Solarworld Energy Solutions Limited – Investor Presentation Summary

Key Operational Highlights

  • Commissioned 50 MW AC Assam project and received charging permission for 200 MW AC / 272 MW DC Khavda project
  • Total commissioned EPC portfolio of 688 MW DC (inclusive of charging permission received for 272 MW DC Khavda project)
  • 60+ projects executed and under execution
  • 400+ employees
  • 13+ years industry experience

Key drivers of operational performance:

  • Expansion into BESS (Battery Energy Storage Systems) with products launched at REI 2026
  • Backward integration through solar cell manufacturing JV
  • Entry into new segments including data center EPC

Segment-wise Performance

  • Solar EPC: Order book of ₹27,180 Mn as of October 31, 2026
  • BESS Projects: Order book of ₹11,389 Mn as of October 31, 2026
  • Manufacturing: 1.552 GW module line, 3.4 GW BESS line, 5 GW junction box line, 2.4 GW solar cell JV

Financial Highlights

Revenue: ₹2,549.0 Mn (Q2 FY27 consolidated)

EBITDA: ₹151.6 Mn (Q2 FY27 consolidated)

PAT: ₹41.9 Mn (Q2 FY27 consolidated)

EPS: ₹0.48 (Q2 FY27 consolidated)

Margins: Gross Profit Margin 11.8%, EBITDA Margin 5.9%, PAT Margin 1.6% (Q2 FY27)

YoY comparison: Revenue up 81%, PAT down 55% (Q2 FY27 vs Q2 FY26)

QoQ comparison: Revenue up 43%, PAT down 56% (Q2 FY27 vs Q1 FY27)

H1 FY27 Performance: Revenue ₹4,329.3 Mn (up 96% YoY), PAT ₹136.9 Mn (down 38% YoY)

Drivers of financial performance:

  • Rising raw material prices impacting margins
  • Entry of new incumbents increasing competition and pushing prices lower
  • Significant slowdown in EPC activity due to connectivity issues and daytime power surplus
  • Weaker rupee (8% YoY) increasing imported cell costs

Key Risks:

  • Continued rise in raw material prices
  • Increased competition from new entrants
  • Slowdown in solar sector EPC activity
  • Connectivity issues delaying implementation of new projects
  • Significant daytime power surplus causing back-down of power generation

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not explicitly specified (Debt: ₹4,007.2 Mn, Equity: ₹8,619.5 Mn as of Sep 2026)

Reserves: ₹8,186.2 Mn (other equity) as of Sep 2026

Current Assets: ₹15,845.1 Mn as of Sep 2026

Current Liabilities: ₹8,874.0 Mn as of Sep 2026

Working Capital: ₹6,971.1 Mn (Current Assets minus Current Liabilities) as of Sep 2026

Financial Health Insights:

  • Strong order book position of ₹38,569 Mn
  • Debt-to-equity ratio of 0.30x as of March 31, 2026
  • Net worth increased 2.7x in FY26
  • Cash and cash equivalents: ₹54.0 Mn as of Sep 2026

Capex & Cash Flow Health

Capital Expenditure: Capital work-in-progress of ₹519.3 Mn as of Sep 2026

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale:

  • Focus on capacity expansion including 2.4 GW solar cell manufacturing by June 2027
  • Technology upgrades through KUKA robotics in BESS manufacturing
  • Backward integration to reduce supply-chain dependency

Strategic & R&D Initiatives

Investments in Innovation:

  • Fully automated BESS facility with KUKA robotics
  • TOPCon panel manufacturing technology
  • Lithium-ion cell manufacturing evaluation
  • Data center EPC technical tie-up with global players

Expected impact on growth:

  • Maximum annual revenue potential of ₹54,000 Mn from manufacturing lines at full utilization (3.9x FY26 revenue)
  • Target 60:40 BESS-to-solar EPC revenue mix
  • Captive cells expected to remove exposure to imported cell costs and currency fluctuations

Strategic Rationale:

  • Expanding into high-growth energy storage market (33.2% CAGR expected)
  • Reducing operational costs through backward integration
  • Diversifying across solar and storage for resilient multi-stream business
  • Reducing client concentration by broadening reach across PSU and private-sector customers

Industry Trends & Business Environment

Macro/Industry Trends:

  • India's BESS market expected to grow from $2.0 Bn in 2026 to $8.59 Bn by 2031 (33.2% CAGR)
  • 411 GWh storage capacity needed by 2032
  • 6 to 80 GW BESS capacity needed alongside solar rising from 176 to 509 GW (CEA, FY27 to FY36)
  • Mandatory storage requirement of 10% / 2 hrs for new solar PV projects since February 2025
  • Viability gap funding of ₹14,500 crore for 92 GWh of Grid Scale Energy Storage Systems
  • Import-duty advantage (2.5% on cells vs 22% on imported battery containers)
  • Solar plus BESS tariffs clearing near ₹5.5 per unit, below thermal at about ₹6

Impact on Company:

  • Opening large market for standalone utility-scale and C&I BESS
  • DCR (Domestic Content Requirement) rules apply to solar projects from December 2026, creating opportunity for domestic cell manufacturers
  • Policy support driving BESS adoption and creating new revenue streams

Management Commentary & Growth Outlook

Strategic Outlook:

  • Focus on scaling BESS business to capture India's storage growth
  • Backward integration to raise captive module and cell use
  • Partnerships for technology access and distribution reach
  • Customer expansion across PSU and private sectors
  • Operational scale-up across solar and storage

FY Guidance: Not explicitly provided

Market Share Targets: Not Specified

Risks and Opportunities:

  • Margin pressure from rising input costs and competition
  • Slowdown in EPC activity affecting traditional business
  • Opportunities in growing BESS market and policy support
  • Advantage from domestic manufacturing capabilities for DCR projects

ESG Updates

Not Specified

Digital Transformation

Not Specified