Solar Industries is ready to Fire Up

Solar Industries' story is getting more interesting by the quarter. Just five years ago, Defence was a small contributor for the company. Now, it’s stealing the spotlight. ➞ In FY25, defence revenues shot up 160%, doubling their share in total sales from 9% to 18%. Management is calling for another massive leap in FY26—targeting ₹3,000 crore from defence. With military tensions on the rise, especially after recent events on India’s western borders, Solar is seeing orders fast-tracked. ➞The big one: a ₹6,000 crore contract for the Pinaka rocket system, which gives solid revenue visibility for years to come. ➞ After the successful rollout of Nagastra-1, they’re already on to Nagastra-2 and Nagastra-3, expecting more orders soon. ➞ Bhargavastra, their counter-drone micro-missile system, has passed key trials and is ready for action. To keep up, Solar is doubling down on capex—₹2,500 crore planned for FY26. International business is now a big chunk—38% of FY25 sales—with new facilities up and running in Thailand and Indonesia. ➞The global defence order book stands at ₹8,500 crore, to be executed over the next 4-5 years. ➞ Order book at FY25-end: ₹17,000 crore ➞ FY25 revenue: ₹7,500 crore, with FY26 guidance up 33%. ➞ Medium-term (4-5 years): Targeting ₹20,000 crore consolidated revenue. But it’s not all smooth sailing: ➞ Domestic coal and mining demand is soft ➞ Turkey, which accounted for nearly 10% of FY25 revenue, is a riskier bet now due to its role in regional conflicts. ➞ Customer concentration (like Coal India ~10% of its sales) The global defence boom is a huge tailwind. Solar’s positioning and product pipeline put it in the sweet spot for this trend. The stock has already surged almost 70% in 2025, and at around 100x its FY26 estimated earnings, it’s priced for perfection. It’s a classic case of a great story that may be a bit ahead of its numbers right now.