Solar Industries India Ltd Q2 FY26: From Mining Blasts to Defence Blasts — ₹2,082 Cr Sales, ₹361 Cr PAT & ₹17,100 Cr Order Book Boom
1. At a Glance
Solar Industries India Ltd, the Nagpur-based “Boom-Boom Company” of Dalal Street, just dropped another explosive quarter. In Q2 FY26, the company reported consolidated revenue of ₹2,082 crore, up 21.4% YoY, with PAT at ₹361 crore, up 20.7% YoY. Its operating margin stayed hot at 26%, giving many FMCG companies a mid-life crisis.
With a market cap of ₹1.24 lakh crore, the stock trades at a rather nuclearP/E of 94x, because investors believe in the company’s literal “rocket fuel” growth story. Over the last year, the share price has delivered a 31% return, outpacing many tech names.
And while most midcaps fight for survival, Solar has been busy securing an order book of ₹17,100 crore, with defence orders alone crossing ₹6,000 crore. Who said explosions couldn’t be profitable?
2. Introduction
If RDX had a listed parent, it would be Solar Industries. Born in Nagpur in the 1990s, this company has transformed from a mining-explosive maker to a defence-tech juggernaut — the kind that makes even the Ministry of Defence sit up and say, “Bhai, ye private company hai?”
Today, Solar Industries doesn’t just blow up rocks for coal miners. It fuels India’s Akash, BrahMos, and rocket propellants, manufactures multi-mode grenades, and exports explosives to 82+ countries.
From coal pits to missile pits, the Nuwal family has turned this explosives business into an empire that even ISRO trusts for rocket propellants. And while most family businesses struggle to get the next generation to attend board meetings, Solar’s next-gen is busy signing ₹12,700 crore MoUs for defence and aerospace projects.
The company’s Q2 FY26 performance reaffirms that Solar is no longer just a mining supplier — it’s India’s explosive ambassador to the world.
3. Business Model – WTF Do They Even Do?
So, what exactly does Solar Industries do besides making things go BOOM?
Solar operates two primary segments:
Industrial Explosives (86% of FY24 revenue):
Bulk explosives for mining.
Packaged explosives for construction and infrastructure.
Initiating systems (detonators, fuses, detonating cords).
Defence Products (14% of FY24 revenue):
High-energy materials like HMX, RDX, and TNT.
Composite propellants for Akash & BrahMos missiles.
Warheads, grenades, mines, and even rocket motors.
Think of it like this — if you want to dig a tunnel, Solar helps. If you want to launch a missile, Solar still helps. If you’re in between — well, they’ll find you a product.
The company also produces key raw materials in-house, ensuring stable margins and reducing dependence on volatile imports. Basically, it’s like Reliance backward integration, but for things that explode.
4. Financials Overview
Metric (₹ Cr)
Latest Qtr (Sep FY26)
YoY Qtr (Sep FY25)
Prev Qtr (Jun FY26)
YoY %
QoQ %
Revenue
2,082
1,716
2,154
+21.4%
-3.3%
EBITDA
582
445
535
+30.8%
+8.8%
PAT
361
304
353
+18.8%
+2.3%
EPS (₹)
38.1
31.6
37.4
+20.5%
+1.9%
Annualised EPS = ₹38.1 × 4 = ₹152.4 At CMP ₹13,716, that gives a P/E = 13,716 / 152.4 = 90x.
Yup, the stock trades like an FMCG startup that also makes missiles.
Commentary: Margins remained bomb-proof at ~26%, indicating pricing power. PAT is growing in sync with revenue, showing operational efficiency. The QoQ dip in sales was minor, likely due to project phasing rather than demand weakness.
5. Valuation Discussion – Fair Value Range (Educational Purpose Only)
Let’s crunch the numbers like responsible auditors who secretly enjoy explosions:
Method 1: P/E Based
Industry average P/E = 27x
Solar’s 5-year average P/E = 60x
EPS (annualised) = ₹152.4
→ Fair Value Range = ₹152.4 × (60–75) = ₹9,144 – ₹11,430
Method 2: EV/EBITDA Based
EBITDA (FY25 TTM) = ₹2,150 Cr
EV/EBITDA range (Defence + Explosives sector) = 35x–50x → EV range = ₹75,000 – ₹1,07,500 Cr → Fair Value per share = ₹8,300 – ₹11,900
