INA

Insolation Energy Limited reported strong financial results for Q3 FY26, with revenue growing 77% YoY to INR 575 crores, driven by higher dispatches and improved operating leverage. EBITDA for the quarter increased by 175% YoY to INR 81.7 crores, and the EBITDA margin expanded by over 500 basis points, reaching more than 14%. For the nine-month period (9M FY26), revenue stood at INR 1352 crores, a 44% YoY increase, with EBITDA at INR 195.5 crores, up 69% YoY, translating into an EBITDA margin exceeding 14%. Earnings per share for Q3 FY26 and 9M FY26 were INR 2.27 and INR 5.89 respectively, representing significant YoY growth.

As of December 31, 2025, Insolation Energy's total installed module capacity reached 5.5 GW, following the addition of a 1.5 GW line in December. The newly commissioned INA-3 facility is in a ramp-up phase, designed to be one of India's most automated PV module manufacturing lines, expected to significantly increase production. The company's greenfield project at Narmadapuram, Madhya Pradesh, which includes a 4.5 GW TOPCon G12R cell manufacturing facility and an 18,000-ton aluminum extrusion unit, is progressing as planned with civil works and PV building activities in full swing. This expansion is a key milestone in the backward integration journey, aiming to improve cost competitiveness and enhance resilience.

The company holds a healthy order book of 2.1 GW, providing clear revenue visibility for the next six to nine months. For Q4 FY26, Insolation Energy plans to dispatch approximately 450 to 500 MW, and from the next financial year (FY27), aims for a monthly dispatch capacity of 300 MW, totaling over 3.5 GW annually. Management clarified that the perception of overcapacity in the Indian solar panel manufacturing sector is a 'myth,' stating that the effective manufacturing capacity for advanced TOPCon/G12R modules is 70-75 GW, against a demand of over 50 GW from government tenders alone, plus growing C&I and rooftop markets.

Insolation Energy revised its FY26 revenue guidance downwards to approximately INR 2,000 crores from the previously guided INR 3,300 crores. This revision is attributed to delays in production capacity ramp-up due to monsoon and other factors beyond the company's control. Despite this, the company maintains its long-term vision of achieving a top-line revenue of $1 billion or INR 8,000 crores by FY27-28 or FY28-29. This target is supported by projected top lines of INR 5,000 crores from solar panel manufacturing, INR 3,000-3,500 crores from solar cell manufacturing, and INR 700-800 crores from aluminum manufacturing.

The company's total CapEx is projected at INR 1,300 crores, with INR 700-750 crores planned for FY27, primarily for the cell and aluminum frame facilities. Insolation Energy plans to fund its 400 MW IPP portfolio under the Kusum project through internal accruals, which are expected to be INR 220 crores for the current financial year and over INR 400 crores for the next year. The company has secured in-principle approvals from 7-8 Indian banks for project loans, and the average cost of finance for its working capital is 8%, with no significant long-term debt on its books.

Management anticipates that India will achieve self-sufficiency in solar panel manufacturing, including key raw materials like cells, glass, and aluminum frames, within the next three years. Currently, module manufacturing is 100% indigenous, and the company is actively expanding its own cell and aluminum frame production. While some components are still imported based on customer demand, the government's strong focus on the 'Make in India' initiative for the entire solar supply chain, from polysilicon to wafers, is expected to significantly reduce import dependency.

Insolation Energy is strategically transitioning its product mix, aiming for TOPCon modules to constitute over 80% of its offerings by FY27, and has already acquired kits to convert its existing Mono PERC facility to TOPCon. The company is also exploring new growth avenues in rapidly expanding sectors such as Battery Energy Storage Systems (BESS), data centers, and green hydrogen. While BESS is currently in the planning phase, awaiting clear government policies, there are no immediate plans for green hydrogen initiatives.