Detailed Narrative
Q3 FY26 Performance Highlights
Solar Industries reported its strongest quarter to date in Q3 FY26, with net revenue rising to ₹2,548 crores, a 29% year-on-year increase. The company achieved its highest-ever quarterly EBITDA of ₹733 crores, growing 37% YoY, and a PAT of ₹467 crores, up 38% YoY. For the nine months ended December 31, 2025, revenue stood at ₹6,785 crores (26% YoY growth), EBITDA at ₹1,879 crores (27% YoY growth), and PAT at ₹1,181 crores (25% YoY growth).
Defence Business Soars with Record Order Book
The defence business demonstrated exceptional growth, hitting over ₹700 crores in revenue during Q3 FY26, a 72% increase year-on-year. This performance was bolstered by a record-breaking defence order book of ₹18,000 crores, contributing to a total order book of ₹21,000 crores. Management confirmed that Pinaka dispatches are expected to commence in Q4 FY26, and the company is confident in converting its substantial order book into revenue due to well-qualified products and ramping up facilities.
International Business Crosses ₹1,000 Crore Mark
Solar Industries' international business achieved a significant milestone, crossing ₹1,000 crores in revenue during the quarter, representing a 35% year-on-year increase. This growth is attributed to a steady rise in demand for key commodities and industrial metals globally. The company reported good traction in African, South East Asian, and Turkish markets, and expects the international business to continue growing at an annualized rate of 15%.
Domestic Business Faces Headwinds, Long-Term Outlook Positive
The domestic business experienced challenges in the first nine months of FY26, with demand impacted by heavy monsoons and a general economic slowdown, particularly affecting the coal and overburden sectors. Despite this, management remains optimistic about the long-term prospects, projecting a 6-7% annualized growth for mining products and 10-12% volume growth for the domestic business, aiming for 15% value growth.
Strategic Focus on Innovation and Margin Sustainability
The company's strategy continues to be guided by innovation, operational discipline, and sustainable growth. Solar Industries is actively working on new products like loitering munitions and MALE category drones, though these programs require longer development times. Management expressed confidence in maintaining EBITDA margins around 27-28% moving forward, driven by the growing defence and international business mix. The company also expects to start commercial production of 155mm calibre ammunition in Q4 FY26.