Solar Industries hits record Q1 EBITDA and PAT driven by international, defense growth

Solar Industries India Limited achieved its highest-ever quarterly EBITDA of INR564 crores and PAT of INR353 crores in Q1 FY'26. The company's turnover reached INR2,154 crores, a 28% increase year-on-year. This growth was largely attributed to a 43% year-on-year increase in international business, which recorded INR826 crores in sales, and a 115% year-on-year surge in defense revenue to INR418 crores. The defense sector's strong performance is supported by an order book of approximately INR15,000 crores.

Despite these gains, the domestic explosive market faced lower demand due to early monsoon conditions. Raw material consumption was 50.8% of sales, while employee costs and other expenses were 8.53% and 15.85% of sales, respectively. The company maintains its annual revenue guidance of INR10,000 crores for FY'26, with INR3,000 crores expected from defense and INR7,000 crores from non-defense. Key growth drivers for defense include the Pinaka series of rockets, expected to commence commercial production by the end of Q2 or early Q3.

Solar Industries continues to expand its global footprint and production capabilities, with plans to invest INR2,500 crores in the current financial year. The Kazakhstan plant is expected to begin commercial production by October. The company is also making strides in drone-based ammunition programs, including successful trials of Bhargavastra and Rudrastra, with commercialization anticipated post-qualification.