Solarworld Energy Solutions Limited — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

Solarworld Energy Solutions reported robust Q3 FY26 results with significant revenue and PAT growth, driven by a healthy order book and strategic expansion into the BESS segment. The company successfully operationalized its module manufacturing line and is progressing on its cell manufacturing facility, enhancing backward integration. While navigating challenges from rising silver prices and grid infrastructure issues, management remains confident in its diversified strategy and strong pipeline to drive future growth, particularly in the high-potential BESS sector.

Highlights

  • Revenue from operations grew 184% YoY to ₹578.23 crores in Q3 FY26, demonstrating strong operating performance.

  • PAT increased 15% YoY in Q3 FY26, translating to a net margin of 8.4%.

  • Order book as of December 31, 2025, reached ₹2,600 crores, with an additional ₹800-900 crores in L1 bids, providing strong revenue and execution visibility.

  • Solar module manufacturing line in Roorkee commenced operations and received ALMM approval for 1.552 GW annual capacity, contributing to future growth.

  • Entered the BESS segment with a 3.4 GW manufacturing facility and secured a BESPA for a 200 MW / 400 MWh project valued at over ₹800 crores, marking a critical growth area.

  • Junction box manufacturing line expected to be operational by end of March 2026, strengthening backward integration and improving cost efficiencies.

Concerns

  • Silver prices have quadrupled, increasing the cost in solar panels from ₹500 to ₹2,000, posing a challenge to margins, though management expects normalization.

  • Grid-related issues and insufficient transmission capacity are causing delays in project execution and a potential slowdown in the pure solar market for the coming year.

  • The SJVN project, valued at an undisclosed amount, is facing arbitration due to land acquisition delays, though management expects no negative financial implications.

  • The newly commissioned module line showed a loss of ₹11 crores in Q3 FY26 due to depreciation and interest costs as it was not fully functional.

Key financials

3 periods

Headline

  • Net Worth (Dec 31, 2025)
    ₹799.1 Cr
  • Total Debt (Dec 31, 2025)
    ₹255.3 Cr
  • Debt-to-Equity Ratio (Dec 31, 2025)
    0.32×

Q3 FY26

  • Revenue from Operations
    ₹578.228 Cr
    YoY +184%
  • EBITDA
    ₹75.423 Cr
  • EBITDA Margin
    12.8%
  • PAT
    ₹49.219 Cr
    YoY +15%
  • Net Margin
    8.4%

9M FY26

  • Revenue from Operations
    ₹784.344 Cr
    YoY +113%
  • EBITDA
    ₹114.643 Cr
  • EBITDA Margin
    14.2%
  • PAT
    ₹71.42 Cr
  • Net Margin
    8.8%

What they filed

Q1 FY27: revenue up 111.8%, net profit down 5.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue142 204 178 68 127 −11%495 +143%512 +188%144 +112%
EBITDA30 59 14 10 17 −43%60 +2%54 +286%12 +20%
Net profit23 44 12 17 15 −35%51 +16%50 +317%16 −6%
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

₹2,600 Cr

as of 2025-12-31 quantified

Execution

EPC orders generally tend to take a longer, maybe 11-14 months time period to execute. But BESS orders don't require a lot of land, do not require a lot of preparation. The switchyard and the BESS project in itself can be turned around fairly quickly.

Composition

  • EPC Projects (contract type)
  • BESS Orders (product)

Pipeline

L1 awaiting loa

L1 bids for two more orders (one BESS, one solar) bringing total order book to ~INR3,400-3,500 crores.

Cancellations & deferrals

  • deferred: SJVN project in Bhuj (two orders received in 2023) delayed due to land not being provided by January 2024, leading to arbitration.
Our unexecuted order book provides strong revenue and execution visibility over the coming quarters.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹255.3 Cr
    On the balance sheet side, as of December 31, 2025, our net worth stands at approximately INR7,991 million, while total debt is around INR2,553 million, resulting in debt-to-equity ratio of 0.32 times.

Guidance & targets

Revenue

  • FY26 Revenue Guidance Revenue · FY26 · Medium confidence ₹1,500 crores
    Okay. And the INR1,500 crores for FY26 guidance is still intact? ... I hope we exceed that significantly.

    — Kartik Teltia

Profitability

  • EPC EBITDA Margin Profitability · Ongoing · High confidence 9-11%
    We have always guided for margins to remain between 9% to 11% for our EPC business.

    — Kartik Teltia

  • Module Line PAT (per GW scale) Profitability · next 12 months · Medium confidence ₹70-80 crores
    Typical line, if you just do tooling, should give you a profit of somewhere about INR70 crores to INR80 crores PAT on a gigawatt scale.

