Solar Industries India, through its wholly-owned subsidiary Solar Defence and Aerospace, has secured a Rs 2.39 billion contract from the Ministry of Defence. Under the agreement, the company will supply multi-mode hand grenades, with delivery scheduled within a year. This contract strengthens the company’s role in the defence sector by enhancing national security capabilities.

Solar Defence and Aerospace specialises in manufacturing and supplying advanced defence products. Recently, Solar Industries India, along with its subsidiary, received orders worth Rs 21.50 billion from an international entity for the supply of defence equipment. These orders are expected to be fulfilled over the next six years.

Despite steady growth in the defence segment, the company has revised its revenue projections for FY25. The previously set 30 per cent revenue growth target will not be achieved due to a slowdown in the domestic market. While defence revenue is expected to remain stable, fluctuations of 5-10 per cent are anticipated. The execution timeline for the Pinaka order is projected to extend over 8-12 years. However, the company expects an improvement in profit margins despite the slower revenue growth.

Financial performance in the December quarter reflected strong growth, with net profit increasing by 55 per cent to Rs 3.14 billion. Revenue for the quarter rose by 38 per cent to Rs 19.73 billion, compared to Rs 14.29 billion in the same period the previous year.

News source: CNBC TV18