₹21,300 Cr Order Book: Defence Stock With 42% Revenue Growth Guidance to Keep on Your Radar

Synopsis: Defence and explosives manufacturer targets 42 percent revenue growth in FY27, backed by a Rs 21,300 crore order book and rising contribution from high-margin defence business.

India’s defence and explosives industry is witnessing strong growth, driven by rising infrastructure activity, increasing mining demand, higher defence spending, and the government’s push for indigenous manufacturing. Growing investments in ammunition, rockets, and advanced weapon systems are creating long-term opportunities for domestic defence manufacturers with integrated production capabilities.

At the same time, industrial explosives continue to remain critical for mining, construction, and infrastructure projects, ensuring stable demand across economic cycles. Companies operating across both explosives and defence segments are benefiting from diversified revenue streams, export opportunities, strong order inflows, and increasing focus on high-value defence products such as rockets, propellants, and ammunition systems.

Company Analysis: Solar Industries India Ltd

Solar Industries India Ltd is a leading explosives and defence manufacturing company with a strong presence in mining, infrastructure, and defence sectors. It supplies energy materials used in large-scale blasting operations and is increasingly focused on defence production, supported by growing domestic demand and export opportunities.

The company produces industrial explosives like bulk and packaged explosives, along with detonators and initiating systems for mining and infrastructure projects. In defence, it manufactures ammunition, rockets, propellants, and warheads, enabling it to serve both cyclical industrial demand and long-term government defence contracts.

With a market capitalization of Rs 1,66,366 crore, the share of this company closed at Rs 18,385 per share, up by 1 percent from its previous close. The share of the company gave a return of 1,341 percent over the last five years.

Segment Revenue break-up and growth

Consolidated revenue for Q4 FY26 stood at Rs 3,053 crore versus Rs 2,167 crore in the same period last year, reflecting strong operational momentum. For FY26, revenue increased to Rs 9,838 crore compared to Rs 7,540 crore in the previous year, indicating steady expansion across key business segments.

In the quarterly customer mix, the contribution from Coal India Limited (CIL) declined to 9 percent from 13 percent, while non-CIL and institutional business also moderated to 10 percent from 14 percent. Housing and infrastructure segment contribution slightly eased to 15 percent from 16 percent, reflecting a gradual shift in revenue composition.

International business contribution declined to 33 percent from 36 percent, showing relative moderation in share despite stable operations. In contrast, the defence segment witnessed a sharp increase, rising to 33 percent from 20 percent, emerging as a major growth driver in the quarterly mix.

For FY26, CIL contribution reduced to 9 percent from 13 percent, while non-CIL and institutional business fell to 12 percent from 15 percent. Housing and infrastructure declined to 12 percent from 15 percent, whereas international business remained broadly stable at 39 percent versus 38 percent. Defence grew significantly to 27 percent from 18 percent, almost doubling in absolute terms to Rs 2,634 crore from Rs 1,355 crore, highlighting a strong structural shift.

Robust Order Book

The company reported a strong order book position of around Rs 21,300 crore, reflecting high revenue visibility over the medium term. The defence segment dominates the order book at approximately Rs 18,000 crore, while the remaining Rs 3,000 crore comes from the non-defence business, indicating a clear strategic tilt towards high-value defence contracts.

Within the defence order book, the largest contribution comes from the Pinaka rocket system, supported by multiple smaller contracts involving raw materials and intermediate defence products. The company also has a healthy pipeline of international orders along with negotiations for additional Pinaka series contracts, which are currently in advanced stages and expected to further strengthen future inflows.

Management guidance and Capex plan

The company is strengthening its domestic presence through recent expansions in North and West India, while upcoming plants in East and South India are expected to improve market reach further. Alongside domestic growth, the international business continues to maintain strong momentum, supporting the company’s long-term expansion strategy.

Management highlighted that the defence vertical is gradually emerging as a strong independent growth platform, supported by deep-tech innovation capabilities. In FY26, the company reported 30 percent revenue growth and exceeded its annual EBITDA guidance, reflecting improved scalability and stronger operational execution across business segments.

Supported by a strong order book of Rs 21,300 crore and healthy opportunities across all verticals, the company aims to achieve Rs 14,000 crore revenue in FY27, which is 42.30 percent growth from FY26’s revenue, while sustaining current margins. To support expansion, Rs 2,700 crore has been invested over the last two years, with planned FY27 capex of Rs 2,050 crore.

Financial performance in Q4

QoQ View: The revenue from operations (Sales) grew by 19.8 percent to Rs 3,053 crore in Q4 FY26 from Rs 2,548 crore in Q3 FY26. EBIDT increased by 16.7 percent to Rs 826 crore in Q4 FY26 from Rs 708 crore in Q3 FY26. Net Profit rose by 19.1 percent to Rs 556 crore in Q4 FY26 from Rs 467 crore in Q3 FY26. Earnings Per Share (EPS) increased to Rs 60.52 in Q4 FY26 from Rs 49.31 in Q3 FY26. 

YoY View: The revenue from operations (Sales) grew by 41 percent to Rs 3,053 crore in Q4 FY26 from Rs 2,167 crore in Q4 FY25. EBIDT increased by 54 percent to Rs 826 crore in Q4 FY26 from Rs 537 crore in Q4 FY25. Net Profit grew by 70 percent to Rs 556 crore in Q4 FY26 from Rs 346 crore in Q4 FY25. Earnings Per Share (EPS) rose by 70 percent to Rs 60.52 in Q4 FY26 from Rs 35.61 in Q4 FY25. 

Conclusion: Solar Industries India Ltd continues to strengthen its position through a diversified explosives business and rapidly expanding defence segment. Backed by a robust Rs 21,300 crore order book, rising defence contribution, aggressive capacity expansion, and FY27 revenue guidance of nearly 40 percent growth, the company appears well placed to benefit from long-term opportunities in both infrastructure and defence manufacturing.

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