💰 Financial Performance

Revenue Growth by Segment

Total revenue for H1 FY26 was INR 40.73 Cr, representing a 12.01% YoY moderation from INR 46.29 Cr in H1 FY25. Segment-specific growth percentages for residential, commercial, and industrial (C&I) were not individually disclosed, though management noted a shift toward higher-margin government and corporate projects.

Geographic Revenue Split

The company is primarily Gujarat-based, with significant operations in Gandhinagar. It has expanded into Bihar with a major project valued at approximately INR 35 Cr, though the exact percentage split between states is not disclosed.

Profitability Margins

Net Profit Margin improved to 10.77% in H1 FY26 from 8.93% in H1 FY25, an increase of 184 bps. This was driven by a better project mix and disciplined execution despite lower overall revenue.

EBITDA Margin

EBITDA margin stood at 17.13% for H1 FY26, a significant improvement of 417 bps from 12.96% in H1 FY25. EBITDA grew 16.25% YoY to INR 6.98 Cr from INR 6.00 Cr.

Capital Expenditure

The company raised INR 31.37 Cr through a Public Issue (IPO) for various corporate purposes and project funding. Specific historical and future annual capex figures in INR Cr were not detailed in the snippets.

⚙️ Operational Drivers

Raw Materials

Solar panels (modules) and inverters are the primary raw materials, accounting for the bulk of project costs. Management noted that raw material price fluctuations typically range between 2% to 5%.

Import Sources

Not specifically disclosed, though management mentions government duty structures on imports as a primary driver of price volatility.

Capacity Expansion

Current capacity includes 1,500-kilowatt solar rooftop projects for universities and a major INR 35 Cr project for Bihar Renewable Energy. Specific manufacturing or installation capacity in MW/MT was not provided.

Raw Material Costs

Raw material costs are sensitive to government duty policies; a change in duty structure can increase panel prices suddenly, impacting margins by 2% to 5% if projects were contracted at lower fixed rates.

📈 Strategic Growth

Expected Growth Rate

50%

Growth Strategy

Trom aims to achieve growth by shifting its project mix toward high-ticket government and corporate EPC contracts, such as the INR 35 Cr Bihar Renewable Energy project. The strategy involves leveraging the INR 31.37 Cr IPO proceeds to execute larger projects and expanding its footprint in the C&I (Commercial and Industrial) and government sectors (e.g., GEDA).

Products & Services

Solar EPC services, solar rooftop installations, and renewable energy solutions for residential, commercial, industrial, and government clients.

Brand Portfolio

Trom Industries.

New Products/Services

Recent additions include 1,500-kilowatt solar rooftop projects for universities and projects for leading steel manufacturers.

Market Expansion

Expansion into government markets through agencies like GEDA (Gujarat Energy Development Agency) and BREDA (Bihar Renewable Energy Development Agency).

Strategic Alliances

Partnerships with Kirin Advisors for investor relations; client alliances include GEDA, Jyotindra International, and Hermes Technology.

🌍 External Factors

Industry Trends

The solar EPC industry is growing at 50% to triple digits annually. Trom is positioning itself to capture this growth by moving from smaller residential projects to larger, more stable government and industrial contracts.

Competitive Landscape

Competitors include other solar EPC firms in the renewable space which are currently delivering 50% to triple-digit growth.

Competitive Moat

The company's moat is built on its execution track record in the Gujarat solar market and its ability to secure government agency contracts (GEDA). This is sustainable due to high entry barriers in government EPC tendering and specialized technical requirements.

Macro Economic Sensitivity

Highly sensitive to government renewable energy policies and fiscal duties on solar imports.

Consumer Behavior

Increasing demand for clean, cost-effective energy solutions in the C&I and residential sectors is driving project volume.

Geopolitical Risks

Vulnerable to international trade policies affecting solar module supply chains and import duties.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, SEBI Listing Obligations (LODR) 2015, and specific solar industry standards set by agencies like GEDA.

Environmental Compliance

Compliant with the Factories Act, 1948, and environmental protection acts related to pollution control.

Taxation Policy Impact

Subject to Indian corporate tax laws and GST; specific effective tax rate % was not disclosed.

Legal Contingencies

The company has disclosed the impact of pending litigations in its financial statements, though specific case names and INR values were not provided in the snippets.

⚠️ Risk Analysis

Key Uncertainties

Fluctuations in government duty structures pose a 2-5% risk to raw material costs and overall project margins.

Geographic Concentration Risk

High concentration in Gujarat, though diversifying into Bihar with an INR 35 Cr project.

Third Party Dependencies

Dependent on solar module and inverter manufacturers; specific vendor names were not disclosed.

Technology Obsolescence Risk

Risk of evolving solar cell efficiency standards requiring constant technical adaptation.

Credit & Counterparty Risk

Exposure to government agencies (GEDA, Bihar Renewable Energy) and corporate clients like Hermes Technology; receivables quality is generally linked to project milestone completions.