Shares of Solar Industries edged higher in intra-day trade on Tuesday, March 4, after securing a significant order from the Ministry of Defence.
Solar Industries announced that its wholly owned subsidiary, Solar Defence and Aerospace, has signed a contract worth ₹239 crore with the Ministry of Defence, Government of India, for the supply of multi-mode hand grenades. The order is set to be executed within a year.
Solar Industries India (SIIL), the flagship company of the Solar Group, specializes in manufacturing bulk explosives, packaged explosives, and initiating systems for the mining, infrastructure, and construction industries. The company entered the defence sector in 2010, expanding its portfolio to include propellants for missiles and rockets, warheads, and warhead explosives.
The company reported a strong financial performance in Q3 FY25, with consolidated net profit surging 54.86 percent to ₹314.87 crore, driven by a 38.06 percent rise in sales to ₹1,973.08 crore compared to Q3 FY24.
Stock Price Trend
Shares of Solar Industries climbed as much as 1.5 percent to an intra-day high of ₹9,115.10. Despite the recent gain, the stock remains over 31 percent below its peak of ₹13,300.00, recorded in July 2024. However, it has rebounded nearly 33 percent from its 52-week low of ₹6,864.05, hit in March 2024.
In the past year, the stock has advanced over 31 percent, while delivering multibagger returns of approximately 700 percent over the last five years. In the first two sessions of March, the scrip has gained 4.5 percent, recovering from a 14.5 percent decline in February. It had also posted a 4 percent gain in January.
Solar Industries’ latest defence order strengthens its position in the sector, reinforcing its growing presence in military-grade explosives and propellants. While the stock has corrected from its peak, its long-term trajectory remains robust, reflecting the company’s expansion strategy and strong financials. Investors continue to track developments, particularly in the defence business, which could drive future growth.
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