Solar Industries lowers FY25 revenue guidance on weak domestic demand, sending shares 6% lower

Solar Industries

The shares of explosives manufacturer Solar Industries plunged by over 5% percent on February 6, after the company informed analysts during its post-earnings call that this is lowering the revenue guidance for FY25. The management said it now expects the revenue growth guidance for FY25 to fall short of the previous estimate 30%, citing a slowdown in domestic demand.

While the revenue growth will be lower than the earlier guidance, margins are expected to improve, said the company.

Solar Industries had reported a consolidated net profit of Rs 314.87 crore for Q3FY25, marking a rise of nearly 55% compared to a year ago. The results were received positively by the Street, resulting in early gains of up to 3 percent on February 6, however, the guidance cut during the concall triggered a sharp fall in shares, sending it deep in the red at Rs 9,086.70 apiece.

The company's revenue from operations stood at Rs 1,973.08 crore during the reported quarter. This is higher by over 38% from the Rs 1,429.14 crore revenue reported in Q3FY24. Its total expenses increased nearly 34% year-on-year to Rs 1,524.47 crore.

The company's EBITDA jumped 38% to Rs 536 crore in Q3FY25 from Rs 367 crore in Q3FY24. Its EBITDA margin also saw an increase to stand at 27.17% during the reported quarter.

Solar Industries claims to be one of the world's leading manufacturers of explosives and initiating systems. It has a worldwide presence with 40 manufacturing facilities. It has a global footprint in 82+ countries with manufacturing facilities in 9 countries.