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Solar Industries India Ltd has returned to the spotlight after securing a major international defence order worth Rs 1,400 crore, prompting global brokerage Goldman Sachs to reaffirm its bullish stance on the explosives manufacturer.

The brokerage maintained its BUY rating and set a target price of Rs 18,215, signalling an upside of over 32 per cent from the stock’s last close of Rs 13,770. Solar Industries, valued at Rs 1.25 lakh crore, is among the world’s most valuable explosives makers.

The fresh international order — the company’s first large global defence contract since February 2025 — will be executed over four years and is expected to meaningfully boost its order inflows from Q3FY26.

Solar Industries, which supplies high-energy materials used in systems such as the Pinaka rockets, operates over 40 manufacturing facilities across nine countries and serves clients in more than 90 nations. It is the only private Indian firm to develop advanced explosives such as SEBEX-2, SITBEX-1 and SIMEX-4.

The company delivered a strong operational performance in the September quarter:

Revenue: Rs 2,082 crore, up 21 per cent year-on-year

EBITDA: Rs 582 crore, up 23 per cent

Net profit: Rs 361 crore, up 19 per cent

EBITDA margin: Improved to 27.95 per cent

In the first half of FY26, revenue grew 25 per cent, EBITDA rose 21 per cent, and net profit increased 18 per cent.

Solar Industries’ defence vertical crossed Rs 500 crore in quarterly revenue for the first time, while the segment contributed 24 per cent of Q2 sales — up sharply from 19 per cent a year earlier. Half-yearly defence revenue climbed to Rs 900 crore, reflecting 57 per cent annual growth.

Managing Director and CEO Manish Nuwal said rising global demand and the commencement of Pinaka rocket sales from Q3 will further improve momentum.

Order book above Rs 17,000 crore

The company’s order book now stands at Rs 17,100 crore, of which Rs 15,500 crore belongs to the defence vertical, underscoring its growing presence in the global ammunition and explosives supply chain.

Promoters hold 73.15 per cent, while mutual funds own 11.70 per cent across 34 schemes. FII and DII ownership stood at 7.11 per cent and 12.90 per cent respectively in the September quarter.

The stock has delivered 40 per cent gains so far this year, 38 per cent in one year, 85 per cent in two years and 250 per cent in three years.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff