Solar Industries Ltd., one of India’s leading manufacturers of industrial explosives and a rising player in defence solutions, has laid out ambitious growth targets for the financial year 2026. Backed by a strong quarterly performance, increased government focus on domestic defence production, and aggressive capital investment, the company is eyeing a 33% rise in annual revenue to ₹10,000 crore, a substantial leap from previous years.

Defence Business to Contribute ₹3,000 Crore to Revenue

A key part of this strategy is the defence vertical, which Solar Industries expects will contribute ₹3,000 crore to its topline in FY26, amounting to 30% of the company’s total revenue. This is a significant jump from the ₹1,355 crore achieved in FY25, and even more noteworthy when compared to the 18% share the defence segment held in FY2025.

This growth will be driven by expanded product offerings, enhanced production capabilities, and growing demand for indigenous defence and aerospace solutions, in line with the Indian government’s ‘Atmanirbhar Bharat’ initiative. The company's defence focus includes advanced munitions, missile systems, and aerospace technologies.

₹2,500 Crore Capex Planned for FY26

To meet its growth objectives, Solar Industries has allocated a capital expenditure budget of ₹2,500 crore for FY26. This is more than double the ₹1,200 crore spent in FY25.

The capex will be channelled into:

• Unlocking new opportunities in global and domestic defence markets

• Scaling existing manufacturing capacities

• Adopting advanced technologies and automation

• Expanding the product portfolio in defence and aerospace

The company’s long-term vision was further reinforced by a ₹12,700 crore Memorandum of Understanding (MoU) signed with the Maharashtra government, aiming to invest in defence and aerospace infrastructure over the next decade.

Strong Financials Back Ambitious Growth

For the March quarter (Q4 FY25), Solar Industries posted stellar financial results:

• Revenue rose 34.5% year-on-year to ₹2,166.6 crore, up from ₹1,610.7 crore in Q4 FY24.

• Net profit surged by 43.4% to ₹348 crore, reflecting robust demand and improved margins.

• EBITDA grew 52.6% to ₹539.7 crore, with margins expanding to 24.9%, up nearly 300 basis points from 22% a year earlier.

These numbers underscore the company’s ability to manage cost structures efficiently while scaling operations across core and emerging segments.

Dividend Declaration and Share Performance

Solar Industries declared a dividend of ₹10 per share, rewarding shareholders amid strong earnings. Despite closing 1.75% lower at ₹13,465 on the BSE, the stock has gained 8% over the past month and is up a robust 37% year-to-date in 2025.

Focus on Advanced Technologies and Indigenous Capabilities

The company’s forward-looking strategy includes a technology-first approach. Investments will also target:

• Smart ammunition systems

• Rocket propulsion technologies

• Sub-systems for guided weapons

• Space-focused payload and booster components

This aligns with the broader Make in India vision and rising global demand for reliable defence partners from India.

Maharashtra MoU Signals Long-Term Commitment

The ₹12,700 crore MoU with Maharashtra indicates Solar Industries’ intention to play a leadership role in India’s emerging defence and aerospace ecosystem. Over the next 10 years, this commitment will help generate jobs, attract ancillary investments, and promote research and innovation hubs in the region.

Market Outlook and Analyst Sentiment

Analysts remain bullish on the company's growth trajectory, citing:

• Strong visibility on defence orders

• Healthy EBITDA margins

• Balanced revenue mix between industrial explosives and defence

• Strategic capex aligned with market demand

The company's growing global footprint, particularly in export markets for explosives and defence-grade materials, also adds to its long-term appeal.

Conclusion

Solar Industries Ltd. is clearly at an inflection point. With ambitious revenue goals, robust earnings, and a strategic capex plan, it is positioning itself as not just India’s premier industrial explosives company but a serious force in global defence and aerospace manufacturing.

Its progress will be closely watched by investors, defence analysts, and policy makers as it seeks to scale new heights in a rapidly evolving and geopolitically important sector.

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