Saatvik Green Energy Limited — Q1 FY26 earnings call

Call held 10 Oct 2025

Management summary

Saatvik Green Energy Limited reported a robust Q1 FY26, marked by significant growth in revenue and profitability following its recent IPO. The company demonstrated strong operational efficiency with high capacity utilization and improved its debt-equity ratio. Management outlined ambitious expansion plans, including a greenfield cell and module manufacturing facility in Odisha, and discussed strategic backward and sideways integration into solar pumps and inverters, reinforcing its position in India's renewable energy sector.

Highlights

  • Revenue from operations stood at INR 916 crores, registering 272% YoY growth.

  • EBITDA came in at INR 181 crores, up 346% YoY, with EBITDA margin expanding to 19.8% from 16.5% in Q1 FY25.

  • Profit after tax increased sharply to INR 119 crores, up 459% YoY, with PAT margin improving to 13% from 8.6% in Q1 FY25.

  • The company achieved a high capacity utilization of 81.47% and production of 685 megawatts during the quarter.

  • Return on equity stood at 26% and return on capital employed at 24% (non-annualised), indicating efficient capital utilisation.

  • Debt-equity ratio improved to 1.28 from 1.36 in FY25, and the company aims to maintain it between 1.2 to 1.3.

  • Order book as of June 30, 2025, stands at over 4 gigawatts, providing strong revenue visibility.

  • An additional 1 gigawatt capacity was added at Ambala in Q2 FY26, bringing total installed capacity to 4.8 gigawatts.

Key financials

  1. Revenue from Operations ₹916 Cr +272%YoY
  2. EBITDA ₹181 Cr +346%YoY
  3. EBITDA Margin 19.8%
  4. PAT ₹119 Cr +459%YoY
  5. PAT Margin 13%
  6. Capacity Utilisation 81.5%
  7. Production 685 megawatts
  8. Return on Equity 26%
  9. Return on Capital Employed 24%
  10. Debt-Equity Ratio 1.28

What they filed

Q1 FY27: revenue down 11.8%, net profit down 15.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue590 487 585 378 555 −6%717 +47%612 +5%333 −12%
EBITDA8 25 116 9 -3 −145%25 −1%-16 −114%-3 −131%
Net profit17 12 96 8 3 −80%39 +228%11 −88%7 −16%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Capacity

  • Total Installed Capacity Capacity · Henceforth (post Q2 FY26) · High confidence 4.8 gigawatt
    To meet growing demand, we have added another one gigawatt capacity at Ambala, which should be operational henceforth, taking our total capacity to 4.8 gigawatt.

    — Neelesh Garg, Chairman and Managing Director

  • Odisha Cell Manufacturing Capacity Capacity · Q3 FY27 · High confidence 4.8 gigawatt
    Beyond this, we are expanding our capabilities further with a fully integrated cell and module manufacturing facility in Odisha, 4.8 gigawatt for cells and 4 gigawatt for modules, expected to be commissioned by quarter 3 FY27 and FY26, respectively.

    — Neelesh Garg, Chairman and Managing Director

  • Odisha Module Manufacturing Capacity Capacity · Q3 FY26 · High confidence 4 gigawatt

    — Neelesh Garg, Chairman and Managing Director

  • Odisha Cell Line Stabilization Capacity · Q2 FY27 · High confidence End of second quarter
    Stabilized by the end of second quarter.

    — Prashant Mathur, CEO

  • Effective Available Capacity Output Capacity · FY26 · High confidence 3.5 gigawatt
    So, our effective available capacity will end up being about 3.8 gigawatt. So, we should be able to clock around 3.5 gigawatt kind of output in this year.

    — Prashant Mathur, CEO

Capex

  • Odisha Greenfield Project Capex (Phase 1) Capex · High confidence INR 1,850 crores
    So, for the first phase of 4 gigawatt of module and 2.4 gigawatt of cell, the total capex is INR1,850 crores.

    — Abani Jha, CFO

  • Odisha Module Capex Capex · High confidence INR 550 crores
    So, there it will be INR550 crores.

    — Abani Jha, CFO

  • Odisha 2.4 GW Solar Cell Capex Capex · High confidence INR 1,300 crores
    Understood. So, INR550 crores would be module and INR1,300 crores would be 2.4 gigawatt solar cell, right? Correct.

