Solarium Green — Q4 FY25 earnings call

Call held 9 May 2025

Management summary

Solarium Green Energy Limited reported strong financial results for H2 and FY25, driven by significant growth in its turnkey solar solutions and residential rooftop segment. The company achieved a 29.7% YoY revenue increase to ₹230.08 crores for FY25 and secured a healthy order book for FY26. Despite challenges with DCR panel availability and increased operating costs due to expansion, management remains confident in its growth trajectory, focusing on strategic tie-ups and efficient capital deployment.

Highlights

  • FY25 Revenue of ₹230.08 crores, up 29.7% YoY, demonstrating strong growth in the turnkey solar solutions segment.

  • H2 FY25 Revenue significantly increased to ₹148.08 crores, an 81% growth from H1, indicating accelerated performance.

  • The residential rooftop segment saw its monthly revenue double from ₹5 crores to ₹10 crores by March 2025, contributing 37% of total FY25 revenue.

  • A robust order book of ₹120 crores was carried forward to FY26, complemented by ₹243 crores in L1 bids expected to convert into orders within FY26.

  • Strategic expansion into 15 new cities in H2 FY25 and a shift towards a higher EPC share are expected to drive future profitability and market penetration.

Concerns

  • Limited availability of DCR panels delayed ₹17 crores of residential orders to Q1 FY26, impacting immediate revenue recognition.

  • Receivables jumped due to high March revenue (₹56 crores), with ₹7.5 crores from residential AR outstanding, indicating potential working capital pressure.

  • Employee and other costs grew faster than revenue in FY25 due to organizational build-up and expansion, impacting short-term margins.

Key financials

2 periods

Headline

  • Revenue
    ₹230.08 Cr
    YoY +29.7%
  • EBITDA
    ₹26.9 Cr
    YoY +9.3%
  • EPS
    ₹11.65
    YoY +11.1%

H2 FY25

  • Revenue
    ₹148.08 Cr
    QoQ +81%
  • EBITDA
    ₹14.9 Cr
    QoQ +24.2%
  • PAT
    ₹11.6 Cr
    QoQ +54.7%

What they filed

₹ Cr · quarterly
Line itemQ2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue82 148 117 251
EBITDA12 14 13 17
Net profit8 11 9 11
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Residential Rooftop
    37% Revenue Share₹85.13 Cr Revenue
  • Institutional
    50% Revenue Share

Order book

high confidence

Total value

₹120 Cr

as of 2025-03-31 quantified

Execution

The INR 120 crores unexecuted order book is already under execution as of March 31, 2025. Orders worth INR 243 crores (L1 bids) are expected to be executed within FY26.

Composition

Mix 3 client types
  • PSUs (from 243cr L1 bids) ₹243 Cr 66.9%
  • PSUs (from 120cr order book) ₹98 Cr 27%
  • Private and Residential (from 120cr order book) ₹22 Cr 6.1%

Share of order book by client type, derived from disclosed amounts

Cancellations & deferrals

  • deferred: Residential orders delayed to Q1 FY26 due to limited DCR panel availability
Management expects the combined INR 120 crores order book and INR 243 crores L1 bids to be executed in FY26, with a strong pipeline of over INR 494 crores from awaited results and new bids.

Source: Prepared remarks

Capital allocation

medium confidence
  • Liquidity Liquidity disclosed IPO funds are planned to be deployed in working capital to support business growth and leverage the balance sheet with banks.
    Largely, we foresee to deploy those funds within the working capital space at this point in time as our business is growing. So, largely, the fund utilization we foresee in the working capital space. Alongside, we are also wanting to leverage our balance sheet with the help of banks.

Guidance & targets

Profitability

  • Overall EBITDA Margin Profitability · Going forward · High confidence 11-13%
    11% to 13% is the range which we want to probably anchor at this point in time.

    — Himanshu Garg

Revenue

  • Residential Rooftop Monthly Revenue Revenue · FY26 · High confidence ₹10 crores
    And we aim to maintain this INR 10 crores run rate for the whole FY 2026, right? Correct.

    — Himanshu Garg

Other

  • Subsidy Credit Timeline Other · Ongoing · Medium confidence within 45 days max
    subsidies used to take almost 9 months time that has been reduced to less than 3 months now. ... subsidies credited to the consumer account within 45 days at max.

    — Himanshu Garg

What to watch in Q1 FY26

DCR Panel Availability Resolution

Q1 FY26
Current Limited availability, delayed ₹17cr orders to Q1 FY26
Target Improved availability, no further delays, execution of delayed orders

Why it matters

Directly impacts execution velocity and revenue recognition for residential rooftop orders, a key growth segment.

While we faced challenges like limited availability of DCR panels, which delayed about INR17 crores of residential orders to Q1 of financial year 2026...

Risks & concerns

  • DCR Panel Availability

    medium

    Limited availability of domestically manufactured DCR panels due to increased demand and domestic manufacturing requirements delayed ₹17 crores of residential orders to Q1 FY26.

    Management acknowledged

  • Working Capital Pressure from Receivables

    medium

    A jump in receivables, particularly ₹7.5 crores from residential AR, was attributed to high March revenue and the practice of funding subsidies, though these are secured by advance checks/PDCs.

    Management acknowledged

  • Increased Operating Costs

    medium

    Employee and other costs grew faster than revenue in FY25 due to organizational build-up, expansion into new cities, and ESOP provisions, impacting short-term margins as an investment for future growth.

    Management acknowledged

Q&A highlights

6 direct
Order Book Conversion and Execution Timeline Direct
INR 120 crores worth of order which is unexecuted is already under execution as of 31st of March. ... Orders worth INR 243 crores ... that is something we are pretty confident that it will be executed within this year.

