Solarium Green Energy FY26 Revenue Up 60%

Call Date: June 02, 2026

Macro Environment & Industry Context:

India's total renewable energy capacity crossed 279 GW as of April 2026, with solar capacity exceeding 154 GW.
Solar accounted for nearly half of all new renewable installations during FY26.
The PM Surya Ghar Scheme has electrified approximately 4 million households by May 2026, against a target of 10 million by 2027.
The regulatory environment introduced near-term considerations with the progression of ALMM-2 (Approved List of Models and Manufacturers) requirements.

Key Operational Developments:

Commissioned a 1.2 GW fully automated module manufacturing facility in Ahmedabad in March 2026.
Production capacity: 4,000 panels per day.
Cell efficiency: Up to 23.5%.
Capable of producing large format G12 panels with output up to 725 watts peak per panel.
Features AI-powered quality control and RFID traceability.
Launched solar kits for the residential market and scaled the "Sarathi" partner network to over 450 partners across 25+ cities.
Holds the second-largest position among 20,000+ vendors under the PM Surya Ghar Scheme.
Secured a significant 50 MW AC ground-mounted solar project in Maharashtra valued at over ₹185 crores.

Strategic Shift:

Deliberately shifted focus toward large EPC projects to reduce exposure to extended receivable cycles inherent in government distributed programs.
Large EPC contracts offer better working capital dynamics and cash conversion, albeit with somewhat lower gross margins.
The integration between manufacturing and EPC is becoming a key enabler, with approximately 65 MW of confirmed captive module consumption within the current EPC order book.
A forward pipeline of over 300 MW of projects is under active discussion.

ALMM-II Impact:

A significant portion of the current order book relates to module supplies for projects bid before August 31, 2025, where the use of non-domestically produced solar cells is still permissible.
The company is at an advanced stage of securing domestically manufactured cells to support residential EPC and solar kit segments.
Management does not view ALMM-II as an unmanageable constraint and believes their manufacturing scale positions them well for the industry transition.

Order Book & Pipeline:

Executed order book stands at over ₹300 crores.
Forward pipeline of over 300 MW of EPC projects under active discussion, with an expected conversion rate of 60% within the next 2-3 months.

Income Statement:

Total Income: ₹368 crores, reflecting 60% growth over FY25 (₹230 crores).
3-year revenue CAGR stands at 55% since FY23.
Segment-wise Revenue:
C&I and ground-mounted segments: ₹227 crores (up from ₹114 crores in FY25).
Residential rooftop: ₹80 crores.
Distribution segment (including solar kit revenue): ₹61 crores.
EBITDA: ₹35.3 crores, up 31% from ₹26.9 crores in FY25.
EBITDA margin: 9.6% on total income.
3-year EBITDA CAGR: 82% since FY23.
Gross Profit: ₹111 crores, up 40% YoY.
Gross margin: 30% (compared to 34.5% in FY25). Margin compression attributed to the shift toward lower-margin ground-mounted EPC projects.
Profit After Tax (PAT): ₹20.5 crores, marginally above the ₹18.6 crores reported in FY25.
PAT margin: 5.6% of total income.

Factors Affecting PAT Trajectory:

1. Finance Cost: Increased to ₹10.5 crores in FY26 from ₹3.5 crores in FY25.

This reflects borrowing to fund the ₹90 crore CAPEX for the module manufacturing facility and ~₹100 crore in working capital for the 1.2 GW plant.
Described as a one-time setup cost; expected to stabilize as manufacturing ramps up.

2. Working Capital Build-up: A shift to EPC business increased working capital requirements.

Trade receivables: ₹152.6 crores (up from ₹90.9 crores in FY25).
Inventories: ₹99.7 crores (reflecting manufacturing operations and project pipeline).

Balance Sheet & Liquidity:

Total consolidated assets: ₹459 crores (up from ₹234 crores in FY25).
Cash and bank balances: ₹90.4 crores, providing a healthy liquidity position.
Other current liabilities increased to ₹36 crores from ₹4 crores, attributed to:
₹19 crores: Creditors for fixed assets (CAPEX for the manufacturing plant).
₹5.5 crores: Advance from customers.
₹2 crores: Year-end payables to employees.

H2 FY26 Performance:

H2 Revenue: ₹251 crores, up 70% from H2 FY25 (₹188 crores).
H2 EBITDA: Grew 27% YoY.
H2 PAT: Grew 2% YoY, affected by gross margin compression and high finance costs.

Manufacturing Facility:

Current utilization rate is approximately 45% (reduced for 10 days due to ALMM-2 assessment).
Target consumption mix: 50-60% for captive use (own EPC projects and solar kits), with the remainder for external sales.
External sales order book for modules is approximately ₹35-40 crores, with delivery expected over the next couple of months.

Residential Segment Run Rate:

Current monthly run rate (excluding solar kits): ₹10-12 crores.
Expected monthly run rate (including solar kits) by end of calendar year 2026: ₹16-18 crores.

Margins & Finance Cost Outlook:

Management expects EBITDA margins to be in the range of 10-12% in FY27, protected from further decline.
Finance costs are expected to stabilize; as a percentage of revenue, they should reduce progressively.

CAPEX & Debt:

Working Capital Cycle:

For large ground-mounted EPC projects, the working capital cycle is significantly reduced.
Payments are received within 15-30 days of delivering modules or balance of system materials.
For a ₹150 crore project, working capital requirement is estimated at less than ₹30-35 crores.

The 50 MW project concentration risk is acknowledged but viewed as preferable to managing numerous smaller sites.
The solar kit business is a strategic move to leverage the company's brand and distribution network to supply over 20,000 empaneled EPC vendors under the PM Surya Ghar scheme.
The company is monitoring the domestic solar cell manufacturing capacity situation (~30 GW installed, ~60% utilized) and does not foresee a long-term challenge, expecting stabilization within 6 months.
Management expects revenue growth to continue and potentially accelerate in FY27.