Financial Performance - Q2 FY27

Revenue Performance:

  • Net sales: ₹2,726 million, up 4.5% QoQ and 75.8% YoY
  • Other Income: ₹17 million, down 64.1% QoQ
  • Total revenue: ₹2,743 million, up 3.3% QoQ and 77.4% YoY

Expense Breakdown:

  • Cost of revenue: ₹2,164 million, up 16.2% QoQ and 107.5% YoY
  • Employee benefit expenses: ₹149 million, down 1.2% QoQ and up 31.9% YoY
  • Other expenses: ₹146 million, down 52.1% QoQ and down 30.0% YoY
  • Total operating expenses: ₹2,459 million, up 6.1% QoQ and 80.2% YoY

Profitability Metrics:

  • EBITDA: ₹284 million, down 15.9% QoQ and up 56.0% YoY
  • EBITDA margin: 10.4%, down 253 bps QoQ and down 133 bps YoY
  • Depreciation and amortization: ₹106 million, up 4.1% QoQ and 138.9% YoY
  • Finance cost: ₹133 million, up 6.2% QoQ and 125.2% YoY
  • Profit before tax: ₹46 million, down 59.1% QoQ and down 42.3% YoY
  • Tax expense: ₹7 million, down 77.0% QoQ and down 68.7% YoY
  • Net Income after tax: ₹39 million, down 52.9% QoQ and down 32.7% YoY
  • Net margin: 1.4%, down 174 bps QoQ and down 230 bps YoY
  • EPS: ₹3.5, down 52.1% QoQ and down 26.7% YoY

Financial Performance - H1 FY27

Revenue Performance:

  • Net sales: ₹5,334 million, up 28.6% YoY
  • Other Income: ₹65 million, up 519.0% YoY
  • Total revenue: ₹5,399 million, up 29.9% YoY

Expense Breakdown:

  • Cost of revenue: ₹4,028 million, up 35.5% YoY
  • Employee benefit expenses: ₹299 million, up 51.7% YoY
  • Other expenses: ₹450 million, up 19.3% YoY
  • Total operating expenses: ₹4,777 million, up 34.7% YoY

Profitability Metrics:

  • EBITDA: ₹622 million, up 2.1% YoY
  • EBITDA margin: 11.7%, down 303 bps YoY
  • Depreciation and amortization: ₹208 million, up 138.8% YoY
  • Finance cost: ₹257 million, up 127.8% YoY
  • Profit before tax: ₹157 million, down 61.7% YoY
  • Tax expense: ₹35 million, down 66.2% YoY
  • Net Income after tax: ₹121 million, down 60.2% YoY
  • Net margin: 2.3%, down 508 bps YoY
  • EPS: ₹10.9, down 60.2% YoY

Balance Sheet Position - H1 FY27

Equity and Liabilities:

  • Share Capital: ₹108 million (unchanged from FY26 and FY25)
  • Other Equity: ₹2,567 million (up from ₹2,453 million in FY26)
  • Total Equity: ₹2,675 million
  • Borrowings: ₹1,648 million (non-current) + ₹1,814 million (current) = Total ₹3,462 million
  • Deferred Tax Liabilities: ₹29 million
  • Other Non-Current Liabilities: ₹565 million
  • Trade Payables: ₹2,302 million
  • Other Current Liabilities: ₹1,812 million
  • Total Equities and Liabilities: ₹10,846 million

Assets:

  • Plant, Property and Equipment: ₹2,791 million
  • Capital Work in Progress: ₹62 million
  • Other Non-Current Assets: ₹660 million
  • Total Non-Current Assets: ₹3,512 million
  • Inventories: ₹4,340 million
  • Trade Receivables: ₹1,679 million
  • Cash & Cash Equivalents: Not separately quantified in disclosure
  • Other Current Assets: ₹796 million
  • Total Current Assets: ₹7,333 million
  • Total Assets: ₹10,845 million

Operational Highlights and Challenges

ALMM Regulatory Impact:

  • Procurement of fresh inventory was paused from end-May 2026 despite having new orders in hand
  • Decision made to await regulatory direction on ALMM List-II
  • Clarity emerged in mid-July 2026, after which procurement resumed
  • Inventory received by September 2026
  • This pause reduced machine utilization while fixed costs remained unchanged

Working Capital Changes:

  • Utilization of fund-based limits increased
  • Utilization of non-fund-based limits (LC-backed) reduced
  • Non-fund limits normally rotate as LCs are repaid in about 90 days and fresh ones are opened

Order Book Visibility

  • Total order book: ~₹4,000+ crore
  • Confirmed orders: Approximately ₹1,050+ crore backed by advance payments
  • Orders in final closure stage: ~₹3,000 crore where factory audits have been completed, with only pricing and production schedules being finalized

Manufacturing Capabilities and Technology

Current Capacity:

  • 4 GW module manufacturing platform
  • Automated production lines with Manufacturing Execution System (MES) enabling traceability

Technology Leadership:

  • First in India to deploy MES on live production
  • First in India to launch G12R technology (~1 year of testing before commercial production)
  • Started supply at GW scale for KPI from September 2025
  • Holds all certifications required for US (including California) and Europe markets
  • Munich Re audits the facility before providing insurance cover
  • Early adoption of N-Type TOPCon technology with efficiency up to 24.6%

