profit growth of 36.2% CAGR over the last five years and maintains a solid financial profile. It has a healthy return on equity (ROE) of 32.6% over three years, a robust ROCE of 38.1%, and a low debt-to-equity ratio of 0.22, reflecting efficient operations and a strong balance sheet.
Conclusion
Solar Industries’ order book is clearly powered more by Defence, with nearly 90% of the ₹16,800+ crore pipeline coming from defence contracts versus just 10% from mining explosives (CIL & SCCL). While mining provides steady income, the scale of opportunities and better margins, strong momentum in defence projects firmly establishes Defence as the company’s primary growth engine.
Written by Sridhar
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