Solar Industries India Ltd (NSE: SOLARINDS) Q4 2025 Earnings Call dated May. 21, 2025
Corporate Participants:
Unidentified Speaker
Manish Satyanarayan Nuwal — Managing Director and Chief Executive Officer
Suresh Menon — Executive Director
Milind Deshmukh — Executive Director
Moneesh Agrawal — Joint Chief Financial Officer
Shalinee Mandhana — Joint Chief Financial Officer
Aanchal Kewlani — Investor Relations Manager
Analysts:
Unidentified Participant
Amit Dixit — Analyst
Ravi Naredi — Analyst
Ashish Kumar — Analyst
Umesh Raut — Analyst
Jyoti Gupta — Analyst
Dipen Vakil — Analyst
Raj Rishi — Analyst
Amit Vijay Saoji — Analyst
Hardik Rawat — Analyst
Mohit — Analyst
Kunal Tokas — Analyst
Anirudh Singhi — Analyst
Rakesh Roy — Analyst
Bharat Shah — Analyst
Pratik Mukasdar — Analyst
Het Choksey — Analyst
Chirag Muchhala — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Solar Industries Q4FY25 earnings call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the call over to Mr. Amit Dixit. Thank you. And over to you, sir.
Amit Dixit — Analyst
Yeah. Hi. Thank you, Ayesha. Good morning everyone. And on behalf of ICICI Securities I welcome all the participants for Solar Industries Q4FY25 conference call. @ the outset I would like to thank the management for giving us an opportunity to host this call. From the management today we have Mr. Manish Nawal, MD and CEO, Mr. Suresh Menon, ed. Mr. Milind Deshmukh, ed. Mr. Mohnish Agrawal, joint CFO. Ms. Shalini Mandana, joint CFO and Ms. Anchal Kevlani, SFM and IRM. So without much ado, I will pass it on to Anchal to take it up. Over to you ma’ am.
Aanchal Kewlani — Investor Relations Manager
Thank you so much, Amit. A very good morning to our dear stakeholders and well wishers. My name is Anshal and I would like to welcome you all to the concluding conference call of FY25. To begin with, I would like to remind you that during this call we might make projections for other forward looking statements regarding future events and about the future financial performance of the company. Please remember that such statements are only predictions. Actual events or results may differ materially and our website will be updated with all relevant information timely. Now I would request Solar’s MD and CEO Mr.
Manish Jinuwal for his opening remarks. Over to you sir.
Manish Satyanarayan Nuwal — Managing Director and Chief Executive Officer
Thank you, Achal. Dear esteemed investors, a very good morning. I, Manish Nual, Managing Director and CEO welcomes you all to Solar industries earning call for the fourth quarter and financial year ended 31 March 2025. FY25 has been a pivotal year for Solar. A year where strategy, scale and execution align perfectly to deliver the highest ever revenue and profit. We are happy to report the highest ever sales for the quarter and year at 2167 crores and 7540 crores. We have also achieved the highest ever quarterly EBITDA and and PAT at 546 crores and 371 crores. Registering a growth of 47% and 42% year on year and highest ever Yearly EBITDA and PAT at 2031 crore and 1288 crores registering a robust growth of 44% and 47%.
In the year FY25 we have achieved around 27% EBITDA margin which is more than our annual guidance. Solar’s international business is gaining good momentum and as a result registered an 18% year on year growth. Solar’s ability to expand its global footprint and forging strong relationship with its customers as a trusted partner underscores company strength in identifying and capitalizing on global opportunities. The defense sector revenue has increased from a small base of 517 crores to 1,350 per crore showing a growth of 162%. Years of strategic efforts in building state of the art facilities, developing wide range of products and qualifying products across the customers has positioned Solar as a strong player in defense in the global market.
This is reflected in the substantial increase in in our order book to over 15,000 crores including a landmark order of 6084 crores for Pinaka rockets and contracts of around 8500 crores from international markets. A historic milestone was the inauguration of our state of the art loitering ammunition and testing range by honorable Prime Minister Shri Narendra Modi Ji, a testament to Solar’s growing capabilities in defense and aerospace. Hosting honorable Prime Minister of India was a moment of immense pride for our Solar team which has boosted the model of our team to do even better in the coming years.
