Solar Industries India Limited — Q3 FY26 earnings call

Like I said that now Pinaka has started in Q4, the numbers from defence will be much, much better and we are moving towards our annual guidance. We have said in our previous call that the ramping up of defence takes little more time than the other sectors. We have been improving our defence revenue and as we move forward in next quarter or next year, we will see gradual improvements on every quarter basis. So, in FY27, we are likely to perform very good.

Clarifies that Pinaka dispatches will begin in Q4 FY26 and reiterates confidence in achieving the FY26 defence revenue guidance of ₹3,000 crores, with strong FY27 outlook.

Asked by Nitin Arora

We have been sharing that we are working a lot on announcing our product especially loitering munitions and then we have started work on the MALE category of drones also and it is going to take some time before we really comment on the total targeted market and what we can get out of that. We need to wait for. As far as our futuristic programs on humanoid robots and all those are concerned, we are very much interested in taking those initiatives forward for our country's security programs. So, once these things fructify, we definitely can share more details on this.

Indicates ongoing R&D in advanced defence technologies like MALE drones and humanoids, but details on market size and commercialization are still some time away.

Asked by Nitin Arora

Definitely, it was a big achievement on the part of our company to develop these products like 23 mm, 30 mm, and for which the inauguration has been there in the last month. And the demand for this product is quite good. And we have participated in the long-term RFP from Indian Ministry of Defence, and we are expecting orders to come out because we are still participating in the final trials where they will do the technical analysis and once those rounds are over, then it will enter into the commercial stage. It is going to take some more time. But in this coming year, we should see the orders coming for 23 mm and 30 mm programs.

Highlights successful product development for 23mm and 30mm shells, participation in Indian MoD RFPs, and expectation of orders in the coming year, indicating future growth drivers.

Asked by Amit Dixit

You are very right on the observation that we are doing quite good in international business. And like I have shared in my press note that across the world we have seen that there is a good demand, demand for commodities like gold, copper and related industrial metals. And those are helping us to increase our international business. Specifically on your question on which geography. So definitely demand in African market is quite good. We are getting good traction in some of the South East Asian market also. We are doing quite good in Turkey and nearby market also.

Explains the strong international business growth is driven by global demand for commodities and successful traction in key markets like Africa, Southeast Asia, and Turkey.

Asked by Amit Dixit

If you look at our total order book from defence, it's around 18,000 crores. And out of that, around Rs. 6,500 crores to Rs. 7,000 crores is from Indian market. And balance which is around, say, Rs. 11,000 crores is from the international market. As far as gestation time is concerned, we are continuously ramping up our facilities. Products are already well qualified. So, we don't see much challenge on converting these orders into the numbers.

Provides a breakdown of the defence order book into domestic and international components and reassures on the company's ability to execute these orders efficiently.

Asked by Bhavin

If you look at India business definitely in the first 9 months, the demand was greatly impacted due to heavy monsoon and some slowdown in the economy. And we can correlate these sentiments with the fact that demand from coal and overburden which is mainly Coal India, Singareni Collieries and private coal mines, there has been practically no growth in this financial year. But we are a firm believer that the demand for these things or the mining products and related products for generating electricity should keep growing at 6% to 7% on annualized basis. And we should grow at around 10% to 12% on volume terms and which will help us to grow our business even in India on 15% on annualized basis.

Acknowledges domestic slowdown in 9M FY26 due to monsoon and economy, but maintains a positive long-term outlook for mining and related products with 6-7% growth and 10-12% volume growth.

Asked by Sanjeev Zarbade

We have guided nearly Rs. 2,500 crore kind of CAPEX, as of 9 months, how much we have achieved and what percentage of allocation goes to defence capacity expansion versus international army business pipeline? We can share the total CAPEX update on the Q4 numbers, please.

Highlights the guided FY26 CAPEX of ₹2,500 crores but defers the actual spend and allocation details to the Q4 earnings call, indicating a lack of current quarter specifics.

Asked by Balasubramanian

If you combine the mining and defence together, definitely growing at (+20%) is not at all difficult for solar at this stage for next 3-5 years down the line. Like we have demonstrated that since international business has not much baggage left over which will impact the margin improvements or sustaining the margin, as defence keep growing, definitely margin should keep improving. But as a prudent practice or conservative policy of our company, we try to maintain at a subdued level. And based on those things, I expect that getting 27% on next 3-5 years should not be a big problem for us.

Reiterates confidence in achieving 20% growth over the next 3-5 years by combining mining and defence, and maintaining EBITDA margins at 27-28%.

Asked by Bharat Shah