Solar Industries India Limited , a leading manufacturer of explosives and initiating systems, has announced plans to expand its defense portfolio by venturing into the production of 155MM artillery shells. This strategic move was revealed during a recent conference call with stakeholders, signaling the company's commitment to strengthening its position in the defense sector.

Expanding Defense Capabilities

The decision to produce 155MM artillery shells marks a significant step for Solar Industries in diversifying its defense offerings. This move aligns with the company's ongoing efforts to capitalize on opportunities in the defense sector and contribute to India's self-reliance initiatives in military equipment manufacturing.

Strong Defense Performance

Solar Industries has been experiencing robust growth in its defense vertical. In the most recent quarter, the company reported:

• Defense revenue of ₹418.00 crore, reflecting a remarkable 115% year-on-year growth
• A strong defense order book of approximately ₹15,000.00 crore

Innovative Defense Products

The company has also made strides in developing innovative defense products:

• Successful testing of Bhargavastra, an indigenous anti-drone system
• Development of Rudrastra, a hybrid Vertical Take-Off and Landing (VTOL) UAV
• Received repeat orders for UAVs and Multi-Mode Hand Grenades

Financial Highlights

Solar Industries' overall financial performance has been strong:

International Expansion

The company's international business has shown significant growth:

• International revenue reached ₹826.00 crore, a 43% year-on-year increase
• Presence in over 90 countries with manufacturing facilities in 9 countries

Management's Perspective

Manish Nuwal, Managing Director & CEO of Solar Industries, commented on the company's performance and future outlook:

"With a proven global footprint and deep integration into commercial explosives, Solar is now strategically positioning itself as a global supply chain partner in the defence sector, unlocking new opportunities and enhancing long-term value for stakeholders."

The expansion into 155MM artillery shell production represents Solar Industries' continued commitment to innovation and growth in the defense sector. As the company leverages its expertise in explosives manufacturing, it is poised to play an increasingly important role in India's defense industry and global markets.

Solar Industries India Limited (SIIL) has reported a robust performance in the first quarter, with its defense segment emerging as a significant contributor to the company's revenue. The explosives and defense equipment manufacturer has set ambitious targets for its defense operations, signaling a strategic shift in its business focus.

Defense Segment Gains Momentum

In Q1, Solar Industries achieved 19% of its total revenue from defense operations, marking a substantial increase from the previous year. The company's defense revenue reached ₹418.00 crore, reflecting an impressive year-on-year growth of 115%. This surge in defense-related income underscores the company's successful diversification strategy and its growing prominence in the defense sector.

Ambitious Targets Set

Looking ahead, Solar Industries has set a guidance for its defense revenue to reach 30% of total revenue for the full fiscal year. This target demonstrates the company's confidence in its defense capabilities and its commitment to expanding this high-growth segment.

Q1 Financial Highlights

Solar Industries reported strong overall financial results for Q1:

The company achieved its highest-ever quarterly EBITDA and PAT, despite a slight decrease in margin percentages compared to the same quarter last year.

International Business Expansion

Solar Industries' international business recorded a 43% year-on-year growth, reaching ₹826.00 crore in Q1. This performance was driven by the company's strategic manufacturing facilities in 9 countries and its global distribution network across more than 90 countries.

Strong Order Book

The company's defense order book stands at approximately ₹15,000.00 crore, providing a solid foundation for future growth in this segment. The commercialization of Pinaka orders is expected to contribute significantly to the defense vertical's performance in the coming quarters.

Innovation and R&D

Solar Industries has made notable progress in its research and development efforts. The successful testing of Bhargavastra, an indigenous anti-drone system, and Rudrastra, a hybrid Vertical Take-Off and Landing (VTOL) UAV, during the quarter demonstrates the company's commitment to innovation in defense technology.

Management Commentary

Manish Nuwal, Managing Director & CEO of Solar Industries, expressed satisfaction with the company's performance, stating, "We are pleased to announce that we have achieved our highest-ever quarterly EBITDA and PAT of ₹564.00cr and ₹353.00cr, respectively, in the first quarter."

He further added, "With a strong defence order book of around ₹15,000.00cr, and commercialization of Pinaka orders in this year we anticipate that the defence domain will achieve its next level of growth as per our guidance given earlier."

As Solar Industries continues to strengthen its position in the defense sector while maintaining its core explosives business, the company appears well-positioned to capitalize on growth opportunities in both domestic and international markets.