We are propelling Solar to the next frontier further to our capex of around 1200 crores in this financial year. A massive plan to do a capex of 2,500 crores in the coming year will unlock new opportunities scaling existing capabilities, upgrading technologies and expanding the product portfolio including advanced munitions and aerospace solutions. Aligned with India’s Atmanir Bharat initiative, Solar has signed a 12,700 crore MoU with Government of Maharashtra to invest in defense and aerospace over the next decade. Now Solar is entering in FY26 on a strong footing driven by growth of 15 to 20% from explosive sector and a robust target to surpass 3000 crores from defence.
Supported by this momentum, we are targeting total revenues of 10,000 crores in FY26. With this defence contribution in total revenue will be crossing 30% from the current share of 18%. I am sure these sets of numbers will satisfy our esteemed shareholders. Reflecting our financial strength and commitment to shareholders, the company has proposed a dividend of rupees 10 per share for FY25 up from 8.5 per share in FY24. Our vision is bold, our fundamentals are strong and our dedication to stakeholders value creation is unwavering. I sincerely thank all our esteemed investors and analysts for joining us today.
Thank you for your continued trust and partnership. Over to Anchal for presenting the financials in detail. Thank you.
Aanchal Kewlani — Investor Relations Manager
Thank you so much sir. Before beginning I would like to quote that this year as mentioned by our MD has been a very remarkable air and solar journey where we have achieved significant milestones. Needless to mention keeping the aggressive foundation for continuous growth, we have given a strong return to our stakeholders by entering 1 lakh crore market club cap. Now we have shared the investor presentations carrying all the necessary information for your purchases. Hence we run through the same very quickly. Key highlights for the quarter and the year are as follows. Sales the consolidated revenue for the quarter is 2167 crore versus 1611 crore.
For the year it is 7540 crores versus 6070 crores. The percentage of the sectors in the customer basket are as follows. Cil is at 13%, non CIL and institutional is at 14%. HNI is at 16% in the basket, international business at 36%. Defence is 20% in the basket from 12% in the year. The domestic basket comprises of 44%, international business at 38% and defense business at 18%. Coming to the cost bifurcations, raw material consumption for the quarter stands at 1165 crores against 829 crores for the year stands at 3907 crores versus 3196 crores. The employee cost for the quarter stands at 174 crores versus 119 crores and for the year it stands at 600 crores versus 433 crore.
Coming to the other expenses for the quarter stands at 288 crores versus 309 crores and for the year stands at 1073 crores versus 1071 crore which is almost similar despite the huge rise in the sale. Coming to the EBITDA, we reported a quarter EBITDA at 546 crores against 371 crores. We reported yearly EBITDA at 2031 crores versus 1414 crores. Depreciation cost stands at 50 crores against 37 and yearly cost stands at 182 crores versus 143 interest and finance charges Cost for the quarter is at 29 crores versus 32 crores and for year it stands at 116 crores versus 109 crores coming to PBT which stands at 464 crores versus 305 with a fantastic increase in Pvt margins and for the year it stands at 1739 crores versus 1161 crores.
Coming to the pact it stands at 346 crores versus 243 crores. And for the year it stands at 1288 crore versus 875 crores. These are the updates for the quarter and year which are explicitly given in the presentations shared with you. We are now open to the questions. Over to you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch tone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mr. Ravi Naredi from Naredi Investment. Please go ahead.
Ravi Naredi
Thank you very much to give me opportunity. Manizi, Congratulations. Congratulation for best results so far in history of company and inauguration of state of art lottery mutation testing range by Narendraji Modi. We congratulate you and your team for fantastic result and everything. Sir, my point question is 2500 capex you have planned for this current year. So how you arrange the fund either from internal accrual or as well as debt.
Manish Satyanarayan Nuwal
Thank you. The CAPEX program for this year is for 2500 crores. And this will be arranged through our internal accruals and little bit of debt from the bankers,
Ravi Naredi
right? Okay sir. And second we are targeting handsome growth of 10,000 crore top line this year. So what net profit expectation we are having this year and can you bifurcate net profit margin between coal and defense Separately.
Manish Satyanarayan Nuwal
As far as margins are concerned like we have last year we have given a guidance of 23% plus EBITDA margin. But in fact we have achieved around 27% in this financial year. So if you look at the past history Also in last 5 years our revenue has increased by 3x plus and EBITDA has also increased by 4 times. And profit after tax also increased by 4 and a half times. So looking at the margin side we believe that our international business is doing better and difference is also gaining a good momentum. So we expect that we should be able to maintain or improve these levels of EBITDA margin and PET Margins.
And as far as the margin differentiation is concerned we treat business as a one unit. So we give guidance based on a business as a whole. Thank you.
Ravi Naredi
Okay. Wonderful. Wonderful.
