Solar Industries reported a 70% rise in Q4 earnings to Rs 548 crore in Q4 against Rs 322.53 crore a year ago.
Revenue from operations rose 41% to Rs 3,052.75 crore in Q4 against Rs 2,166.55 crore in the year-ago period.
The company logged the highest ever quarterly earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 870 crore in Q4 rising 59% from Rs 546 crore in Q4 FY25. EBITDA margin came at 28.51% in Q4 against 25.21% a year ago.
Elara Capital maintain a buy call on the defence stock with a price target of Rs 21,290. Defence revenue surged 134% YoY to Rs 1000 crore. International business clocked a growth of 32% YoY. EBITDA margin expanded 210bps YoY to 27.1%. Defence orderbook stands at Rs 21300 crore. The brokerage raised its FY27/FY28 EPS estimates by 14%/17% for the defence firm.
The multibagger stock rose 4.15% to a record high of Rs 18,088 today against the previous close of Rs 17,351.Market cap of the explosives firm stood at Rs 1.63 lakh crore. Total 0.76 lakh shares of the firm changed hands amounting to a turnover of Rs 135.82 crore.
The stock has clocked multibagger returns of 379% and 1351% in three and five years, respectively.
In terms of technicals, the relative strength index (RSI) of Solar Industries India stands at 47.6, signaling the stock is trading neither in the overbought nor in the oversold zone.
Solar Industries India shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day but higher than the 20 day, 200 day moving averages.
Solar Industries is an India-based manufacturer of industrial explosives for the mining and infrastructure sector. The company offers industrial explosives and defence products.
The stock behind this headline is Solar Industries India Limited, a massive player in the industrial explosives and defence sector. Following a stellar Q4 FY26 earnings report, its shares surged over 4% to hit a record lifetime high of ₹18,088, bringing its total market capitalization to ₹1.63 lakh crore.
The company has been a monumental multibagger, delivering 379% returns over three years and a staggering 1,351% over five years.
Here is a breakdown of why the market and brokerage firm Elara Capital are so bullish on this defence major:
1. Blockbuster Q4 Performance
Net Profit: Surged 70% Year-on-Year (YoY) to ₹548 crore against ₹322.53 crore in the same quarter last fiscal.
Revenue from Operations: Grew 41% YoY to ₹3,052.75 crore.
EBITDA: Logged its highest-ever quarterly EBITDA of ₹870 crore (up 59% YoY), with margins expanding by 330 basis points to 28.51%.
Defence Vertical: The true standout—defence revenue skyrocketed 134% YoY to ₹1,000 crore for the quarter.
2. Aggressive Growth Guidance & Order Book
What really triggered the massive buying sentiment was management’s highly optimistic forward-looking target:
FY27 Revenue Guidance: Upgraded by 42% to ₹14,000 crore, backed by an expected 30% export growth.
Capex Plan: Increased by 32% to ₹2,050 crore to ramp up capacities.
Order Book: Robust defence order pipeline standing firm at ₹21,300 crore.
Brokerage View: Elara Capital
Elara Capital maintained its 'Buy' rating on Solar Industries, raising its target price to ₹21,290 (implying a further upside of nearly 18% from its peak price).
The brokerage also raised its Earnings Per Share (EPS) estimates for FY27 and FY28 by 14% and 17% respectively, citing exceptional scale in their domestic defence execution and strong international traction.
Technical Snapshot: Despite hitting all-time highs, the stock's 14-day Relative Strength Index (RSI) hovered around 47.6, indicating that it is fundamentally strong but technically not in an overbought territory yet.
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