Solar Industries Share Price Gains After Securing ₹2,150 Crore Defence Orders

Solar Industries announced on Friday, February 28, that it, along with its subsidiary, has secured orders worth ₹2,150 crore for the supply of defence products. The orders were awarded by an international entity and are set to be completed over the next six years.

This follows a similar deal in December 2024 when the company bagged a ₹2,039 crore order for defence products from international clients, scheduled for completion within four years.

Stocks Performance 

On March 03, 2025, Solar Industries’ share price traded 1.07% higher at ₹8,785.40 at 10:43 AM (IST). Solar Industries’ share price reached a 52-week high of ₹13,300.00 and a 52-week low of ₹6,740.00. As per BSE, the total traded volume for the stock stood at 1,848 shares with a turnover of ₹1.62 crore.

At the current price, Solar Industries shares are trading at a price-to-earnings (P/E) ratio of 33x, based on its trailing 12-month earnings per share (EPS) of ₹8.22, and a price-to-book (P/B) ratio of 4.61, according to exchange data.

Management Outlook

Despite the major contract wins, Solar Industries’ management has revised its revenue growth guidance for FY25 downward, citing a slowdown in the domestic market. The company had earlier projected a 30% growth in revenue but now anticipates falling short of that target.

While defence revenue guidance remains stable, the company expects variations of 5-10%. The execution timeline for the Pinaka order is estimated to be between 8 to 12 years. However, despite the slower growth, Solar Industries expects an improvement in its margins.

Q3 FY25 Performance

For the December 2024 quarter, Solar Industries posted a 55% increase in net profit, reaching ₹314.87 crore. Revenue surged 38% year-on-year to ₹1,973.08 crore, compared to ₹1,429.14 crore in the previous year.

The company’s EBITDA grew 48% to ₹527 crore from ₹355.3 crore a year ago, while margins expanded to 26.7%, up from 25%.

Despite the slowdown in domestic market growth, Solar Industries continues to see strong demand for its defence products, driven by international contracts and a focus on improving profitability.

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