SWELECTES - Swelect Energy

📊 NSE: SWELECTES 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 14:02

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 grew 1.48% YoY to INR 316.08 Cr from INR 311.48 Cr in H1 FY25. Standalone revenue for H1 FY26 was INR 160.19 Cr, a 24.5% decrease from INR 212.30 Cr in H1 FY25, indicating that subsidiaries (IPP assets) are the primary growth drivers.

Geographic Revenue Split

The company is headquartered in Chennai, Tamil Nadu, with operations primarily focused on solar power projects across India. Specific regional % split is not disclosed in available documents.

Profitability Margins

Consolidated Profit After Tax (PAT) for H1 FY26 was INR 10.23 Cr, representing a net margin of 3.2%, down from a 3.8% margin (INR 11.98 Cr) in H1 FY25. Operating margins are monitored against a 17% threshold by credit agencies.

EBITDA Margin

EBITDA margins are expected to remain above 17% to maintain credit stability. A decline below 17% is identified as a key downward rating factor, leading to lower cash accruals.

Capital Expenditure

The group is expected to contract debt of INR 250 Cr to replace short-term working capital borrowings in non-IPP segments, aiming to term out debt and improve the financial risk profile.

Credit Rating & Borrowing

Unsupported rating of 'CRISIL A-/Stable' and short-term rating of 'CRISIL A2+'. The group maintains moderate bank limit utilization of approximately 78% as of November 2023.

⚙️ Operational Drivers

Raw Materials

Key raw materials include PV modules, solar cells, PV inverters, solar charge controllers, and solar junction boxes. Specific cost percentages for each are not disclosed.

Capacity Expansion

Current installed capacity is 113 MW of solar power assets, with 50 MW held by the parent company (SESL) and 63 MW distributed across seven subsidiaries.

Raw Material Costs

Raw material costs are subject to volatility as the non-IPP segment lacks a pass-through mechanism, leading to volatile operating margins.

Manufacturing Efficiency

Efficiency is measured by the Plant Load Factor (PLF) of solar assets. Lower-than-expected PLF is a significant risk to revenue and credit ratings.

📈 Strategic Growth

Expected Growth Rate

Not disclosed%

Growth Strategy

Growth is driven by the Independent Power Producer (IPP) business and EPC contracts. The strategy involves pooling 113 MW of solar assets into a Restricted Group (RG) to stabilize cash flows and utilizing surplus IPP cash to service debt across other business segments.

Products & Services

Solar power (electricity), PV inverters, solar charge controllers, solar junction boxes, rooftop solar installations, and EPC (Engineering, Procurement, and Construction) services.

Brand Portfolio

SWELECT

New Products/Services

The company is issuing up to 303,175 equity shares under the SWELECT Employees Stock Option Scheme 2025 to incentivize and retain key personnel.

Strategic Alliances

The group operates through a co-obligor structure involving SESL and seven subsidiaries (e.g., Swelect Renewable Energy Private Limited) to pool operational solar assets.

🌍 External Factors

Industry Trends

The renewable energy industry is growing but faces intense competition and regulatory shifts. SWELECT is positioning itself by diversifying into IPP, manufacturing, and EPC services.

Competitive Landscape

Intense competition from both domestic and international players in solar module manufacturing and power generation.

Competitive Moat

Moat is built on 30+ years of promoter experience and a diversified business model. The co-obligor structure for 113 MW of assets provides a durable financial advantage by stabilizing debt servicing.

Macro Economic Sensitivity

Sensitive to regulatory changes in the renewable energy sector and state-level power policies.

Consumer Behavior

Increasing demand for rooftop solar and renewable energy installations among commercial and industrial consumers.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 (Sections 196, 197, 198) regarding managerial remuneration and SEBI (LODR) Regulations for listing and disclosure.