Goldman Sachs has maintained its buy rating on Solar Industries India Ltd with a target price of ₹18,215 per share following a strong Q2FY26 performance that surpassed estimates. The brokerage highlighted broad-based strength across defence and international businesses, which recorded their best-ever quarterly revenues.
EBITDA rose 24% year-on-year to ₹5.5 billion, while EBITDA margin expanded by 172 basis points sequentially to 26.5%, reflecting improved operating leverage and product mix. Capex stood at ₹7.6 billion in the first half of FY26, compared to ₹10.1 billion for the entire FY25, indicating accelerated investment momentum.
Working capital days increased modestly to 97.5 from 85.2 at the end of FY25, which Goldman Sachs attributed to higher defence inventory and execution-linked timing differences. The company’s order book stood at ₹171 billion as of September 2025, with defence contracts contributing nearly ₹155 billion, underscoring its dominant position in the segment.
Goldman Sachs remains positive on Solar Industries’ long-term growth trajectory, citing a healthy order pipeline, rising export contribution, and sustained government-led defence spending as key drivers for earnings visibility.
Disclaimer: The views and recommendations above are those of Goldman Sachs. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
