Global Explosives & Defence Tailwinds Fuel

SOLARINDS

’ Growth

The defence segment serves as the company's primary growth driver, achieving a remarkable 94% year-on-year revenue surge to ₹2,634 crore in FY26. This trajectory is propelled by steady execution across missile systems and ammunition. Massive Order Backlog:

enters FY27 backed by a massive ₹21,300 crore order book. Providing strong execution visibility over the coming quarters, this backlog stands at roughly double the company's annual revenue. Aggressive Export Expansion: The international explosives and export division continues to scale effectively, jumping to over ₹3,800 crore in FY26. Management projects an additional 30% international growth for FY27 by penetrating deeper into African, Asian, and Australian markets. Strategic Projects & Ammunition Pipelines: Growth will be further augmented by advancing key strategic initiatives. The trials for the Bhargavastra program are slated to wrap up in CY2026, alongside the imminent supply rollout of 155 mm artillery rounds. Ambitious FY27 Outlook and CAPEX: Backed by ₹2,050 crore in planned capital expenditure for FY27, management has guided for a total revenue target of ₹14,000 crore, expecting high-margin defence products to contribute over ₹4,500 crore. Premium Valuation Justified: While the stock trades at a premium of 49x FY28E earnings, market analysts view the valuation as justified given the robust structural tailwinds and strong profitability momentum, evidenced by a 70% net profit increase in Q4FY26.