Solar Industries shares hit a fresh high of Rs 22,200, pushing its market cap past Rs 2 lakh crore, as the stock’s rally continues.

The explosives and defence manufacturer has had a sharp run over the past month, with the stock climbing more than 20% even as the broader market stayed weak.

Part of the buying interest has come from reports that the company may be looking to acquire a firm based in South Africa.

Solar Industries responded to exchange queries on this by saying it regularly evaluates growth opportunities, and that there is no confirmed development requiring formal disclosure at this stage.

Behind the stock’s momentum lies a strong operating performance. In the June quarter, Solar Industries reported a consolidated net profit of ₹653 crore, up 92.6% from the same period last year, while revenue from operations rose 70% to ₹3,668 crore.

Operating margins also expanded during the quarter, supported by a rising share of defence and export business, which tend to carry higher margins than the company’s core explosives operations.

The defence segment has been the standout performer, growing 123% year on year to ₹933 crore and now making up about a quarter of total sales.

International explosives sales grew 65% to ₹1,364 crore, while domestic explosives revenue rose 52% to ₹1,361 crore.

As of end June, the company’s order book stood at ₹21,350 crore, which includes a large defence order for Pinaka rocket systems.

Earlier this month, credit rating agency ICRA reaffirmed its ratings on the company’s commercial paper, citing healthy revenue growth through FY26 and expectations that the momentum will continue into FY27 on the back of defence orders and steady offtake from coal sector clients.

With this latest move, Solar Industries has climbed to the 45th spot in India’s overall market capitalisation rankings, up sharply from 90th at the start of the year.

At 12:57 pm on Monday, the stock was trading at ₹22,010, up 2.63% for the day.

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