Shares of Solar Industries, a prominent defence sector firm and explosives manufacturer, soared to a new record high today. The surge follows the announcement of stellar fourth-quarter earnings, which saw the company's profit jump by 70% year-over-year.
The multibagger stock climbed 4.15% to reach Rs 18,088, up from its previous close of Rs 17,351, pushing its market capitalization to Rs 1.63 lakh crore. Over the past three and five years, Solar Industries has delivered remarkable returns of 379% and 1351%, respectively.
Strong Q4 Performance Drives Growth
For the fourth quarter, Solar Industries reported a significant 70% increase in profit, reaching Rs 548 crore compared to Rs 322.53 crore in the same period last year. Revenue from operations also saw a substantial rise of 41%, hitting Rs 3,052.75 crore against Rs 2,166.55 crore a year ago.
The company achieved its highest-ever quarterly earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 870 crore in Q4, marking a 59% increase from Q4 FY25. The EBITDA margin expanded to 28.51% from 25.21% in the year-ago period.
Future Outlook and Analyst Confidence
Solar Industries also provided strong guidance for FY27, projecting a 42% increase in revenue to Rs 14,000 crore and a 32% rise in capital expenditure to Rs 2,050 crore. The company aims for a 30% growth in exports, further bolstering positive sentiment around the stock.
Elara Capital has maintained a 'buy' rating on Solar Industries, setting a price target of Rs 21,290. The brokerage highlighted a 134% year-over-year surge in defence revenue, reaching Rs 1,000 crore, and a 32% growth in its international business. The defence order book currently stands at an impressive Rs 21,300 crore. Elara Capital has also raised its FY27/FY28 EPS estimates for the firm by 14% and 17% respectively.
Technical Indicators and Company Profile
Technically, the Relative Strength Index (RSI) for Solar Industries India stands at 47.6, indicating that the stock is neither in the overbought nor oversold zone. Shares are trading above their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 150-day moving averages, suggesting a positive short to medium-term trend.
Solar Industries is an India-based manufacturer specializing in industrial explosives for the mining and infrastructure sectors, alongside a growing portfolio of defence products.