The Nuwal family, promoters of Solar Industries India Ltd., has emerged among India's wealthiest promoter groups after the value of their 73.1% stake climbed to nearly ₹1.2 lakh crore. According to CNBC TV18, this surge follows a sharp rise in the company's market capitalisation to around ₹1.6 lakh crore, driven by strong growth in both explosives and defence businesses. The company now ranks among India's top promoter groups by market value of holdings, placing the Nuwal family alongside some of the country's largest business houses, with their promoter stake value moving ahead of that of DLF's.
The company's defence business has demonstrated remarkable growth, expanding nearly 20-fold from ₹130 crore in FY21 to ₹2,600 crore in FY26. Since entering the defence sector in 2010, Solar Industries has increased defence's contribution to revenue from about 5% to around 20%, complementing its leadership in industrial explosives and widening growth opportunities. As reported by CNBC TV18, backed by an order book of ₹18,000 crore, Kotak expects defence revenue to grow at a 35% compound annual growth rate through FY30, reaching about ₹8,800 crore. Pinaka rockets are expected to be a key growth driver, with revenue estimated to rise from around ₹150 crore in FY26 to nearly ₹1,800 crore by FY30.
For FY26, Solar Industries reported revenue of nearly ₹10,000 crore and profit after tax of around ₹1,800 crore, delivering impressive returns with return on equity of about 29% and return on capital employed of roughly 37.5%. According to CNBC TV18, these strong financial metrics have supported the company's higher valuation and rewarded investors for reducing dependence on the cyclical industrial explosives business. The company's diversified portfolio includes industrial explosives, high-energy materials, Pinaka rocket systems, loitering munitions and ammunition, with investors rewarding the strategic shift toward a more defence-focused business model.
Manish Nuwal, the company's Managing Director and CEO, is the largest shareholder with a 38.9% stake, while founder Satyanarayan Nuwal owns nearly 3.5%. The promoter trust holds close to 29%, and Seema Nuwal owns an additional 1.37%, taking the combined promoter holding to 73.11%. As reported by CNBC TV18, the company's strong share price performance has generated substantial gains for institutional investors, with foreign and domestic institutional investors benefiting from the rally, though the largest gains have accrued to the promoter family due to majority ownership. Despite this wealth creation, Kotak Institutional Equities maintains a Sell rating with a target price of ₹10,300, implying a 43% downside from current levels.
