Detailed Narrative
Strong Financial Performance in FY26
Australian Premium Solar (India) Ltd. delivered robust financial results for FY26, with total income surging by 60.70% year-on-year to ₹708.74 crore, up from ₹441.14 crore in FY25. EBITDA also saw significant growth of 62.6%, reaching ₹95.6 crore compared to ₹58.81 crore in the previous fiscal year, with a marginal improvement in EBITDA margin to 13.49%. Net profit after tax (PAT) increased by 44.3% to ₹57.87 crore, and earnings per share (EPS) rose to ₹28.70 from ₹20.31 in FY25.
Capacity Expansion and Utilization
A key milestone for the year was the successful commissioning of a 400-megawatt Topcon solar module manufacturing line at the Prantij factory, elevating the company's total module manufacturing capacity to 800 megawatts. The remaining 400-megawatt expansion is on track and anticipated to become operational by August 2026. This additional capacity is expected to support future growth plans and meet increased demand across both domestic and export markets, with the company already having building utilities in place for the full 800MW.
Strategic Pivot to BESS and Diversified Business Model
The company is actively evaluating opportunities in Battery Energy Storage Systems (BESS) and captive power solutions, viewing BESS as a more promising avenue than further investment in solar cell manufacturing. Management plans to allocate 50% of future profits back into APS and the other 50% into new businesses like BESS, aiming for multi-fold growth. An initial 3 GWh BESS assembly line is planned, with machinery costing up to ₹20 crore, and concrete news on the timeline is expected within a quarter.
Solar Pump Business as a Key Growth Driver
The solar water pump business demonstrated strong traction, driven by government initiatives like PM-KUSUM and increasing rural adoption. This segment is projected to contribute significantly, with an expectation of 35% to 40% of total revenue by financial year 2027. For H2 FY26, the pump segment alone generated a turnover of ₹203.1 crore, highlighting its growing importance and good profit margins despite longer payment cycles.
Managing Raw Material Volatility and Trade Receivables
APS experienced approximately 2% margin pressure in the last three to six months due to rising raw material costs, including glass and aluminum, exacerbated by geopolitical events. However, the company manages this by taking short-term EPC projects (1-2 months) and revising selling prices monthly in line with raw material fluctuations. Trade receivables increased significantly to ₹160 crore as of March 31, 2026, primarily due to the high-growth solar pump segment, which has a longer payment cycle of 90-120 days, with approximately ₹50 crore already collected.
FY27 Outlook and Segmental Margins
For FY27, the company guides for a 30-35% revenue growth and anticipates slightly better margins compared to FY26, driven by improved pricing power. Segment-wise, EBITDA margins are expected to be 12-14% for the pump business, 7-9% for wholesale and project distribution, and 13-15% for retail rooftop and C&I sectors. The company also aims for a minimum 30% increase in net assets annually over the next three years, reflecting its focus on financial discipline and risk management.