In , Solar Industries India Ltd (Industrial Explosives) is outperforming Nifty 500 with +25.3% relative strength. Fundamentals: Strong. On a 4-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 19, 2026
What: Defence Order Book: ₹18,000 Cr
“evidenced by a record-breaking defence order book of Rs. 18,000 crores which takes us to the highest ever total order book of Rs. 21,000 crores.”
What: Defence Revenue Share: 24% to 28%
Impact: 100-200 bps margin protection
“Presumably, given the fact that defence is a higher margin business, so is international in exports, our margins have a reason to be protected.”
What: International Revenue: ₹1,000 Cr+
Impact: 35% yoy growth
“Our international business has crossed 1000 crore revenue in this quarter which is a significant increase of 35% year-on-year.”
What: 155 mm Shells: Commercial production in Q4
“And I think in Q4, we are also starting commercial production of 155 mm... we're still working on that.”
What: Raw Material Cost %: 48.71% vs 53.5%
Impact: 479 bps margin gain
“The percent of raw material consumption has decreased from 53.5% to 48.71%... various initiatives which we have taken to improve the efficiencies.”
What: International Revenue growth of 35% yoy to ₹1,000 Cr+
“Our international business has crossed 1000 crore revenue in this quarter which is a significant increase of 35% year-on-year.”
What: 15% → 20%
“If you combine the mining and defence together, definitely growing at (+20%) is not at all difficult for solar at this stage.”
Earnings deceleration risks from management commentary
Trigger: Global conflicts increase demand for ammunition but require careful navigation of international markets.
Management view: Diversifying product portfolios and customer bases across multiple countries to mitigate single-region impact.
Monitor: geopolitical
Trigger: Operating in multiple geographies leads to routine forex expenses.
Impact: PAT impact: ₹20 Cr cost
Management view: Management considers this a normal cost of business and it remains within expected ranges.
Monitor: fx
Trigger: High base metal prices are currently a driver, but volatility could impact future demand.
Monitor: commodity
Key quotes from recent conference calls
“And we should be able to reach around our annual guidance of INR3,000 crores from defense section. [Previous Defence Revenue guidance]”
“And as we move forward, it will fall in line of, say, around 90 days by March '26. [Previous Working Capital guidance]”
“I think from Q4 we will start supplying Pinaka rockets... And the programs are of long 7 to 10 years. [Initiative: Pinaka Rocket Commercialization]”
“defence has been shaping quite well because of all the geopolitical tensions and vacuum across the world for these products. [Risk (geopolitical): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹2,548 Cr
Why: Growth was driven by strong business initiatives in the explosives and defence sectors, with international business crossing ₹1,000 Cr.
Revenue growth accelerated significantly compared to the 21% growth seen in Q2.
EBITDA
₹733 Cr
Why: Margin expansion was supported by a decrease in raw material consumption as a percentage of sales from 53.5% to 48.71%.
EBITDA margins improved to 28.8% from approximately 28% in the previous quarter.
PAT
₹467 Cr
Why: Profitability followed the record EBITDA performance and improved operational efficiencies across facilities.
This represents the highest ever quarterly PAT for the company.
Other Highlights
• International revenue crossed ₹1,000 Cr for the first time in a single quarter.
• Defence revenue hit a record ₹702 Cr, growing 72% year-on-year.
• Total order book reached a record ₹21,000 Cr, including ₹18,000 Cr in defence.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Defence Order Book
₹18,000 Cr
Why: Significant new order wins in both domestic and international markets.
International Revenue % of Sales
40%
Why: International revenue crossed ₹1,000 Cr, but domestic defence also grew rapidly, shifting the mix.
Quarterly Defence Revenue
₹702 Cr
Why: Splendid growth driven by execution of existing orders, even before Pinaka dispatches.
Raw Material Cost % of Sales
48.71%
Why: Improved product mix and efficiency initiatives offset commodity price fluctuations.
Coal India (CIL) Revenue Share
10%
Why: Domestic mining demand was impacted by a heavy monsoon and slowdown in the economy.
Housing & Infra Revenue Share
10%
Why: Dullness in the housing and infrastructure market during the monsoon period.
EBITDA Margin
28.8%
Why: Higher contribution from high-margin defence and international segments.
Working Capital Cycle
90 days
Why: Management is confident in maintaining a 90-day cycle despite the scale-up in defence.
Forward-looking targets from management for FY26
OPM Guidance
27–28%
Capex Plan
₹2500 Cr
₹3,000 Cr for Defence in FY26
REAFFIRMED
₹2,500 Cr
Defence capacity expansion and international army business pipeline
REAFFIRMED
Guidance Changes
Overall Growth Rate: 15% → 20%
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +29% | +24% | Stable |
| PAT (Net Profit) | +38% | +41% | Stable |
| OPM | 28.0% | +100 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Solar Industries India Ltd's latest quarterly results (Dec 2025) show
Solar Industries India Ltd's profit is growing with an stable trend.
Solar Industries India Ltd's revenue growth trend is stable.
Solar Industries India Ltd's operating margin is stable.
Solar Industries India Ltd's long-term compounding rates
Solar Industries India Ltd's earnings growth is stable with strong momentum on a sequential basis.
Solar Industries India Ltd's trailing twelve month (TTM) performance
Solar Industries India Ltd appears fairly valued based on our fair value analysis.
Solar Industries India Ltd's current PE ratio is 100.0x.
Solar Industries India Ltd's current PE is 100.0x.
Solar Industries India Ltd's price-to-book ratio is 28.5x.
Solar Industries India Ltd is rated Strong with a fundamental score of 62/100. This score is calculated from objective financial metrics
Solar Industries India Ltd has a debt-to-equity ratio of N/A.
Solar Industries India Ltd's return ratios over recent years
Solar Industries India Ltd's operating cash flow is positive (FY2025).
Solar Industries India Ltd's current dividend yield is 0.06%.
Solar Industries India Ltd's shareholding pattern (Mar 2026)
Solar Industries India Ltd's promoter holding has remained stable recently.
Solar Industries India Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Solar Industries India Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
Solar Industries India Ltd has 7 key growth catalysts identified from recent earnings analysis
Solar Industries India Ltd has 3 key risks worth monitoring
In Q3 FY26, Solar Industries India Ltd's management highlighted
Solar Industries India Ltd's management has provided the following forward guidance for FY26
Solar Industries India Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Solar Industries India Ltd may be worth studying
Solar Industries India Ltd investment thesis summary:
Solar Industries India Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
