SAATVIKGL - Saatvik Green

📊 NSE: SAATVIKGL 🏢 Other Electrical Equipment 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue for H1 FY26 reached INR 1,683.8 Cr, representing a 133% YoY growth from INR 721.3 Cr. Revenue for FY24 was INR 1,097 Cr (+77.5% YoY) and is estimated to exceed INR 2,000 Cr for FY25 (+82% YoY). Growth is driven by module manufacturing and high-margin EPC contracts.

Geographic Revenue Split

The company operates through Saatvik Green Energy USA Inc for international presence, though specific % split by region is not disclosed. Domestic demand is the primary driver supported by ALMM and BCD policies.

Profitability Margins

PAT margin improved significantly to 9.2% in FY24 from 0.8% in FY23. H1 FY26 PAT stood at INR 202.1 Cr, a 146% YoY increase from INR 82.3 Cr. Q2 FY26 PAT was INR 83.2 Cr, up 36% YoY.

EBITDA Margin

EBITDA margin for H1 FY26 was 18.09% (INR 304.6 Cr), up 135% YoY. Q2 FY26 EBITDA margin was 16.08% (INR 123.5 Cr). Operating margins for FY25 are estimated at 14-15% compared to 4.5% in FY23.

Capital Expenditure

The company is undertaking a greenfield expansion in Odisha to add 4 GW module and 4.8 GW solar cell capacity. Total debt is expected to increase to INR 350-400 Cr by March 2025 to fund this capex, up from INR 121 Cr in March 2024.

Credit Rating & Borrowing

Credit rating upgraded to 'Crisil A-/Stable/Crisil A2+' from 'Crisil BBB+/Stable'. Interest coverage ratio was 10.2x in FY24 and is expected to remain healthy at 5-6x during the capex phase.

⚙️ Operational Drivers

Raw Materials

Polysilicon and solar cells represent 75-80% of the total operating income/cost structure.

Import Sources

Sourced from global markets; prices are influenced by global overcapacities, particularly in solar cells which saw a >50% price decline in FY25.

Key Suppliers

Not specifically disclosed in the documents, though the company relies on global upstream component manufacturers.

Capacity Expansion

Current installed capacity is 4.8 GW at the Ambala facility (scaled from 3.8 GW). Planned expansion includes a total module capacity of 8.8 GW by the end of FY26 and 2.4 GW to 4.8 GW cell manufacturing capacity by FY27.

Raw Material Costs

Raw material costs constitute 75-80% of revenue. Solar cell prices dropped by over 50% YoY in FY25, which helped expand operating margins from 4.5% to ~14.4%.

Manufacturing Efficiency

Capacity utilization for Q2 FY26 was over 83%. Return on Capital Employed (ROCE) is estimated to remain healthy at 25-30% over the medium term.

Logistics & Distribution

Not disclosed as a specific % of revenue.

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

Growth will be achieved through doubling module capacity to 8.8 GW by FY26, backward integration into solar cell manufacturing (4.8 GW), and executing a robust order book of INR 4,657 Cr (as of Feb 2025). The company is also focusing on high-margin EPC orders and technological transition to high-efficiency modules.

Products & Services

Solar PV modules (residential, commercial, industrial), solar inverters, and Engineering, Procurement, and Construction (EPC) services.

Brand Portfolio

Saatvik, Saatvik Green Energy, Saatvik Solar.

New Products/Services

High-efficiency modules and B2C solar services; backward integration into solar cells is expected to contribute significantly to future revenue.

Market Expansion

Expansion into Odisha for greenfield integrated projects and established presence in the USA market via Saatvik Green Energy USA Inc.

Market Share & Ranking

Not disclosed as a specific %; however, the company is a leading domestic module manufacturer with a 4.8 GW current capacity.

Strategic Alliances

The company operates as part of the Shree Ganesh Group, receiving need-based financial support from promoters and group entities like M.K. Proteins Limited.

🌍 External Factors

Industry Trends

The industry is undergoing a technology transition where Mono PERC is becoming obsolete. Future growth is driven by the government's long-term plan to increase renewable energy generation.

Competitive Landscape

Intense competition from both domestic players and global manufacturers, though domestic players are protected by BCD and ALMM policies.

Competitive Moat

Moat is built on 'bankability' (Munich Re audits), 3-4 years of established market credibility, and technological excellence in high-efficiency modules which acts as a barrier to new entrants.

Macro Economic Sensitivity

Highly sensitive to government renewable energy policies and the reimposition of the Approved List of Models and Manufacturers (ALMM) from April 1, 2024.

Consumer Behavior

Increased demand for residential and industrial off-grid/on-grid solar applications driven by favorable government incentives.

Geopolitical Risks

Trade barriers such as Basic Customs Duty (BCD) of 40% on modules and 25% on cells protect domestic players from global competition.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with ALMM (Approved List of Models and Manufacturers) and BCD (Basic Customs Duty) regulations is critical for maintaining market position.

Environmental Compliance

Not disclosed in absolute INR values.

Taxation Policy Impact

Saatvik Solar Industries (subsidiary) enjoys a preferred income tax rate of 15%, while the parent company Saatvik Green Energy is taxed at 25%.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (75-80% of costs) and potential delays in the 4 GW Odisha greenfield project execution could impact margins by 5-10%.