Concall AI

Solar Industries India Limited — Q4 FY25 earnings call

Call held 21 May 2025

Management summary

FY25 was a transformational year for Solar Industries with defense revenue growing 162% to INR 1,355 crores and a landmark Pinaka order of INR 6,084 crores. The company achieved 27% EBITDA margin vs 23% guidance. All international subsidiaries are now profitable. For FY26, management targets INR 10,000 crores revenue with defense crossing 30% of total revenue. Emergency procurement from Operation Sindoor creates additional upside.

Highlights

Highest ever annual revenue of INR 7,540 crores, up 24% YoY; Q4 revenue INR 2,167 crores
Highest ever yearly EBITDA of INR 2,031 crores, up 44% YoY; Q4 EBITDA INR 546 crores, up 47% YoY
Highest ever yearly PAT of INR 1,288 crores, up 47% YoY; EBITDA margin ~27%
Defense revenue surged 162% YoY to INR 1,355 crores from INR 517 crores
Defense order book over INR 15,000 crores including INR 6,084 crores Pinaka and INR 8,500 crores international
Total order book INR 17,000 crores (INR 15,000 defense + INR 2,000 non-defense)
All international subsidiaries turned profitable; international revenue up 18% YoY
FY26 guidance: INR 10,000 crores revenue, INR 3,000+ crores defense, INR 2,500 crores capex

Key financials

3 periods

Headline

Defense Order Book
₹15,000 Cr
Total Order Book
₹17,000 Cr

Q4

Revenue
₹2,167 Cr
YoY +34.5%
EBITDA
₹546 Cr
YoY +47%

FY25

Revenue
₹7,540 Cr
YoY +24.2%
EBITDA
₹2,031 Cr
YoY +43.6%
PAT
₹1,288 Cr
YoY +47.2%
EBITDA Margin
27%
Defense Revenue
₹1,355 Cr
YoY +162%
Capex
₹1,200 Cr

What they filed

Q1 FY27: revenue up 70.3%, net profit up 88.7% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	1,716	1,973	2,167	2,154	2,082 +21%	2,548 +29%	3,053 +41%	3,668 +70%
Expenses	1,271	1,447	1,629	1,620	1,530	1,840	2,227	2,653
EBITDA	445	527	537	535	552 +24%	708 +34%	826 +54%	1,015 +90%
Margin	26%	27%	25%	25%	26%	28%	27%	28%
Other income	36	10	7	29	29	25	46	17
Interest	30	31	29	27	31	34	41	41
Depreciation	44	47	50	56	61	63	71	80
Profit before tax	407	459	464	481	490 +20%	636 +39%	759 +64%	911 +89%
Tax rate	25%	26%	25%	27%	26%	27%	27%	27%
Net profit	304	338	346	353	361 +19%	467 +38%	556 +61%	666 +89%
EPS	31.59	34.80	35.61	37.43	38.12	49.31	60.52	72.11

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Segment	International	Defense
Q4 Revenue Mix	36%	20%
FY25 Revenue Mix	38%	18%
Defense Order Book Split	8,500%	—

Guidance & targets

Revenue

FY26 Total Revenue Revenue · FY26 · High confidence INR 10,000 crores

we are targeting total revenues of INR10,000 crores in FY '26

— Manish Nuwal

Defense

FY26 Defense Revenue Defense · FY26 · High confidence INR 3,000+ crores

a robust target to surpass INR3,000 crores from defense

— Manish Nuwal

Growth

Explosives Growth Growth · FY26 · Medium confidence 15-20%

driven by growth of 15% to 20% from explosive sector

— Manish Nuwal

Capex

FY26 Capex Capex · FY26 · High confidence INR 2,500 crores

Previously INR 1,200 crores (FY25) → INR 2,500 crores

a massive plan to do a capex of INR2,500 crores in the coming year

— Manish Nuwal

Risks & concerns

INR 2,500 crores capex in FY26 is 2x FY25 - execution and funding risk
medium

Management says fundable from internal accruals plus limited debt; annual PAT of INR 1,250+ crores supports this

Analyst downplayed
Domestic explosive demand subdued due to mining slowdown
medium

FY25 domestic volume growth missed 15% target at 8-10%; international and defense compensated

Management acknowledged
Pinaka order execution spread over 10 years limits near-term revenue impact
low

INR 6,084 crores over 10 years = INR 500-600 crores annually; additional variants and guided Pinaka orders expected

Analyst acknowledged

Areas of evasion (4)

R&D spend details
Employee count
Individual product margins
Specific defense product details

Q&A highlights

2 direct

Emergency Procurement and Operation Sindoor Impact Partial

government is trying to buy many items on emergency procurement route. So we all are waiting for those items to be shared... depends at which products we can readily cater

Emergency procurement from India-Pak tensions could provide significant upside to INR 3,000 crores defense guidance

Asked by Jyoti Gupta

Defense Order Book Execution Timeline Direct

international will be delivered in next 4, 5 years. Pinaka is around INR6,000 crores will be delivered over a period of 10 years

Provides clear visibility on order book conversion timeline - INR 500-600 crores annual Pinaka revenue plus accelerating international deliveries

Asked by Hardik Rawat

Margin Sustainability with Defense Mix Shift Direct

based on our defense and international business, we are confident that we should be able to deliver similar margins in the future also

27% EBITDA margin sustainability confirmed as defense mix increases from 18% to 30%+ - higher than guided 23%

Asked by Ashish Kumar

1 min read 5 chapters

Detailed narrative

Landmark FY25 Financial Performance

FY25 was Solar Industries' best year with revenue of INR 7,540 crores (24% growth), EBITDA of INR 2,031 crores (44% growth), and PAT of INR 1,288 crores (47% growth). Revenue growth missed the 30% guidance due to domestic mining slowdown, but profitability significantly exceeded targets with 27% EBITDA margin vs 23% guided. Company entered INR 1 lakh crore market cap club.

Defense Transformation

Defense revenue surged 162% from INR 517 crores to INR 1,355 crores in FY25, now 18% of total revenue. Order book at INR 15,000 crores including landmark INR 6,084 crores Pinaka order and INR 8,500 crores international orders. Loitering ammunition testing range inaugurated by PM Modi. Emergency procurement from India-Pak tensions provides additional upside.

International Business Maturation

International revenue grew 18% to INR 2,849 crores. All international subsidiaries are now profitable after years of turnaround efforts. Global distribution spans 90 countries with manufacturing in 9 countries. South Africa turnaround was a key achievement. Working capital cycle managed despite defense scale-up.

FY26 Growth Strategy

FY26 targets INR 10,000 crores revenue with INR 3,000+ crores from defense (30%+ mix). INR 2,500 crores capex planned for capacity expansion across defense, explosives, and aerospace. INR 12,700 crores MoU with Maharashtra for 10-year defense/aerospace investment. Bhargavastra expected ready by calendar year 2025. Pinaka commercial sales annualized at INR 500-600 crores.

Shareholder Returns

Dividend increased to INR 10/share from INR 8.50. Revenue has grown 3x in 5 years while EBITDA and PAT grew 4x and 4.5x respectively. Net cash position maintained despite aggressive capex. Strong internal accrual generation supports the INR 2,500 crores capex plan without significant external debt.

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