CRISIL Upgrades Outlook To Positive For Solar Industries India Backed By ₹21,200 Crore Order Book And Defence Growth

Solar Industries India Limited has received a positive update in its credit profile, as CRISIL Ratings revised its long-term outlook from “Stable” to “Positive” while reaffirming its “CRISIL AA+” rating on bank loan facilities and non-convertible debentures. This revision reflects improving confidence in the company’s overall business strength, supported by its growing scale and expansion into the defence sector.

The company has shown strong financial growth over the past few years. Its revenue has increased significantly from ₹2,515 crore in fiscal 2021 to an estimated ₹9,500–10,000 crore in fiscal 2026. A key contributor to this growth has been its defence business, which now accounts for about 24% of total revenue compared to just 5% five years ago. As of December 31, 2025, the company’s order book stood at around ₹21,200 crore, of which defence orders alone made up ₹18,000 crore. This provides strong visibility for future growth.

Apart from defence, the company continues to hold a strong position in the explosives industry, with around 24% market share in India. It operates the world’s largest single-location plant in Nagpur and has expanded its presence globally with manufacturing facilities in Nigeria, Zambia, Turkiye, and Australia. Its international business remains an important growth driver, contributing about 41% of revenue in the first nine months of fiscal 2026.

The company’s financial position remains strong, with operating margins improving to about 26.5%. This has been supported by its focus on high-margin defence products and its backward integration strategy in manufacturing raw materials. CRISIL estimates that the company’s net worth will reach around ₹5,973 crore by March 2026. It is also expected that internal cash generation will be sufficient to fund its planned capital expenditure of about ₹2,000 crore without affecting its debt levels.

However, certain risks remain. The explosives business is highly regulated, which may impact operations. The company is also exposed to foreign exchange fluctuations due to its international operations. Additionally, CRISIL is monitoring past legal matters related to promoter groups, although these have not affected business performance so far.

On the ESG front, the company has reported zero lost-time injuries in fiscal 2025, showing strong focus on safety. Its governance structure is supported by a board with 50% independent directors. Overall, the positive outlook reflects the company’s steady transformation and growth potential.