Manish Satyanarayan Nuwal
Thank you.
operator
Thank you very much. The next question is from the line of Ashish Kumar from Ampersand Capital Investment Advisors. Please go ahead.
Ashish Kumar
Yeah, thanks for the opportunity. Like I. My first question is on the margins again we are expecting a good mix improvement in case of defense business. So like do we expect significant improvement in our margins from the current 27% levels. And second question is the breakup of Capex that we have given 2500. How much it is for defense and how much will be for explosives.
Manish Satyanarayan Nuwal
Yeah, as far as margins are concerned like last, I will repeat again, last year we have given a guidance of around 23% plus as far as EBITDA is concerned. So this year we have already achieved around 27%. But as you know the business dynamics keeps changing. But still based on our depends on international business we are confident that we should be able to deliver similar margins in the future also. And as far as the differentiation on defense Capex or explosive Capex. So totally we have allocated around 2,500 crore to be made different opportunities. So that’s all.
Ashish Kumar
Okay. Thank you. That’s all from my side.
Manish Satyanarayan Nuwal
Thank you.
operator
Thank you very much. The next question is from the line of Umesh Roth from Nomara, India. Please go ahead.
Umesh Raut
Hi sir. Good morning. And congratulations for the strong set of numbers. And also many thanks for the weapon systems which we have developed contributed significantly in recent installations. Many thanks for that. I have a strategic question I think you are mentioning about closer to 12,700 crores of investment in terms of MoU.
Manish Satyanarayan Nuwal
Your voice is not clear.
Umesh Raut
Hello. Am I audible now? Hello.
Manish Satyanarayan Nuwal
Yeah, now you are better.
Umesh Raut
Yeah. So my first question is pertaining to your strategic investment of about 12,700 crores in terms of MO signing with the Maharashtra state. So could you please share some insight which all areas that you want to target apart from loitering combinations within defense space and how are your addressable opportunities over there?
Manish Satyanarayan Nuwal
As far as our earlier shared information that we have signed an MoU and the total amount will be around 12,700 crores to be invested over a period of 10 years. So these are. These are the broader timelines and investment amount. But we are confident that looking at our current position in the ammunition market or say you can say defense market we are pretty confident that these amounts will be invested much earlier. And as far as products are concerned you are aware that what kind of products we are manufacturing. Like we have the energetic materials, we have rockets, we have missiles, mines and as we are going forward we are expanding the lighting ammunition ranges for different applications.
So this is what we all are doing and from the current level of capacities we are enhancing to a multiple level in the coming years.
Umesh Raut
Got it sir, my second question is in terms of investment into research and development. So I understand that you have a significant capacity expansion plan but at the same time how are you looking at R and D in terms of percentage of sales going up from here on and would you be dependent more or less on DRDO or you are also planning to kind of develop in house R&D department in your company?
Manish Satyanarayan Nuwal
If you look at the history of Solar in last 10 years, we have always been working on developing the variety of products and those developments were in association with drdo. At the same time we were developing many of the products on our own. So we will continue those efforts for our national security. And that is what I think will give a reflection of what solar has been doing as far as research and development is concerned as far as a particular number or figure which you may be expecting us to do. So we don’t bifurcate the expenses into R D or other things.
So the all the expenses are being part of our PNL regular expenses.
Umesh Raut
Got it sir, my last question is pertaining to a recent news source where it was indicating that there could be fast tracking of ordering closer to about 24,25,000 crore purely because of recent escalations. So are we expecting any fast tracking of major program for us in terms of Nagastra or possibly new orders for Bhargavastra as well.
Manish Satyanarayan Nuwal
So if you look at the current geopolitical situation, these things are obviously bound to happen. And we always read all these articles from the media. So based on those information and the interactions we have, we feel that the program will be on a fast track now.
Umesh Raut
Got it sir. Thank you so much for your response. I’ll join back with you.
operator
Thank you very much. The next question is from the line of Jyoti Guptasan Nirmal Bang. Please go ahead.
Jyoti Gupta
Good morning sir. Thank you so much for the opportunity and great set of numbers. Two questions. One, of course the emergency procurement orders which is going to a lot of defense companies and Andy said that you’re also aware and possibly, I mean and the, the defense devices which have been used in India park war I believe, would you be getting repeat orders for that? Other thing is if please throw some light in terms of the timelines for the domestic procurement plans orders and the international. Because as I understand international orders would have possibly a delivery timeline for two to four years.
