SOLARWORLD - Solarworld Ene.

📊 NSE: SOLARWORLD 🏢 Civil Construction 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations reached INR 546.32 Cr in FY25, a 9.04% increase from INR 501.02 Cr in FY24. For Q1 FY26, total income surged to INR 80.55 Cr, representing a 241.8% YoY growth, driven by rapid execution of the EPC order book.

Geographic Revenue Split

The company has executed 46 projects across 9 Indian states as of July 2025. Specific percentage contribution per region is not disclosed, but operations are focused on domestic utility-scale and C&I installations.

Profitability Margins

Net margins for FY24 were approximately 15-16%. In Q1 FY26, the company reported a net profit of INR 12.91 Cr on a total income of INR 80.55 Cr, resulting in a net margin of 16.03% (reported as 18.9% including other income adjustments).

EBITDA Margin

EBITDA margin stood at 12.9% in Q1 FY26, supported by supply chain optimization and better capacity utilization. This is an improvement over the standard EPC industry margin of 10-11%.

Capital Expenditure

Planned capital expenditure of INR 560 Cr to establish a 1.2 GW solar PV cell manufacturing facility in Pandhurna, Madhya Pradesh. This is funded by INR 140 Cr in debt and the remainder from IPO proceeds.

Credit Rating & Borrowing

Crisil has assigned a 'Stable' outlook. The company raised INR 110 Cr through a pre-IPO placement in November 2024. Long-term borrowings stood at INR 48.10 Cr as of March 31, 2025, down from INR 61.10 Cr in the previous year.

⚙️ Operational Drivers

Raw Materials

Solar panels (representing 40% of total EPC project costs), solar cells, junction boxes, and lithium-ion cells for battery packs.

Import Sources

China dominates 80% of the global PV module supply chain; however, the company is shifting toward domestic sourcing and in-house manufacturing to comply with ALMM (Approved List of Models and Manufacturers) regulations.

Key Suppliers

Not specifically named, but the company utilizes open credit from various suppliers and is transitioning to internal supply via its subsidiaries like Kartik Solarworld Pvt Ltd.

Capacity Expansion

Currently expanding with a 1.2 GW solar cell line at Pandhurna expected to be operational between December 2025 and March 2026. Three manufacturing lines are expected to be operational by the end of FY26.

Raw Material Costs

Cost of materials consumed in FY25 was INR 282.42 Cr, which is approximately 51.7% of standalone revenue. This is a significant decrease from INR 381.31 Cr in FY24, reflecting better procurement and efficiency.

Manufacturing Efficiency

The company intends to utilize 70-80% of its in-house manufacturing capacity for its own EPC projects to maximize internal margins.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

20-30%

Growth Strategy

Achieving growth through backward integration into solar cells and modules to improve margins by 3-4%, and executing a current order book of INR 2,500 Cr. The company targets converting 60% of this order book (INR 1,500 Cr) into revenue during the current financial year.

Products & Services

EPC services for solar power plants, Operation & Maintenance (O&M) services (3-5 year contracts), solar modules, solar cells, and integrated Battery Energy Storage Systems (BESS).

Brand Portfolio

Solarworld Energy Solutions.

New Products/Services

Launching high-efficiency domestically manufactured solar modules and integrated energy storage systems (BESS) to cater to the utility-scale and C&I segments.

Market Expansion

Expanding from a regional EPC player to a national integrated solar manufacturer with new facilities in Roorkee and Pandhurna.

Strategic Alliances

Partnerships with Znshine Solarworld Private Limited (related party) for manufacturing and supply.

🌍 External Factors

Industry Trends

The solar market is expanding at 20-30% annually. There is a technology shift toward high-efficiency cells and BESS. The industry is moving toward fully integrated models to mitigate supply chain volatility.

Competitive Landscape

Competes with listed players like Insolation Energy and Waaree Energies in the module and EPC segments.

Competitive Moat

Moat is built on backward integration (cell to battery pack) and a strong execution track record (253 MW AC across 46 projects). This integration provides a cost advantage of 3-4% over pure-play EPC competitors.

Macro Economic Sensitivity

Highly sensitive to government renewable energy policies and the 'Atma Nirbhar Bharat' initiative which incentivizes domestic manufacturing.

Consumer Behavior

Rising demand from C&I customers for captive solar plants to reduce operational energy costs.

Geopolitical Risks

Trade barriers on Chinese imports and global supply chain disruptions in the PV sector pose risks to module availability and pricing.

⚖️ Regulatory & Governance

Industry Regulations

Subject to ALMM (Approved List of Models and Manufacturers) which mandates the use of approved domestic modules for government-linked projects.

Environmental Compliance

Embedded ESG framework in operations, including responsible sourcing and waste management; specific costs not disclosed.

Legal Contingencies

No overdue amounts for more than 90 days in respect of loans and advances. Specific pending court case values are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Tender-based nature of business makes revenue lumpy and dependent on successful bidding. Potential for module price dumping by global players could impact the viability of new manufacturing lines.

Geographic Concentration Risk

Operations are currently spread across 9 states in India, providing moderate geographic diversification within the domestic market.

Third Party Dependencies

Historically dependent on external module suppliers for 40% of project costs; this risk is being mitigated by the INR 560 Cr backward integration capex.

Technology Obsolescence Risk

Risk of solar cell technology shifting (e.g., from PERC to TOPCon); the company is addressing this by investing in high-efficiency manufacturing lines.