Sahaj Solar — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Sahaj Solar delivered a resilient H1 FY26 performance with 13% YoY revenue growth and 33% YoY EBITDA growth, despite the seasonal impact of monsoon. The company secured a robust order book and entered a significant partnership with IDMP for solarizing bulk milk coolers, promising substantial future revenue. While facing temporary challenges with increased receivables and capex delays, management anticipates a strong H2 and aggressive growth from new initiatives and subsidiaries.

Highlights

  • Revenue from operations of Rs. 111 crore in H1 FY26, reflecting 13% year-on-year growth over Rs. 98 crore in the same period last year.

  • EBITDA grew 33% year-on-year to Rs. 11 crore with a stable 10% margin in H1 FY26.

  • Profit after tax (PAT) was Rs. 5 crore, maintaining a stable 5% margin in H1 FY26.

  • Closed H1 FY26 with a healthy order book of Rs. 320 crore as of September 30, 2025, providing solid visibility for the remainder of the year.

  • Exclusive strategic partnership with IDMP to solarize 10,000 bulk milk coolers over three years, with a potential revenue of Rs. 800-1,000 crore and 18%+ EBITDA margin.

Concerns

  • Receivables increased in H1 FY26 due to specific projects in Maharashtra and BESS, though expected to clear by December 2025.

  • Capacity expansion delayed due to prolonged monsoon and the need to upgrade machinery for G12R technology.

  • Finance costs increased in H1 FY26 from Rs. 3 crore (FY25) to Rs. 14 crore due to full utilization of a working capital loan disbursed in January 2025.

Key financials

  1. Revenue from Operations ₹111 Cr +13%YoY
  2. EBITDA ₹11 Cr +33%YoY
  3. EBITDA Margin 10%
  4. Profit After Tax ₹5 Cr
  5. PAT Margin 5%
  6. Debt-to-Equity Ratio 0.8

What they filed

Q4 FY26: revenue up 120.0%, net profit up 108.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue61 140 98 232 111 +82%308 +120%
EBITDA4 20 8 34 11 +175%41 +105%
Net profit2 12 5 23 5 +150%25 +108%
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.

Order book

high confidence

Total value

₹320 Cr

as of 2025-09-30 quantified

Execution

Historically, the second half has been our strong figure and we expect execution to accelerate meaningfully as we progress through the second half of the Financial Year 2026.

Composition

  • Africa (Zambia) (geography) ₹60 Cr

Pipeline

qualified rfp

More than Rs. 600 crore of tenders bidded, technically qualified for >Rs. 450 crore, expecting Rs. 350 crore in next 2-3 months.

The company has a healthy order book providing solid visibility, with significant pipeline from tenders and new strategic partnerships.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed Primarily debt for working capital and new plant capex
    • New plant expansion
    So, the CAPEX, which we are doing for the new plant. So, for that, we have utilized.
  • Debt Gross ₹14 Cr
    • New borrowing Working capital loan from ADA for Gujarat and BESS projects, disbursed in January 2025, fully utilized. ₹11 Cr
    So, if I compare from FY'25, our debt has increased from 3 Cr to 14 Cr. So, can you just throw some light on this? Like, where are we using this fund?
  • Liquidity Liquidity disclosed IPO proceeds were used for working capital.
    No, IPO proceeds was for the working capital.

Guidance & targets

Revenue

  • H2 FY26 Revenue Revenue · H2 FY26 · High confidence ₹260-300 crores
    So, if you talk about the absolute number, it will be somewhere around Rs. 260 crores to Rs. 300 crore of turnover in H2.

    — Pramit Brahmbhatt

  • Full FY26 Revenue Growth Revenue · FY26 · High confidence 35-40%

    Previously 40%+ (last year) → 35-40%

    So, we had a turnover guideline of 40% plus compared to last year, 35% to 40% we are expecting. And I think we are still in line with that turnover guideline.

    — Pramit Brahmbhatt

Margin

  • Cumulative FY26 PAT Margin Margin · FY26 · High confidence 8.5-9%
    So, cumulatively, for the whole year, 8.5%-9% PAT margin we are expecting.

