Solar Industries India (SOIL IN) – Initiating Coverage – Scaling Global Explosives, Building Defense Powerhouse – BUY
Published on 23 Sep 2026
We initiate coverage on Solar Industries India Ltd (SOIL) with ‘BUY’ rating at TP of INR23,124, valuing the stock at PE of 62x Sep’28E (implied EV/EBITDA of 34x Sep’28E). We believe SOIL is well placed to deliver multi-year growth, supported by 1) its ~26% market share in domestic industrial explosives, underpinned by an integrated manufacturing footprint and long-standing customer relationships; 2) strong growth in Defence revenue driven by increasing traction across ammunition, loitering munitions and missile systems; 3) expansion into overseas markets (across 10 countries), providing a meaningful avenue for diversification and scale; 4) leap in its technological capabilities with the development of full spectrum of drone systems (Nagastra, HALE/MALE UAVs, Rudrastra, Bhargavastra); and 5) improvement in profitability through scale and operating leverage. We estimate revenue/adj PAT CAGR of ~28%/~30% over FY26–29E, driven by fastest-growing Defence business, scale-up in international explosives, and favorable revenue mix. The stock is currently trading at 58.7x/48.2x P/E on FY28/FY29E. Initiate with ‘BUY’.
