Insolation Ener

Insolation Energy reported a strong financial year for FY25, with consolidated revenue increasing by 80.9% to INR 1,333.80 crores. EBITDA saw a significant rise of 103% to INR 170 crores, leading to a 140 basis points expansion in the EBITDA margin to 12.8%. Profit After Tax (PAT) also grew substantially by 127.5%, driven by operational leverage and strategic cost optimization. The company's working capital cycle improved to 31 days in FY25, down from 44 days in FY24, reflecting better payment terms and a focus on the dealer network.

The company is aggressively expanding its manufacturing capabilities. A new 3-gigawatt solar module line (Unit 3) in Jaipur is 80% complete and is expected to be operational within the next 4-6 weeks. Furthermore, Insolation Energy is prioritizing backward integration by setting up a 4-gigawatt solar module, 3-gigawatt solar cell, and 54,000 metric ton aluminium frame capacity expansion in Narmadapuram, MP. The 3-gigawatt solar cell line is projected to be operational by H1FY27, with construction starting by Q1FY26.

Insolation Energy operates across various market segments through a diversified distribution channel, including channel partners, government schemes, rooftop solar, and EPC contracts. The company boasts a strong consolidated order book exceeding INR 2,500 crores. Its subsidiary, Insolation Green Infra Private Limited, focuses on EPC projects for KUSUM A and C schemes, independent power projects, and rooftop installations, with a significant pipeline of over 100 megawatts for rooftop projects in FY26 and an expectation to win 350+ megawatts in upcoming KUSUM Component A tenders.

Management provided ambitious guidance for future growth, targeting revenues of over INR 3,000 crores in FY26, INR 5,500 crores in FY27, and INR 8,500 crores in FY28. This growth is expected to be accompanied by significant margin accretion, with PAT margins projected to expand from 9.5% in FY25 to 11.1% in FY26, 14.01% by FY27, and 16% by FY28, largely driven by the integration of cell manufacturing. For FY26, the revenue split is projected as INR 2,800 crores from modules, INR 400 crores from EPC, and INR 100 crores from other businesses.

The company plans a total capex of approximately INR 1,300 crores over the next 12-15 months, primarily for the cell manufacturing line and other strategic investments. This capex will be funded by INR 300 crores from internal accruals and INR 1,000 crores from debt. Management confirmed advanced discussions with banks like SBI and BOB for debt at interest rates below 9%, and with IREDA, PFC, and REC for rates around 9.25%, indicating strong financial backing for its expansion initiatives.

The solar sector in India benefits from strong government support, including schemes like PM KUSUM Yojana (targeting 35-gigawatt capacity addition by March'26) and PM Surya Ghar Yojana (1 crore rooftop solar installations). Policy frameworks such as the PLI scheme, ALMM, and ALCM (effective June 2026) are fostering domestic manufacturing. The company also highlighted significant incentives from the Madhya Pradesh government for its Narmadapuram plant, including free land on lease rent of INR 1 per square meter per year, subsidized electricity at INR 4.36 paisa for 5 years, and a capex subsidy of 17% (with a demand for up to 35%).

Insolation Energy announced its intention to migrate from the SME board to the main board. The process is slated to commence on October 11, 2025, immediately after completing three years on the SME board, with an expected completion time of 45-60 working days. Additionally, the company will begin publishing its financial results on a quarterly basis starting from the April to June quarter of the current financial year, aligning with new guidelines.