💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 64% YoY from INR 201 Cr in FY24 to INR 330 Cr in FY25. H1 FY26 revenue reached INR 111 Cr, a 13% increase over H1 FY25 (INR 98 Cr). Growth is driven by the grid-tied EPC business and solar water pumping solutions under government schemes.

Geographic Revenue Split

The company is expanding from its base into the Uttar Pradesh (UP) market, qualifying for a 500 MW RESCO tender. International expansion includes a 110 MW EPC contract in Zambia, which is secured by SBLC-backed transactions to mitigate payment risks.

Profitability Margins

Gross margins stood at 20% in FY25 and 22% in H1 FY26. PAT margins were 8.49% in FY25 but dipped to 5% in H1 FY26 due to seasonal monsoon impacts. Management expects PAT margins to recover to 8.5-9% for the full FY26 as H2 typically contributes higher volumes and better fixed-cost absorption.

EBITDA Margin

EBITDA margin improved from 12% in FY24 to 13% in FY25 (INR 42 Cr). H1 FY26 EBITDA margin was 10% (INR 11 Cr), representing a 33% YoY growth in absolute EBITDA terms compared to H1 FY25 (INR 8 Cr).

Capital Expenditure

Planned CAPEX for CY25 is approximately INR 45 Cr, including INR 17 Cr for Land & Building, INR 25 Cr for additional building works, and INR 2.2 Cr for Plant & Machinery. This supports the expansion of manufacturing capacity from 100 MW to 850 MW by March 2026.

Credit Rating & Borrowing

Long-term borrowings increased from INR 3 Cr in FY25 to INR 14 Cr in H1 FY26 to fund capacity expansion. Short-term borrowings for working capital stood at INR 74 Cr in H1 FY26. Specific credit ratings and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Key raw materials include solar cells, solar glass, and aluminum frames for PV module manufacturing. While specific cost percentages per material are not disclosed, COGS represented 80% of revenue in FY25 (INR 264 Cr).

Import Sources

Not explicitly disclosed, though the company mentions 'Imported' components in its INR 25 Cr Plant & Machinery CAPEX plan, suggesting reliance on international technology/equipment providers.

Capacity Expansion

Current annual manufacturing capacity is 100 MW. The company is expanding to 850 MW by March 2026 and has a long-term target of 1,500 MW by FY26-27 to meet rising demand in the EPC and pumping segments.

Raw Material Costs

COGS as a percentage of revenue was 78% in H1 FY26 (INR 87 Cr) compared to 83% in H1 FY25. The company manages costs through vertical integration, covering the value chain from module manufacturing to end-to-end EPC execution.

Manufacturing Efficiency

The company is transitioning from a 5 MW scale in 2010 to a planned 850 MW scale by 2026, indicating a significant shift toward automated, large-scale production efficiency.

📈 Strategic Growth

Expected Growth Rate

40-50%

Growth Strategy

Growth will be achieved through: 1) Capacity expansion from 100 MW to 850 MW; 2) Entry into the Bulk Milk Cooler (BMC) segment with a target of 800-1,000 Cr revenue over 3 years; 3) Execution of a 320 Cr order book; and 4) Scaling subsidiaries like Veracity Powertronics to contribute 50-70% of Sahaj's turnover.

Products & Services

High-performance PV modules, solar water pumping systems (KUSUM scheme), grid-tied EPC services, and solar-integrated Bulk Milk Coolers (BMCs) with battery storage.

Brand Portfolio

Sahaj Solar, Veracity Powertronics (subsidiary).

New Products/Services

Solar + Battery integrated Bulk Milk Coolers (BMCs) developed with IDMC, targeting 100+ units in FY26 and 2,000-3,000 units in FY27. Expected revenue from this segment is INR 10-15 Cr in the current year.

Market Expansion

Expanding into the Uttar Pradesh market via UPNEDA tenders and the African market (Zambia) with a 110 MW EPC contract.

Market Share & Ranking

One of only four parties qualified for the UPNEDA 500 MW RESCO tender category, indicating a strong competitive position in large-scale government solar projects.

Strategic Alliances

Strategic partnership with IDMC Limited for solar-powered dairy cooling solutions and a share swap agreement to bring subsidiaries 100% under Sahaj Solar ownership.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Solar + Storage' and decentralized solar applications (BMCs). The market is growing rapidly, supported by India's renewable energy targets, with Sahaj positioning itself as a vertically integrated 'one-stop' partner.

Competitive Landscape

Competes with other EPC players and module manufacturers; however, it is one of only four companies qualified for specific large-scale UP government clusters.

Competitive Moat

Moat is built on vertical integration (manufacturing + EPC), a 14-year track record, and qualification for large-scale government tenders which have high entry barriers. Sustainability is driven by the transition to 850 MW capacity, providing economies of scale.

Macro Economic Sensitivity

Highly sensitive to national solar policies and government budgets for the PM KUSUM scheme, Jal Jeevan Mission, and National Solar Mission.

Consumer Behavior

Increasing demand for solarization in the dairy industry (BMCs) and government-led agricultural solarization (KUSUM).

Geopolitical Risks

Exposure to African markets (Zambia, Kenya, Uganda) carries regional geopolitical and payment risks, mitigated by SBLC-backed contracts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Ministry of New and Renewable Energy (MNRE) guidelines, ALMM (Approved List of Models and Manufacturers) for modules, and specific tender requirements from state agencies like UPNEDA.

Environmental Compliance

The company is focused on clean energy and is planning a cluster for the recycling of solar panels to address environmental lifecycle concerns.

Taxation Policy Impact

Net current tax expenses were INR 10 Cr in FY25 on a PBT of INR 38 Cr, implying an effective tax rate of approximately 26%.

Legal Contingencies

The company is currently undergoing a regulatory process with exchanges for the approval of a promoter share swap to consolidate subsidiary ownership.

⚠️ Risk Analysis

Key Uncertainties

Execution risk of the INR 320 Cr order book within the promised H2 FY26 timeline; potential for 10-15% impact if monsoon seasons are extended or tender approvals are delayed.

Geographic Concentration Risk

Heavy reliance on the Indian market, specifically Gujarat and now Uttar Pradesh, though international contracts in Zambia provide some diversification.

Third Party Dependencies

Dependency on IDMC for the rollout of the BMC product line and on government agencies for the release of subsidy-linked payments.

Technology Obsolescence Risk

Risk of PV cell technology shifts; mitigated by the planned expansion into newer, higher-efficiency module manufacturing lines (850 MW expansion).

Credit & Counterparty Risk

Trade receivables of INR 235 Cr represent a significant portion of the balance sheet (71% of total assets), indicating high counterparty credit risk from government and cooperative clients.