🧨 At a glance:
Solar Industries India Ltd (NSE: SOLARINDS) just announced it received a ₹402 crore order from Coal India Ltd for supplying cartridge explosives and accessories.
So yes, India’s biggest coal miner is officially saying:
“Please supply us bombs. But legally.” 💣
The order will be fulfilled over 2 years, and while the news should be explosive, the stock barely budged — closing at ₹16,045, down 1.26%.
💼 Order Details in 60 Seconds
| Parameter | Detail |
|---|---|
| 📦 Buyer | Coal India Ltd |
| 🧨 Supplier | Solar Industries India Ltd |
| 🧾 Nature | Supply of cartridge explosives & accessories |
| 💰 Order Value | ₹402 crore |
| 📍 Location | Domestic (India) |
| ⏳ Duration | 2 years |
| 🤝 Related Party? | Nope |
| 🚩 Promoter Link? | None |
| 📅 Date of Disclosure | 31 May 2025 |
So this isn’t some sketchy contract with a cousin’s cousin running a fake firm out of Dubai. This is straight from the PSU motherlode: Coal India.
📊 Solar Industries Financials Snapshot (FY24)
| Metric | Value |
|---|---|
| Revenue | ₹5,140 Cr |
| Net Profit | ₹769 Cr |
| EPS | ₹841 |
| ROCE | 27% |
| Debt | Virtually nil |
| Order Book (Last reported) | ₹4,200 Cr+ |
This ₹402 Cr deal is less than 8% of annual revenue, but in a business where margins go boom, every deal counts.
🚀 Why This Order Matters
✅ 1. Visibility for 2 years
Explosives aren’t made and delivered like Amazon parcels. They need:
- Approval
- Coordination with mines
- Compliance with every possible safety protocol
Having a predictable supply schedule for Coal India gives Solar a steady EBITDA runway.
✅ 2. PSU Trust Stamp
This isn’t just about revenue. It’s about credibility. A ₹402 Cr award from India’s largest miner is the kind of line that helps win future global orders.
✅ 3. Defence + Mining Crossover Play
Solar already supplies defence-grade explosives (they make propellants for DRDO & ISRO!). This order boosts their mining vertical, which was otherwise overshadowed by their cool missile tie-ups.
🧠 EduInvesting Take
Solar is one of those rare companies that quietly blows things up for a living — and makes truckloads of cash doing it.
This ₹402 Cr order isn’t a game-changer — but it adds firepower to their already strong mining segment. The real multibagger story is still Solar’s movement into defence and space launch fuel systems.
That said:
- The stock is up 7x in 5 years
- Trading at P/E > 55
- So while the order is solid, don’t expect a blast-off rally
This is a validation order, not a valuation one.
🤯 Fun Fact
Solar’s products were used in Chandrayaan-3 and missile systems.
Now they’re back to supplying Coal India with blasting tools.
From moon landings to mine openings — talk about range. 🎯
📉 Market Reaction
| Date | Price | Change |
|---|---|---|
| 30 May 2025 | ₹16,249 | – |
| 31 May 2025 | ₹16,045 | ▼1.26% |
| Volume | Low | Investors probably slept through the update |
🔥 Final Punchline
Solar’s orderbook may be 🔥 but this ₹402 Cr Coal India deal won’t set Dalal Street on fire.
Still, in a world full of paper unicorns, at least here’s a company that delivers real boom, real profits, real orders.
Author: Prashant Marathe
Date: 31 May 2025
Tags: Solar Industries, Coal India, ₹402 Cr Order, Explosives Contract, Defence Stocks, PSU Orders, Mining Supply, EduInvesting
