Solar Industries Q4 Net Profit Jumps 43% to ₹348 Crore

22 May 2025 , 08:58 AM

Industrial explosives and defence solutions’ major Solar Industries Ltd is eyeing sales of ₹10,000 crore by FY26, around 33% more than what it achieved in the previous fiscal. Defence segment will contribute ₹3,000 crore in revenue in FY26 to this growth.

The company had posted ₹1,355 crore in defence revenue in FY25  just marginally below its previous guidance of ₹1,400–1,500 crore. The ₹3,000 crore estimate for FY26 is more than double the YoY.

Capex and Investment Strategy

Solar Industries has revealed a capex plan of ₹2,500 crore for FY26 to back such ambitious growth strategy. This is more than double the ₹1,200 crore spent in FY25, and reflects the company’s long-term focus on investing in R&D and capacity.

The capex spend will be directed at:

• Up to current production volume
• Embracing cutting-edge techniques
• Diversification of product portfolios into next-generation munitions and aerospace systems

It has also signed a ₹12,700 crore MoU with the Maharashtra government for long-term investments in the defence and aerospace manufacturing sector over the next 10 years.

Q4 FY25 Financial Highlights

The company’s net profit in Q4 March 2025 rose 43.4% to ₹348 crore compared to net profit of ₹242.7 crore in Q4 March 2024 due to strong growth in core verticals. Revenue increased 34.5% YoY to ₹2,166.6 crore, compared to ₹1,610.7 crore in Q4 FY24.

The EBITDA for the quarter advanced 52.6% YoY to ₹539.7 crore. EBITDA margins increased by around 300 bps clocking 24.9% in Q4 FY25 versus 22% in Q4 FY24-million, depicting of better operating leverage and product mix.

Dividend Announcement

The Board of Directors have announced a dividend of ₹10 per share.