Synopsis: Morgan Stanley initiated coverage on Solar Industries India Limited with an “Overweight” rating and ₹16,151 target, citing strong defence growth, rising global presence, and robust earnings outlook through FY30.
This Large-cap Defence Stock, engaged in manufacturing industrial explosives, detonators, defence ammunition, rockets, and blasting solutions for the mining and military sectors, is in focus after Morgan Stanley gave a target of Rs. 16,151, which has an upside potential of 21.55 percent.
With a market capitalization of Rs. 1,21,802.78 crore, the shares of Solar Industries India Limited were currently trading at Rs. 13,460.35 per equity share, rising nearly 1.30 percent from its previous day’s close price of Rs. 13,287.40.
News
Morgan Stanley, a prominent brokerage firm, has recommended an “Overweight” call on Solar Industries India Limited with a target price of Rs. 16,151 per share, indicating an upside potential of 21.55 percent from its previous day’s close price of Rs. 13,287.40.
Morgan Stanley has initiated coverage on Solar Industries India Limited with an ‘Overweight’ rating, citing a strong and diversified growth strategy. The brokerage believes the company is well-positioned to benefit from rising opportunities in both domestic and international markets, particularly in defence and explosives. Its expanding order book and execution capabilities provide strong visibility for sustained growth over the next few years.
Morgan Stanley expects the company’s earnings to grow at a 23 percent CAGR between FY26 and FY30. This growth is projected to be driven by a 36 percent CAGR in the defence segment and 14 percent CAGR in the international explosives business. Overall, revenue, EBITDA, and adjusted PAT are estimated to grow at 20 percent, 22 percent, and 23 percent CAGR, respectively.
The brokerage also expects defence contribution to increase from 27 percent in FY26E to 44 percent by FY30, supported by strong order execution and fresh inflows, strengthening long-term growth prospects.
Order Book
As of December 2025, Solar Industries India Limited has an order book of over Rs. 21,200 crore, supported by consistent demand from Coal India Limited (CIL), SCCL, and the defence sector. This strong order pipeline provides clear long-term revenue visibility and strengthens the company’s position as a leading player in explosives and defence manufacturing in both domestic and global markets.
Revenue Mix for Q3 FY26
In Q3 FY26, Solar Industries India Limited reported a diversified revenue mix, with the international business contributing 40 percent of total sales and the defence segment accounting for 28 percent.
Coal India Limited (CIL) and housing & infrastructure each contributed 10 percent, while non-CIL institutional customers added 11 percent. The remaining 1 percent came from other segments, reflecting a balanced portfolio with growing support from global and defence operations.
Company Overview
Solar Industries India Limited is a leading explosives manufacturer specializing in industrial and defence applications. The company engages in producing bulk and packaged emulsion explosives, detonators, detonating cords, initiating systems, and accessories for mining, quarrying, infrastructure, and construction sectors. The company also develops defence products like ammunition, rockets, missiles, warheads, high-energy materials, and unmanned systems for military needs.
Recent Quarter Results
Coming into financial highlights, Solar Industries India Limited’s revenue has increased from Rs. 1,973 crore in Q3 FY25 to Rs. 2,548 crore in Q3 FY26, which has grown by 29.14 percent. The net profit has also grown by 38.17 percent from Rs. 338 crore in Q3 FY25 to Rs. 467 crore in Q3 FY26.
Solar Industries India Limited’s revenue and net profit have grown at a CAGR of 27.51 percent and 35.79 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 38.1 percent and 38.1 percent, respectively. Solar Industries India Limited has an earnings per share (EPS) of Rs. 160, and its debt-to-equity ratio is 0.17x.
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