Solar Defence and Aerospace Ltd secures a ₹239 crore contract from the MoD

5 Mar 2025 , 05:20 PM

Solar Industries India Ltd on 4th March 2025 informed that its wholly-owned subsidiary, Solar Defence and Aerospace Ltd has been awarded a ₹239 crore contract from the Ministry of Defence. As per the agreement, the MoD said, the supply of multi-mode hand grenades will be done in a period of one year by Solar Defence and Aerospace Ltd.

The contract is likely to play an important role in enhancing India’s defence manufacturing capabilities and is in line with the government’s vision of self-reliance in the defence segment. On February 28, 2025, the company announced that it, along with its subsidiary, had received ₹2,150 crore defence orders from an international body.

The new orders which will be executed in the next six years would strengthen the company’s long-term revenue pipeline and consolidate it further in the global defence market. Though large orders have come in, the company’s announced it will not meet its 30% revenue growth target for FY25, citing a slow domestic market.

A specified 5-10% variation depending upon market conditions may apply on our defence revenue growth. The order for the Pinaka missile system is anticipated to be executed over a period, spread between 8 – 12 years, thereby further enhancing the company’s long-term business outlook.

Even as it fell short on its own revenue growth forecast, Solar Industries is confident that its profit margins will improve, fueled by strong order inflows and a solid execution strategy.

Solar Industries announced a net profit of ₹314.87 crore in the third quarter of FY24, marking a 55% year-on-year growth.Transaction data includes double information on the three-year period up to October 2023. Quarterly revenue was ₹1,973.08 crore, rising 38% from ₹1,429.14 crore in the same quarter last year. The strong and huge scale contract wins further solidifies the company’s position as a front-runner in defence manufacturing organisations in India.