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

Executive summary

• Achieved record quarterly revenue of ₹1,973 crores, up 38% year-over-year, with EBITDA up 46% to ₹536 crores and PAT up 52% to ₹338 crores; nine-month revenue reached ₹5,374 crores and PAT ₹942 crores.

• 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 in Q3.

• Order book at a record high of over ₹7,100 crores, with defense order book at ₹4,971 crores and expected to rise to ₹11,000 crores with new 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

• Q3 revenue increased 38% year-over-year from ₹1,429 crores to ₹1,973 crores; Q3 EBITDA rose 46% to ₹536 crores; PAT up 52% to ₹338 crores.

• Nine-month revenue up 21% to ₹5,374 crores; nine-month EBITDA up 43% to ₹1,485 crores; nine-month PAT up 49% to ₹942 crores.

• Consolidated net profit for Q3 FY25 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.

• Raw material consumption as a percentage of sales remained stable at ~52%; employee costs and other expenses increased in line with revenue 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 expected to fall short of 30% guidance due to subdued domestic demand, but EBITDA and PAT margins are exceeding initial expectations.

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

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

• Long-term vision of 20%+ top-line growth over the next 3-5 years remains intact, with 15% volume growth targeted in both domestic and international markets.