    — Abani Jha, CFO

Revenue

  • Odisha Module Revenue Start Revenue · Q1 FY27 · High confidence April 2026
    So, that should start giving revenue from April of 2026.

    — Prashant Mathur, CEO

  • Solar Pumps Revenue (FY26) Revenue · FY26 · High confidence INR 50-80 crores
    this year we are targeting to do close to 4000 pumps-5000 pumps, which will be around INR50 crores-INR80 crores kind of revenue.

    — Prashant Mathur, CEO

Volume

  • Odisha Cell Output Volume · FY27 · Medium confidence 800 megawatt to 1 gigawatt
    So, around 800 megawatt to 1 gigawatt is the kind of output we are expecting for the financial year.

    — Prashant Mathur, CEO

  • Solar Pumps (FY26) Volume · FY26 · High confidence 4,000-5,000 pumps
    this year we should do about 4,000 to 5,000 pumps.

    — Prashant Mathur, CEO

  • Solar Pumps (FY27) Volume · FY27 · High confidence 15,000 pumps
    Next year our target is to do about 15000 pumps.

    — Prashant Mathur, CEO

Margin

  • Additional EBITDA from Cell Manufacturing Margin · High confidence 4% to 5%
    additional 4% to 5% EBITDA would come for the cell part.

    — Prashant Mathur, CEO

Debt

  • Debt-Equity Ratio Debt · High confidence 1.2 to 1.3
    So, we will maintain the debt equity ratio in our current level only. So, it will be about even including the debt we are going to take on the capex. We will maintain the debt equity ratio between 1.2 to 1.3.

    — Abani Jha, CFO

  • Debt Rate for Capex Debt · High confidence 8.9 to 9%
    It will be in the range of 8.9 to 9.

    — Abani Jha, CFO

Funding

  • Odisha Cell Plant Debt Funding Percentage Funding · High confidence 75%
    we have secured the debt from the leading government bank which will fund us 75% of the project cost and 25% of the project will be funded through equity

    — Abani Jha, CFO

  • Odisha Cell Plant Equity Funding Percentage Funding · High confidence 25%

    — Abani Jha, CFO

Risks & concerns

  • Perceived Industry Overcapacity

    medium

    Analysts raised concerns about overcapacity in the solar module industry, but management explained that actual capacity utilization is low (~40%) and older technologies are becoming obsolete, creating demand for new, efficient modules.

    Analyst downplayed

  • Technology Obsolescence

    medium

    Management highlighted that older technologies like Mono PERC are becoming obsolete, which could impact demand for less efficient products, but positioned their focus on advanced Mono PERC and N-TOPCon modules as a competitive advantage.

    Management acknowledged

  • Project Execution Delays for Greenfield Facilities

    low

    While peers have faced delays in large-scale projects due to land acquisition and infrastructure, management stated their Odisha project is on time, having strategically chosen a developed Tata Steel SEZ near ports to mitigate such risks.

    Analyst acknowledged

Areas of evasion (1)

  • Specific revenue guidance for FY26 (though capacity output guidance was provided)

Q&A highlights

3 direct
Industry Overcapacity and Technology Obsolescence Direct
So, overcapacity, on the face of it, it may look like an overcapacity, but what we know is that lot of the capacity, firstly, if you see industry standard, the capacity utilization is not even 40%... The other point is that there has been tectonic technology change that has happened in the last one year, and many old technologies like Multi, Mono, and Mono PERC will become obsolete in the next one year... So, considering that lot of old technologies will become offline, we don't see overcapacity kind of situation in the coming at least few years.

This question addresses a critical sector-wide concern about potential oversupply and management provides a detailed explanation of why it's not a significant risk for them due to low actual utilization and technology shifts.

Asked by Surender Singh

Odisha Cell Plant Timelines and Execution Challenges Direct
So, our Odisha project is well on time. So, the civil construction work is already going on. We should start our PEB erection very soon, probably by end of this month. And module and cell capacities should come around the same time, but module takes little less time to optimize and commercialize. So, that should start giving revenue from April of 2026... So, we are targeting end of second quarter for our 2.4 gigawatt cell. The equipment ordering has already been done and we are well on track on that.

Provides specific timelines for the major greenfield cell and module manufacturing project in Odisha and reassures investors about the progress and mitigation of potential execution delays by choosing a developed SEZ location.

