Solarium Green — Q4 FY26 earnings call

Call held 2 Jun 2026

Management summary

Solarium Green Energy reported robust revenue growth in FY26, driven by the commissioning of its 1.2 GW manufacturing facility and a strategic pivot towards large ground-mounted EPC projects. While this shift led to gross margin compression and higher finance costs due to new investments, the company is focused on improving profitability and optimizing working capital. The residential segment is being revitalized with new solar kits and an expanded partner network, aiming for accelerated growth.

Highlights

  • Total Income grew 60% YoY to ₹368 crores in FY26, with a 3-year CAGR of 55%.

  • Commissioned 1.2 GW fully automated module manufacturing facility in Ahmedabad, capable of 4000 panels/day.

  • Secured a significant 50 MW AC ground-mounted solar project in Maharashtra valued at over ₹185 crores.

  • Launched solar kits for the residential market, expanding Sarathi partner network to 450+ partners across 25+ cities.

  • H2 FY26 revenue grew 70% YoY to ₹251 crores, indicating strong second-half performance.

Concerns

  • Gross margin compressed to 30% in FY26 from 34.5% in FY25 due to a strategic shift towards lower-margin large EPC projects.

  • Finance costs increased significantly to ₹10.5 crores in FY26 from ₹3.5 crores in FY25, attributed to CAPEX and working capital for the new manufacturing plant.

  • ALMM-2 applicability introduced near-term considerations, leading to a temporary reduction in manufacturing utilization to ~45%.

Key financials

  1. Total Income ₹368 Cr +60%YoY
  2. EBITDA ₹35.3 Cr +31%YoY
  3. EBITDA Margin 9.6%
  4. Gross Profit ₹111 Cr +40%YoY
  5. Gross Margin 30%
  6. PAT ₹20.5 Cr
  7. PAT Margin 5.6%
  8. Finance Cost ₹10.5 Cr
  9. Trade Receivables ₹152.6 Cr
  10. Inventories ₹99.7 Cr
  11. Cash and Bank Balances ₹90.4 Cr
  12. Total Assets ₹459 Cr

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

Share of Revenue
₹368 Cr Total
  • C&I and Ground Mounted ₹227 Cr 61.7%
  • Rooftop ₹80 Cr 21.7%
  • Distribution ₹61 Cr 16.6%

Order book

high confidence

Total value

₹300 Cr

as of 2026-03-31 quantified

Inflow this quarter

₹185 Cr

Execution

Majority of current order book will be executed within this year.

Composition

Mix 2 products
  • Captive Module Consumption (Confirmed) 65 MW 17.8%
  • Captive Module Consumption (Forward Pipeline) 300 MW 82.2%

Share of order book by product, derived from disclosed amounts

Pipeline

other

300 MW plus projects under active discussion

The company has a strong executed order book and a significant pipeline, with a strategic focus on integrating manufacturing with EPC projects for captive consumption.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • 1.2 GW module manufacturing facility ₹90 Cr
    This increase reflects the borrowing taken on fund to commissioning of our module manufacturing facility, a CAPEX of approximately Rs.90 crores
  • Debt Gross ₹150 Cr Maturity: Term loan repayable over next 6 years
    • New borrowing Working capital for 1.2 GW manufacturing plant ₹100 Cr
    • New borrowing Term loan for CAPEX ₹50 Cr
    The overall loans, it's been split in two parts. One is the normal working capital loans, which is about 100 crore plus and the second part is the term loan for the CAPEX for the new factory, which is about 50 crores. So, for the term loan, it's repayable over the next six years and it is a working capital loan.
  • Liquidity Cash ₹90.4 Cr Healthy liquidity position to support ongoing operations and forward pipeline.
    Cash and bank balances at year-end were ₹90.4 crores which provided us with healthy liquidity position to support ongoing operations and the forward pipeline.

Guidance & targets

Capacity Utilization

  • Manufacturing Utilization Rate Capacity Utilization · future · Medium confidence Optimal utilization
    What is the current utilization rate and when do you expect it to reach optimal utilization?

    — Ankit Garg

Captive Consumption

  • Production for Captive Consumption Captive Consumption · future · High confidence 50-60%
    effectively, we are targeting 50% to 60% in-house consumption of production at least.

    — Ankit Garg

Order Book

  • Pipeline Conversion Rate Order Book · within 2-3 months · Medium confidence 60%
    we are hopeful that within next 2-3 months, at least we will have 60% of conversion through this pipeline.

    — Ankit Garg

Residential Segment

  • Monthly Run Rate (including solar kit) Residential Segment · by end of calendar year · High confidence ₹16-18 crores
    I think by the end of the year, we expect including solar kit, we should be anywhere about 16 crores - 18 crores kind of number.

