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News: Solar Defence & Aerospace Ltd., a wholly owned subsidiary of Solar Industries India Ltd, has signed a ₹158 crore contract with the Ministry of Defence. As per the media reports, the contract is for the supply of 450 Nagastra-1R loitering munitions. The contract is placed under emergency procurement route and will be executed within one year
View: With an order backlog of ~Rs 15400+ crore (11.3x TTM revenue), defence segment is expected to witness strong growth in the coming period. Order pipeline remains strong in the defence segment (including Rudrastra drones, Bhargavastra counter drone system, Sebex 2.0 explosive and repeat orders for platforms like Pinaka rockets & Nagastra loitering munitions). Growth in other segments (bulk explosives, overseas & exports) are also expected to pickup in the coming period. Management's revenue growth guidance stands at 32% YoY for FY26E.
Impact: Positive