    — Pramit Brahmbhatt

  • H2 FY26 PAT Margin Margin · H2 FY26 · High confidence >10%
    So, in H2, it was 10%, I think? ... Yes, you are right. So, in H2, we can expect more than 10% this year?

    — Pramit Brahmbhatt

  • BMC Segment EBITDA Margin Margin · High confidence 18%+
    So, if you are looking at the EBITDA level margin over there, we are looking at 18% plus margin here.

    — Pramit Brahmbhatt

Order Book

  • BMC Business Revenue Order Book · next three years · High confidence ₹800-1,000 crores
    So, if we convert that into number, we are looking at Rs. 800 crores to Rs. 1,000 crores of revenue in the next three years from BMC business.

    — Pramit Brahmbhatt

  • BMC Execution (FY26) Order Book · FY26 · High confidence 100+ units
    So, we are looking at the first 100 rollouts in this financial year. That is our target, that we should roll out three-digit numbers of the BMCs, either the retrofit or the new models which IDMC is launching with the solar and battery.

    — Pramit Brahmbhatt

  • BMC Execution (Next FY) Order Book · next financial year · High confidence ~2,000 units
    So, we are looking at around 2,000 odd system in the next financial year.

    — Pramit Brahmbhatt

Growth

  • Subsidiaries Growth Growth · year-on-year · High confidence 100%+
    At the same time, the subsidiaries, as we are growing, we anticipated to see the subsidiaries grow 100% plus kind of a growth year-on-year basis.

    — Pramit Brahmbhatt

  • Overall Company Growth (Conservative) Growth · year-on-year · High confidence 40-50%
    the Company should year-on-year basis of growth, minimum 40% to 50% of the growth, something that we are targeting year-on-year basis, on a very conservative number, on a standalone basis.

    — Pramit Brahmbhatt

  • Overall Company Growth (Cumulative with Subsidiaries) Growth · next 3-4 years · High confidence 3-4 fold
    So, cumulatively, that adds up to that a company can have a 3 fold to 4 fold growth from here in next 3 to 4 years.

    — Pramit Brahmbhatt

Project Execution

  • African EPC Contract (Zambia 110 MW) Project Execution · H1 FY27 · High confidence ₹60-65 crores
    So, that comes to somewhere around 60 crores to 65 crores of the order book which we have, and that realization will come in the first half of the 2026-27 financial year.

    — Pramit Brahmbhatt

  • UPNEDA RESCO Tender Execution Project Execution · next 1-1.5 years · High confidence 8,200 MW
    We are expected to do 8,200 MW of execution in the next 1 year-1.5 years in this particular tender.

    — Pramit Brahmbhatt

  • Gujarat IPP Project Project Execution · before end of FY26 · High confidence Complete and charge
    we are planning to complete and charge the project before the end of this financial year.

    — Pramit Brahmbhatt

New Vertical

  • Solar Panel Recycling New Vertical · this financial year · High confidence Come up
    So, both the panel and the recycling, both of them will come up in this financial year only.

    — Pramit Brahmbhatt

What to watch in Q3 FY26

H2 FY26 Revenue and PAT Margin

next quarter (H2 FY26 results)
Current H1 FY26 Revenue: ₹111 Cr, PAT Margin: 5%
Target H2 FY26 Revenue: ₹260-300 Cr, PAT Margin: >10%

Why it matters

Verifies management's expectation of a strong second half, crucial for achieving full-year guidance.

Historically, the second half has been our strong figure and we expect execution to accelerate meaningfully as we progress through the second half of the Financial Year 2026. ... So, if you talk about the absolute number, it will be somewhere around Rs. 260 crores to Rs. 300 crore of turnover in H2. ... So, in H2, it was 10%, I think? ... Yes, you are right. So, in H2, we can expect more than 10% this year?

Risks & concerns

  • Seasonal impact on solar industry and project execution

    medium

    H1 is typically softer due to monsoon, impacting project execution, but H2 is historically stronger.