Clarified that the combined ₹363 crores from the order book and L1 bids are expected to be executed within FY26, providing strong revenue visibility for the upcoming fiscal year.

Asked by Kushal

Increase in Operating Costs and Capacity Building Direct
the employee cost has been increased as we are also trying to cover that within our presentation as well as the speech that we have been building the organization for our next phase of growth. So from say INR 177-odd crores to INR230 crores in FY25 is something which happened over the last one year.

Explained the rationale behind rising employee and other costs as a strategic investment in organizational growth and expansion into new cities, linking it to future revenue generation.

Asked by Agastya Dave

Residential Rooftop Margins and Competitive Landscape Partial
So, you are right, we started our journey from Gujarat where at the early stage of the business in Gujarat, we were making high margins. But as the state or the adoption gets matured, the margin starts dropping. But good part for us is that we already started going to the other part of the country which is UP, which is Delhi, which is Maharashtra, which is Madhya Pradesh, where the adoption rate is very, very low at this point in time.

Addressed concerns about margin sustainability in the competitive rooftop solar market by highlighting the strategy of geographical expansion into new, less mature states with higher initial margins, balancing the overall margin profile.

Asked by Ria Nahak

DCR Panel Availability Challenges Direct
the adoption of residential solar has increased drastically. And in the PM Surya Ghar Yojana, we have to use domestically manufactured panels with domestically manufactured solar cells. So, that kind of growth no one has foreseen resulting into this supply-demand gap.

Identified the root cause of DCR panel shortages as a rapid increase in demand combined with domestic manufacturing requirements, which is impacting order execution timelines and requiring strategic mitigation.

Asked by Shruti Malpani

Jump in Receivables Direct
So, as I think we tried to cover in terms of receivables, it is largely on account of the revenue for the month of March, which is about INR 56 crores. In terms of the break up, largely INR 7 odd crores is residential rooftop.

Clarified that the increase in receivables was primarily due to the high revenue recorded in March and explained the nature of residential receivables related to subsidy funding, which are secured by advance checks/PDCs.

Asked by Agastya Dave

Utilization of IPO Funds Direct
Largely, we foresee to deploy those funds within the working capital space at this point in time as our business is growing. So, largely, the fund utilization we foresee in the working capital space. Alongside, we are also wanting to leverage our balance sheet with the help of banks.

Provided clarity on the company's plan to deploy unused IPO funds into working capital to support business growth and enhance financial leverage, indicating prudent capital management.

Asked by Rohit

SME Quarterly Reporting Direct
I know SME regulations are different, but that would be of great help to all the investors. This is something that I'm asking all the SME companies to do. It's just a suggestion, sir. It's good for the company and good for the investors.

Highlighted an analyst's suggestion for Solarium to proactively adopt quarterly reporting, which management acknowledged as a commitment to corporate governance, signaling potential future transparency and investor relations.

Asked by Agastya Dave

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in FY25 Driven by H2 Growth

Solarium Green Energy Limited reported a robust FY25, with total revenue reaching ₹230.08 crores, a 29.7% increase from ₹177 crores in FY24. EBITDA for FY25 stood at ₹26.9 crores, growing 9.3% YoY. The second half of FY25 was particularly strong, with revenue of ₹148.08 crores, an 81% growth from H1, and PAT of ₹11.6 crores, up 46.9% from H1, indicating accelerated performance in the latter half of the fiscal year.

Residential Rooftop Segment as a Key Growth Driver and Expansion Strategy

The residential rooftop segment was a primary focus, contributing an impressive 37% of total FY25 revenue, amounting to approximately ₹85.13 crores. Monthly revenue from this segment doubled from ₹5 crores at the start of the year to ₹10 crores by March 2025. The company's strategy involves geographical expansion into 15 new cities in H2 FY25, targeting regions with lower adoption rates to secure higher initial margins and replicate successful execution models from Gujarat.

Robust Order Book and Strong Pipeline for FY26

As of March 31, 2025, Solarium held an unexecuted order book of ₹120 crores, which is carried forward to FY26. Additionally, the company was declared L1 on tenders worth ₹243 crores, primarily from PSUs, with management expressing confidence in their execution within FY26. A further ₹44 crores in tenders are awaiting results, and over ₹450 crores in new tenders were bid in April 2025, signaling a strong pipeline for future growth.

Strategic Business Model Shift and Organizational Investment

Solarium has strategically shifted its business model towards a higher EPC share, reducing its trading business from over ₹70 crores to approximately ₹30 crores. This shift is supported by significant investment in organizational capacity, with employee strength increasing from under 200 to 309 by March 2025. The company also provisioned ₹84 lakh for ESOPs in FY25, aiming to boost employee motivation and alignment with long-term growth goals, despite the short-term impact on operating costs.

Addressing DCR Panel Availability and Receivables Management

The company faced challenges with limited availability of domestically manufactured (DCR) panels, which led to a delay of ₹17 crores in residential orders to Q1 FY26. Management is actively addressing this through corporate-level tie-ups with leading Indian manufacturers. A jump in receivables, particularly ₹7.5 crores from residential AR, was attributed to the high revenue recorded in March 2025 (₹56 crores), with management noting that such receivables are often secured by advance checks/PDCs related to subsidy funding.

Leveraging Government Tailwinds and IPO Funds for Growth

Solarium benefits from strong government support for renewable energy, including initiatives like PM Surya Ghar (with an allocation of ₹25,000-30,000 crores) and the 2030 target of 500 GW non-fossil fuel capacity. The company plans to deploy its unused IPO funds into working capital to support its growing business and leverage its balance sheet with banks. Management aims to maintain overall EBITDA margins in the 11-13% range, reflecting confidence in its operational efficiency and market position.

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