Asked by Kunal Shah

Funding Strategy for Odisha Capex and Debt Management Direct
So, see, if you so we are going to invest about INR1,300 crores in two different financial years, in FY26 and FY27, in the ratio of maybe 60% this year and 40% next year. So, to fund that 60%, we have secured the debt from the leading government bank which will fund us 75% of the project cost and 25% of the project will be funded through equity and we have enough equity capital, equity available in our balance sheet and we are also generating profit.

Clarifies the funding mix (75% debt, 25% equity, supported by internal accruals) for the substantial INR 1,300 crore cell plant capex and reiterates the company's commitment to maintaining a healthy debt-equity ratio between 1.2 and 1.3.

Asked by Chirag Jain

3 min read 7 chapters

Detailed narrative

Strong Q1 FY26 Performance and IPO Milestone

Saatvik Green Energy Limited reported exceptional financial results for Q1 FY26, with revenue from operations soaring to INR 916 crores, a 272% year-on-year increase. EBITDA grew by 346% to INR 181 crores, leading to an expanded EBITDA margin of 19.8% compared to 16.5% in Q1 FY25. Profit after tax also saw a remarkable 459% growth, reaching INR 119 crores, with PAT margin improving to 13%. These results follow a successful INR 900 crore IPO, which was oversubscribed 6.93 times, reflecting strong investor confidence.

Aggressive Capacity Expansion and Greenfield Project in Odisha

The company's installed capacity reached 3.8 gigawatts by June 2025, with an additional 1 gigawatt added in Q2 FY26 at Ambala, bringing the total to 4.8 gigawatts. A significant greenfield expansion is underway in Odisha, featuring a fully integrated cell and module manufacturing facility. This project targets 4.8 gigawatts for cells (commissioning by Q3 FY27) and 4 gigawatts for modules (commissioning by Q3 FY26), with module revenue expected to commence from April 2026.

Advanced Product Portfolio and Technology Focus

Saatvik Green Energy offers a diverse portfolio of advanced Mono PERC and N-TOPCon modules in both monofacial and bifacial configurations, designed for higher efficiency across residential, commercial, and utility projects. Management emphasized the ongoing 'tectonic technology change' in the industry, with older technologies like Mono PERC becoming obsolete, driving demand for their higher-efficiency products, particularly G12R TOPCon.

Robust Order Book and Favorable Demand Outlook

The company maintains a strong order book of over 4 gigawatts as of June 30, 2025, primarily comprising medium and long-term orders, supplemented by spot and retail distributor orders. Management expressed confidence in sustained demand, citing low actual industry capacity utilization (around 40% despite high ALMM listed capacity) and additional demand drivers such as green hydrogen, green ammonia, and battery storage solutions.

Strategic Backward and Sideways Integration

Saatvik is pursuing an integrated renewable energy manufacturing and service model. This includes backward integration into cell manufacturing (2.4 GW in Odisha, targeting 800 MW to 1 GW output in FY27) and plans for wafer and ingot value chain. Sideways integration efforts include a rapidly growing solar pumps business, targeting 4,000-5,000 pumps and INR 50-80 crores revenue in FY26, and the recent launch of inverters. BESS manufacturing is currently in the whiteboard stage.

Prudent Financial Management and Capex Funding

The company's debt-equity ratio improved to 1.28 from 1.36 in FY25, with a commitment to maintain it between 1.2 and 1.3. The Odisha greenfield project, with a total capex of INR 1,850 crores (INR 550 crores for modules, INR 1,300 crores for cells), will be funded over FY26 (60%) and FY27 (40%). The cell capex will be financed with 75% debt from a leading government bank at an interest rate of 8.9-9%, and 25% equity, supported by internal accruals.

Diversified Customer Base and Emerging Business Verticals

Saatvik serves a diversified customer base across utilities (80% of current quarter sales), retail (10%), C&I (8%), EPC, and export. The solar pump business, incubated last year with INR 2 crores revenue from 100 pumps, is projected to grow significantly to 4,000-5,000 pumps and INR 50-80 crores revenue in FY26, with a target of 15,000 pumps in FY27. This vertical is seen as a potential separate business unit, leveraging government schemes like PM-KUSUM and PM Suryagraha Yojana.

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