While if I look at the Pinaka ones which is like for 85% in 10 years and the rest in the next 15 years or the remaining part of the year, if I have to just bifurcate the entire order between domestic and international. What kind of timelines, average timelines do we see in domestic with orders and international orders?
Manish Satyanarayan Nuwal
The question is quite long but I will try to capture this. If you look at the current geopolitical situation and media articles, definitely government is trying to buy many items on emergency procurement route. So we all are waiting for those items to be shared. And it depends that which products we can readily cater. And if we have the readymade facility and the raw materials to cater them in on really emergency route we will attempt for them. So once it is there in our order book we will definitely share. As far as the orders of Pinaka is concerned.
We have already shared that the Pinaka order Is of around 6084crores and which by and large to be delivered over next 10 years. So you can consider an annualized revenue of 500 to 600 crores. Based on the two Pinaka variants for which we have already received orders. There will be many more variants coming up in the future once those are converted. As far as energetic materials orders are concerned. So those orders are for a period of four to five years. I have access to your question.
Jyoti Gupta
Yes sir. And could you just throw some light on the as that date what kind of order book we have and what do we expect in FY26.
Manish Satyanarayan Nuwal
So as we receive orders we will definitely share as of now the total order book from difference is around 15,000 crores and around 2000 from non difference.
Jyoti Gupta
So 17,000 crores on 17 billion
Manish Satyanarayan Nuwal
from. Non difference and 15,000 crore from different sector.
Jyoti Gupta
I missed out that sir. Again there was some the voice of 15,000 from defense and 2,000 from non defense.
Manish Satyanarayan Nuwal
Total order book is 17,000 crores.
Jyoti Gupta
Okay, got it.
Manish Satyanarayan Nuwal
15,000 is from within.
Jyoti Gupta
Thank you so much sir. That will be awesome.
operator
Thank you very much. The next question is from the line of Dipen Vakil from Philip Capital. Please go ahead.
Dipen Vakil
Thank you for the opportunity sir and congratulations on a great set of number. So my first question is can you share us the split between our India revenue and out of India revenue including defense and explosives both.
Manish Satyanarayan Nuwal
We don’t share those breakup. But like we have said that total orders are around 18,000 crores. From defense. And 15,000 out of 18 out of 1715 is from defense and out of 15,000 crore is from India. Rest all is from international market.
Dipen Vakil
Okay, so can you throw some light on the new product development in the defense side namely near Bhargavastra, Nagastra 2 and what kind of timelines are we expecting in terms of their preparedness and getting them approval? So can you throw some light on these fronts?
Manish Satyanarayan Nuwal
Yeah, like we have already developed and supplied Nagastra1. We are expecting repeat orders in coming period of the same product. And we have also developed Nagastra 2 and Nagastra 3. So likely to receive orders for those products in the coming year. And once we receive we will share. As far as Bhargwaspur is concerned, it isn’t. We have passed the two trials at different levels for different applications. So those trials were very successful. And as we move forward we are expecting that this product should be ready in this calendar year.
Dipen Vakil
Got it sir. So just one last accounting question. Can you just give us your total employee count and that will be also my title.
Manish Satyanarayan Nuwal
We have shared the total employee cost in our financial numbers that we will discuss later.
Dipen Vakil
Okay, thank you so much and all the best for FY 2016.
Manish Satyanarayan Nuwal
Thank you.
operator
Thank you very much. The next question is from the line of Raj Rishi from Development Consultants Private limited. Please go ahead.
Raj Rishi
Yeah. Hi sir, this. How much of a positive impact can this supposed increase in defense spending by eu? We are talking about taking the defense spending to some something like from 2% to 5% of their GDP. How will it benefit solar?
Manish Satyanarayan Nuwal
Like we have already shared the total order book of our defense is around 15,000 crore. And out of 15,000 the domestic orders are in the range of 8,500 and international is balanced quantity. So as we, as we move forward we are expecting that since our products are well qualified in the international market, we are expecting more and more orders from the international markets.
Raj Rishi
Okay.
Manish Satyanarayan Nuwal
Already out of 15 then half is from international market. That gives a glimpse of our current stature in the global markets. And definitely any, any kind of increase in the defense budget is giving us a big opportunity to expand ourselves not only in India but outside India also.
Raj Rishi
Okay. And sir, whatever your capex plans, you have any equity raising plans.
Manish Satyanarayan Nuwal
I think the current 2500 crores plan in this year can easily be met with our current cash position plus the internal accruals.
Raj Rishi
Okay. And so how, how entrenched are you with the Brahmos program?
