Solar Industries Shares Jump 3% Post Q4 FY25 Results, Projects ₹3,000 Cr from Defence Segment

Solar Industries India share price witnessed a sharp uptick in early trade on May 21, 2025, with shares rising 2.97% to ₹13,894.05, gaining ₹400.45 at 9:35 AM on the BSE from the previous close of ₹13,493.60.

The stock opened slightly lower at ₹13,488 but quickly gained momentum, hitting an intraday high of ₹14,100 and a low of ₹13,338. The volume-weighted average price (VWAP) stood at ₹13,886.59. The stock currently trades near its 52-week high of ₹14,340, significantly above its 52-week low of ₹7,889.95, reflecting strong investor confidence.

Defence Segment FY26 Revenue Outlook

Solar Industries India Ltd., a leading player in explosives and defence manufacturing, has projected a strong financial performance for FY26, targeting ₹10,000 crore in revenue, marking a significant 33% year-on-year growth. A key driver of this growth is expected to be the company’s defence segment, which is poised to contribute ₹3,000 crore up from ₹1,355 crore in FY25.

If achieved, this would elevate the defence vertical’s share of total revenue to 30%, compared to just 18% at the end of FY25, reflecting Solar Industries’ accelerating pivot toward strategic and high-value sectors like munitions and aerospace.

Q4FY25 Performance Highlights

For the March 2025 quarter, Solar Industries delivered an impressive financial performance:

• Net Profit rose 43.4% year-on-year to ₹348 crore.
• Revenue climbed 34.5% to ₹2,166.6 crore from ₹1,610.7 crore
• EBITDA surged 52.6% to ₹539.7 crore
• EBITDA Margin expanded by nearly 300 basis points to 24.9%, up from 22% a year earlier
• Final Dividend declared at ₹10 per share

These results underscore the company’s consistent operational efficiency and margin expansion amid rising scale.

Capex and Strategic Investment Plans

In line with its growth ambitions, Solar Industries has announced a capex of ₹2,500 crore for FY26, more than double the ₹1,200 crore invested in the previous fiscal. This capital expenditure will be channelled toward:

• Scaling production capabilities
• Advancing R&D in aerospace and munitions
• Enhancing technology infrastructure
• Expanding the product portfolio to tap into newer defence opportunities

The company has also signed a Memorandum of Understanding (MoU) worth ₹12,700 crore with the Maharashtra government to invest in the defence and aerospace sector over the next 10 years. This long-term commitment is set to reinforce its position as a key player in India’s defence manufacturing ecosystem.

Doubling Down on Strategic Growth

The anticipated ₹3,000 crore revenue from the defence segment in FY26 more than doubles the FY25 performance. Although the FY25 figure was slightly short of the management’s earlier guidance of ₹1,400–₹1,500 crore, the current outlook suggests a renewed focus and aggressive push in this high-margin, high-growth segment.

Read More: Defence Sector ETFs Surge: Top Funds Deliver Above 18% Returns in May.

Conclusion

Solar Industries is well-positioned to capture significant value in the coming fiscal, leveraging strong demand, strategic diversification into defence, and substantial capital deployment. Its evolving business mix and improved profitability profile indicate a shift toward becoming a more integrated, future-ready industrial and defence powerhouse.

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