    — Himanshu Garg

Profitability

  • Overall Manufacturing Margins Profitability · future · High confidence >15%
    we target at gross margins or rather the overall margins to be above 15%.

    — Himanshu Garg

  • Exit EBITDA Margins Profitability · FY27 · High confidence 10-12%
    can we see the exit EBITDA margins in FY27 at around 10-12%? Yes.

    — Himanshu Garg

Revenue

  • Revenue Growth Revenue · future · Medium confidence Accelerated growth
    we expect the growth rate to further accelerate in terms of top line.

    — Himanshu Garg

Finance Cost

  • Finance Costs as Proportion to Revenue Finance Cost · future · High confidence Reduce progressively
    We expect finance costs as a proportion to revenue to reduce progressively as the manufacturing assets generate returns.

    — Rohit Jindal

Capex

  • Major CAPEX Capex · FY27 · High confidence No major CAPEX
    We are not foreseeing any major CAPEX during this year. FY27 majority will be anchored around the execution and the ramp-up in quantum modeling.

    — Himanshu Garg

What to watch in Q1 FY27

Manufacturing Utilization Rate

next quarter
Current ~45%
Target Optimal utilization

Why it matters

Indicates the efficiency ramp-up of the new 1.2 GW facility and the resolution/adaptation to ALMM-2 challenges.

Currently, the factory is running at around 45% utilization. We have reduced the utilization for last 10 days because of this ALMM2 applicability.

Risks & concerns

  • ALMM-2 Applicability and Regulatory Environment

    medium

    The progression of ALMM-2 requirements introduced near-term considerations, leading to a temporary reduction in manufacturing utilization.

    Management acknowledged

  • Gross Margin Compression

    medium

    Gross margins compressed to 30% from 34.5% due to the strategic shift towards lower-margin large EPC projects.

    Management acknowledged

  • Increased Finance Costs

    medium

    Finance costs rose significantly due to borrowings for the new manufacturing facility's CAPEX and working capital, impacting PAT.

    Management acknowledged

  • Project Concentration Risk

    low

    While large EPC projects carry concentration risk, management views them as more manageable than numerous small, distributed projects due to fewer decision-makers.

    Analyst downplayed

Q&A highlights

8 direct
Manufacturing Utilization and Consumption Split Direct
Currently, the factory is running at around 45% utilization. We have reduced the utilization for last 10 days because of this ALMM2 applicability... We are expecting almost 40% to 50% of the production will be captively consumed in our own EPC project.

Clarifies the current operational status of the new manufacturing facility and the strategic intent for its output, highlighting the immediate impact of ALMM-2.

Asked by Rishabh

Project Concentration Risk in Large EPC Direct
what was the learning from our last year is like we had done a lot of projects for NTPC and while handling multiple sites, we have executed more than 200-250 sites. The significant challenge comes from non-concentrated sites even... At least if the site is concentrated, we will be very sure that these are the six people or seven people team which we have to convince and get the project through. So, that is why we have shifted our focus to bigger ground-mounted projects.

Explains the strategic rationale behind shifting to larger, more concentrated EPC projects, mitigating perceived risks by focusing on execution efficiency.

Asked by Rishabh

Pipeline Conversion Rate and Residential Segment Growth Direct
we are hopeful that within next 2-3 months, at least we will have 60% of conversion through this pipeline... We have added up another 12-14 crores of business last year through the Kit sales.

Provides specific targets for converting the project pipeline into confirmed orders and quantifies the growth contribution from the residential solar kit business.

Asked by Rishabh

FY27 Revenue and EBITDA Guidance Direct
In terms of guidance, we expect margins to be minimally protected at this level... we kind of see the revenue continue to grow more at whatever rate it has grown in the past couple of years. So, that's the bare minimum we expect. With the manufacturing facility going live with the current order book in hand, we expect the growth rate to further accelerate in terms of top line.

Offers forward-looking commentary on margin stability and revenue growth expectations for the next fiscal year, linking it to the new manufacturing capacity.

Asked by Rishabh

Margin Sustainability and Finance Costs Direct
Gross margins are lower due to EPC mix. Expect margins to be in the range of 10-12% (transferred)... The majority of this interest cost is pertaining to the working capital which is for the manufacturing. So, manufacturing itself has kind of taken about 100 crores plus of working capital investment which is repayable on demand. Obviously, this is more of overdraft limits. Other than that, the term loan is about 50 odd crores which is repayable over the next 6 years.

Addresses concerns about margin compression by clarifying the impact of the EPC mix and provides a detailed breakdown of the increased finance costs, attributing them to specific investments.