    Management acknowledged

  • Working capital intensity and payment cycles

    medium

    EPC business has 45-60 day cycle, but government/solar water pumping can be 90-120 days, with payments often lumpy and delayed in H1.

    Management acknowledged

  • Increased receivables from specific projects

    medium

    Receivables increased in H1 due to Maharashtra and BESS projects, but expected to clear 80-90% by December 2025.

    Management acknowledged

  • Delays in capacity expansion

    medium

    Expansion delayed by monsoon and the decision to upgrade to G12R technology, but seen as a long-term benefit.

    Management acknowledged

  • Competition in solarization of milk chiller segment

    low

    Existing thermal battery and lead-acid battery technologies have low success rates or challenges, giving Sahaj's solution a performance advantage.

    Management downplayed

Q&A highlights

7 direct
Rollout plan and profitability of Bulk Milk Cooler (BMC) solarization Direct
In the first year, in this financial year, we see that we will have some sort of three-digit execution number. But following this, from the financial year '26-'27, we expect the gradual increase. In that next year, we are looking at somewhere around 2,000 to 3,000 executions, and the number will increase gradually. ... we are looking at Rs. 800 crores to Rs. 1,000 crores of revenue in the next three years from BMC business. ... we are looking at 18% plus margin here.

Clarifies the phased rollout, significant revenue potential (Rs. 800-1000 Cr over 3 years), and high EBITDA margins (18%+) for the new IDMP partnership.

Asked by Mukesh Panjwani

New verticals emerging from IDMC partnership beyond milk cooling Direct
The research and the product development is already going on with the solar plus storage solution in the fisheries industries and the fruits and vegetable industries. We have already developed a modular product for three metric ton of storage. Now, hopefully in the next financial year, we will roll out them as well.

Highlights the company's strategy to leverage its solar-plus-storage expertise into other cold chain segments like fisheries and fruits/vegetables, indicating future growth avenues.

Asked by Chetan Wadia

Impact of increasing solar cell manufacturing capacity on Sahaj Solar Direct
So, for our solar module manufacturing which is a backward integration for our EPC business, we are considering in that sense where even with the new capacity, we would be able to consume anywhere between 55% to 65% of the module produced for our internal project. So, that gives us a comfort from the market competition and increasing in the production capacity.

Explains how Sahaj Solar mitigates competition in module manufacturing by internal consumption for its EPC projects, ensuring demand for its own production.

Asked by Rajesh

Company's long-term vision and growth trajectory over 3 years Direct
So, if you talk about the Company, we are developing the product segment as you mentioned couple of them apart from that solar water pump EPC, a product-based solution for the daily sector. ... this overall company is set up for a very good growth trajectory. And we anticipate that the growth what we have been achieving in last couple of years, anywhere between 40% to 50% year-on-year. ... So, cumulatively, that adds up to that a company can have a 3 fold to 4 fold growth from here in next 3 to 4 years.

Provides a comprehensive outlook on the company's strategy, targeting 40-50% standalone growth and a 3-4 fold cumulative growth with subsidiaries over the next 3-4 years, driven by product diversification and market penetration.

Asked by Mukesh Panjwani

Reasons for the increase in receivables during H1 FY26 Direct
So, the reason to increase in the receivable is due to specifically the two products which we executed during this half year. So, one is in Maharashtra and another is for the BESS. So, these are the two that have increased our receivables. As Maharashtra receivable started coming in from after September, and we see that there is expectation that by December, majority of that receivable will be cleared. ... we expected by December almost 80% to 90% of outstanding BESS payments will be cleared.

Identifies specific projects (Maharashtra and BESS) as the cause for increased receivables and provides a clear timeline (December 2025) for their expected clearance, addressing a key liquidity concern.

Asked by Aryan

Reasons for the delay in capacity expansion Direct
So, one of the reason was prolonged monsoon was one of the reason for delay in the expansion. Second thing is like, as there was a very rapid change in the technology within the TOPCon from the square 182 x 182 cell, the industry is going towards the rectangle cell, what we call in the technical term is G12R. So, we requested our machinery supplier to upgrade our machines from the normal TOPCon to G12R.

