💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for H1 FY26 was INR 1,700.50 Lacs, a 5.22% increase from INR 1,616.06 Lacs in H1 FY25. Full-year FY25 revenue grew 16.5% to INR 4,108.89 Lacs from INR 3,526.71 Lacs in FY24. Segments include EPC and O&M services.

Profitability Margins

Net Profit Margin for FY25 was 1.52%, up from 1.09% in FY24. H1 FY26 Net Profit was INR 23.32 Lacs, a 51.4% increase YoY from INR 15.40 Lacs in H1 FY25.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 was INR 115.38 Lacs, representing a 6.72% margin on total revenue of INR 1,715.66 Lacs, compared to a 6.29% margin in H1 FY25.

Capital Expenditure

Historical capital expenditure for FY25 was INR 3.78 Lacs for new asset acquisition. H1 FY26 saw fixed asset purchases of INR 1.33 Lacs.

Credit Rating & Borrowing

Borrowing costs (finance expense) for H1 FY26 were INR 94.55 Lacs, a 28.6% increase from INR 73.53 Lacs in H1 FY25. Proceeds from long-term borrowings in H1 FY26 were INR 7.20 Cr. Credit rating is not disclosed.

⚙️ Operational Drivers

Raw Materials

Components for Solar Power Conditioning Units, Inverters, MPPT Chargers, and Photovoltaic Junction Boxes.

Raw Material Costs

Cost of materials consumed in H1 FY26 was INR 979.26 Lacs, representing 57.6% of revenue from operations, down from 64.4% in H1 FY25.

📈 Strategic Growth

Expected Growth Rate

16.50%

Growth Strategy

The company plans to achieve growth by expanding into new geographical areas and offering value-added services. It aims to leverage the government's focus on renewable energy to boost demand for its EPC and O&M services, while maintaining ISO-certified quality standards to secure high-value contracts.

Products & Services

Solar Power Conditioning Unit, Solar Inverter (Hybrid & Grid Connected), Solar MPPT Charger, Remote Monitoring and Diagnostic System, Solar Photovoltaic Junction Box, Control Panel, Digital DC Energy Meter, Solar Adapter, Solar Pump Controller, EPC services, and O&M services.

Brand Portfolio

AGNI

Market Expansion

The company is targeting expansion into new geographical areas and emerging energy verticals to diversify its operational footprint.

🌍 External Factors

Industry Trends

The solar industry is experiencing growth driven by government renewable energy goals and private infrastructure investments. However, the sector faces low entry barriers and competitive bidding in tenders, which drives tariffs down and compresses margins for EPC providers like AGNI.

Competitive Landscape

The company faces stiff competition from peers with greater financial strength and deeper backward integration. This competition, combined with limited pricing power due to industry fragmentation, forces the company to focus on cost efficiency and market studies to maintain its 1.52% net margin.

Competitive Moat

AGNI's moat is built on its integrated turnkey project execution, in-house manufacturing of components like MPPT chargers and inverters, and strong MNRE accreditation. These factors provide a competitive edge in reliability and performance, which is sustainable as long as they maintain their technical certifications and government trust.

Consumer Behavior

Increased demand for renewable energy solutions and solar pump controllers driven by government incentives.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by MNRE accreditation standards and ISO certifications (9001, 14001, 45001). Compliance with these standards is essential for participating in government tenders and ensuring project quality.

Environmental Compliance

ISO 14001 certification for environmental management systems.

Taxation Policy Impact

The company's tax expense for FY25 was INR 22.03 Lacs, representing a 26% effective tax rate on Profit Before Tax of INR 84.69 Lacs. Fiscal policy changes regarding solar subsidies directly impact the company's bottom line.

Legal Contingencies

There are no ongoing tax litigations or disputes involving the company for the reporting quarter ended September 30, 2025. Secretarial audit for FY25 confirmed compliance with the Companies Act and SEBI regulations.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the high reliance on government incentives; if these are reduced or revoked, it could significantly impact financial health. Additionally, high debtor days (INR 24.70 Cr) pose a risk to liquidity and the ability to execute projects in a timely manner.

Third Party Dependencies

Dependence on suppliers for raw materials and components is a key risk factor that may constrain margins in the future.

Technology Obsolescence Risk

The company mitigates technology risks by manufacturing advanced components like Remote Monitoring and Diagnostic Systems and Solar MPPT Chargers, ensuring their solar solutions remain competitive in a rapidly evolving renewable energy market.

Credit & Counterparty Risk

Trade receivables increased 11.6% to INR 24.70 Cr as of March 31, 2025. The company uses internal controls to try to reduce debtor days and improve financial discipline to manage this credit exposure.