Manish Satyanarayan Nuwal
We are supplying some of the intermediate products to this product and we are part of that program. So I can’t share more.
Raj Rishi
Okay. Okay. Thank you.
Manish Satyanarayan Nuwal
Thank you.
operator
Thank you very much. The next question is from the line of hey Choksi from Devin Choksee, please go ahead.
Het Choksey
Hey. Hi Manishi. Good morning. First of all, congratulations on a stellar Q4 and FY25 and just the phenomenal success of our products in operation Sindur. This testimony of the capabilities we have built over the last decade at economic explosives. So keep up the good work with Nagastra, successful testing of Bhargavastra and the continuous indigenization and the product profile which you plan to develop in the coming years. And just the testimony for the fact that just from supplying core ammunition, you are integrating the entire supply system. So keep up the good work and best wishes. Nothing beyond that.
Just one question on the Brahmos project. We’ve seen a lot of companies, a lot of countries showcasing interest in acquiring Brahmos from the Indian government. What is your outlook on this and how do you think the new ammunitions which you have developed can be of a significant contribution in this project?
Manish Satyanarayan Nuwal
So I will thank you for your compliments for our achievements and what we have done as far as providing the best of class products for our country’s border security. So definitely it gives a big compliment to our team members and it’s a satisfying moment for our team members or company that our products were being used as a part of this operation. So if I would like to just share some basic glimpses that if you look at the last 10 years or 20 years of geopolitical situation, very few companies in this market has really spent on building capacities for defense products.
And solar is one exception which has kept investing in developing the products, developing the facilities, and in last seven years we were supplying to many of the international customers who qualified the products. Lot of technical challenges, lot of improvements, lot of developments were part of those qualifications. So after reaching to that stage, if we look at the opportunity size. So three years back there was no discussion on the war side. Now Russia, Ukraine, Israel side and now India, Pakistan side. So those are natural things to happen. If you look at last after World War II, there was no big event happen.
So sometimes these things can convert and conflicts can convert into the bigger things or bigger wars. So nobody want them. But to secure ourselves, we as a country or all the nations would like to invest in this sector or keep the products ready for defense. So we are one of a few companies which is part of the global supply chain and we have developed a lot of products for our country as well. As we move forward, we will have many opportunities where we can participate and becoming part of the security solutions.
Het Choksey
Great thought Manshi. Thank you so much and best wishes for FY26 and beyond.
Manish Satyanarayan Nuwal
Thank you.
operator
Thank you very much. The next question is from the line of Amit Vijay Saoji from A1 Investments. Please go ahead.
Amit Vijay Saoji
Congratulations for the numbers and a big thank you for the team for the role in operation Sindur. My question on a lighter note is if you can tell is there any policy for bonus issues as Dil Mangay more.
Manish Satyanarayan Nuwal
So. Thanks for the compliment. So we are aware of our investors expectation. They are there expecting bonus from the company. But we will address this wish of shareholders at an appropriate time. Thank you.
Amit Vijay Saoji
Thank you.
operator
Thank you very much. The next question is from the line of Hardik Rawat from IIFL Capital. Please go ahead.
Manish Satyanarayan Nuwal
Hello.
Hardik Rawat
Thanks for the opportunity and good morning. Maniji. Maniji, I had a couple of questions. With regards to our defense order book. Now that has scaled up beautifully to, you know, about 15,000 odd crores. We are targeting roughly 3,000 odd crores worth of revenue in FY26. I wanted to know what is the possibility that you know, in how many years do you think we can. We can, you know, possibly execute this order book of 15,000.
Manish Satyanarayan Nuwal
Which order book?
Hardik Rawat
So our current defense order book of 15,000 crores.
Manish Satyanarayan Nuwal
Yeah. So like I said now this. The total order book is 15,000. Out of that international is around 8,500. So this international will be delivered in next 4, 5 years. And the domestic 6,500. Apart from Pinaka, the other items are very small. So Pinaka is a bigger program which is around 6000 crores will be delivered by and large over a period of 10 years. And based on the current order book and the expected orders in this financial year, we expect that 3,000 orders or revenue from defense should not be a big issue for us.
Hardik Rawat
Right sir.
So my next question was, you know, with regards to our NWC on networking capital intensity. While we had a substantial increase in the mix of defense in the current year, our NWC intensity has more or less remained the same. Marginal increase, but nothing major. Just wanted to understand that as our mix shifts more towards defense, you know, 30% FY26 and possibly higher in the years to come. How do you see the networking capital intensity for the company going forward?
