Detailed Narrative
FY25 Financial Performance Highlights
Sahaj Solar Limited delivered a strong financial performance in FY25, with consolidated revenues growing by 64% year-on-year to INR 331 crores. Profit After Tax (PAT) more than doubled to INR 28 crores, supported by prudent cost management and higher asset utilization. This led to a significant improvement in basic EPS, which rose from INR 16.70 to INR 27.21. The company also declared its first interim dividend of INR 1 per share on a face value of INR 10.
Order Book and Future Growth Outlook
As of March 31, 2025, Sahaj Solar holds a robust order book of INR 304 crores, with over 80% of these orders originating from government clients. Management expects to execute this entire order book within the current financial year (FY26). The company is actively pursuing new opportunities, with a pipeline of over INR 1,200 crores in negotiation or bidding stages, and aims to bid for a total of INR 2,000 crores in FY26, maintaining an average win rate of 15-20%.
Capacity Expansion and Vertical Integration Strategy
The company is significantly expanding its module manufacturing capacity. Phase 1 of this expansion, involving a total capex of INR 40 crores (50% committed), is expected to complete construction by June 2025, with machinery arriving by July, and commercial production commencing by October 2025. This will increase module manufacturing capacity to 850 MW. Sahaj Solar is also pursuing vertical integration through its subsidiary, Veracity Powertronics, which is developing AC distribution boxes and compact substations, aiming to secure the supply chain and enhance margins.
Market Expansion and Government Initiatives
Sahaj Solar is strategically expanding its market presence, exploring Eastern African markets like Uganda and Zambia for potential projects in FY26. Domestically, the company is actively participating in government-backed schemes such as the PM Kusum Yojana, particularly in states like Maharashtra and Madhya Pradesh, for solar water pumping solutions. The company projects a sales growth of 35% plus for FY26 and aims to maintain a Return on Equity (ROE) of 30% plus going forward⏳.
R&D and Sustainability Focus
The company's commitment to R&D has resulted in the development of useful equipment for farmers, integrating solar water pumping solutions with agricultural tools. This aligns with Sahaj Solar's long-term commitment to sustainability and the development of the agriculture sector. The company was recognized with 'Solar EPC Company of the Year' and 'Innovation of the Year' awards at SuryaCon 2025 for its anti-soil nano-coating technology, which enhances panel performance.
Working Capital and Receivable Management
Management addressed concerns regarding increased receivable days, clarifying that this is primarily a characteristic of the EPC business model. They noted that these receivables are largely offset by corresponding creditors, as project payments to vendors are often contingent on client receipts. The company anticipates that as its new manufacturing capacity becomes operational and a higher proportion of production is consumed in-house, receivable days could normalize to 15-20 days.