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    Alpex Solar

    ALPEXSOLAR
    Capital Goods·19 Aug 2025
    Management Summary

    Alpex Solar delivered an exceptional Q1 FY26, showcasing robust financial growth with significant year-over-year increases in revenue, EBITDA, and PAT, alongside substantial margin expansion. The company is actively pursuing ambitious capacity expansion plans for both solar modules and cells, largely funded through internal accruals and equity. Management expressed confidence in achieving a 2x revenue growth for FY26 and maintaining healthy margins, leveraging a strong order book and favorable government policies supporting domestic manufacturing.

    Highlights

    5

    • Q1 FY26 Revenue of ₹380 crores, up 400% YoY from ₹76 crores in Q1 FY25.

    • Q1 FY26 EBITDA of ₹65 crores, a 1525% YoY increase from ₹4 crores in Q1 FY25.

    • Q1 FY26 PAT of ₹42 crores, an impressive 4100% YoY growth from ₹1 crore in Q1 FY25.

    • EBITDA margin expanded significantly to 17% in Q1 FY26 from 5% in Q1 FY25.

    • Current order book stands at ₹1,600 crores, providing strong revenue visibility for FY26.

    Concerns

    3

    • Acknowledged increasing competition in the solar manufacturing sector.

    • Potential for overcapacity issues in the Indian solar market by 2030/2032.

    • Uncertainty regarding US tariff policies and their impact on export opportunities.

    What Changed1

    vs Q2 FY26

    Guidance items14 → 9 (-5)

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue₹380 Cr+4%YoY
    2. 02EBITDA₹65 Cr+15.3%YoY
    3. 03PAT₹42 Cr+41%YoY
    4. 04EBITDA Margin17%
    5. 05PAT Margin11%

    Order Book

    high confidence

    Total Value

    ₹ 1,600 crores

    as of 2025-08-19

    quantified

    Execution

    to be concluded by March 31, 2026

    Composition

    Mix2 contract types
    • DCR (Domestic Content Requirement)55.0%
    • Non-DCR45.0%

    Share of order book by contract type

    "Management expects robust growth and no significant issues with the current order book, with plans to add more orders."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Primarily through internal generation and equity (Rs.240 crores from warrant issue and preferential issue), with a small amount of debt (Rs.100-150 crores) for specific projects.

    Debt

    Debt disclosed

    Guidance & targets

    9
    CategoryTargetPriority
    Revenue
    Revenue Growth
    2x
    		High
    Margin
    EBITDA Margin (Integrated Player)
    around 35%
    		Medium
    Margin
    Net Profit Margin (Integrated Player)
    around 25%
    		Medium
    Capacity
    Cumulative Module Manufacturing Capacity
    3.6 GW
    		High
    Capacity
    Solar Cell Line Capacity
    1.6 GW
    		High
    Order Book
    Order Book for Next Year
    ₹3,000 crores
    		High
    Order Book
    Order Book Carry Forward
    ₹1,000 crores
    		High
    EPC
    Cumulative EPC Installations
    150 MW
    		High
    IPP
    IPP Agreements
    100 MW
    		High

    Commissioning of 1.2 GW Module Capacity

    by November 2025
    CurrentUnder construction
    TargetOperational

    Why it matters

    This expansion is crucial for increasing manufacturing output and revenue capacity.

    Additional 1.2 GW will be operational by the month of November, and by month of November 15th, our first module will be started from Greater Noida facility.

    How to verify

    detailed_narrative[title='Ambitious Capacity Expansion Plans']

    Risks & concerns

    4
    RiskSeverity

    Increasing competition in solar manufacturing

    Many new players are entering the market, but government policies favor domestic manufacturing, and the market is growing rapidly. — Analyst acknowledged

    medium

    Potential overcapacity in Indian solar market

    Analyst raised concerns about overcapacity by 2030/2032, but management believes the market is large enough (40-50 GW) and growing, with many announced projects unlikely to materialize. — Analyst acknowledged

    medium

    US tariff policies impacting exports

    US tariff situation makes module export tough, but cell export to the US presents an opportunity. Management noted the 'shifting sands' of US policy. — Analyst acknowledged

    medium

    Technology obsolescence (HGT vs PERC/Topcon)

    Analyst questioned HGT technology, but management believes it offers little benefit currently due to high production costs, preferring stable PERC/Topcon transition. — Analyst downplayed

    low

    Q&A highlights

    8

    “Oh, I would say a little difficult question. You can calculate it. We have given an idea of a PAT around 25% and we are growing at 2x when we have the cell production, so from that you can very easily estimate.”

    Management did not provide a direct payback period, instead guiding the analyst to estimate based on provided PAT and growth targets, indicating a reluctance to commit to a specific timeline.

    asked by Bhavya Shah

    2 min read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.