Detailed Narrative
Exceptional Q1 FY26 Financial Performance
Alpex Solar reported a remarkable Q1 FY26, with revenues soaring to ₹380 crores, a 400% increase from ₹76 crores in Q1 FY25. This robust top-line growth translated into significant profitability, with EBITDA reaching ₹65 crores (up 1525% YoY from ₹4 crores) and PAT at ₹42 crores (up 4100% YoY from ₹1 crore). Consequently, EBITDA margins expanded to 17% from 5%, and PAT margins improved to 11% from 1.4% in the corresponding quarter last year, reflecting strong operational leverage and market demand.
Ambitious Capacity Expansion Plans
The company is embarking on an aggressive expansion strategy, aiming to increase its cumulative solar module manufacturing capacity to 3.6 GW over the next two years. This includes adding an additional 1.2 GW capacity in Greater Noida by November 2025. Furthermore, Alpex Solar is setting up a new 1.6 GW solar cell line in Kosi, with Phase-I (500 MW) expected to be operational by the end of the current financial year, manufacturing Mono PERC and Topcon cell technology.
Strategic Vertical Integration and Funding
Alpex Solar's expansion includes backward integration into solar cell manufacturing and aluminum frame production (12,000 MT annually), as well as forward integration into EPC installations (targeting 150 MW by FY27) and IPP agreements (100 MW by FY27). The overall CAPEX, estimated at around ₹600 crores, is primarily funded through internal generation and a ₹240 crores preferential issue, with a small amount of debt (₹100-150 crores) planned for specific projects, maintaining a near zero-debt position.
Strong Order Book and Future Growth Visibility
The company currently holds a robust order book of ₹1,600 crores, with 55% comprising Domestic Content Requirement (DCR) orders and 45% non-DCR, and 90% being Mono PERC. This order book is slated for execution by March 31, 2026. Management aims to build an order book of ₹3,000 crores for the next fiscal year and expects to carry forward at least ₹1,000 crores into FY27, signaling strong future growth visibility.
Market Outlook and Competitive Landscape
Management acknowledged increasing competition in the solar manufacturing sector but emphasized the rapidly growing Indian market, supported by government policies like ALCM (Approved List of Cell Manufacturers) and schemes like Surya Ghar. They expressed confidence that experienced players like Alpex Solar are well-positioned to capitalize on these opportunities. While US tariffs pose challenges for module exports, cell exports to the US are seen as a potential growth area.