Frequently asked questions
Is Solar Industries India a buy at current prices?
DalalBytes rates Solar Industries India Selective Positive at 67/100. FY26 revenue rose 31% to Rs 9,838 crore with PAT up 35% to Rs 1,737 crore, Q1 FY27 revenue rose 70% with PAT up 89%, and the order book is Rs 21,350 crore. The selective part is price and risk: about 91x trailing earnings, negative FY26 free cash flow, and a pending Rs 12,951 crore all-cash Omnia acquisition.
What are Solar Industries India's FY2029 price targets?
DalalBytes' FY2029 targets for Solar Industries India are bear Rs 12,500, base Rs 23,500, and bull Rs 33,000, from a Rs 20,080 reference price (NSE close, October 16, 2026). The scenarios build on FY26 EPS of Rs 185.38. Bear: 15% PAT CAGR, about Rs 282 EPS, 44x exit. Base: 28% CAGR, about Rs 405 EPS, 58x. Bull: 38% CAGR, about Rs 508 EPS, 65x, with Omnia synergies landing early.
What is the verdict on Solar Industries India?
The business quality grades in the low 80s: a licensed, qualified, high-return franchise with a Rs 21,350 crore order book, 28% operating margins and 38.1% ROCE. Four deductions bring it to 67: the 91x multiple, a fortress being spent (negative FY26 free cash flow and the Omnia cash call), integration of a larger and partly non-core business across 23 countries, and a permanent safety deduction after the December 2023 Chakdoh blast killed nine workers.
How did Solar Industries India start?
Satyanarayan Nandlal Nuwal, who left school after Class 10, spent years supplying coal mines and working as a consignment agent for ICI before founding Solar Industries in Nagpur in 1995 and starting manufacturing in 1996. The decisive second bet was defence: entering a state monopoly a decade before policy opened it, winning licences from 2010 and the first private ammunition order in Indian history, for multi-mode hand grenades.
What does Solar Industries India sell?
Industrial explosives and initiating systems for mining and infrastructure (about 34% of FY26 revenue domestically and about 39% internationally), and defence products at about 27% of revenue: high-energy materials, filled ammunition, hand grenades, Pinaka rockets, BrahMos boosters, Akash propellants, warheads and counter-drone systems. Q1 FY27 mix shifted further: defence revenue of Rs 933 crore, up 123%.
What do Solar Industries India's financials show?
Consolidated revenue rose from Rs 3,948 crore in FY22 to Rs 9,838 crore in FY26, operating profit from Rs 748 crore to Rs 2,717 crore (margin 19% to 28%), and PAT from Rs 455 crore to Rs 1,737 crore, with EPS of Rs 185.38. Q1 FY27 was the strongest quarter in the series: revenue of Rs 3,668 crore, up 70%, and PAT of Rs 666 crore, up 89%. The warning sits in cash flow: FY26 operating cash flow fell to Rs 621 crore and free cash flow was negative Rs 1,072 crore.
What is the Omnia acquisition?
On September 14, 2026, Solar agreed to acquire 100% of South Africa's Omnia Holdings for about US$1.355 billion (Rs 12,951 crore) in cash at ZAR 134.5 per share. Omnia reported FY26 revenue of about US$1.41 billion, operates in 23 countries, and brings the BME mining explosives brand plus integrated ammonium nitrate capacity. Completion is expected early to mid FY28, subject to approvals. The stock fell 13.64% on the announcement's next trading day.
Who runs Solar Industries India, and is governance clean?
The Nuwal family holds 73.15%, unchanged for years on Screener's record, with a small pledge of about 1.5% of the promoter holding at December 2025 (Trendlyne). Founder Satyanarayan Nuwal, a Padma Shri recipient, chairs the company; his son Manish Nuwal is Managing Director and CEO and fronted the Omnia announcement. The dividend payout has been cut to 6% as earnings are retained for capacity and acquisitions. The open items are the safety record and the scale of the Omnia bet, sized at roughly twice net worth.
What is Solar Industries India worth?
At Rs 20,080: P/E of about 91x trailing earnings (TTM EPS Rs 220.06) and roughly 85x FY27 estimated earnings per Bloomberg via Mint, P/B of about 29x, dividend yield of 0.05%, market capitalisation of about Rs 1,81,394 crore, and a price about 12% below the 52-week high of Rs 22,700 (range Rs 11,641 to 22,700). FY2029 scenarios: bear Rs 12,500 (15% PAT CAGR, 44x), base Rs 23,500 (28% CAGR, about Rs 405 EPS, 58x), bull Rs 33,000 (38% CAGR, 65x). The base case is about 17% above the reference price: the return from here is delivery, not re-rating.
What are the key risks for Solar Industries India?
Valuation first: at 91x, slippage de-rates earnings and multiple together. Then Omnia: an all-cash, Rs 12,951 crore acquisition of a larger target with a cyclical agriculture arm, closing early to mid FY28. Then cash conversion: a 152-day cycle in FY26 with receivables funding defence and export growth. Then safety, which in explosives is a licence risk: the December 2023 Chakdoh explosion killed nine workmen, and a second fatal explosion followed at the Nagpur complex in September 2025, killing one worker and injuring eight. Then sovereign concentration: Coal India in mining, and the Indian state as defence customer, price-setter and payment clock.
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