Solar Industries Stock Analysis 2026: Rs 21,300 Cr Orderbook, Defence Revenue Set to Double — Revenue Growth Rank 2

Arthneeti AI Revenue Rank: Rank 2 — growth between 20% - 40%
Based on Q4 FY26 earnings call analysis | Market cap: Rs. 1,56,674 Cr

Company Overview

Solar Industries India (NSE: SOLARINDS) is India's largest manufacturer of industrial explosives and a fast-scaling defence player, with manufacturing across India and facilities in over a dozen countries spanning Africa, West Asia, Turkey, Kazakhstan, Thailand and Indonesia — with Australia operations starting soon.

Revenue Growth Outlook — Rs 14,000 Cr Target

• FY27 revenue target of Rs. 14,000 Cr, implying 30%+ combined growth across verticals
• Defence segment revenue to cross Rs. 4,500 Cr in FY27 — nearly doubling
• International business grew 32% in FY26; ~30% growth targeted again in FY27
• Volume growth of 10-15%, with price increases contributing ~18-20% to overall growth
• Domestic expansion supported by new capacity in Northern, Western, Eastern and Southern India

Orderbook — Defence-Heavy and Deep

• Total order book of approximately Rs. 21,300 Cr
• Defence accounts for ~Rs. 18,000 Cr, anchored by the Pinaka rocket program
• Non-defence orders of ~Rs. 3,000 Cr
• Negotiations ongoing for further Pinaka-series orders, with similar defence product orders in final stages

Capital Expenditure

• Rs. 2,050 Cr capex planned for FY27, on top of Rs. 2,700 Cr invested over the last two years
• Commissioned medium caliber ammunition facility; continued new product development in defence
• Deliberate inventory build to mitigate geopolitical supply chain risks

Margins and Returns

EBITDA margins are expected to hold around ~28% despite raw material inflation, supported by the richer defence and international mix. The proposed dividend rises to Rs. 11 per share from Rs. 10. Management indicated growth is funded through internal accruals with no new debt or equity fundraising planned.

Key Takeaway

Solar Industries pairs a 30%+ growth target with an order book that already underwrites much of it — a defence backlog of Rs 18,000 Cr provides multi-year visibility while the international explosives business compounds alongside. Steady ~28% margins and self-funded capex round out one of the strongest structural stories in the defence manufacturing theme.

Read the Full AI Analysis

Explore the complete earnings call breakdown, management Q&A and ranking history on the full concall analysis page, or browse all ranked companies on the Rankings dashboard and the earnings call directory.

Disclaimer: This analysis is based on AI-powered interpretation of publicly available earnings call transcripts. It does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.