This article first appeared on GuruFocus .
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Quarterly Revenue:INR3,053 crores, up from INR2,167 crores.
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Annual Revenue:INR9,838 crores, up from INR7,540 crores.
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Quarterly EBITDA:INR870 crores, up from INR546 crores.
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Annual EBITDA:INR2,750 crores, up from INR2,031 crores.
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Quarterly PAT:INR556 crores, up from INR346 crores.
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Annual PAT:INR1,737 crores, up from INR1,288 crores.
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EBITDA Margin:28.5% for the quarter, 27.95% for the year.
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Defense Revenue Growth:134% in Q4, 94% for the year.
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International Business Growth:32% year-on-year.
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Raw Material Cost:INR1,522 crores for the quarter, INR4,894 crores for the year.
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Employee Cost:INR253 crores for the quarter, INR845 crores for the year.
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Other Expenses:INR453 crores for the quarter, INR1,477 crores for the year.
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Interest and Finance Cost:INR41 crores for the quarter, INR134 crores for the year.
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Depreciation Cost:INR71 crores for the quarter, INR251 crores for the year.
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Profit Before Tax:INR759 crores for the quarter, INR2,365 crores for the year.
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Proposed Dividend:INR11 per share for FY26-'27, up from INR10 per share.
Release Date: May 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Solar Industries India Ltd ( BOM:532725 ) reported its highest-ever quarterly and annual sales, with INR3,053 crores for the quarter and INR9,838 crores for the year.
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The company achieved record quarterly EBITDA and PAT, growing by 59% and 61% year-on-year, respectively.
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The defense business nearly doubled, with revenue surging 134% in Q4 and 94% for the full year.
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International business registered a growth of 32% year-on-year, highlighting strong global market penetration.
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The company has a robust order book of INR21,300 crores, positioning it well for future growth with a revenue target of INR14,000 crores for FY27.
Negative Points
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There was no growth in the domestic mining markets, which could impact future domestic sales.
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The working capital days increased due to higher inventory levels, impacting cash flow.
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The contribution of subsidiaries to the consolidated bottom line was relatively muted, indicating potential inefficiencies.
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Commodity price increases, particularly in raw materials, could pressure margins despite price adjustments.
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Potential demand contraction due to high commodity prices could affect sales in the short term.
Q & A Highlights
Q: Can you provide insights into the growth of Solar Industries' international business and future geographic expansions? A: Manish Nuwal, CEO, explained that the international business grew by 32% this year. The company is focusing on expanding in Africa, with South Africa as a hub, and has set up facilities in Zambia, Tanzania, and Zimbabwe. They are also expanding in West Africa with operations in Nigeria and Ghana, and plan to start in Sierra Leone. Additionally, they have a strong base in Turkey and have started a plant in Kazakhstan. Southeast Asia and Australia are also part of their expansion plans.
Q: What is the status of the Bhargavastra and 155 mm shells in the defense segment? A: Manish Nuwal stated that Bhargavastra is in the final stages of development, with trials expected to complete this calendar year. For the 155 mm shells, they have started supplying raw materials and expect to complete the facility for full production in the next few quarters, with complete rounds available in 3 to 4 months.
Q: How does Solar Industries plan to achieve its target growth in exports and defense, and what investments are expected? A: Manish Nuwal mentioned that the company expects a 30% growth in exports next year, driven by volume and price increases. They plan to invest in capacity expansion and client traction, focusing on international markets, which are growing at 2-3%. The company aims for a 10% volume growth and 15% value growth annually.
Q: What is the strategy for market share gain in the domestic explosive market? A: Manish Nuwal explained that the strategy involves expanding facilities outside Nagpur to reduce logistics costs and be closer to customers. They have acquired a company in Northern India and expanded in Western India, with plans for Orissa and Telangana. This proximity to customers helps in servicing and capturing market growth.
Q: Can you provide a breakdown of the order book between defense and non-defense sectors? A: Manish Nuwal stated that out of the INR21,300 crore order book, INR18,000 crores is from defense, with the largest order being from Pinaka. The remaining INR3,000 crores is from non-defense. They are in final stages of receiving similar orders and expect more from the Pinaka series.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
