Archive · 14 Aug 2026
Solar Industries Q1 profit jumps 93%; brokerages split on stock
Solar Industries is a big company in India that makes special materials used in mining, construction and by the military.
Every few months, companies tell everyone how much money they made, and the company just shared its report for the first quarter.
The company did very well — its profit grew by 93%, almost doubling.
The money it earned from selling its products also grew a lot, going up by 71%.
The biggest growth came from defence products, which grew by 123%.
The company also has many future orders worth Rs 21,350 crore, so it expects to keep growing.
The company wants to earn Rs 14,000 crore next full year.
Some smart money experts think the company will keep doing well and suggest buying its stock.
One expert, however, thinks the stock is too pricey and says people should sell it.
So different experts have different opinions about what happens next.
Solar Industries' Q1 net profit climbed 93% to Rs 653 crore, above the Bloomberg consensus estimate of Rs 519 crore.
Revenue rose 71% to Rs 3,670 crore (versus an estimate of Rs 2,995 crore), led by defence (+123%), international explosives (+65%) and domestic explosives (+52%).
EBITDA grew 82% to Rs 1,024 crore, with margin expanding 290 basis points year-on-year to 27.7%.
The company's order backlog stands at Rs 21,350 crore, including Rs 18,000 crore in defence, and it targets Rs 14,000 crore revenue in FY27.
Brokerages are split: Morgan Stanley (overweight, target Rs 20,270) and ICICI Direct (buy, Rs 23,200) are bullish, Nuvama noted PAT roughly doubled YoY at 26% above consensus, while Kotak Institutional Equities has a sell call at Rs 11,200.
- Who
- Solar Industries, an India-based manufacturer of industrial explosives for the mining and infrastructure sector and defence products.
- What
- Reported strong Q1 earnings, with net profit up 93% to Rs 653 crore and revenue up 71% to Rs 3,670 crore, beating analyst estimates.
- When
- Q1FY27 (first quarter of fiscal year 2027).
- Where
- India, with growth also driven by exports and overseas operations.
- Why
- Broad-based growth and strong execution across defence, international explosives and domestic explosives segments.
Bullish Brokerages
Bearish Brokerage
Stock outlook and target price
Bullish Brokerages
Morgan Stanley is overweight with a target of Rs 20,270 and ICICI Direct maintains buy with a target of Rs 23,200, citing the Q1 earnings beat and strong execution across segments.
Bearish Brokerage
Kotak Institutional Equities is bearish on the stock's outlook with a sell call and target price of Rs 11,200, even after raising FY2027-29 EPS estimates by 2-6%.
Earnings estimate revisions
Bullish Brokerages
ICICI Direct raised FY27-28 estimates significantly, projecting 30% revenue and 32% PAT CAGR over FY26-28E on strong execution.
Bearish Brokerage
Kotak raised FY2027-29 EPS estimates only modestly, by 2-6%, reflecting stronger execution during the quarter without a major change in outlook.
- Company
- Solar Industries (India-based industrial explosives manufacturer)
- Net profit (Q1FY27)
- Rs 653 crore, up 93% YoY versus Rs 519 crore consensus estimate
- Revenue (Q1FY27)
- Rs 3,670 crore, up 71% YoY versus Rs 2,995 crore estimate
- EBITDA
- Rs 1,024 crore, up 82% from Rs 564 crore; margin 27.7% (up 290 bps YoY)
- Order backlog
- Rs 21,350 crore, including Rs 18,000 crore in defence
- FY27 revenue target
- Rs 14,000 crore
- Segment growth (Q1)
- Defence +123%, international explosives +65%, domestic explosives +52%
- Brokerage target prices
- ICICI Direct Rs 23,200 (buy); Morgan Stanley Rs 20,270 (overweight); Kotak Rs 11,200 (sell)