Solar Industries Shares in Focus After Bagging ₹1,746 Cr Coal India Order

Synopsis: Solar Industries India Ltd gained nearly 3% after bagging a Rs. 1,746 crore Coal India order for bulk explosives, lifting total Coal India orders to Rs. 2,229 crore and strengthening its order book and revenue visibility.

The company is one of the largest domestic manufacturers of bulk and cartridge explosives, detonators, detonating cords, and components, which find applications in the mining, infrastructure, and construction industries, is now in the spotlight after securing an order from Coal India.

With a market capitalization of Rs. 1,10,844 cr, the shares of Solar Industries India Ltd are currently trading at Rs. 12,249 per share, increasing nearly 3% in today’s market session, making a high of Rs. 12,350, up from its previous close of Rs. 12,026.20 per share.

An additional contract for bulk explosives has been awarded to Solar Industries India Limited by Coal India Limited through its parent company, at a cost of Rs. 1,746 cr. This contract is to be filled over a period of two years and will be completed entirely in India. The contract follows an earlier announcement made on the 8th October 2025 for a contract worth Rs. 483 cr with South Eastern Coalfields Limited(SECL), a subsidiary of Coal India. 

After receiving this second order, the total value of Solar’s contracts from Coal India has increased to Rs. 2,229 cr. The new order will greatly improve Solar’s revenue generation ability and create an opportunity for continued revenue generation for several years. 

The current contract is for the supply of bulk explosives to Coal India’s subsidiaries. This large contract shows how Solar’s position in the explosive and mining solutions industry is strong, and the continued close working relationship between Solar Industries and Coal India continues to be beneficial for both companies. As of Q2FY26, Solar’s orders stand at over Rs. 17,100 cr.

Solar Industries India Ltd is a major Indian explosives and defense manufacturer. It produces a wide range of industrial explosives, detonators, and initiating systems for sectors like mining, construction, and infrastructure, and has expanded into defense by manufacturing ammunition, propellant, and related technologies.

For the Q2FY26, the company delivered solid year-on-year financial growth where sales rose about 21% to Rs. 2,082 cr compared with Rs. 1,716 cr in Q2FY25, EBITDA increased roughly 24% to Rs. 552 cr from Rs. 445 cr, net profit grew about 19% to Rs. 361 cr from Rs. 304 cr, and EPS climbed around 21% to Rs. 38.12 from Rs. 31.59 in the year-ago period.

It demonstrates strong financial quality and balance-sheet strength, with a high ROCE of 38.1% and ROE of 32.6%, indicating efficient use of both capital and shareholder funds. The company has maintained a low debt-to-equity ratio of 0.17. 

Over the last five years, the company has delivered robust profit growth at a CAGR of 36.2%, highlighting strong execution and demand momentum. Its 3-year average ROE of 32.6% further underlines a strong and consistent return track record.

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