Explains the dual reasons for capex delay: monsoon and a strategic decision to upgrade to the latest G12R technology, indicating a focus on future-proofing capacity.

Asked by Aryan

Explanation for the significant increase in finance costs in H1 FY26 Direct
So, because we took the working capital loan from ADA specifically for the Gujarat and some of the BESS projects last year. So, majority of the fund utilization happened at the end of March. So, because the loan was disbursed in January this year. ... Compared to that, now we have utilized 100% of that fund. So, that is one of the reasons that or that is the reason why the finance costs have gone up.

Clarifies that the increased finance costs are due to the full utilization of a working capital loan disbursed earlier in the year, rather than new borrowing this quarter, and anticipates similar costs in H2 due to new fund requests.

Asked by Aryan

3 min read 6 chapters

Detailed narrative

Resilient H1 FY26 Performance Amidst Seasonal Headwinds

Sahaj Solar delivered a resilient performance in H1 FY26, with revenue from operations reaching Rs. 111 crore, marking a 13% year-on-year growth from Rs. 98 crore in the prior period. EBITDA grew significantly by 33% year-on-year to Rs. 11 crore, maintaining a stable 10% margin. Profit after tax stood at Rs. 5 crore with a 5% margin. This performance was achieved despite the typical H1 softness in the solar industry due to the monsoon season, which usually impacts project execution.

Strategic Partnership with IDMP for Bulk Milk Cooler Solarization

A key highlight is the exclusive strategic partnership with IDMP (National Dairy Development Board subsidiary) to deploy hybrid solar battery systems for approximately 10,000 bulk milk coolers across Gujarat, Uttar Pradesh, Rajasthan, and Northeast over the next three years. This initiative is projected to generate Rs. 800-1,000 crore in revenue over three years, with an anticipated EBITDA margin exceeding 18%. The first 100+ rollouts are targeted for FY26, contributing Rs. 10-15 crore, with a new solar-only product launching in January 2026.

Robust Order Book and Pipeline Visibility

As of September 30, 2025, Sahaj Solar boasts a healthy order book of Rs. 320 crore, providing strong revenue visibility for the remainder of FY26. The company has also bidded for over Rs. 600 crore in tenders, technically qualifying for more than Rs. 450 crore, from which Rs. 350 crore is expected to convert into orders within the next 2-3 months. Additionally, Sahaj is one of four qualified bidders for UPNEDA's 500 MW RESCO tender, targeting 80-100 MW of execution within 1-1.5 years.

Diversification into New Verticals and International Expansion

Beyond its core solar water pumping and grid-tied EPC business, Sahaj Solar is actively developing solar-plus-storage solutions for fisheries, fruits, and vegetable industries, with modular products already developed. Internationally, the company has a 110 MW EPC contract in Zambia, with groundbreaking expected in January 2026 and revenue realization in H1 FY27 (Rs. 60-65 crore). This geographic diversification aims to mitigate seasonal impacts and tap into new growth markets.

Capacity Expansion Delays and Financial Costs

The company's planned capacity expansion faced delays due to the prolonged monsoon season and a strategic decision to upgrade machinery from TOPCon to the more advanced G12R technology. Debt increased from Rs. 3 crore in FY25 to Rs. 14 crore in H1 FY26, primarily due to the full utilization of a working capital loan disbursed in January 2025 for Gujarat and BESS projects. Management expects similar finance costs in H2 due to new fund requests for upcoming projects.

Long-Term Growth Outlook and Subsidiary Contribution

Sahaj Solar projects a conservative year-on-year growth of 40-50% for its standalone business. Its subsidiaries are expected to grow at over 100% year-on-year, contributing significantly to the overall growth. Cumulatively, the company anticipates a 3-4 fold growth in revenue over the next 3-4 years, driven by product diversification, market penetration, and strategic partnerships. The second half of FY26 is expected to see accelerated execution, with H2 revenue projected between Rs. 260-300 crore and PAT margins exceeding 10%.

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