WEBELSOLAR - Websol Energy
Financial Performance
Revenue Growth by Segment
Revenue from operations grew 51.7% YoY in H1FY26 to INR 387 Cr from INR 255 Cr in H1FY25. Q2FY26 revenue was INR 168 Cr, representing a 17.2% YoY increase but a 23.1% sequential decline from Q1FY26.
Profitability Margins
H1FY26 PAT margin stood at 28.9%, an improvement of 354 bps from 25.4% in H1FY25. Q2FY26 PAT margin was 27.0%, down 219 bps YoY and 340 bps QoQ.
EBITDA Margin
EBITDA margin for H1FY26 was 45.4%, up 362 bps from 41.8% in H1FY25. Q2FY26 EBITDA margin was 43.0%, a slight decline of 68 bps YoY.
Capital Expenditure
Historical Capex in H1FY26 was INR 162 Cr (investing activities), significantly higher than INR 43 Cr in H1FY25. Property, Plant and Equipment increased to INR 468 Cr in H1FY26 from INR 283 Cr in FY25.
Credit Rating & Borrowing
Interest Coverage Ratio improved to 17.48 in H1FY26 from 10.99 in FY25. Finance costs decreased 15.4% YoY in H1FY26 to INR 9 Cr.
Operational Drivers
Raw Materials
Cost of Material Consumed represents the primary operational cost, totaling INR 144 Cr in H1FY26, which is 37.2% of total revenue.
Capacity Expansion
PPE increased from INR 283 Cr in FY25 to INR 468 Cr in H1FY26, indicating significant capacity addition. Capital work-in-progress stood at INR 8 Cr as of H1FY26.
Raw Material Costs
Raw material costs increased 64.5% YoY in H1FY26 to INR 144 Cr, outpacing revenue growth of 51.7%.
Manufacturing Efficiency
Return on Capital Employed (ROCE) was 67.81% (annualized) in H1FY26, compared to 80.22% in FY25.
Logistics & Distribution
Other expenses, which include distribution and administrative costs, were INR 81 Cr in H1FY26, up 53.4% YoY.
Strategic Growth
Expected Growth Rate
51.70%
Growth Strategy
Growth is driven by capacity expansion (PPE growth of INR 185 Cr in six months), supportive policy frameworks for local production, and technology advancement in the solar industry. The company is also engaging in non-deal roadshows to interact with institutional investors like Jefferies and HSBC AM.
Products & Services
Solar cells and solar modules (implied by industry positioning and company name).
Brand Portfolio
Websol Energy System.
Market Expansion
The company is targeting growth through supportive policy frameworks that encourage local production and technology advancement.
External Factors
Industry Trends
Benefiting from supportive policy frameworks encouraging local production and technology advancement in the solar sector.
Competitive Landscape
The company faces competition and risks related to managing growth and talent retention.
Competitive Moat
None
Macro Economic Sensitivity
Sensitive to economic conditions, fiscal deficits, and prevailing economic costs.
Geopolitical Risks
Subject to risks from regulatory changes and government policies affecting the solar industry.
Regulatory & Governance
Industry Regulations
Compliant with SEBI (LODR) Regulations, 2015 and other applicable SEBI guidelines.
Taxation Policy Impact
Tax expenses for H1FY26 were INR 37 Cr compared to INR 16 Cr in H1FY25. Deferred tax liabilities increased to INR 43 Cr.
Legal Contingencies
No penalties imposed by capital market regulators in the last three years. No loans/advances provided to firms where directors are interested.
Risk Analysis
Key Uncertainties
Fluctuations in earnings, contract overruns, and regulatory changes are cited as key risk factors.
Technology Obsolescence Risk
Technological developments are listed as a risk factor requiring continuous advancement.
Credit & Counterparty Risk
Trade receivables increased to INR 16 Cr in H1FY26 from INR 5 Cr in FY25.