SAATVIKGL

Saatvik Green Energy reported robust financial performance for H1 FY26, with revenue from operations growing 133% year-on-year to ₹1,683.8 crores and PAT increasing 146% to ₹202.1 crores. EBITDA for the half-year stood at ₹304.6 crores, achieving an 18.09% margin. However, Q2 FY26 saw a sequential moderation, with revenue at ₹768 crores (down 16.12% QoQ) and PAT at ₹83.2 crores (down 29.96% QoQ). This dip was attributed to heavy monsoon rains, customer project delays, and deferment of deliveries following a GST rate reduction from 12% to 5% in September, with management expecting a rebound from Q3 onwards.

The company's Ambala manufacturing facility is now fully operational at an annual capacity of 4.8 gigawatts, with Q2 utilization exceeding 83%. A major Greenfield integrated project in Odisha is progressing on schedule, which will add 4 gigawatts of module and 4.8 gigawatts of solar cell capacity. The first phase of this project is expected to be commissioned in Q4 FY26, with module revenues commencing in early FY27 and cell revenues in H2 FY27. The total capex for the 2.4 GW cell plant in Odisha is estimated at ₹1,300 crores, funded by a 70:30 debt-equity mix, reinforcing the company's commitment to backward integration.

Saatvik demonstrated improved financial discipline, with the debt-to-equity ratio significantly improving to 0.44 from 1.36 in the previous year. The Return on Capital Employed (ROCE) for FY26 is projected at 21.85%, indicating efficient capital utilization. The company's order book remains healthy at 4.68 gigawatts as of September 30, 2025, providing strong revenue visibility for the next 9-12 months and covering almost 97% of current installed capacity. Management expects to maintain revenue growth in a similar range to the 88% CAGR seen in recent years and EBITDA margins around 16.5% for FY26.

Saatvik is expanding its presence across the solar value chain. The company successfully launched its 'Uday Series' of on-grid solar inverters, marking its entry into the distributed solar and B2C segments. The solar pump division, incubated last financial year, executed 395 pumps in H1 FY26, generating ₹9.41 crores, with expectations for reasonable growth towards ₹50 crores in FY27. Additionally, the company is focusing on the Battery Energy Storage System (BESS) segment, with a 30 MW Bihar project expected to commence work this financial year and plans for containerized battery solutions.

Management highlighted the supportive policy environment for domestic solar manufacturing and India's growing energy demand, projecting a CAGR of 5.5-6% through FY30. They acknowledged new entrants in the market but expressed confidence, citing their established credibility (3-4 years to build), technological leadership (transitioning to N-TOPCon as Mono PERC becomes obsolete), and strategic backward integration. The company aims to cap module capacity at 9-10 GW, focusing instead on integrating cell and ingot wafer production and diversifying into supportive solar products to maintain competitiveness and profitability.