    — Kartik Teltia

Capacity

  • Solar Cell Manufacturing Facility Commercial Operations Capacity · June 2027 · High confidence June '27
    In parallel, construction of our 1.2 gigawatt solar cell manufacturing facility is progressing as planned, with commercial operations targeted for June '27.

    — Kartik Teltia

  • Junction Box Manufacturing Line Operational Capacity · March 2026 · High confidence End of March 2026
    The facility is expected to be operational by end of March 2026.

    — Kartik Teltia

Order Book

  • Execution of current order book Order Book · this year (FY26) · Medium confidence 20%
    So out of this order book, maybe we will execute maybe about 20% this year or round about that. And the balance will be executed in the next year.

    — Kartik Teltia

Market Share

  • C&I BESS Market Target Market Share · next 12 months · Medium confidence 1-2 GW
    On the generator, I would say we will target maybe close to a gigawatt or two gigawatt of C&I customers in the coming 12 months.

    — Kartik Teltia

What to watch in Q4 FY26

Junction Box Manufacturing Line Operational Status

next quarter
Current Expected to be operational by end of March 2026
Target Commercial operations commenced

Why it matters

Indicates progress in backward integration and potential for improved cost efficiencies.

We are also strengthening backward integration through the establishment of a junction box manufacturing line, which will support our solar module operations and improve cost efficiencies. The facility is expected to be operational by end of March 2026.

Risks & concerns

  • Silver Price Volatility

    high

    Quadrupled silver prices increased cost in solar panels from ₹500 to ₹2,000, impacting margins, but expected to normalize as industrial demand is not up and global solar markets are slowing. Mitigation includes deferring module suppliers and leveraging own manufacturing.

    Management acknowledged

  • Grid Curtailment and Transmission Infrastructure Delays

    high

    Insufficient transmission capacity and delays in substation development are stranding power and hindering project execution, particularly for pure solar projects. Management expects these structural issues to be addressed within 12 months.

    Management acknowledged

  • DCR Panel Availability and Cost

    medium

    DCR mandate from June 2026 poses a challenge due to current market procurement costs (₹14-15/watt) being higher than internal manufacturing costs (₹7-8/watt). Delays in own cell line commercialization (Dec-March 2027) could impact DCR project margins.

    Management acknowledged

  • BESS Bidding Price Volatility and Project Viability

    medium

    Recent BESS tenders saw significant price reductions (up to 30%), making many projects unexecutable at current cell prices ($65/kW vs assumed $40/kW). Management believes 60% of recent bids are unviable unless prices fall significantly.

    Management acknowledged

  • SJVN Land Acquisition Delays

    low

    Two projects in Bhuj (received 2023) are delayed by two years due to SJVN's failure to provide land, leading to arbitration. Management expects no negative financial implications and aims to recover retention amounts and incurred expenses.

    Management acknowledged

Q&A highlights

6 direct
Outlook for FY27 and BESS segment growth Direct
So FY '27 should be a good year for us. The mix in FY '27 will be, I think, more towards BESS and less towards solar. Growth will come a lot from BESS projects, I think, because even our solar projects, EPC projects that we are now getting are compared with the BESS projects.

Highlights the company's strategic shift towards BESS as a primary growth driver for the next fiscal year.

Asked by Udit Sehgal

SJVN project delays and financial implications Direct
We, in terms of negative financial implications, there will be no negative financial implication. What we expect to receive is because we have supplied material to SJVN on which they are holding retention amount, that retention amount might get released to us. Also, over the last 2 years, we have incurred certain expenses to maintain the material that was supplied to SJVN. So we have claimed those amounts from them. We are hoping to recover that as well.

Addresses a significant project delay, clarifying the company's stance on financial impact and recovery expectations.

Asked by Heer Haria

Impact of quadrupled silver prices on module margins Partial
So, to be honest, it is a challenge because the silver prices now constitute almost 25% of the solar panel price. And they are still going up. But I do believe that it is a temporary situation and silver prices should come down because we don't see industrial demand going up. Solar tends to be the biggest user of silver.

Reveals a significant cost pressure impacting module profitability and management's view on its temporary nature and mitigation strategies.

Asked by Homeyar Irani

DCR implementation timeline and impact on margins Direct
So DCR projects, government has mandated DCR solar panels from June 2026. At present, my entire order book is without DCR requirements. ... We believe that the cost of manufacturing a DCR cell is somewhere between INR7 to INR8 per watt. Whereas in the market, we are currently able to procure them somewhere between INR14 to INR15. ... So we definitely see our margins substantially improving once the cell line is operational.

Provides clarity on the DCR mandate, the company's current position, and the expected margin improvement once their own cell line becomes operational.

