Anand Rathi's research report on Solar Industries India
We initiated coverage on SIIL on 27-Oct, 2025 with a HOLD, as we believed valuations had priced in higher growth. However, rollout of Defence Procurement Manual (DPM)-2025 from 01-Nov, 2025 provides visibility of faster growth due to faster decision-making from Armed forces, awarding of 5-year rolling contracts, and a level playing field for private players vis-à-vis Defense Public Sector Unit. While the transition to the new framework may temporarily moderate near-term order awards, it meaningfully expands SIIL’s medium-term opportunity pipeline, where competitive intensity remains minimal.
Outlook
Reflecting this, we raise our revenue estimates by 0.2%/ 1.0%/ 9.2% and EPS by 2.9%/ 4.8%/ 14.2% for FY26/ 27/ 28, respectively. Accordingly, our TP now stands at Rs17,859 (60x FY28e EPS). With an implied ~30% upside, we upgrade SIIL to BUY.
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