This Defence stock, engaged in manufacturing explosives, propellants, and defence systems, and expanding its presence in India and globally, is in focus after management expects Rs. 10,000 crore revenue guidance for FY26.
With a market capitalization of Rs. 1,58,586.54 crore, the shares of Solar Industries India Limited closed at Rs. 17,525.30 per equity share, up nearly 1.50 percent from its previous day’s close price of Rs. 17,267.15.
Guidance: For FY26, Solar Industries India Limited has set a revenue target of Rs. 10,000 crore, reflecting a strong growth of around 32.6 percent compared to Rs. 7,540 crore in FY25. A key driver of this growth will be the defence segment, which is expected to contribute over Rs. 3,000 crore, more than 30 percent of the total revenue.
Over the next 4–5 years, Solar Industries India Limited aims to double its revenue to Rs. 20,000 crore, up from the FY26 target of Rs. 10,000 crore. A major contributor to this growth will be the defence segment, where the company is targeting revenue of Rs. 8,000 crore, indicating a sharp rise from the expected Rs. 3,000 crore in FY26. This would mean the defence segment could contribute around 40 percent of total revenue in the medium term.
For FY26, Solar Industries India Limited anticipates 15–20 percent growth in its core explosives business. On the profitability side, the management expects to maintain or improve EBITDA margins at around 27 percent, driven by operating efficiencies, higher value-added products, and a stronger share of defence business.
Capex: Solar Industries India Limited is ramping up its investment strategy to support long-term growth. After spending approximately Rs. 1,200 crore in FY25, the company has planned a significantly higher capex of Rs. 2,500 crore for FY26, which will be funded through internal accruals and some debt, with no equity dilution planned.
A key development is the 10-year MoU with the Maharashtra government, involving an investment of Rs. 12,700 crore in the defence and aerospace sectors. The capex will be spread across land acquisition, adoption of new technologies, automation, and product development.
Global Expansion: Solar Industries is also expanding its global footprint. The Kazakhstan plant is expected to be operational in the next 3-4 months, while a new facility in Saudi Arabia is under development. Existing units in Thailand and Indonesia are fully operational, and projects in Tanzania, Ghana, Nigeria, and Zimbabwe are currently under expansion, further strengthening the company’s international presence.
Order Book: Solar Industries has an order book of over Rs. 17,000 crore, with over Rs. 15,200 crore from the defence segment and more than Rs. 1,800 crore from industrial clients like Coal India and SCCL, highlighting its strong position in defence and continued industrial demand.
Solar Industries India Limited is a leading integrated global explosives manufacturer headquartered in Nagpur, India. The company specializes in the production and supply of a comprehensive range of industrial explosives, detonators, detonating cords, and related components, which are primarily used in mining, infrastructure, construction, and the defence sector.
Coming into financial highlights, Solar Industries India Limited’s revenue has increased from Rs. 1,611 crore in Q4 FY24 to Rs. 2,167 crore in Q4 FY25, which has grown by 34.51 percent. The net profit has also grown by 42.39 percent, from Rs. 243 crore in Q4 FY24 to Rs. 346 crore in Q4 FY25.
Solar Industries India Limited’s revenue and net profit have grown at a CAGR of 27.51 percent and 35.79 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 36.8 percent and 31.4 percent, respectively. Solar Industries India Limited has an earnings per share (EPS) of Rs. 134, and its debt-to-equity ratio is 0.22x.
Written By – Nikhil Naik
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