Asked by Yashvi Gandhi

Domestic Cell Capacity and Pricing Direct
Overall cell manufacturing capacity is concerned, Ankit you want to take that. But in general, maybe you can derived from it. So, it is about 30-odd gigawatt of capacity, out of which I think 60% is (Inaudible) 27.17. So, over the next 6-8 months, there will be enough expected capacity to be installed for cell in India.

Provides insight into the domestic solar cell manufacturing landscape and assures that capacity will be sufficient to meet demand, addressing potential supply chain and pricing concerns under ALMM.

Asked by Shruti Malpani

Working Capital Cycle for Large EPC Contracts Direct
In a larger ground-mounted, generally, unlike the 120, 150 days kind of cycle in government projects, in these sort of projects, we generally kind of keep getting the money during the execution itself. So, as we said, once we do the delivery for modules, after the delivery, in the next 15 to 30 days, we receive the amount for modules... So, it is kind of overall cycle gets reduced significantly.

Explains how the shift to large EPC projects improves working capital management by reducing receivable days, a critical factor in the construction sector.

Asked by Nishita Saklecha

Strategic Rationale for Solar Grid Business Direct
it is a kind of very strategic decision wherein when we have invested in our own module manufacturing lines, now we have our own branded panels, all certifications done by the name of Solarium... we have launched the whole kit, it has each and everything customized as per the customer's requirement. So, it will ease out drastically local EPC players' problem statement of procurement and customization.

Details the strategic benefits of the new residential solar kit business, emphasizing vertical integration, brand building, and addressing market needs for local EPC players.

Asked by Harsh Sethia

3 min read 6 chapters

Detailed narrative

FY26 Financial Performance Overview

Solarium Green Energy reported a strong financial performance for FY26, with total income growing 60% year-on-year to ₹368 crores, up from ₹230 crores in FY25. This growth translated into a 3-year revenue CAGR of 55% since FY23. EBITDA for the year increased by approximately 31% to ₹35.3 crores, achieving an EBITDA margin of 9.6%. However, gross margins compressed to 30% in FY26 from 34.5% in FY25, primarily due to a strategic shift towards lower-margin large EPC projects. Despite this, PAT marginally increased to ₹20.5 crores from ₹18.6 crores in FY25, representing a PAT margin of 5.6%.

Commissioning of 1.2 GW Manufacturing Facility

A significant development in FY26 was the commissioning of the company's 1.2 GW fully automated module manufacturing facility in Ahmedabad in mid-March. The facility is designed to produce 4000 panels per day, achieving up to 23.5% cell efficiency and capable of manufacturing G12 panels up to 725 watts peak. Currently, the facility operates at approximately 45% utilization, with a strategic target to utilize 50-60% of its production for captive consumption within the company's own EPC projects and solar kit segment.

Strategic Shift to Large Ground-Mounted EPC Projects

The company consciously added large ground-mounted EPC projects to its portfolio, exemplified by securing a 50 MW AC project in Maharashtra valued at over ₹185 crores. This strategic decision aims to reduce exposure to the extended receivable cycles typically associated with government-distributed programs. Management noted that concentrated large EPC projects are more manageable than numerous smaller, distributed sites, leading to better control over cash conversion and allowing for operations at a larger scale with significantly reduced working capital requirements.

Revamping Residential and Distribution Business

Solarium Green launched solar kits for the residential market, significantly expanding its distribution network. The Sarathi partner network now spans over 450 partners across more than 25 cities, positioning the company as the second largest among 20,000+ vendors under the PM Surya Ghar Scheme. This initiative leverages the company's own branded modules and components, creating a low-operating-cost model that simplifies procurement and customization for local EPC players, with plans to launch kits in multiple states soon.

Impact of ALMM-2 and Regulatory Environment

The regulatory environment, particularly the progression of ALMM-2 requirements, introduced near-term considerations, causing a temporary reduction in manufacturing utilization in the last 10 days of the reporting period. However, management expressed confidence that their manufacturing scale positions them well for the industry's transition towards greater domestic content, with an estimated 30 GW of overall cell manufacturing capacity in India expected to ensure sufficient supply within 6-8 months.

Increased Finance Costs and Working Capital Management

Finance costs increased to ₹10.5 crores in FY26 from ₹3.5 crores in FY25, primarily due to borrowings for the ~₹90 crores CAPEX for the new manufacturing facility and ~₹100 crores for working capital. Management expects these finance costs to stabilize and progressively reduce as a proportion of revenue as manufacturing operations ramp up. The company's total assets expanded to ₹459 crores from ₹234 crores in FY25, with healthy cash and bank balances of ₹90.4 crores providing sufficient liquidity for ongoing operations.

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