Solar Industries shares dropped 2.95% to ₹19,724.00 on Friday, reflecting broader market movements despite strong underlying financial performance, as reported by Moneycontrol. The stock has demonstrated remarkable momentum with gains of over 8% in a week and 10% in a month, while maintaining a 65% surge in 2026 so far. The company now commands a market capitalisation of nearly ₹1.81 lakh crore, reflecting strong investor confidence in its growth trajectory. The stock has been upgraded to a constituent of the Nifty Next 50 index, with overall market sentiment remaining very bullish as of August 6, 2026.
For the quarter ending June 30, 2026, Solar Industries India delivered record-breaking results with consolidated net profit surging 86.53% year-on-year to ₹657.62 crore from ₹352.56 crore in the corresponding quarter of FY26, as reported by Moneycontrol. Revenue from operations meanwhile increased 70.27% YoY to ₹3,668.20 crore during the April-June quarter, compared to ₹2,154.45 crore in the same period of FY26. Earnings Per Share (EPS) followed a similar trend, increasing to ₹72.11 in the quarter-ending June 2026 from ₹37.43 in the quarter-ending June 2025, a rise of 92.64%. EBITDA witnessed an impressive 90.1% YoY growth to ₹1,015 crore during the first quarter, with EBITDA margin expanding to 27.7% from 24.8%, an improvement of 290 basis points year-on-year. Gross margin also expanded 110 basis points to 49.2%, while EBITDA margin increased 265 basis points to 27.5%, according to Morgan Stanley. Managing Director & CEO Manish Nuwal highlighted that the company recorded its highest-ever quarterly revenue, EBITDA, profit before tax and net profit during the quarter, according to Moneycontrol.
ICICI Securities has issued a buy rating on Solar Industries with a target price of ₹23,500, as reported in their research report dated August 14, 2026. The brokerage highlighted that Q1FY27 EBITDA of ₹10.2 billion surged 90%/23% YoY/QoQ, meaningfully ahead of estimates. The quarter demonstrated remarkable breadth with defence (+123% YoY), international (+65% YoY), and domestic explosives (+52% YoY) all delivering simultaneously, partially aided by higher realisations. ICICI Securities has raised its FY27/28E EPS by 7%/5% considering the strong performance, with the target price based on 60x FY28E EPS. The company's order book remains stable at ~₹214 billion (defence OB: in excess of ₹180 billion), and management has reaffirmed its FY27 revenue guidance of ₹140 billion.
Annually, Solar Industries India's consolidated revenue for the year-ending March 2026 stood at ₹9,837.74 crore, up from ₹7,540.26 crore in the year-ending March 2025, marking a 30.47% increase. Net Profit grew by 35.40% to ₹1,736.37 crore in the year-ending March 2026 from ₹1,282.38 crore in the year-ending March 2025. EPS rose to ₹185.39 in the year-ending March 2026 from ₹133.65 in the year-ending March 2025, reflecting a 38.60% increase. Book Value Per Share (BVPS) increased to ₹693.61 in the year-ending March 2026 from ₹484.68 in the year-ending March 2025, while Return on Equity (ROE) stood at 26.72% in the year-ending March 2026, a slight decrease from 27.57% in the year-ending March 2025 but still robust. Debt to Equity ratio improved to 0.23 as of the year-ending March 2026, an improvement from 0.45 in the year-ending March 2022. The company's P/E ratio stands at 65.14 and P/B ratio at 17.40 as of the year-ending March 2026.
The company's defence business continued to be a key growth driver, registering a 123% YoY growth during the quarter, as reported by CNBC TV18. Defence revenue grew 123% versus Morgan Stanley's estimate of 70%, while international explosives grew 65% against an estimated 35% and domestic explosives grew 52% versus an estimated 19%, according to Morgan Stanley. Goldman Sachs noted that the defence business is being supported by an expanding portfolio of indigenously developed products and increased engagement with customers in India and overseas, with the brokerage expecting sizable orders in the coming quarters and robust order inflow and sustained performance from the international segment. Kotak Securities highlighted that defence growth is being driven by Pinaka, while explosives are benefiting from high ammonium nitrate prices, with the international explosives business showing particularly strong momentum with 65% YoY growth. The company's efforts to establish Solar Industries as a defence partner in India and globally are beginning to translate into tangible results.
The company's strong order book of ₹21,350 crore is supporting future growth, with management setting an ambitious revenue guidance of ₹14,000 crore for FY27, according to CNBC TV18. The order book includes more than ₹18,000 crore from the defence business, providing strong medium-term visibility, particularly for the defence segment. Goldman Sachs believes the overall order book stands at more than ₹21,350 crore, with management expressing confidence of securing sizeable new orders in the coming quarters. Managing Director & CEO Manish Nuwal said the company remains on track to achieve its ₹14,000 crore growth guidance, supported by its strong start to the year, order book and planned investments. The company noted that its defence, domestic and international explosives businesses are driving strong performance, positioning it exceptionally well for multi-year growth and global expansion.
