Financial Performance Q1FY27

  • Production: 408 MW (vs. 935 MW in Q4FY26 and 685 MW in Q1FY26)
  • Sales: 334 MW (vs. 1,050 MW in Q4FY26 and 579 MW in Q1FY26)
  • Revenue from operations: ₹5,110 million (vs. ₹16,077 million in Q4FY26 and ₹9,157 million in Q1FY26)
  • EBITDA: ₹425 million with EBITDA margin of 8.33% (vs. ₹1,166 million at 7.25% in Q4FY26 and ₹1,777 million in Q1FY26)
  • Profit after-tax: ₹54 million (vs. ₹604 million in Q4FY26 and ₹1,166 million in Q1FY26)

The moderation in performance was attributed to: customer adoption of wait-and-watch approach leading to execution deferrals; volatility in commodity prices, logistics costs, and foreign currency movements; and the company's selective approach to order execution focusing on profitable orders.

Strategic Manufacturing Update: Odisha Project

Phase 1 (57 acres) - Current Status:

  • Cell manufacturing: 2.4 GW capacity - Tool move-in commenced, tool assembly and installation in progress
  • Critical utilities achieved: Electrical room ready for charging, compressor installation and piping completed
  • HVAC ducting and MAU mechanical piping completed, exhaust ducting installation complete
  • Module manufacturing: 4 GW capacity - Equipment movement and installation substantially progressed
  • Testing, validation, trial runs, and process stabilization underway
  • ALMM-2 inspection planned for September 2026
  • Expected cell line ramp-up to commence shortly, with full ramp-up to 80% utilization targeted by Q4FY27

Future Expansion Plans:

  • Phase 2 (27 acres): Additional 3.6 GW cell manufacturing capacity (total to 6 GW)
  • Site activities targeted to commence by end of Q2FY27, completion targeted by end of FY28
  • Phase 3: 6 GW ingot and wafer manufacturing capacity targeted for completion in FY29
  • Total Phase 1 capex: Approximately ₹1,850 crores (₹1,000 crores incurred to date)
  • Phase 2 capex: Approximately ₹1,600-1,700 crores

Order Book and Recent Orders

  • Confirmed order book: 6.35 GW (~132% of current 4.8 GW operational module capacity)
  • Order book value: Approximately ₹8,200 crores
  • Order mix: 70% utility scale, 30% C&I; 30% are DCR (Domestic Cell Requirement) orders
  • Recent orders: July 2026 - ₹138 crores domestic solar PV module order (execution by December 2026); August 11, 2026 - Subsidiary received orders aggregating ~₹400 crores for solar PV modules (execution by March 2027)

Financial Position and Guidance

  • Debt-to-equity ratio: 0.99
  • Current debt: Approximately ₹1,250 crores (majority related to Odisha plant)
  • Expected peak net debt: ₹2,200-2,400 crores
  • FY27 Guidance: 3.5-4 GW sales, ₹6,000 crores revenue, 12% EBITDA margin, 6-7% PAT margin

Business Diversification and Strategy

  • Target: Increase non-solar module business contribution from 4-5% to 15% of revenue
  • Recent entry into transformer manufacturing through Melcon acquisition (mid-Q1)
  • Transformer market size: ~₹30,000 crores currently, expected to reach ₹55,000 crores by 2031
  • Target: Build transformer business to ₹1,000-1,500 crores in 3-4 years
  • Product expansion: Saatvik SuryaConnect Solar Kit, UDAY Plus Hybrid Inverter
  • Strategic vision: Evolve from solar manufacturer to integrated energy platform across manufacturing, power electronics, storage, and energy infrastructure

Market Context and Outlook

  • ALMM-2 implementation postponed from July 1, 2026 to January 1, 2027 due to domestic cell manufacturing shortage
  • Geopolitical situation (Iran war since February 20, 2026) impacted commodity prices, freight costs, and created market uncertainty
  • Expected margin improvement from cell manufacturing: High double-digits (18-20% on cells)
  • India solar market: 55-57 GW DC in previous year, expected to grow to 70-80 GW and eventually 100 GW

Management Participants

  • Mr. Neelesh Garg - Chairman and Managing Director
  • Mr. Prashant Mathur - Chief Executive Officer
  • Mr. Rishabh Mehtta - Interim Chief Financial Officer
  • Adfactors PR - Investor Relations Team
  • Moderator: Mr. Prakhar Porwal - Ambit Capital