Asked by Suyash K

Competitive advantages in EPC and BESS against peers like Waaree and KPI Green Energy Direct
So, if you look at our order books, my order book is mostly PSU driven, whereas WRTL's order book is mostly driven by private developers. So, that's a difference between my company and WRTL. In terms of ability to source solar panels, Solarworld has its own solar panel line now. We are hoping to commercialize our cell line in the next 12 months.

Explains Solarworld's differentiated strategy (PSU focus, in-house manufacturing) compared to competitors.

Asked by Homeyar Irani

Viability of current low BESS bidding tariffs Partial
To be honest, Sir, I believe that about 60% of the projects that were bid out in the six months will not be executable until and unless the price comes down to about $40. So that price adjustment has happened in the market already. ... I can't predict that, but at current prices, they are not possible. It is not possible to execute those projects.

Highlights the unsustainability of aggressive BESS bidding prices and implies potential project cancellations or renegotiations in the market.

Asked by Ravindra Singh

Grid curtailment as a major issue for the solar sector Direct
So grid curtailment is an issue that is faced when there is not enough transmission capacity to execute the power that is being generated. So, for example, power grid was supposed to make a substation on which I was supposed to execute three gigawatt of solar power, but that substation has not come up. So a lot of that power gets stranded where the projects are set up, not able to get substations.

Explains a critical infrastructure bottleneck affecting solar project execution and overall sector growth.

Asked by Ravindranath Naik

Potential for BESS to replace diesel generators in C&I segment Direct
So to be honest, it's a market that we are developing. But Northern India tends to be a better market for this because of the Delhi NCR regulation where every winter people are not allowed to switch on their petrol and diesel gensets. ... This BESS container can now replace your UPS, which you were earlier changing every three years. So while you have a UPS and a generator combined in one, it does make economic sense.

Outlines a specific, high-potential market segment for BESS solutions driven by regulatory changes and economic benefits.

Asked by Sarang Joglekar

3 min read 6 chapters

Detailed narrative

Strong Q3 Performance and FY26 Outlook

Solarworld Energy Solutions reported a robust Q3 FY26, with revenue from operations growing 184% year-on-year to ₹578.23 crores. Profit after tax increased by 15% year-on-year, resulting in a net margin of 8.4%. For the nine months ended December 31, 2025, revenue from operations stood at ₹784.34 crores, a 113% YoY growth. Management expressed confidence in exceeding the FY26 revenue guidance of ₹1,500 crores, driven by a strong order book and strategic initiatives.

Expanding Order Book and Execution Visibility

As of December 31, 2025, the company's executed order book aggregated to almost ₹2,600 crores, comprising 7 EPC projects and 2 BESS orders. Additionally, Solarworld is L1 on two more orders (one BESS, one solar), which would bring the total order book to approximately ₹3,400-3,500 crores. Management anticipates executing about 20% of the current order book in the remainder of FY26, with the balance spilling over to FY27. BESS orders are noted for their quicker execution timelines compared to EPC projects.

Strategic Entry and Growth in BESS Segment

The company has formally entered the battery energy storage system (BESS) segment, with its 3.4 GW BESS manufacturing facility already receiving orders. A significant BESPA for a 200 MW / 400 MWh project valued at over ₹800 crores has been signed. Management views BESS as a key strategic focus, expecting it to be a major growth driver for FY27, with the mix shifting more towards BESS and less towards solar. The C&I segment is targeted for BESS, with a goal of 1-2 GW in the next 12 months, leveraging regulatory advantages in regions like Delhi NCR.

Manufacturing Expansion and Backward Integration

Solarworld successfully commenced operations of its solar module manufacturing line in Roorkee in July 2025, receiving ALMM approval for 1.552 GW annual capacity in December. This line is expected to contribute ₹70-80 crores PAT on a GW scale over the next 12 months, despite an initial loss of ₹11 crores in Q3 FY26 due to ramp-up. The 1.2 GW solar cell manufacturing facility is progressing as planned, with commercial operations targeted for June 2027. A junction box manufacturing line is also being established, expected to be operational by end of March 2026, to enhance cost efficiencies.

Challenges from Silver Prices and Grid Infrastructure

A significant concern highlighted was the quadrupling of silver prices, increasing the cost component in solar panels from ₹500 to ₹2,000. While this poses a challenge to margins, management believes it's a temporary situation and expects prices to normalize. Another major issue is grid curtailment due to insufficient transmission capacity and delays in substation development, which is impacting project execution and could slow down the pure solar market. Management anticipates these structural issues to be addressed within the next 12 months.

SJVN Project Delay and Management's Stance

The company is engaged in arbitration proceedings with SJVN regarding two projects in Bhuj (received in 2023) that have been delayed by two years due to SJVN's failure to provide land. Management stated there would be no negative financial implications and expects to recover retention amounts and incurred expenses. Despite this, Solarworld continues to execute other projects for SJVN, including a 70 MW project in Assam, indicating no broader relationship issues.

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