Gensol Engineer.

Gensol's Solar EPC business demonstrated strong momentum, securing new large-scale projects from prominent public sector undertakings. The company won contracts for 275 MW and 245 MW projects in Khavda, Gujarat, valued at approximately INR 1,062 crores and INR 968 crores respectively. Additionally, a 225 MW project from NTPC in Gujarat worth INR 898 crores was secured. These significant wins boosted the total Solar EPC order book to a healthy INR 7,000 crores as of December 31, 2024, with 80% of this book comprising higher-margin turnkey projects, ensuring future revenue visibility and profitability.

For the nine months ended FY25, Gensol reported a 42% year-on-year increase in total revenue, reaching INR 1,056 crores. EBITDA saw an even more significant jump of 89% year-on-year, totaling INR 246 crores, with EBITDA margins expanding by 582 basis points to 23.3% from 17.5%. Net profit for the nine-month period grew 34% to INR 67 crores. While Q3 FY25 revenue grew 30% to INR 345 crores and PAT was INR 18 crores, management acknowledged a slowdown in Q3 due to extended rainfall and delays in land transfer for large projects, which are expected to spill over into coming quarters.

Gensol's EV leasing vertical continues to grow, with assets under management (AUM) reaching approximately INR 850 crores as of December 2024. A significant strategic move involved partnering with Refex Green Mobility to transfer 2,997 electric 4-wheelers, which will result in the transfer of INR 315 crores of loan obligation. This transaction is expected to significantly deleverage Gensol's balance sheet, and the company plans similar transactions to bring its EV leasing debt close to zero. The EV leasing business also turned profitable this quarter, demonstrating its operational efficiency.

The EV manufacturing arm gained considerable traction, unveiling two new electric variants, EZIO (urban mobility) and EZIBOT (cargo), at the Bharat Mobility Global Expo 2025. The company has received 30,000 pre-orders from fleet operators, indicating strong market interest. Production for Ezio is expected to commence sometime in FY26, following completion of base and advanced testing. Gensol plans a slow and steady ramp-up, starting with an initial batch of 100 cars, reflecting a prudent approach as a first-time OEM to ensure quality and customer feedback integration.

As of December 31, 2024, Gensol reported a gross debt of INR 1,150 crores. Following the Refex deal, which transfers INR 315-320 crores of debt, the gross debt is projected to be INR 850 crores against an equity of INR 600 crores, resulting in a gross debt-to-equity ratio of 1.5x. Net debt stands at INR 600 crores, a 1:1 ratio to equity. The company holds a cash balance of INR 250 crores and has access to INR 350-400 crores in non-fund-based limits, indicating sufficient liquidity for its operations and growth plans.

Gensol had a warrants round for INR 540 crores, of which INR 140 crores has been received. The remaining INR 400 crores is expected to be received by December 31, 2025. These proceeds are strategically allocated primarily for working capital (more than half), EV manufacturing (25%), and a small portion for inorganic acquisitions. This capital infusion is crucial for supporting the company's growth initiatives across its renewable energy and e-mobility segments.

Management emphasized its strategy to maintain healthy margins by focusing on higher-margin turnkey projects. While Q3 saw lower margins due to a higher mix of Balance of System (BOS) projects, 80% of the current INR 7,000 crores order book is comprised of higher-margin turnkey projects. This strategic focus is expected to lead to improved margins in Q4 and subsequent quarters as these projects are executed, ensuring sustained profitability and value creation.