SOLEX - Solex Energy

📊 NSE: SOLEX 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 13:33

💰 Financial Performance

Revenue Growth by Segment

H1 FY26 total revenue grew 51.8% YoY to INR 4,146 Mn, driven by a transition from OEM to own-brand sales. Standalone revenue for FY25 grew 80.3% YoY to INR 663.64 Cr.

Geographic Revenue Split

Primarily domestic (India) with a growing export footprint in Europe, North America, and Africa to boost foreign exchange earnings.

Profitability Margins

Net Profit Margin improved from 2.39% in FY24 to 6.46% in FY25. H1 FY26 PAT margin expanded 257 bps YoY to 7.3% due to higher own-brand sales and operational efficiency.

EBITDA Margin

EBITDA margin for H1 FY26 stood at 14.7%, expanding 503 bps YoY. EBITDA grew 131% YoY to INR 609 Mn in H1 FY26.

Capital Expenditure

Expanding module manufacturing capacity to 4 GW in FY26. Planning vertical integration into solar cell manufacturing with land acquisition and funding preparations in advanced stages.

Credit Rating & Borrowing

Interest costs for FY25 were INR 10.76 Cr. Interest Service Coverage Ratio improved significantly from 3.39 in FY24 to 8.12 in FY25 despite rising interest costs.

⚙️ Operational Drivers

Raw Materials

Solar cells (primary input), glass, and aluminum frames. Solar cells represent the largest cost component, prompting plans for vertical integration.

Import Sources

Global markets via diversified supply chains; specific countries not disclosed.

Capacity Expansion

Current capacity is expanding to a fully automated 4 GW facility in Surat by FY26. Line-3 and Line-4 became operational in H2 FY26.

Raw Material Costs

Cost of revenue for H1 FY26 was INR 2,972.7 Mn, representing 71.7% of total revenue. Procurement strategies focus on global leader partnerships.

Manufacturing Efficiency

Operating leverage played out in FY25, leading to a 76.93% increase in operating profit margin to 9.65%.

📈 Strategic Growth

Expected Growth Rate

51.80%

Growth Strategy

Scaling module capacity to 4 GW, commissioning new production lines (Line 3 & 4), migrating existing lines to high-efficiency TOPCon technology, and internalizing solar cell manufacturing to deepen vertical integration.

Products & Services

Solar Photovoltaic (PV) modules (Mono-PERC and TOPCon/N-Type) and EPC (Engineering, Procurement, and Construction) solutions.

Brand Portfolio

Solex

New Products/Services

N-Type/TOPCon modules with 30-year product warranties; cell manufacturing initiative expected to contribute to future margins.

Market Expansion

Expanding presence in high-competition global markets including Europe, North America, and Africa.

Strategic Alliances

Collaborations with global technology providers and EPCs for manufacturing reliability and certifications.

🌍 External Factors

Industry Trends

Industry shift toward TOPCon technology; RE sector exhibits strong seasonality where H2 revenue is typically multiple times higher than H1.

Competitive Landscape

Competes with large global players but differentiates through high-focus technology investment and reliability certifications.

Competitive Moat

Durable advantages include a 30-year product warranty, a state-of-the-art 4 GW automated facility, and a successful brand transition from OEM to 'Solex'.