Detailed Narrative
Q1 FY27 Financial Performance Overview
Alpex Solar delivered a strong Q1 FY27, reporting a revenue of ₹500 crores, an EBITDA of ₹80 crores, and a PAT of ₹40 crores. This performance translated into healthy EBITDA and PAT margins of 15.5% and 8% respectively. Management attributed these results to increased module capacity and operational efficiencies, positioning the company well in a competitive market.
Robust FY26 Annual Performance
The company's FY26 financial performance was exceptionally strong, with revenue exceeding ₹2,200 crores and PAT reaching ₹201 crores. Notably, FY26 revenue surpassed the combined revenue of the previous three years, and FY26 PAT exceeded the total revenue of FY23. The company also achieved significant margin expansion, with EBITDA margins growing from 6.5% to 14.7% and PAT margins improving from 2% to 9%.
TOPCon Solar Cell Line Commissioning and Impact
Alpex Solar is on the verge of a significant operational milestone with the commencement of production for its 2.2 GW TOPCon G12R third-generation solar cell line. Production is slated to begin around September 15, 2026, with the first invoice expected by September 19-20, 2026. This ₹890 crore Capex project is designed for high efficiency (up to 26.5%) and is projected to yield substantial margins, with EBITDA of 35-40% and PAT of 20-25% for the cell business, expected to be maintained for at least one year.
Future Expansion into Wafer and Ingot Manufacturing
Further solidifying its integrated value chain, Alpex Solar is actively pursuing expansion into 5 GW solar glass, wafer, and ingot manufacturing. The building for this facility is almost complete, with 70-80% of the planning, technology, and machinery selection already finalized. Part production is anticipated to be ready when the ALWM (ALMM List-III) policy is enforced, with active setup commencing approximately one month after solar cell production begins.
Strategic Market Positioning and Industry Outlook
Management highlighted Alpex Solar's competitive edge, stemming from its two decades of manufacturing experience and a strategy of selective order acceptance due to its current capacity. The company believes the 'plain vanilla module business' is becoming unsustainable without cell manufacturing. They anticipate a shift in industry margins towards cell production and emphasized that only integrated players with accurate plans will thrive amidst intense competition, particularly from aggressive Chinese manufacturers.
Kusum Project and Aluminum Frame Capacity Expansion
Alpex Solar is actively engaged in the Kusum project, having already secured orders worth ₹350 crores for FY27 against a target of ₹500 crores, with new tenders expected soon. In parallel, the company is expanding its in-house aluminum frame manufacturing capacity to 18,000 tons per annum. This expansion is expected to contribute to profitability and enhance self-reliance, preparing the company for potential policy shifts regarding import dependencies.
Main Board Migration Progress
The company is on track with its plan to migrate to the main board. Sakshi Tomar, Company Secretary, confirmed that Alpex Solar will complete the three-year target deadline after February 15, 2027, and plans to file the necessary documents for migration on February 15, 2027. Management expects the approval process from the exchanges to take approximately 2-3 months.