Financial Performance Q1 FY27

  • Revenue from Operations: ₹373 crores, representing 70% growth compared to ₹219 crores in Q1 FY26
  • EBITDA: ₹126 crores, up 21% from ₹103 crores in Q1 FY26
  • EBITDA Margin: 34% (compared to 47% in Q1 FY26)
  • Profit After Tax (PAT): ₹78 crores, up 16% from ₹67 crores in Q1 FY26
  • PAT Margin: 21%

The margin contraction was attributed to a change in sales mix with substantially higher module sales during the quarter, which carry lower margins than cell sales.

Operational Metrics Q1 FY27

  • Cell Production: 259 MW (up from 126 MW in Q1 FY26)
  • Cell Utilization: 92%
  • Module Production: 103 MW (more than doubled from 50 MW in Q1 FY26)
  • Module Utilization: 81% (up from 39% in Q1 FY26)

The company expects to operate close to full run-rate utilization throughout the year, excluding any downtime associated with the TOPCon upgrade.

Debt Repayment and Pledge Reduction

On 4th August, 2026, the company repaid the entire outstanding ₹110 crores IREDA term loan from internal accruals, without raising fresh capital or slowing ongoing growth investments. With the closure of this facility:

  • All collateral attached to the loan is being released
  • Promoter pledge will reduce from 80% to 16% of promoter holding
  • Formal release process is underway with lender

Technology Upgrade and Capacity Expansion

  • Initiated upgrade of one existing mono PERC cell line to TOPCon technology
  • Project Cost: Approximately ₹270 crores
  • Expected Completion: March 2027
  • Capacity Addition: 150 MW, taking total cell manufacturing capacity to 1.35 GW
  • Technology Mix: 55% of cell capacity will be on TOPCon post-upgrade
  • Expected Cell Efficiency: Around 25% for upgraded facility
  • Funding: Capable of funding through internal accruals, but may evaluate debt financing to optimize liquidity
  • Payback Period: Expected between 2-3 years

Expansion Plans Location Change

The company announced a strategic shift in its 4-gigawatt expansion plans:

  • Previous Location: Andhra Pradesh
  • New Location: West Bengal (near existing Falta facility)
  • Reason: Increasingly constructive environment for solar manufacturing in West Bengal, operational synergies with existing infrastructure, skilled manpower availability, and supply chain advantages
  • Timeline: No change expected in project timelines
  • Land Status: Land parcel shortlisted, awaiting requisite approvals (expected this month)
  • Construction Start: Expected mid-September 2026
  • Project Cost: Potential savings expected due to lower land costs and equipment price reductions
  • Machinery Lead Time: 4-6 months, orders to be placed according to project schedule

Order Book and Market Position

  • Order Book as of 30th June 2026: ₹1,278 crores (up from ₹1,161 crores at March 2026 end)
  • Product Focus: DCR market projects (PM-Surya Ghar and PM-KUSUM)
  • Rating: CRISIL rating of BBB+ stable remains unchanged

Cost Optimization Initiatives

  • Silver consumption reduced by 20% during FY26
  • Target: Further 10% reduction in silver consumption
  • Evaluating alternative metallization pathways for longer term

Price Realizations and Inventory

  • Q1 Realizations: Solar cells at ₹0.125 per watt peak (~$0.00125); Solar modules at ₹20.50
  • Current Realizations: Solar cells at ~$0.13 per watt; Solar modules at ₹20.50-₹21.00
  • Inventory: Increased by approximately 7% compared to Q4 FY26, attributed to cyclical factors and monsoon-related installation slowdown

Management Commentary on Valuation

Management addressed concerns about stock valuation, acknowledging limited institutional exposure and committing to increase investor interactions and communication efforts to improve market understanding of the company's performance and prospects.

Market Outlook

Management expressed confidence in solar sector demand growth, citing impact of AI, BESS (Battery Energy Storage Systems), and night-time solar requirements. The company remains focused on the DCR market and does not anticipate demand reduction in its target segments.