Five years ago, Solar Industries India was largely known for its explosives business. Today, it has a very different growth story. What began as a company serving mining, infrastructure, and industrial explosives has expanded into a major defence player, with a rapidly growing international business and a much larger earnings base.
That transformation has also created substantial wealth for shareholders. A Rs 1 lakh investment in Solar Industries five years ago would now be worth roughly Rs 12.2 lakh, based on the stock's five-year return. But the share price gain is only one part of the story. Behind the multibagger return is a business whose revenue has nearly quadrupled and whose profit has grown more than six-fold between FY21 and FY26.
From Rs 2,516 Crore Revenue To Rs 9,838 Crore
Solar Industries reported consolidated revenue of Rs 2,515.63 crore in FY21, with Ebitda of Rs 536.02 crore and profit after tax of Rs 276.35 crore. Its market capitalisation at the end of that financial year was Rs 11,560 crore. By FY26, consolidated revenue had risen to Rs 9,837.74 crore, while Ebitda climbed to Rs 2,749.79 crore and PAT to Rs 1,737 crore. Market capitalisation stood at Rs 1,09,239 crore at the end of FY26.
Metric | FY21 | FY26 |
Revenue | Rs 2,515.6 crore | Rs 9,837.7 crore |
Ebitda | Rs 536.0 crore | Rs 2,749.8 crore |
Ebitda Margin | ~21.3% | ~28% |
PAT | Rs 276.4 crore | Rs 1,737 crore |
Market Cap | Rs 11,560 crore | Rs 1,09,239 crore |
The numbers show that profit has grown considerably faster than revenue. Ebitda increased more than five-fold, while PAT rose about 6.3 times. The improvement in margins also indicates a shift towards a more profitable business mix.
Defence Emerges As A Major Growth Engine
The biggest change has been Solar Industries' growing defence business. In the June 2026 quarter, defence revenue jumped 123% year-on-year to Rs 933 crore, accounting for 26% of sales compared with 19% a year earlier.
Domestic explosives revenue increased 52% to Rs 1,361 crore, while international explosives rose 65% to Rs 1,364 crore. Overall, Q1 FY27 revenue increased 70% to Rs 3,668 crore, Ebitda rose 82% to Rs 1,024 crore and PAT increased 89% to Rs 666 crore.
The company's Ebitda margin also expanded to 27.91% from 26.18% a year earlier. Employee costs rose 39%, considerably slower than the 70% growth in sales, supporting the margin expansion.
Rs 21,350 Crore Order Book Sets Up FY27
Solar Industries entered FY27 with an order book of Rs 21,350 crore, including more than Rs 18,000 crore from defence. The company has guided for FY27 revenue of Rs 14,000 crore and plans capital expenditure of Rs 2,050 crore, of which Rs 450 crore had already been deployed in the June quarter.
The company is also expanding manufacturing capacity, including facilities in Dhule, Dholpur and Odisha. The company also highlights further investment in next-generation defence technologies, including UAVs and robotics.
For the stock, the next phase of the multibagger story will depend on how effectively Solar Industries converts its large defence pipeline into revenue while sustaining the margin gains achieved in recent years.
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