Concall AI

Saatvik Green Energy Limited — Q2 FY26 earnings call

Call held 10 Nov 2025

Management summary

Saatvik Green Energy reported strong H1 FY26 results with significant revenue and profit growth, driven by operational execution and a robust demand environment. While Q2 FY26 saw a sequential dip due to monsoon, GST rate reduction, and logistics issues, management expects a rebound from Q3. The company is aggressively expanding capacity with the Odisha Greenfield project and diversifying its product portfolio, maintaining a bullish outlook on India's renewable energy sector.

Highlights

H1 FY26 Revenue from operations stood at ₹1,683.8 crores, representing a robust 133% growth year-on-year.
H1 FY26 EBITDA grew 135% year-on-year to ₹304.6 crores, with margins at 18.09%.
H1 FY26 Profit After Tax (PAT) rose 146% year-on-year to ₹202.1 crores.
Q2 FY26 Revenue was ₹768 crores, up 62% year-on-year, with PAT of ₹83.2 crores, an increase of 36%.
Q2 FY26 EBITDA was ₹123.5 crores, translating to margins of 16.08%.
Order book stood healthy at approximately 4.68 gigawatts as of September 30, 2025, providing 9-12 months visibility.
Ambala facility is fully operational at 4.8 gigawatts, with Q2 capacity utilization over 83%.
Odisha Greenfield project (4 GW module, 4.8 GW cell) is on schedule, with phase one commissioning expected in Q4 FY26.

Concerns

Monsoon season impacting project execution
Deferment of deliveries due to GST rate reduction

Key financials

3 periods

Headline

Debt-to-Equity Ratio
0.44
ROCE
21.9%

Q2 FY26

Revenue
₹768 Cr
YoY +62% QoQ -16.1%
EBITDA
₹123.5 Cr
QoQ -31.7%
EBITDA Margin
16.1%
PAT
₹83.2 Cr
YoY +36% QoQ -30%

H1

FY26 Revenue
₹1,683.8 Cr
YoY +133%
FY26 EBITDA
₹304.6 Cr
YoY +135%
FY26 EBITDA Margin
18.1%
FY26 PAT
₹202.1 Cr
YoY +146%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	590	487	585	378	555 −6%	717 +47%	612 +5%	333 −12%
Expenses	582	462	469	369	559	692	628	336
EBITDA	8	25	116	9	-3 −145%	25 −1%	-16 −114%	-3 −131%
Margin	1%	5%	20%	2%	-1%	3%	-3%	-1%
Other income	22	2	26	12	17	39	45	19
Interest	5	7	9	6	5	8	6	4
Depreciation	3	3	3	4	3	3	8	4
Profit before tax	21	16	130	12	5 −74%	52 +223%	15 −88%	9 −21%
Tax rate	21%	27%	26%	29%	37%	26%	25%	25%
Net profit	17	12	96	8	3 −80%	39 +228%	11 −88%	7 −16%
EPS	50.09	1.06	8.55	0.72	0.27	3.05	0.90	0.54

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 Module Capacity Capacity · end of FY27 · High confidence 8.8 gigawatts

After this Odisha project of module is commissioned, our capacity for module will be 8.8 gigawatts.

— Prashant Mathur, CEO
Total Solar Cell Capacity Capacity · FY27 · High confidence 4.8 gigawatts

Along with it, we are coming up with cell capacities also of 4.8 gigawatts which will be in two phases.

— Prashant Mathur, CEO

Project Timeline

Odisha Phase 1 Module Commissioning Project Timeline · Q4 FY26 · High confidence Q4 FY26

We expect the first phase to be up within our target date.

— Neelesh Garg, Chairman and MD
Odisha Phase 1 Module Revenue Project Timeline · beginning of FY27 · High confidence beginning of FY27

module will be commissioned in the end of this financial year and we should see revenues coming in the beginning of FY '27.

— Prashant Mathur, CEO
Odisha Phase 1 Cell Revenue Project Timeline · second half of FY27 · High confidence second half of FY27

the cell will also come along the same time, but it takes a little more time to stabilize. So, we expect the revenues from it to come from the second half of FY '27.

— Prashant Mathur, CEO
Odisha Phase 2 Cell Revenue Project Timeline · Q1 or Q2 FY28 · High confidence Q1 or Q2 FY28

the phase 2, which is another 2.4 gigawatt, should start giving revenue from first or second quarter of FY '28.

— Prashant Mathur, CEO
Bihar BESS Project Completion Project Timeline · FY26 · Medium confidence this financial year

we should expect all this to happen in this financial year itself.

— Prashant Mathur, CEO

Revenue

Revenue Growth Revenue · FY26 · Medium confidence around 88% CAGR

we have continuously been growing at the caver of 88% in the last few years. What I can say is that we will continue to give good and strong results and we expect to grow in around the same, similar kind of range in this financial year as well.

