Whalesbook
Defence Segment Set for Expansion
Solar Industries India is targeting substantial growth. Managing Director and Chief Executive Officer Manish Nuwal projects consolidated revenues to exceed ₹14,000 crore by fiscal year 2027, a jump of over 40%. The company's defense division is expected to be a key revenue driver, with sales forecast to reach more than ₹4,500 crore by FY27. International markets are anticipated to provide about 70% of this defense revenue.
Bhargavastra: A Potential New Growth Engine
Future growth may also come from the company's new Bhargavastra anti-drone system. Trials are scheduled to finish this year, with commercial sales expected within two years. Nuwal noted the system's potential, suggesting it could grow to become larger than the current Pinaka rocket program. The Pinaka program currently generates ₹500-550 crore annually, with potential additional orders for guided versions expected to add ₹700-800 crore per year from FY27.
Margins Stable Despite Cost Pressures
Despite rising costs for raw materials like ammonium nitrate, Solar Industries expects to maintain strong profit margins. Nuwal confirmed that contract terms, including monthly price adjustments, allow the company to pass higher input costs to clients. Last year, margins were around 27%, improving to approximately 28% in the recently concluded fiscal year. Management expects these higher margins to continue, supported by growth in defense and international sales.