1. At a Glance (Fasten Your Seatbelt)
Solar Industries India Ltd is what happens when boring mining explosives quietly evolve into defence-grade fireworks — legally, of course. As of Q3 FY26, the company is sitting on a market cap of ₹1,24,829 Cr, a current price of ₹13,793, and a P/E that makes value investors clutch their calculators (≈86x). But here’s the kicker: Q3 FY26 revenue jumped 29% YoY to ₹2,548 Cr, while PAT surged 38% to ₹467 Cr. Operating margins are flexing at ~28%, ROCE is a muscular 38%, and debt-to-equity is a polite 0.17 — meaning leverage is present, but not drunk.
What changed? Defence. Once a side quest, now a main storyline. Defence revenues crossed ₹700 Cr in Q3 alone, and the defence order book is now north of ₹21,000 Cr. Add mining explosives dominance, exports to 82+ countries, and a promoter holding of 73.15%, and you’ve got a company that’s expensive, confident, and very aware of it. Curious yet? Good. Read on.
2. Introduction — From Quarry Blasts to Combat Zones
Solar Industries started life doing the unglamorous but essential job of helping miners blow up rocks (safely, mostly). For years, industrial explosives were the bread, butter, and paratha — contributing 91% of revenue in FY22. Then geopolitics walked in, defence budgets bulked up, and Solar said, “Why not rockets?”
Fast forward to FY24: defence products are already 14% of revenue, up from 9% in FY22, and management is openly guiding ₹1,500 Cr defence revenue in FY25 (≈20% of total). This is not diversification for the sake of buzzwords; this is capacity, chemistry, and capability lining up at the right time.
The company now manufactures HMX, RDX, TNT, composite propellants for Akash, BrahMos, space rockets, and even hand grenades and warheads. That’s a long way from detonating cord for coal mines. The market noticed. The stock rerated. And now everyone is asking the same question: How much of this boom is sustainable, and how much
is already priced in?
3. Business Model — WTF Do They Even Do?
Let’s simplify before your brain detonates.
A) Industrial Explosives (86% of FY24 revenue)
This is Solar’s original superpower:
- Bulk explosives
- Packaged explosives
- Initiating systems & detonators
Used in coal mining, metal mining, infrastructure, construction, and occasionally blamed for delays when trucks don’t arrive on time. Solar has ~24% market share in India and is a key supplier to Coal India (still ~12% of H1 FY25 mix, though declining).
Why margins are solid here:
- In-house raw materials (emulsifiers, sodium nitrate, calcium nitrate)
- Control over detonator components
- Logistics + proximity to mining sites
B) Defence Products (14% of FY24 revenue, rising fast)
This is where things get spicy:
- High Energy Materials (HMX, RDX, TNT)
- Composite propellants (Akash, BrahMos, PSOMXL, space rockets)
- Ammunition filling
- Grenades, mines, warheads
Solar is India’s first private player with an integrated defence explosives facility. Translation: once you’re inside the ecosystem, switching suppliers is not easy. Long qualification cycles, multi-year contracts, and very sticky relationships.
So ask yourself: Is Solar still an explosives company dabbling in defence, or a defence company still funding itself with mining cash?
4. Financials Overview
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 2,548 | 1,973 | 2,082 | 29.1% | 22.4% |
| EBITDA | 708 | 527 | 552 | 34.4% | 28.3% |
| PAT | 467 | 338 | 361 | 38.0% | 29.4% |
| EPS (₹) | 49.31 | 34.80 | 38.12 | 41.7% | 29.4% |
Commentary:
Margins expanded, profits outpaced revenue, and defence kicked the accelerator.