— Prashant Mathur, CEO
Solar Pump Division Revenue Revenue · FY27 · Medium confidence ₹50 crores

Difficult to give a number, but yes, the expectations are reasonable.

— Prashant Mathur, CEO

Profitability

EBITDA Margin Profitability · FY26 · Medium confidence around 16.5%

our last year EBITDA was around 16.5% overall in the year. And we expect that this year also will be in the similar range.

— Prashant Mathur, CEO
Additional EBITDA from Cell Production Profitability · on volume · Medium confidence 3-4%

we feel that it will give upside of about additional cell, whatever we produce, will give an additional EBITDA on that volume by 3%, 4%.

— Prashant Mathur, CEO
EBITDA Margin on Module Sales Profitability · currently · High confidence around 16%

EBITDA normally is around 16%.

— Prashant Mathur, CEO

Tax

Average Tax Rate Tax · FY26 · High confidence 18-20%

So, you can see the tax around in the range of about 18% to 20%.

— Abani Jha, CFO

Capex

Odisha Cell Plant Capex Capex · for 2.4 gigawatt · High confidence ₹1,300 crores

the total capex, which we are doing on only on cell project is INR1,300 crores for 2.4 gigawatt and so there is no upward deviation in the project cost.

— Prashant Mathur, CEO

Debt

Debt-Equity Ratio for Capex Debt · any project · High confidence 70:30

Debt-equity ratio in any project is 70 to 30. So, where 70 is the debt and 30 is the equity.

— Management

Realization

Module Price Realization Realization · currently · High confidence $0.145-$0.16 per watt

So that module prices currently are in the range of about $0.15, $0.145, $0.155, $0.16.

— Prashant Mathur, CEO

Order Book

Order Book Execution Period Order Book · normal · High confidence 9-12 months

The order book is normally from nine to 12 months and the order book continuously gets added.

— Prashant Mathur, CEO

Risks & concerns

Monsoon season impacting project execution
high

Heavy rains for 4-5 months in Q2 FY26 led to project execution delays and impacted revenue recognition.

Management acknowledged
Deferment of deliveries due to GST rate reduction
high

A reduction in module GST from 12% to 5% led to a billing stoppage for 18 days in September, deferring sales to Q3.

Management acknowledged
Logistics and transport availability issues
medium

A shortage of trucks and logistics availability contributed to sales deferrals in Q2 FY26.

Management acknowledged
Increased competition and potential price pressure from new entrants
medium

New players are entering the fast-growing solar market, but management believes their established credibility, technology, and backward integration will protect their position, and the market is large enough for all.

Analyst acknowledged but downplayed
Technology obsolescence (Mono PERC)
medium

Mono PERC technology is becoming obsolete, and the industry is transitioning to higher efficiency N-TOPCon, which Saatvik is adopting.

Management acknowledged

Q&A highlights

3 direct

Q2 FY26 performance dip and contributing factors Direct

Yes. So there were two factors, one was heavy rains, so there were about four to five months of continuous rains in this quarter and also because module GST has reduced from 12% to 5% so they were the sales were it was announced on 4 of September, so from 4th of September to 22nd September, which is about 18 days and the billing was not happening.

Management provided a detailed explanation for the sequential decline in Q2 financials, attributing it to external factors (monsoon, GST change, logistics) and outlining the expected rebound, which is crucial for investor confidence.

Asked by Dhruv (HDFC AMC)

Competition, potential price cutting, and technology transition in the solar industry Direct

So, you know, when you have such a high demand and such a fast-growing industry, you will have naturally new players coming in... takes three, four years to build that credibility in the market... Mono PERC is becoming obsolete... N-TOPCon... backward integration is becoming a key.

This question addressed a key industry risk (increasing competition and pricing pressure). Management's response highlighted their competitive advantages, including established credibility, technological leadership (N-TOPCon), and strategic backward integration, reassuring investors about their long-term positioning.

Asked by Darshil Jhaveri (Crown Capital)

Timeline and milestones for the Odisha Greenfield project Direct

our Greenfield integrated project in Odisha comprising 4 gigawatt of module and 4.8 gigawatt of solar cell capacity is progressing well on schedule. We expect the first phase to be up within our target date... PEB erection in next week or so... start our equipment inside the plant and installation in next four weeks and should start our production by end of March.

The Odisha project is a significant growth driver. Management's detailed breakdown of civil work, PEB erection, equipment installation, and production timelines provides clear, verifiable milestones for investors to track the progress of this major capacity expansion.

Asked by Raman (Sequent Investments) and Dhruv (HDFC AMC)

2 min read 5 chapters

Detailed narrative

Strong H1 FY26 Performance Despite Q2 Headwinds

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.

Ambitious Capacity Expansion and Backward Integration

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.

Improved Financial Health and Operational Efficiency

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.

Product Diversification and New Market Entry

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.

Market Dynamics and Competitive Strategy

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.

This is an AI-generated summary of a publicly available earnings call transcript.

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