SOLARINDIA Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,548 Cr
verification pending
Revenue YoY
29%
reported change
EBITDA
₹733 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Solar Industries delivered its strongest-ever Q3 FY26 with revenue of ₹2,548 crore (+29% YoY), EBITDA of ₹733 crore (+37% YoY), and PAT of ₹467 crore (+38% YoY). The performance was driven by robust defense revenue growth of 72% YoY to ₹702 crore and record international revenue crossing ₹1,000 crore (+35% YoY), now comprising 40% of total revenue. The company achieved an all-time high consolidated order book of ₹21,000 crore, with defense contributing ₹18,000 crore. Gross margins improved significantly as raw material cost ratio declined from 53.5% to 48.7%, driven by favorable business mix toward defense and international segments. Management maintained confidence in achieving ₹3,000 crore annual guidance, with Paka rockets expected to contribute from Q4. EBITDA margins of ~29% reflect operational leverage and mix shift, with management targeting sustained 27-28% margins over 3-5 years. Key risks include Q4 execution intensity needed to meet annual guidance and potential delays in new product qualifications (155mm shells).
Colored figures show movement against the previous available record.
Guidance to track
- Management maintained full-year guidance, indicating strong Q4 performance expected as Paka rockets commence supplies and defense execution accelerates.
- With international business ramp-up complete and defense margins at higher levels, management targets 27-28% EBITDA margins sustained over 3-5 years.
- Combining 15% domestic mining growth (10-12% volume growth) with strong defense order book conversion, management projects 20%+ growth for next 3-5 years.
- Working on 155mm caliber ammunition with commercial production started in Q4; awaiting final qualification rounds before full ramp-up.
Risks flagged
- With 9M revenue at ₹6,785 crore, achieving ₹3,000 crore full-year guidance requires Q4 revenue of approximately ₹1,515 crore—a significant ramp-up dependent on Paka rocket commencement.
- Paka rockets were expected to contribute in Q3 but trials remained pending, causing partial deferment to Q4; any further trial complications could impact FY26 guidance achievement.
- Analyst raised questions on 155mm shell capacity and ramp-up contribution; management declined to share specific capacity details citing policy, with final qualification still pending.
- With ~40% revenue from international markets and Africa as key geography, currency availability issues and forex fluctuations remain ongoing operational challenges, though currently managed at ~₹20 crore cost.
Key quotes
- International orders will also keep converting at a larger level. So from Q4 onwards I think you can see better numbers from India as well as overseas markets.
- We are confident that we should be able to maintain the margins around 27-28% as we move forward also.
- Growing at 20% plus is not at all difficult for Solar at this stage for next 3 to 5 years down the line.
- Once Pinaka will also start in Q4 will grow up and these international orders will also keep converting at a larger level.
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