Multibagger mid-cap defence stock in focus: Defence stocks are buzzing on the Indian stock market, witnessing a continued surge in demand from Dalal Street investors, helping the sector regain much of its lost momentum. These stocks have caught investors’ attention this month amid rising geopolitical tensions, following a period of subdued performance due to valuation concerns.

Nevertheless, some defence stocks—regardless of market volatility—have managed to stay on investors’ radar, recording a spectacular surge in value, and one such stock in this regard is Solar Industries.

The company, which manufactures and supplies industrial explosives and explosive accessories, has seen its share price soar massively in the last two years, rising from ₹3,740 to ₹16,200, resulting in a phenomenal gain of 333%.

Impressively, the stock closed 17 out of the last 24 months in the green, with March being the biggest monthly gain of 29%, followed by the current month with a rally of 23% so far. In today’s session, the stock touched another record high of ₹16,205 apiece.

The sharp rally in this mid-cap defence stock has boosted its market capitalization by ₹1,12,639 crore, taking it to ₹1,46,448 crore. 

While many retail investors believe that low-priced stocks offer the quickest path to wealth creation, the steady ascent of Solar Industries underscores that strong fundamentals and a solid position in the industry can drive significant stock price growth—regardless of the stock’s trading value.

Reports highest-ever quarterly revenue and net profit for both Q4 and FY25

Solar Industries reported its highest-ever quarterly and annual performance in FY25, with revenue reaching ₹2,167 crore for the quarter and ₹7,540 crore for the year.

The company also delivered record quarterly EBITDA and PAT of ₹546 crore and ₹371 crore, marking a year-on-year growth of 47% and 42%, respectively.

On an annual basis, EBITDA stood at ₹2,031 crore and PAT at ₹1,288 crore, reflecting growth of 44% and 47%. The company achieved an EBITDA margin of approximately 27%, exceeding its annual guidance.

It has reinforced its position as a major defence player globally, with its order book crossing ₹15,000 crore, including a ₹6,084 crore order for Pinaka rockets and ₹8,500 crore in international contracts, as per the company’s Q4 earnings’ filing. 

Targets ₹3000 revenue from explosives segment

Looking ahead to FY26, the company is targeting 15–20% growth in its explosives segment and aims to surpass ₹3,000 crore in defence revenue, contributing to a projected total revenue of ₹10,000 crore, with defence expected to account for over 30%, up from 18%.

As part of the Atmanirbhar Bharat initiative, Solar signed a ₹12,700 crore MoU with the Maharashtra government to invest in defence and aerospace over the next decade.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.