Solar Industries India (SOLARINDS) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of ₹1,973 crores, EBITDA of ₹536 crores, and PAT of ₹338 crores, with revenue up 38% and PAT up 52% year-over-year.

• Defense segment delivered its highest-ever quarterly revenue at ₹409 crores, up 570% year-over-year, and international business revenue grew 21% year-over-year to ₹758 crores.

• Order book reached a record high of over ₹7,100 crores, with defense orders at ₹4,971 crores and total order book at ₹7,122 crores.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved by the Board and reviewed by auditors.

• The group operates in a single segment: explosives, accessories, and related services.

Financial highlights

• Q3FY25 consolidated revenue was ₹1,973.08 crore, up from ₹1,429.14 crore in Q3 FY24; nine-month revenue was ₹5,374 crores, up 21% year-over-year.

• Q3FY25 consolidated net profit was ₹337.50 crore, up from ₹221.94 crore in Q3 FY24; nine-month net profit was ₹941.82 crore, up from ₹632.52 crore year-over-year.

• EBITDA margin for the group at 27%, with Q3FY25 at 27.17% and 9MFY25 at 27.63%.

• Basic and diluted EPS (consolidated) for Q3 FY25 was ₹34.80, up from ₹22.47 in Q3 FY24.

• Material consumed as a percentage of net sales decreased to 51.02% in 9MFY25 from 53.08% in 9MFY24.

Outlook and guidance

• Annual defense revenue guidance of ₹1,500 crores is expected to be met, with a possible 5-10% variance.

• Overall revenue growth for the year will fall short of the 30% target due to subdued domestic demand, but EBITDA and PAT margins are exceeding initial guidance.

• Management expects to maintain 26-27% EBITDA margins, supported by defense and international growth.

• Long-term vision of 20%+ annual revenue growth over the next 3-5 years, with 15% volume growth in traditional and international markets.

• Results have been prepared in accordance with Ind AS 34 and reviewed by statutory auditors, with no material misstatements identified.