Solar Industries’ Defence Orders, Pinaka Push Raise Growth Questions
Solar Industries makes industrial explosives used in mining and infrastructure projects. Over the last few years, however, the company has quietly transformed itself into something much larger: a serious defence manufacturing player with growing international exposure. Between FY21 and FY25, earnings per share (EPS) grew from Rs 31.9 to Rs 142.5, a CAGR of roughly 45%. During the same period, Return on Equity (ROE) improved from 18% to 29%. High growth and high capital efficiency sustained over five years. The stock price reflects that rate of change. While EBITDA margin touched an all-time high of 28.77% in the December 2025 quarter, revenue growth slowed to 29%. That could simply be a temporary pause. Meanwhile, the company’s order book has crossed Rs 21,200 crore, roughly 2.8 times FY25 revenue, and CRISIL revised its outlook on the company to ‘Positive’ in April 2026. But there is an important question investors must ask. Can a 45% EPS growth rate continue? The next phase of growth will depend on three things: order book conversion, the commercial launch of the …


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