Manish Satyanarayan Nuwal
We are not very much concerned on that part because we have always been saying that once the defense product starts stabilizing, the working capital cycle start reducing. But if you look at the last year’s working capital cycle, although defense sector has increased, the sale from defense has increased from 9 to 18%. But despite of that our working capital cycle is not going up rather it has shown improvement. So I believe we should be able to address these pointers. And we have a variety of products to be delivered to the Indian customers depends PSUs and international market.
So we are not very much concerned.
Hardik Rawat
The reason that. Yeah, that point is well taken. The reason that I’m asking is because you know your peers in the defense phase, unlike us they are more focused towards the domestic defense which I think is probably creating the difference. How would you comment on the kind of receivable cycles you see in the domestic defense contracts that you execute and the international defense orders that you execute?
Manish Satyanarayan Nuwal
I think I have answered to your question and frankly speaking, you have invested in solar, you might have invested in other companies and solar as well. So we are a different company than others. We don’t want to compare ourselves with any other PSUs or other things. So we have a blend of products, a blend of customers across the global market. So that gives a kind of reflection what we are operating at. If you look at my 20 years of performance also how we are changing the landscape of customers profile so that gives a reflection.
Hardik Rawat
Right. So that helps. Thank you so much and all the very best for the year.
Manish Satyanarayan Nuwal
Thank you.
operator
Thank you very much. The next question is from the line of Chirag Machalla from Center Broken. Please go ahead.
Chirag Muchhala
Thank you and congratulations to the entire solar team for a landmark year. Sir, firstly I wanted to discuss on the explosive business. So for both domestic market and for overseas market, if you can provide your outlook for FY26 and for overseas markets are some of the key geographies. If you can speak about how is our progress.
Manish Satyanarayan Nuwal
Yeah, so like we have said in the last previous quarter’s commentary that as far as domestic market is concerned demand was quite subdued which you are also aware of if you look at the other products like cements and steel. So we are also part of the similar value chain. So the market demand was not up to the expected level. But if you look at the current volume with Q3 there is a significant improvement and we have shown a growth of 14% and I think as we are entering into the FY26 the volume should be quite good.
And similarly in international market also last year on revenue terms we increased our business by 18% and combined together for FY26 we expect that we should be doing around 15 to 20%.
Chirag Muchhala
Okay sir. And specifically regarding some of Our large international geographies, it is possible to comment regarding the profitability like, you know, Australia, Indonesia, South Africa, etc. And even the Pro Blast acquisition that we had done. So how is that progressing?
Manish Satyanarayan Nuwal
So we have multiple subsidiaries, we have a large presence in different countries. So in the last year, or till last year, or you can say from last four, five years, we were trying to stabilize our operation, gain a good momentum. So we were having certain subsidies where we were making certain losses also. But in this financial year, we have turned around all the subsidiaries and we have profits in all the geographies. And based on the current momentum of the current platform which we have built, we expect very good sets of number from international markets in the coming years.
Chirag Muchhala
Okay, that’s heartening to hear, sir. And the last question is actually on initiating systems. So is it possible to give the its revenue for Q4 or FY25, whichever is possible.
Manish Satyanarayan Nuwal
If you look at the total revenue from initiating system, it is less than 5% of the total revenue. It doesn’t make any sense for us to continue commenting on the initiating systems or the volume part. So let us stay with these numbers and we have to work on these numbers and our future projections.
Chirag Muchhala
Okay, sure. Okay, thank you. Thank you. That’s it. On my side.
Manish Satyanarayan Nuwal
Thank you.
operator
Thank you very much. The next question is from the line of Mohit from ICICI securities. Please go ahead.
Mohit
Yeah, hi. Good. Afternoon, sir. Thank you and congratulations for the great set of number. I just need a clarification. Dutch guidance of 30 billion of the defense revenue includes possible benefit of emergency procurement order or the emergency procurement. Always over and above the stated guidance of 30 billion.
Manish Satyanarayan Nuwal
If you look at our company style of working, we capture all such kind of developments into our planning and then factor all those things and then give a guidance. You can’t expect a company like Solar to give a guidance. Then every couple of months we keep on changing so we know what the things on the ground and what we can expect. So as a shareholder we want to give a very prudent and very conservative or the realistic view on what we have seen on the ground and what you can expect from us. So we as a company believe that this year we should be able to cross 3,000 revenues.
