RELTD - Ravindra Energy

📊 NSE: RELTD 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 11:41

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 91.2% YoY to INR 250.42 Cr in FY25. The EPC segment contributed INR 178.4 Cr (71.2% of revenue), while Electricity Generation contributed INR 71.9 Cr (28.7% of revenue). Revenue from O&M was minimal at INR 0.1 Cr. Projections suggest EPC revenue will grow 143.8% to INR 435.0 Cr in FY26 and a further 50.7% to INR 655.7 Cr in FY27.

Geographic Revenue Split

Operations are concentrated in India, specifically in Karnataka (KREDL projects) and Maharashtra (MSEDCL projects). Maharashtra projects include MSKVY-2 (57.20 MWp) and MSKVY-32 (157.50 MWp). Open access projects for private consumers in Maharashtra account for 11.04 MWp.

Profitability Margins

Gross Profit Margin improved to 38.5% in FY25 (INR 96.32 Cr) from 55.0% in FY24 (INR 72.02 Cr) on a lower base. Net Profit Margin turned positive at 8.7% in FY25 (INR 21.81 Cr) compared to a negative 38.9% in FY24 (INR -50.89 Cr) due to a one-time exceptional loss of INR 64.51 Cr in the previous year.

EBITDA Margin

EBITDA Margin stood at 16.9% in FY25 (INR 42.43 Cr), a decrease from 25.2% in FY24 (INR 33.05 Cr) despite a 28.4% increase in absolute EBITDA. The margin compression is attributed to the shift in business mix toward lower-margin EPC work compared to high-margin generation.

Capital Expenditure

The company is undergoing massive expansion, with total borrowings projected to increase from INR 189.9 Cr in FY25 to INR 972.2 Cr by FY27 to fund the increase in operating capacity from 64.3 MWp to 502.0 MWp.

Credit Rating & Borrowing

Historical credit ratings from ICRA were 'Stable'. Interest expenses in FY25 were INR 9.97 Cr on total borrowings of INR 189.9 Cr, representing an effective interest rate of approximately 5.25%. Interest coverage ratio improved to 3.1x in FY25 from 1.19x in FY24.

⚙️ Operational Drivers

Raw Materials

Solar PV modules and cells represent approximately 60-70% of EPC project costs. Other materials include steel mounting structures, copper cables, and power inverters.

Import Sources

The company faces significant competition and pricing pressure from China, which is a primary global source for solar modules and cells. Domestic sourcing is focused on Maharashtra and Karnataka for project execution.

Key Suppliers

Not specifically named in the documents, but the company operates within the Shree Renuka Sugars group ecosystem for legacy trading and utilizes specialized solar component vendors for EPC.

Capacity Expansion

Current operating capacity is 64.3 MWp as of FY25. Planned expansion targets 244.5 MWp by FY26 and 502.0 MWp by FY27, representing a 680% increase in capacity over two years.

Raw Material Costs

COGS in FY25 was INR 154.1 Cr, representing 61.5% of revenue. This is a significant increase from 45% in FY24, reflecting the higher volume of EPC contracts which are more material-intensive than power generation.

Manufacturing Efficiency

Revenue from electricity generation is based on P-75 generation estimates. Operating capacity added in FY25 was 24.2 MWp, with a massive 180.3 MWp addition planned for FY26.

Logistics & Distribution

Distribution is handled through the state grid for DISCOM sales and Open Access for private consumers in Maharashtra.

📈 Strategic Growth

Expected Growth Rate

78.80%

Growth Strategy

Growth will be driven by a 7.8x increase in solar operating capacity to 502 MWp by FY27. The strategy includes aggressive bidding for government tenders (MSKVY), expanding the Open Access portfolio for private consumers, and diversifying into the Electric Vehicle (EV) business through a 49.5% stake in EIM.

Products & Services

Solar power (electricity), Solar EPC (Engineering, Procurement, and Construction) services, O&M (Operations and Maintenance) services, and Electric Vehicles (via associate EIM).

Brand Portfolio

Ravindra Energy, EIM (Electric Vehicle Business).

New Products/Services

Expansion into the EV business (49.5% stake) and large-scale solar projects under the MSKVY-32 scheme (157.50 MWp) expected to contribute significantly to FY27 revenue.

Market Expansion

Targeting the Maharashtra solar market through MSEDCL tenders and the Karnataka market through KREDL. Pipeline includes 100 MWp of projects for DISCOMs and private consumers in MH and KA by March 2027.

Strategic Alliances

Associate relationship with EIM for the EV business. Partnership with the Murkumbi family (promoters of Shree Renuka Sugars) provides management expertise and capital access.

🌍 External Factors

Industry Trends

The Indian solar industry is growing rapidly but faces intense competition from organized and unorganized players. There is a strong regulatory shift toward decentralized solar (MSKVY) and EV adoption, where the company is positioning itself.

Competitive Landscape

Competes with domestic solar EPC players and global module manufacturers. The EV business competes with established automotive OEMs.

Competitive Moat

Moat is built on long-term (25-year) government PPAs providing stable cash flows and the promoter's track record in large-scale industrial execution. Sustainability depends on timely project execution and maintaining a low cost of debt.

Macro Economic Sensitivity

Highly sensitive to interest rate fluctuations due to the capital-intensive nature of solar projects, with debt projected to reach INR 972.2 Cr.

Consumer Behavior

Increasing corporate demand for 'Green Power' is driving the growth of the company's Open Access (11.04 MWp) segment.

Geopolitical Risks

Trade tensions with China could impact the availability and cost of solar cells/modules, which are critical for the EPC segment.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Electricity Act 2003, MNRE guidelines for solar projects, and state-specific renewable energy policies in Karnataka and Maharashtra.

Environmental Compliance

The company is inherently ESG-compliant as a renewable energy producer; specific ESG spending figures were not disclosed.

Taxation Policy Impact

Effective tax rate in FY25 was 15% (INR 4.11 Cr tax on INR 27.40 Cr PBT).

Legal Contingencies

Contingent liabilities of INR 411.3 Cr were reported (historically) for loans availed by group entities. A write-off of INR 14.53 Cr was recorded for the liquidation of a foreign subsidiary in FY24.

⚠️ Risk Analysis

Key Uncertainties

Execution risk for the 437 MWp pipeline by FY27 could impact revenue by over 50% if delayed. Regulatory changes in solar tariffs or open access charges pose a 10-15% risk to margins.

Geographic Concentration Risk

Over 90% of revenue is derived from Karnataka and Maharashtra, making the company vulnerable to state-specific policy shifts or DISCOM financial health.