Solar's Defence Surge

Solar Industries India leads India's booming defence sector amid a massive Rs 2.38 lakh crore order wave. This Nagpur-based firm shines with huge contracts, driving growth in rockets, grenades, and more. Its role boosts self-reliance under Make in India. Key Contracts Win Big Solar's arm, Solar Defence and Aerospace, grabbed a Rs 6,084 crore deal from the Ministry of Defence for Pinaka rocket systems. This includes Area Denial Munitions and High Explosive rockets, spanning 8-15 years. It added Rs 239 crore for multi-mode hand grenades and Rs 158 crore for other supplies, all due in a year. Export orders hit Rs 830 crore and Rs 1,400 crore over four years, expanding global reach. Order Book Explodes The defence order book jumped to Rs 13,000 crore in FY25 from Rs 2,600 crore prior. Defence revenue share rose from 6% in FY23 to 17% by 9MFY25, eyed at 30-35% soon. New facilities for 155mm ammo and medium shells fuel this. Financial Strength Q3 FY25 saw 38% revenue jump to Rs 1,973 crore and 52% PAT growth to Rs 338 crore. Five-year revenue CAGR at 20%, profits 28%, margins up to 24%. Debt is low at 0.3x equity. Market Edge As India's first private warhead maker with 24% explosives share, Solar holds a licensing lead. Amid Rs 2.38 lakh crore approvals, it joins Astra and Zen as a top pick. Stock trades high, reflecting growth bets.