Solarium Green

Solarium Green Energy Limited reported robust H1 FY26 results, with revenue increasing by 43% year-on-year, gross margins rising by 65%, EBITDA improving by 36%, and Profit After Tax expanding by 22%. This growth was achieved despite moderation caused by prolonged monsoon conditions and demand/supply postponement due to the GST 2.0 rollout in September 2025. The company noted healthy demand and increased traction for solar installations, anticipating further acceleration from the reduction in GST rates on modules and inverters from 12.5% to 5%.

The company achieved a significant operational milestone by commissioning its 1200 MTPA structure manufacturing facility in July 2025, which is expected to generate an estimated 5% cost advantage. The next major milestone is the commissioning of a 1000 MW automated solar module manufacturing plant in Ahmedabad, anticipated by mid-January 2026. Solarium is also investing in digital initiatives, including a B2C application designed to enhance user experience and streamline order tracking and payment functionalities for residential segments.

Solarium maintains a strong order book with INR 229 crores in unexecuted orders and INR 209 crores in L1 orders. The bidding pipeline stands at over INR 900 crores, providing clear growth visibility for the coming quarters. Management expects most of the unexecuted order book to be completed by Q1 FY27, with L1 orders typically executed within 9 to 12 months post Letter of Award (LOA). The company's win ratio for orders up to INR 100 crores is approximately 25-30%.

Finance costs remained elevated in H1 FY26 due to increased working capital requirements, primarily stemming from delayed government receivables. Specifically, INR 20-25 crores from defense-linked projects (BSF and MES) were stuck between May and August due to 'Operation Sindoor' related to the India-Pakistan war. Management expects to clear these outstanding receivables by December 2025, leading to a normalization of finance costs from Q4 FY26 onwards. IPO proceeds are being strategically used to build credit history and create a buffer for future working capital needs, with INR 60-70 crores earmarked for the manufacturing plant in Q4 FY26.

In the highly unorganized rooftop solar market, where 96-97% of the business is unorganized, Solarium differentiates itself by offering an end-to-end solution and focusing on execution, unlike larger players (e.g., Tata, Adani, Waaree) who primarily supply products. The company's new module manufacturing plant will utilize TOPCon technology, capable of handling both DCR and non-DCR cells, ensuring future readiness. While module pricing volatility is acknowledged, strong demand and raw material price trends are expected to support margins.