Solar Industries India Limited (ISIN: INE343H01029) has reported impressive financial results for the first quarter, showcasing strong growth across its business segments.

Record-Breaking Performance

The company achieved its highest-ever quarterly revenue of INR 2,154.00 crores, marking a 28% year-on-year growth. This robust performance was driven by significant contributions from the international business and defense sectors.

Financial Highlights

• EBITDA: Solar Industries posted a record quarterly EBITDA of INR 564.00 crores, up 19% year-on-year.
• PAT: The company's Profit After Tax (PAT) reached INR 353.00 crores, representing a 17% increase compared to the same quarter last year.

Segment-wise Performance

International Business

The international business segment recorded a stellar 43% year-on-year growth, reaching INR 826.00 crores in revenue. This performance was attributed to the company's strategic manufacturing facilities across nine countries and its global distribution network spanning 90 countries.

Defense Sector

Defense revenue surged by an impressive 115% year-on-year, amounting to INR 418.00 crores. The company maintains a strong defense order book of approximately INR 15,000.00 crores.

Domestic Market

The domestic explosives market faced challenges due to an early monsoon and milder heat waves, which impacted demand. However, the company remains optimistic about growth in the mining, housing, and infrastructure sectors in the upcoming quarters.

Product Development and Testing

Solar Industries successfully tested its Bhargavastra and Rudrastra products during the quarter, reaffirming the strength of its R&D capabilities. The company also plans to start commercial production of 155mm shells soon.

Future Outlook

Management expects to achieve its annual revenue guidance of INR 10,000.00 crores, with INR 3,000.00 crores contribution from the defense segment. The company anticipates commercialization of Pinaka rocket series orders from the end of Q2 or start of Q3.

Management Commentary

Manish Nuwal, Managing Director and CEO of Solar Industries, stated, "Our sustained growth momentum is on account of robust performance, particularly from international business and defense sector. This performance could have been even better had the early monsoon not affected the domestic explosive market."

Financial Position

As of the end of Q1, Solar Industries maintained a positive net cash position of INR 50.00 crores, slightly down from INR 100.00 crores at the end of the previous fiscal year.

Conclusion

Despite challenges in the domestic market, Solar Industries has demonstrated resilience and strong growth potential, particularly in its international and defense segments. The company's focus on innovation and strategic positioning in the global supply chain for the defense sector is expected to drive long-term value for stakeholders.

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.