Quality Standards:

  • Complies with latest IEC 2021 standards (exceeding previous IEC 2016 benchmark)
  • Testing protocols align with UL and TUV laboratories
  • Quality standards benchmarked against leading Chinese Tier-1 manufacturers
  • Real-time quality monitoring through digital production data connectivity

Strategic Expansion Plans

Investment Plan:

  • ~$1.5 Billion Investment Plan to build fully integrated solar ecosystem
  • Transition from module manufacturer to end-to-end energy solutions provider

Integrated Capacity Roadmap (By 2030):

  • 10 GW Solar Module Manufacturing
  • 10 GW Solar Cell Manufacturing
  • 10 GW Battery Energy Storage Systems (BESS)
  • 2 GW Ingot & Wafer Manufacturing

Progress on Backward Integration:

  • Planned 2.2 GW solar cell manufacturing line in progress as part of backward-integration strategy

Growth Aspirations

  • Aspiring ~3X topline growth by FY28E
  • Aspirational PAT margin: 5-6% for FY28
  • Well positioned to address increasing demand-supply gap through timely expansions

Industry Context and Policy Support

Market Outlook:

  • Indian solar installed capacity expected to rise by 27.2% CAGR to 214 GW between 2024-2028
  • India aims to triple solar installed capacity to 300GW by 2030
  • Government target of 500GW clean energy capacity by FY30, with solar contributing 300GW
  • MNRE plans annual renewable energy auctions totaling 50GW, with solar expected to account for 80% of capacity

Policy Tailwinds:

  • Approved List of Models & Manufacturers (ALMM) - only listed products in government projects
  • Domestic Content Requirement (DCR) - certain project categories must use Indian-made modules/cells
  • Basic Customs Duty (BCD) - 40% on imported modules, 27.5% on imported cells
  • CPSU Programme - government agencies (SECI, NTPC) procure at scale with full DCR requirements
  • ALMM reimposed from April 1, 2024
  • Approved List of Cell Manufacturers (ALCM) aimed at ensuring high-quality solar cells

Management Commentary

Dr. Chetan Shah, Chairman & Managing Director stated:

"Q2 & H1 FY27 is marked by a period of transition for the solar module industry, with developments relating to the Approved List of Models and Manufacturers (ALMM) framework and changes in customer delivery schedules influencing market visibility."

"Our focus remains on strengthening our manufacturing capabilities, maintaining stringent quality standards and meeting customer requirements. Our 4 GW module manufacturing platform, automated production lines and Manufacturing Execution System (MES) enabled traceability support our engagement with large independent power producers."

Corporate Governance

Board of Directors:

  • Dr Chetan Shah - Chairman & MD
  • Vipul Shah - Non-Executive Director
  • Sanjay Srivastava - Independent Director
  • Kalpesh Patel - Whole Time Director
  • Kiran Shah - Executive Director
  • Rajesh Patel - Independent Director
  • Piyush Chandak - Whole Time Director
  • Jayesh Gajjar - Independent Director
  • Sanjay Punjabi - Independent Director
  • Anil Rathi - Non-Executive Director
  • Kamlesh Yagnik - Independent Director
  • Amitkumar Trivedi - Independent Director

Key Management:

  • Azmin Chiniwala - CS & Compliance Officer
  • Head - Supply Chain & Purchase
  • Head - Cell Manufacturing
  • Vice President
  • AVP – Operations

Certifications and Standards

  • BIS (Bureau of Indian Standards) Certification
  • UL certification for North American markets
  • ISO & OHSAS Certifications
  • KIWA Certification
  • CEC (California Energy Commission) Certifications
  • ALMM (Approved List of Models & Manufacturers)
  • IEC certifications
  • EPD – Certified Solar Panel

ESG Initiatives

Environmental:

  • Low-carbon manufacturing: Surat facility runs on clean energy
  • Advanced product innovation: better land utilisation and lower lifecycle emissions
  • Sustainable EPC execution: Rooftop and ground-mounted projects
  • Environmental testing leadership: in-house reliability test lab adheres to IEC 2021 standards

Social:

  • Community electrification through over 10,000 solar installations
  • In FY25, donated INR 11 Lakhs to Traffic Education Trust for road safety awareness
  • Collaboration with OEMs, EPCs, and government entities for Agri-solar and EV infrastructure

Governance:

  • 12 Member Board composition
  • Adherence to SEBI LODR Regulations and Companies Act
  • Transparent communication with investors
  • Data-driven disclosures

EPC Project References

Completed EPC projects include:

  • Radhadarshan Petropack LLP (2.5 MW) - Ankleshwar, Gujarat
  • Inorbit Mall (1.17 MW) - Malad, Maharashtra
  • Torrent Power Ltd (3.0 MW) - Surat, Gujarat
  • Sonali Dying Pvt Ltd (2.2 MW) - Olpad Gujarat
  • Eminent Paper Industries (943 KW) - Hubli, Karnataka
  • Vatsalaya Paper Industries LLP (5.0 MW) - Kukarmunda, Gujarat
  • Gagan Silk (3.0 MW) - Olpad, Gujarat
  • Sankalp IN (1.0 MW) - Patan, Gujarat