Solar Industries, its subsidiary secure ₹2,150 crore defence product supply order; share price down

Explosives manufacturer Solar Industries India Ltd and its subsidiary have secured export orders valued ₹2,150 crore for the supply of defence products over a period of six years, the company said in an exchange filing on Friday.

The stock is trading 1.18% lower at ₹8,620.80 apiece on the National Stock Exchange (NSE) at 2:46 pm.

The company's market capitalisation stands at ₹78,009.67 crore.

"We are pleased to share that our Company Solar Industries India Limited and its subsidiary have received export orders worth ₹2,150 crores for Supply of Defence Products, to be delivered over a period of 6 years," Solar Industries said, adding that the contract is awarded by an international entity.

Earlier this month, the Ministry of Defence inked contracts with Solar Industries' wholly owned subsidiary Economic Explosive Ltd (EEL) for the procurement of High Explosive prefragmented (HEPF) Mk-1 (Enhanced) and Area Denial Munition (ADM) Type-1 (DPICM) rockets, respectively, for the PINAKA Multiple Launcher Rocket System.

"Defence Research and Development Organisation (DRDO) has nominated M/s Economic Explosives Limited (EEL) as production agency for all the variations of Pinaka Rocket System," a regulatory filing said on February 6.

Solar Industries Q3 results

Solar Industries' consolidated revenue from operations rose 38% to ₹1,973 crore in the quarter ended December 31, 2024, compared to ₹1,429 crore in the year-ago period.

The net profit rose 52% to ₹338 crore in the third quarter of the financial year 2024-25 as against ₹222 crore in the corresponding period last fiscal.

EBITDA rose 46% to ₹536 crore in Q3 FY25, compared to ₹367 crore a year back. The margin was at 27.17% vs 25.69%.

Manish Nuwal, Managing Director and CEO of Solar Industries, said, "Our Q3 performance reflects the successful execution of our strategic initiatives, propelling our net revenue from ₹1,429 crore to ₹1,973 crore YoY. We have registered the strongest quarter yet with growth in revenue by 38%."