Solar Industries India (SOLARINDS) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly EBITDA of INR 474 crore and PAT of INR 301 crore in Q1 FY25, with turnover at INR 1,695 crore, up 5% sequentially from Q4 FY24 and 0.75% year-over-year.

• EBITDA and PAT margins reached all-time highs at 28% and 18%, respectively, with consolidated net profit margin at 17.73%.

• Domestic explosives volume grew 16% year-over-year, aligning with annual guidance.

• Defense revenue rose to INR 204 crore, up 32% year-over-year, with a robust order book of INR 2,500 crore and total order book at ₹4,754 crore.

• Expansion into Kazakhstan and Thailand and acquisition of ProBlast, South Africa, to strengthen international presence.

Financial highlights

• Revenue for Q1 FY25 was INR 1,695 crore versus INR 1,682 crore in Q1 FY24.

• EBITDA increased 43% year-over-year to INR 474 crore.

• Profit before tax (PBT) rose 50% year-over-year to INR 408 crore.

• PAT grew 49% year-over-year to INR 301 crore.

• EBITDA margin improved to 27.95% in Q1FY25 from 19.69% in Q1FY24.

Outlook and guidance

• Defense revenue guidance for FY25 is INR 1,500 crore, with expectations to comfortably achieve this due to a strong order book and upcoming PINAKA orders.

• EBITDA margin for FY25 expected around 25%, above the previous guidance of 23%.

• Volume growth target for explosives is +15% for the year.

• Acquisition of 73.99% stake in Problast BS Pty (LLP), South Africa, expected to complete by December 2025.

• No major fluctuations expected in ammonium nitrate prices.