Stock to Buy: Jefferies Gives ₹28,160 Target (8 Sept) Why Is Solar Industries Share Price Rising Today? Jefferies Gives ₹28,160 Target (8 Sep)

Solar Industries shares gained on Tuesday, September 8, after Jefferies initiated coverage on the defence and explosives manufacturer with a buy rating and a ₹28,160 target price. The brokerage expects India's private defence companies to benefit from higher defence spending and the government's push to increase domestic manufacturing.

Solar Industries shares were trading around ₹22,280 in early trade, up 1.5% from the previous close of ₹21,950. The stock has gained around 83% so far in 2026, significantly outperforming the Nifty 50 during the same period.

Solar Industries share price today

The stock touched an intraday high of ₹22,460 and a low of ₹21,925 during Tuesday's session. The company had a market capitalisation of around ₹2 lakh crore, based on the market data cited in the source.

Jefferies' ₹28,160 target implies around 28% upside from Monday's closing price. The brokerage expects private defence companies to potentially grow at more than 20% as India's defence spending and domestic manufacturing activity increase.

Defence spending supports Solar Industries

The bullish view on Solar Industries comes as the government increases defence procurement from Indian companies. The Defence Acquisition Council approved proposals worth around ₹1.10 lakh crore on September 7, with about 98% of the proposed procurement earmarked for Indian industry.

The approvals cover equipment for the Army, Navy and Air Force, including helicopters, radars, high mobility vehicles and electronic systems. Motilal Oswal Financial Services said defence acquisition approvals in FY27 so far have reached around ₹1.62 lakh crore.

Solar Industries financial performance

Solar Industries also enters the latest brokerage coverage with strong recent financial growth. The company reported Q1 FY27 revenue of around ₹3,668 crore, up more than 70% year on year. Net profit rose sharply to around ₹653 crore on the consolidated basis reported by several market sources.

Financial metric	Q1 FY27
Revenue	₹3,668 crore
Revenue growth	70.3%
Net profit	₹653 crore
Net profit growth	92.6%
EBITDA	₹1,024 crore
EBITDA margin	27.7%

The company has also set a ₹14,000 crore FY27 revenue target, while its defence business has become a larger part of its overall growth story.

What Jefferies expects from Solar Industries

Jefferies expects India's defence spending to grow at a double digit compound annual growth rate over the medium term. The brokerage believes the shift towards domestic manufacturing can give private sector defence companies a larger share of future orders.

For Solar Industries, investors will now track whether the company's strong earnings growth and defence order opportunities continue to support its valuation. The ₹28,160 Jefferies target will also remain in focus after the stock's sharp rise this year.