Solar Industries Q1 result: Net profit rises 18.2% to ₹339 crore; EBITDA margin contracts

The defence company’s revenue from operations increased 28% YoY to ₹2,154 crore during the quarter under review, as against ₹1,685 crore in the first quarter of FY25.

The firm sustained growth momentum on account of robust performance, particularly from international business and the defence sector. However, this performance could have been even better had the early monsoon not affected the domestic explosives market, the company said in a regulatory filing.

Solar reported a 115% YoY growth in its defence revenue, which stood at ₹418 crore during the first quarter of FY26, driven by a strong defence order book worth ₹15,000 crore. With the commercialisation of Pinaka orders in FY26, the company projects its defence domain to achieve next-level growth per its earlier guidance.

It recorded the highest-ever quarterly sales from the international business, which was at ₹826 crore during the reporting quarter, growing 43% YoY, bolstered by strategic manufacturing facilities in nine countries and its global distribution network, which spans over 90 countries.

At an operational level, the company clocked the highest-ever quarterly EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, at ₹564 crore in Q1FY26, jumping 19% YoY from ₹474 crore in the year-ago period.

However, its EBITDA margin contracted to 26.18% in the first quarter of FY26, compared to 28.11% in the June FY25 quarter.

Solar’s turnover stood at ₹2,154 crore, registering a 28% YoY increase over Q1 of the previous fiscal year.

Commenting on the earnings, Manish Nuwal, Managing Director and CEO of Solar Industries, said: “The successful testing of Bhargavastra- our indigenous anti-drone system and Rudrastr-hybrid Vertical Take-Off and Landing (VTOL) UAV in the quarter reaffirms the strength of R&D capabilities. Repeat orders for UAVs and Multi-Mode Hand Grenades have reaffirmed the quality of our products, bolstered users’ confidence, and established us as a trusted partner in the Atmanirbhar Bharat initiative.”

“The mining industry had lower demand due to milder heatwaves, early monsoon, and geopolitical developments tested industry resilience. However, we remain optimistic about growth in the mining and housing, and infrastructure sectors in the upcoming quarters as the domestic cycle revives post-monsoon,” he added.

Solar has been strategically positioning itself as a global supply chain partner in the defence sector, especially with a proven global footprint and deep integration into commercial explosives, Nuwal said.

Shares of Solar Industries closed 0.63% lower at ₹14,919 apiece on the National Stock Exchange (NSE) on Thursday.

The defense company has a total market capitalisation of ₹1.35 lakh crore, as of August 7, 2025, as per data on the NSE.