💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew at a Compounded Annual Growth Rate (CAGR) of 60.27% between FY16 and FY18. In FY18, revenue reached INR 39.74 Cr, a 119.2% increase from INR 18.13 Cr in FY17. Revenue further increased to INR 57.84 Cr in FY19, representing a 45.5% YoY growth. However, H1FY20 saw a sharp decline to INR 3.32 Cr.

Geographic Revenue Split

Operations are concentrated in India with major projects executed in the states of Gujarat, Bihar, and Rajasthan. Specific percentage split per state is not disclosed in available documents.

Profitability Margins

PAT margin improved from 9.38% in FY17 to 15.61% in FY18 due to higher-value orders and tender-based consultancy. However, PAT dropped 62.3% in FY19 to INR 2.34 Cr from INR 6.20 Cr in FY18, indicating a margin compression to approximately 4% in FY19.

EBITDA Margin

PBILDT margin was 24.60% in FY18, up from 17.26% in FY17 (a 734 bps improvement). In absolute terms, PBILDT grew 212.5% to INR 9.78 Cr in FY18. By FY19, PBILDT fell 55.4% to INR 4.36 Cr, resulting in a margin of 7.54%.

Capital Expenditure

The company raised INR 19.44 Cr through an SME IPO in July 2018. Proceeds were allocated for the acquisition of land for projects, meeting working capital requirements, and general corporate purposes. Tangible net worth augmented to INR 38.73 Cr by January 2019.

Credit Rating & Borrowing

Assigned a CARE BB+; Stable rating for INR 15.00 Cr bank facilities in March 2019, which was later withdrawn in January 2020 as the facilities were not availed. The company proposed raising INR 1.50 Cr via Secured Non-convertible Debentures (NCDs) in October 2025 at a high interest rate of 18% p.a.

⚙️ Operational Drivers

Raw Materials

The primary raw materials are solar panels and solar cells. While specific cost percentages per component are not listed, they constitute the bulk of the EPC and assembly costs.

Import Sources

Solar panels and cells are largely imported from international markets to leverage global technology standards and economies of scale.

Capacity Expansion

The company operates an ISO-certified manufacturing facility in Ahmedabad, Gujarat. Planned expansion includes land acquisition funded by the INR 19.44 Cr IPO proceeds to increase assembly and EPC capabilities.

Raw Material Costs

Profitability is highly susceptible to raw material price volatility because the company typically enters into fixed-price contracts. To mitigate this, BSL maintains an inventory policy of 40 to 60 days to buffer against sudden price spikes.

Manufacturing Efficiency

The company utilizes an Ahmedabad facility with ISO 14001:2015, ISO 9001:2015, and OHSAS 18001:2007 certifications, ensuring standardized assembly of DC and AC solar pumps.

Logistics & Distribution

The company has established a marketing network across India to service government projects in Rajasthan, Bihar, and Gujarat.

📈 Strategic Growth

Expected Growth Rate

60.27%

Growth Strategy

Growth is driven by diversifying the service portfolio to include water supply, sewerage, and infrastructure projects. The company is also leveraging its NSE Emerge listing to fund working capital and land acquisition, while maintaining a medium-term revenue visibility through an order book of INR 60 Cr as of early 2019.

Products & Services

Assembled solar pump systems (DC and AC), Solar Photovoltaic (PV) water pumping systems, EPC services, and consultancy for solar industry start-ups.

Brand Portfolio

PUMPMAN, BRIGHT SOLAR WATER PUMP, and BRIGHT SOLAR.

New Products/Services

Recently added water supply, sewerage, and infrastructure projects to the service portfolio to diversify beyond pure solar pumping solutions.

Market Expansion

Targeting pan-India growth through state government contracts, specifically expanding deep into the rural water supply sectors of Gujarat, Bihar, and Rajasthan.

🌍 External Factors

Industry Trends

The solar industry is characterized by rapid technological shifts and high competition. The industry is growing due to green energy mandates, but falling solar component prices can lead to inventory losses if not managed via the 40-60 day policy.

Competitive Landscape

Operates in a highly fragmented and competitive solar power industry with numerous private and unorganized players bidding for government tenders.

Competitive Moat

The moat is based on experienced promoters (Mr. Piyush Kumar Thumar with 10+ years in solar) and established relationships with state governments. However, this is a weak moat given the highly competitive, tender-based nature of the EPC industry.

Macro Economic Sensitivity

Highly sensitive to government spending on rural infrastructure and solar subsidies, as a majority of projects are state-funded.

Consumer Behavior

Increasing shift toward solar-powered irrigation in the agriculture sector is driving demand for the 'PUMPMAN' brand.

Geopolitical Risks

Import dependencies for solar components make the company vulnerable to trade barriers or import duties on solar cells from major manufacturing hubs like China.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with MNRE (Ministry of New and Renewable Energy) standards for solar pump installations and state-specific tender requirements for EPC projects.

Environmental Compliance

Maintains ISO 14001:2015 certification for environmental management systems at its Ahmedabad manufacturing plant.

Legal Contingencies

No specific pending court cases or litigation values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the collection of elongated receivables; INR 12.16 Cr (roughly 30% of FY18 revenue) was overdue by 6+ months, posing a significant liquidity risk.

Geographic Concentration Risk

High concentration in three Indian states (Gujarat, Bihar, Rajasthan), making revenue vulnerable to regional policy changes or local budget reallocations.

Third Party Dependencies

High dependency on international suppliers for solar cells and panels, which are critical for the assembly of solar pumps.

Technology Obsolescence Risk

The solar industry faces high technology risk; rapid improvements in solar cell efficiency could render existing inventory or assembly techniques obsolete.

Credit & Counterparty Risk

Counterparty risk is primarily linked to government departments. While default risk is low, the 'stretched' collection period of 127-197 days indicates significant bureaucratic delays in payment processing.