Detailed Narrative
FY26: A Transformational Year with Record Performance
FY26 was a landmark year for Saatvik Green Energy, marked by record financial and operational performance. Revenue from operations surged by 111% YoY to ₹45,484 million, with EBITDA growing 62% to ₹5,811 million and PAT increasing 64% to ₹3,571 million. The company achieved its highest-ever annual revenue and profitability, demonstrating strong execution and operational efficiency with capacity utilization exceeding 84%.
Strategic Backward Integration and Capacity Expansion
The company is aggressively pursuing backward integration, with its Odisha integrated manufacturing project progressing well. The solar cell manufacturing roadmap has been scaled from 4.8 GW to 6 GW, with 2.4 GW cell production expected to commence in H2 FY26 and another 3.6 GW by mid-FY27 (June-July 2027). Additionally, the EPE encapsulant manufacturing facility in Ambala was commissioned, and its capacity expanded from 2 GW to 5 GW.
Diversification into New Energy Segments
Saatvik made significant strides in diversifying its portfolio. It acquired an 80% stake in Melcon Transformers and Electricals Private Limited, marking its entry into power transmission. The company also launched UDAY Series on-grid inverters, Saatvik Power Storage Solutions Limited for Battery Energy Storage Systems (BESS), and saw strong momentum in its solar pump business, supported by government initiatives like PM-KUSUM.
Q4 FY26 Margin Compression and FY27 Outlook
Q4 FY26 saw a drop in profitability, with EBITDA at ₹1,166 million and PAT at ₹604 million. This was primarily attributed to increased commodity prices (silver, aluminum, copper, oil) and rupee depreciation against the dollar, which could not be fully passed on due to fixed-price contracts and geopolitical uncertainties. Management expects Q1 FY27 to remain softer but anticipates margins to stabilize and return to healthy levels (implied ~15%) from Q2 FY27 onwards, driven by new cell production.
Robust Order Book and Aggressive Capex Plans
The company maintains a robust confirmed order book of approximately 5.89 gigawatt as of March 2026, with an execution timeline of 18 months. The order book composition includes about 65% from large utility customers (mostly pass-through) and 35% from C&I customers (fixed price). Significant capex is planned for expansion, with ₹1,700 crores for FY27 and ₹1,800-2,000 crores for FY28, primarily for the 6 GW ingot project, to be funded by a mix of debt and accruals.
Strengthened Balance Sheet and Debt Management
Saatvik significantly improved its debt-equity ratio to 0.65 in FY26, down from 1.34 in FY25, reflecting prudent financial management. Despite aggressive capex plans, the company aims to maintain its debt-equity ratio within a comfortable range of 1.1 to 1.5 times, ensuring financial flexibility for future growth initiatives and strategic investments.
Regulatory Environment and Market Entry Strategy for Cells
The company views the upcoming ALMM-II and ALMM-III (starting June 2028) as positive for the domestic manufacturing ecosystem, providing a clear path for growth. For its new cell production, Saatvik plans to initially focus on the retail segment, leveraging high demand from schemes like PM Surya Ghar and KUSUM, before expanding to C&I and large utility segments by Q3/Q4 FY27.