SOLARINDS

Targets 20% CAGR with Defence Ramp-Up

reported a robust Q3FY26 performance, with revenue rising 29% YoY to ₹2,548 crore and net profit surging 41.7% YoY to ₹446 crore. Growth was fuelled by defence contracts, international exports, and operational efficiency gains. With a consolidated order book of ₹21,000 crore, the company is positioned for sustained expansion, particularly in defence manufacturing and global markets. Financial Performance - Revenue: ₹2,548 crore, up 29% YoY. - EBITDA: ₹708 crore, up 34.5% YoY, margin expansion of 110 bps. - Net profit: ₹446 crore, up 41.7% YoY. - Defence contracts and exports drove margin improvement. Order Book and Segmental Drivers - Consolidated order book: ₹21,000 crore. - Defence: ₹18,000 crore. - International contracts: ₹11,000 crore. - Domestic contracts: ₹7,000 crore. - Expanding munitions portfolio: 23mm and 30mm shells for Navy, Army orders expected. - Pinaka rocket programme ensures 7–10 years of stable revenue. - Commercial launch of 155mm artillery shells slated for Q4FY26. Strategic Outlook - FY27 breakout expected via ATAGS and Kusha programmes. - Investments in next-gen warfare technologies: loitering munitions, MALE drones, humanoid robotics. - Defence segment targets ₹3,000 crore revenue by FY26, with 27–28% EBITDA margins. - Dual-engine growth strategy: - 10–12% mining volume growth. - Rapid scale-up in defence. International and Domestic Growth - International revenues: ₹1,000+ crore per quarter, up 35% YoY. - Domestic mining recovery expected post-monsoon, supported by 6–7% annual industrial demand growth. - Capacity expansion underway in Maharashtra and Rajasthan. - Sustainability push: solar energy integration for cost efficiency. Valuation and Investor View - High entry barriers, strong return ratios, and defence-led diversification provide earnings visibility. - Valuations increasingly reflect Solar’s evolution into a diversified defence manufacturer rather than a cyclical explosives player.