💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 29.7% to INR 230.08 Cr in FY25. In H1 FY26, revenue grew 43% YoY to INR 117 Cr. Residential rooftop solar contributed 37% of FY25 revenue and 32% of H1 FY26 revenue. Government projects contributed 36% of H1 FY26 revenue. The EPC/Turnkey segment has achieved a 117% 3-year revenue CAGR.

Geographic Revenue Split

The company operates in 15 States and Union Territories. During H1 FY26, the residential footprint expanded to an additional 25 cities through the Solarium Saarthi franchisee initiative, following an expansion into 15 new cities in H2 FY25.

Profitability Margins

Gross margins increased by 65% YoY in H1 FY26. PAT for FY25 was INR 18.59 Cr (up from INR 15.74 Cr in FY24), representing a 112% 3-year CAGR. However, Return on Net Worth decreased because the growth in profit was proportionally lower than the increase in average net worth following the INR 105.04 Cr IPO.

EBITDA Margin

EBITDA for FY25 was INR 26 Cr (79% 3-year CAGR). H1 FY26 EBITDA grew 36% YoY to INR 16 Cr. The company expects the new module manufacturing plant to operate at a standalone EBITDA margin of 12% to 13%, potentially improving overall gross margins by 5-7% through in-house consumption.

Capital Expenditure

The company is investing INR 70 Cr in a new 1,000 MW (1 GW) automated solar module manufacturing facility in Ahmedabad. The project is funded with a Debt-to-Equity ratio of 3:1 and is expected to be operational by mid-January 2026.

Credit Rating & Borrowing

CARE Ratings assigned a 'CARE BBB-; Stable' rating for INR 50 Cr long-term bank facilities and 'CARE BBB-; Stable / CARE A3' for INR 47 Cr long/short-term facilities in September 2025. Finance costs doubled in H1 FY26 due to elevated working capital requirements for defense-linked projects.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Solar Cells (TOPCon, half-cut, bifacial), Solar PV Modules, Inverters, and Availability Based Tariff (ABT) meters. Solar modules and inverters are the primary cost components for EPC projects.

Import Sources

While specific countries are not listed for all components, the company noted sensitivity to China's restrictions on high-density cells and sources talent from global players like Krannich Global (Germany). Operations are centered in Gujarat, India.

Key Suppliers

The company relies on a limited group of suppliers for solar modules and inverters. It recently hired a sales head from Krannich Global to manage module sales and is moving toward long-term agreements to mitigate price volatility.

Capacity Expansion

Current capacity includes mounting structure manufacturing at Bavla. Planned expansion involves a 1,000 MW automated solar module plant in Ahmedabad, expected to reach 75-80% utilization by Q2 FY27, potentially generating INR 1,000+ Cr in annual revenue at 85% utilization.

Raw Material Costs

Raw material costs are susceptible to solar module price volatility. The company expects a 5-7% improvement in gross margins by consuming in-house manufactured modules, reducing reliance on third-party procurement.

Manufacturing Efficiency

The company targets 40-50% capacity utilization in the first two months of the new plant's operation, scaling to 75-80% within the first two quarters of FY27 to achieve operational efficiency.

Logistics & Distribution

The company uses an asset-light EPC model to reduce capital risk and focuses on distributed operations to reduce execution lead time and delivery costs.

📈 Strategic Growth

Expected Growth Rate

43%

Growth Strategy

Growth will be driven by vertical integration through the 1 GW module plant, expanding the 'Solarium Saarthi' franchisee network to more cities, and bidding for large-scale government and institutional projects (BARC, Indian Air Force). The company has an unexecuted order book of INR 229 Cr and L1 pending orders of INR 209 Cr.

Products & Services

Turnkey solar solutions (design, engineering, O&M), PV modules, solar inverters, ABT meters, solar pumps, solar streetlights, and floating solar systems.

Brand Portfolio

Solarium, Solarium Saarthi (franchisee program).

New Products/Services

Launch of in-house manufactured TOPCon and bifacial solar modules from the new 1 GW plant, with 80 MW of orders worth INR 95 Cr already received.

Market Expansion

Expansion into the residential rooftop segment via the Solarium Saarthi program, targeting nationwide presence beyond the current 15 states.

Strategic Alliances

Tie-ups with financial institutions and PSU banks to provide subsidized loans (under 7% interest) to residential solar customers.

🌍 External Factors

Industry Trends

India's solar manufacturing capacity is projected to reach 100 GW by 2025. The industry is shifting toward high-efficiency modules (TOPCon) and distributed residential solar, supported by a 5% GST rate.

Competitive Landscape

The industry is characterized by intense competition and fragmented players in the EPC segment, though Solarium's scale and integrated model provide a competitive edge.

Competitive Moat

Moat is built on vertical integration (manufacturing + EPC), an asset-light execution model, and a strong retail franchisee network (Solar Saarthi) which reduces customer acquisition costs.

Macro Economic Sensitivity

Highly sensitive to government subsidies like 'PM Surya Ghar: Muft Bijli Yojna' and national renewable energy targets (500 GW by 2030).

Consumer Behavior

Increased consumer adoption of residential solar driven by government subsidies and end-to-end handholding services provided by Solarium (installation to financing).

Geopolitical Risks

Potential impact from China's restrictions on solar cell exports, though management currently foresees no major difference for the next 1.5 to 2 years due to pricing softening.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with MNRE's Approved List of Models and Manufacturers (ALMM) is critical; reforms in ALMM efficiency norms previously forced the company to shift away from polycrystalline module manufacturing.

Environmental Compliance

The company is ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified, indicating compliance with quality, environmental, and occupational health standards.

Taxation Policy Impact

GST on solar modules and inverters was reduced from 12.5% to 5% in September 2025, which is expected to accelerate nationwide solar adoption.

⚠️ Risk Analysis

Key Uncertainties

Execution and stabilization risks associated with the new INR 70 Cr manufacturing plant and potential delays in government receivables which impact liquidity.

Geographic Concentration Risk

Operations are currently spread across 15 states, with a historical concentration in Gujarat; expansion is ongoing to mitigate this.

Third Party Dependencies

High dependency on third-party suppliers for cells and high-efficiency modules until the new plant is fully operational in 2026.

Technology Obsolescence Risk

Risk of technology shifts in solar cell efficiency; the company is mitigating this by investing in TOPCon and bifacial technology.

Credit & Counterparty Risk

Significant exposure to government and defense-linked projects, where delayed receivables have historically elevated finance costs and impacted cash flows.