So that is based on our international exports, domestic markets, pinaka orders and some of the emergency procurement which can be allotted to us. Those can be converted in this financial year or missed it to the next financial year. So all those combinations we keep in our mind while making any kind of guidance. So for you, you can consider 3000 crores as a ballpark number for guidance from different sector for FY26.
Mohit
Yeah, sure. And so the second question is how is the business performance in Kazakhstan and Saudi also? Are we planning to enter any new geographies in this financial year? Thank you.
Manish Satyanarayan Nuwal
So we have not yet started Saudi. We are in the process to set up the facilities. So we are working on that front. As far as Kazakhstan is concerned, we have almost finished the plant. Next three, four months time we should be able to start the operations. As far as other geographies like Thailand we’ve already operationalized. Indonesia is operationalized. And Tanzania we are doing more expansions. And Zimbabwe also plant is in commissioning stage. Ghana we are expanding. Nigeria we are expanding. That is what we are doing.
Mohit
Sure sir, that answers my questions. Thank you.
operator
Thank you so much. The next question is from the line of Kunal Tokas from Fair Value Capital. Please go ahead. Mr. Kunal, please go ahead.
Kunal Tokas
Hello, I’m audible.
operator
Yes sir, you’re audible.
Kunal Tokas
Okay, just one quick question sir. What sort of exposure do we have to Turkey? Either business done in Turkey or through Turkey. And what’s your outlook on that?
Manish Satyanarayan Nuwal
Yeah, out of our total revenue of 7,500 crore approx. The total revenue from Turkey is less than 10%. And profits are also 5,6% of the top line of the total profitability.
Kunal Tokas
All right, got it sir. Thank you.
operator
Thank you very much. The next question is from the line of Anirudh Singh, Dalal and Broja portfolio managers. Please go ahead.
Anirudh Singhi
Hello. Good morning sir. So I had a question on our capacities. What will be the utilization right now? And this new CAPEX that we’re doing at 2500 crores, when would that come into production and what would be the asset turnover there?
Manish Satyanarayan Nuwal
The Capex program of 2500 crores is for various initiatives. And there are multiple things like buying the land, investing in new technologies, doing automations, developing new products. So it’s a variety of initiatives and every initiative will deliver the returns either in one year, two year, three year, four year or five years. So it is the business nature is like that. As far as asset turnover ratio is concerned in my industry there is no point in discussing that because we have thousands of SKUs. Every SKU is being measured in different terminology or different unit of measurement.
It is very difficult to give any sets of capacity utilization number.
Anirudh Singhi
Okay, so just post the capex. What could be a peak revenue?
Manish Satyanarayan Nuwal
Difficult to answer.
Anirudh Singhi
Okay, sure. Thank you.
Manish Satyanarayan Nuwal
Thank you.
operator
Thank you very much. The next question is from the line of rakesh Roy from Boring amc. Please go ahead.
Rakesh Roy
Yeah. Morning sir. So this year for defense business we. Did very well toward FY26. You are targeting the 3000cr. If you look for next three years, how much revenue you are targeting in next three years. Like, for like example for FR28 or. 29 from different business. My first question is this.
Manish Satyanarayan Nuwal
Any other question please you can ask. I will answer them in once.
Rakesh Roy
Yeah. Other person is a government is doing. Lot of missile program. Apart from Brahmos or Pinaka or akas. Any other program you are targeting or you are expecting you get the same like Brahmas type.
Manish Satyanarayan Nuwal
Any other question?
Rakesh Roy
No sir. Thank you sir.
Manish Satyanarayan Nuwal
Right. We have a lot of facilities and lot of programs on which we are working. And few of them are products like Pinaka. And we are also being part of this Brahmos programs. And we will also would like to be part of various ATGMs and air defense missile systems. So as we move forward once we received any big commercial orders we will keep sharing apart from this. Because these products are quite sensitive in nature. From geopolitical angle you cannot answer. One cannot give a specific input on each product separately. So that is what is. And as far as revenue from defense is concerned, we have given 3000 crores in this FY26.
And if you look at the past trajectory that we have increased our revenue from say 5% of total revenue in 21. We have increased it to say 18% in this year and next year we are expecting 30% of the total revenue. And as far as revenue straight away from defense is concerned. 263000 crore. And we are aiming for say around 8000 crores in next four or five years.
Rakesh Roy
Okay, thank you sir.
operator
Thank you very much. The next question is from the line of Bharat Shah from ask Investment Managers Ltd. Please go ahead.
