Solar Industries India Limited

Solar Industries is one of the largest domestic manufacturers of bulk and cartridge explosives, detonators, detonating cords and components which find applications in the mining, infrastructure and construction industries.

Company manufactures high-energy explosives, delivery systems, ammunition filling and pyros fuses for the defence sector.

Business Segments

• Industrial Explosives
• Defence
• Intiating Systems

Shareholding Pattern

-PUBLIC GROUP

-PROMOTER GROUP

Financial Summary

Synopsis of Financials

• Achieved record quarterly EBITDA of ₹475 crores, a 27% year-on-year growth.
• Profit After Tax (PAT) reached ₹304 crores, marking a 45% year-on-year increase.
• Highest ever half-yearly EBITDA and PAT recorded at ₹949 crores and ₹604 crores, respectively, with PAT growth of 47%.
• EBITDA margin improved to 27.9% and PAT margin at 17.7%, reflecting operational efficiency.

Final Outlook

Solar Industries India Limited demonstrates strong fundamentals, including consistent profitability, robust margins, low debt, and efficient operations. The company’s long-term growth potential is supported by strategic investments and expansion in the defense and mining sectors. However, premium valuations suggest that the stock is priced for perfection, leaving little room for errors in execution or adverse market conditions.

FY24 revenues decreased by 12.1% year-over-year to ₹61,140 million. However, a strong 5-year CAGR of 28% indicates long-term growth driven by market expansion and demand for industrial explosives. Interpretation: The short-term dip could be due to macroeconomic factors or sector-specific challenges, but the long-term growth trajectory remains robust.