Solar Industries Secures ₹2,229 Cr Deal with Coal India, Shares Rise

Introduction

Solar Industries India Ltd, a leading manufacturer of industrial explosives, has secured a significant additional order from the state-owned Coal India Limited. The new contract, valued at Rs 1,746 crore, is for the supply of bulk explosives. This development pushed the company's shares up by over 2%, reflecting positive investor sentiment regarding the firm's growing order book and strong market position.

Details of the New Order

The latest order involves the supply of bulk explosives to various subsidiaries of Coal India. According to a regulatory filing, the contract is set to be executed over a period of two years. This long-term agreement provides clear revenue visibility for Solar Industries and strengthens its partnership with one of the largest coal producers in the world. The company has also clarified that the transaction does not fall under related-party transactions and that none of its promoters have any interest in Coal India.

Consolidated Order Book with Coal India

This new contract is an addition to a previous order the company had received. Earlier, on October 8, 2025, Solar Industries had secured an order worth Rs 483 crore from Southeastern Coalfields Limited (SECL), a key subsidiary of Coal India. With the inclusion of the new Rs 1,746 crore contract, the total order value from Coal India and its subsidiaries now stands at a substantial Rs 2,229 crore. This cumulative value underscores the trust and reliance Coal India places on Solar Industries for its critical operational needs.

Market Reaction and Stock Performance

The announcement was well-received by the market. Following the news, the shares of Solar Industries India advanced 2.13% to close at Rs 12,282.80 on the BSE. During the day's trading, the stock reached a high of Rs 12,366. The company's stock has seen significant movement over the past year, with a 52-week high of Rs 17,820 and a 52-week low of Rs 8,482.50, indicating a volatile but potentially rewarding investment for shareholders.

Key Order Details

Financial Health of Solar Industries

The large order comes on the back of a strong financial performance by Solar Industries. In the second quarter of fiscal year 2026 (Q2 FY26), the company reported a 20.7% jump in its consolidated net profit to Rs 344.97 crore. Its revenue from operations also saw a significant 21.4% increase, reaching Rs 2,082.22 crore compared to the same period in the previous fiscal year. The company's operating performance was also robust, with EBITDA surging 24% to Rs 553 crore and the EBITDA margin expanding to 26.5%. Furthermore, Solar Industries closed the quarter with its strongest-ever order book, exceeding Rs 17,100 crore.

A Look at Coal India's Position

While Solar Industries is on an upward trajectory, its client, Coal India, reported a contrasting financial performance for the same quarter. The coal mining major's consolidated net profit fell by 30.32% to Rs 4,354.24 crore in Q2 FY26. Its total income also saw a marginal decline of 1.10% to Rs 32,327.16 crore. Coal India is a critical supplier to the power and steel sectors, and its operational requirements for explosives remain high despite fluctuations in its financial results.

Company Profile and Industry Standing

Established in 1995, Solar Industries India is a major player in the chemicals sector, specializing in commodity chemicals. The company manufactures a complete range of industrial explosives, including packaged emulsion explosives, bulk explosives, and various initiating systems. Its products are essential for the mining, infrastructure, and construction industries. Additionally, the company has a growing presence in the defence sector, supplying high-energy explosives, delivery systems, and ammunition.

Conclusion

The additional order from Coal India is a significant win for Solar Industries, reinforcing its leadership position in the explosives market. It not only boosts the company's total order book to a record high but also secures a steady revenue stream for the next two years. For investors, this development signals strong operational health and a positive outlook, supported by solid quarterly financial results and a growing demand for its products across key sectors.