Bharat Shah
No. Hearty congratulations Manish and the team Solar. While of course this is. This moment is a moment of great pride. But I am witness to the strenuous hard work and efforts and reason disclaiming building this business to where it is today. I remember the struggle days of building the defense activity. And now today it is the stellar piece in what we are doing. So hearty, hearty congratulations for that very visionary view of the opportunity in the picture and preparing organization for that delivery. Just one question Manish. This 10,000 crore turnover in the current year. Would it be reasonable to assume that it will probably double in three years time from now? So say 20,000 crore by about 29.
Given all the opportunity, given all the capacity Raising and the capability preparation within. The firm. Will that target look reasonable in 3 years time?
Manish Satyanarayan Nuwal
Thank you Bharat Bhai for being with us during this difficult times. As an investor definitely we all are proud of what we have done for our country. That is our duty actually. But it is good that some of our products are being used by the armed forces for securing our borders. So we all are proud of that. Sir, this year definitely we are very confident that we should do 10,000 crore plus as far as revenue is concerned. And if you look at last couple of years of our trajectory or you can say last 20 years since our listing.
So our revenue has increased by 50 times and EBITDA by around say 55 times. And profit after tax also around 58 times. And in last five years also our revenue has increased by 3 times plus and PAT also by 4 and a half times. So sir, I think if you take next five years from this year so at least we should say three to four years we should double the revenue from 10,000 crores. I don’t see that unless we do a blunder or if economy growth rate goes down drastically low or if something wrong happens to everyone.
So then it’s a different scenario. But by and large from 10,000 making it to 20,000 over a period of four years should not be a very impossible target for us. We are aiming for that only.
Bharat Shah
Fantastic. Manish, once again really not of big things from the country. And Adi Adi, congratulations for the for the resounding performance of the team Solar under your leadership.
Manish Satyanarayan Nuwal
Thank you sir. Thank you.
operator
Thank you very much. The next question is from the line of Pratik Mukastar RNL Wealth Private Limited. Please go ahead.
Pratik Mukasdar
Manish, congratulations for a fantastic set of numbers. I have two quick points. Firstly, we had updated on the exchanges that we are considering some acquisition opportunity. Or something like that. Would you like to. Is there any progress on that one? Secondly, in the last quarter raw material. Prices of majority products has been very low. So I am sure you as a. Good management must be focusing on opportunities. To stock up more or less. How do you look at that situation? These were my two questions.
Manish Satyanarayan Nuwal
Can you repeat the second question again?
Pratik Mukasdar
Basically all raw materials and commodity prices are low. So how do we as a firm try to capitalize that? And what is your view on that part of our business? Do you see raw material prices remaining. Stable or what is your view?
Manish Satyanarayan Nuwal
Yeah. So as far as acquisition is concerned we always look at multiple options across the globe. And we have a team now to look forward on looking for the Merger and amalgamation opportunities if it gives a fit for our business or which gives us a decent return on our capital employment. So that is a standard or this is what we are doing. So once anything happens we will definitely share with our investors. And as far as our raw material, the current trend which you have mentioned that the current raw material prices are low.
Yes, I agree that some of the raw material prices are lower side. So but if you look at the business nature that what whenever the prices go down we have to reduce the prices or whenever prices go up we have to increase the prices. There can be lag in both the trends. But if you look at last 20 years which I was just explaining in this call. So in last 20 years profit has increased by 58 times similar to the revenue of 50 times in 20 years. So EBITDA margins are always healthy. And we are doing this business from last 29 years.
So we know what to do using the low tides or high tides.
Pratik Mukasdar
Great, Great. So Maniji, thank you once again and congratulations. Your you and your team have delivered on both the agendas. That is Atma Nirbhar and Atma Raksha. So congratulations to you once again.
Manish Satyanarayan Nuwal
Thank you very much.
operator
Thank you very much. Ladies and gentlemen, due to time constraint this was the last question. I now hand the conference over to Mr. Amit Dixit for closing comments.
Amit Dixit
Yeah. Hi. Thanks everyone for attending the call and a very fruitful discussion that we had with Manishti this morning. I would now like to turn the call over to Manishji for any closing remarks. Over to you sir.
Manish Satyanarayan Nuwal
Thank you, Amit. We are very happy to host this call for Polar Industries and very, very proud of being part of make in India. Atmanirbhar Bharat, make for World. And we expect our well wishers to keep supporting us. Boosting our confidence just the way they have been doing since years. Thank you so much.
operator
Thank you very much on behalf of ICICI securities limited that concludes this conference. Thank you for joining us and you may now disconne your lines.