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% to ₹758 crores.

• Order book reached a record high of over ₹7,122 crores, with defense orders at ₹4,971 crores and expectations to rise to ₹11,000 crores with upcoming Pinaka orders.

• 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

• Quarterly revenue increased 38% year-over-year from ₹1,429 crores to ₹1,973 crores; nine-month revenue up 21% to ₹5,374 crores.

• EBITDA rose 46% to ₹536 crores; PAT surged 52% to ₹338 crores; nine-month PAT up 49% to ₹942 crores.

• EBITDA margin improved to 27.17% in Q3FY25 and 27.63% for 9MFY25.

• Raw material consumption as a percentage of sales remained stable at ~52%; employee and other expenses increased in line with business growth.

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

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.

• Order book stands at ₹7,122 crores, indicating strong future revenue visibility.