Skip to content

    Solex Energy Q1 FY27 earnings call

    SOLEX
    Capital Goods·17 Aug 2026
    Management Summary

    Solex Energy Limited reported a modest 1.8% YoY revenue growth in Q1 FY27 to ₹265.6 crore, alongside significant margin compression attributed to seasonally softer volumes, increased depreciation, and finance costs from expanded capacity. The company secured new orders totaling ₹217.47 crore and maintains an executable order pipeline of ₹845.84 crore for execution by December 2026. Strategic initiatives, including the 5 GW cell manufacturing project and BESS evaluation, are progressing, with management confident in achieving its FY27 PAT margin guidance of 5-6% despite current market headwinds.

    Highlights

    5

    • Revenue grew 1.8% YoY to ₹265.6 crore in Q1 FY27, demonstrating continued top-line growth.

    • Secured a new work order of ₹42.47 crore and an LOI for ₹175 crore, contributing to a robust executable order pipeline of ₹845.84 crore by December 31, 2026.

    • Successfully completed listing on BSE Limited, enhancing market presence and liquidity with over 11,000 shareholders.

    • Strategic cell manufacturing project for 2.2 GW N-type TOPCon+ capacity is on track for commissioning by end of calendar year 2027, with land procured and funding in advanced stages.

    • Management maintains FY27 PAT margin guidance of 5% to 6%, despite Q1 being a seasonally softer quarter.

    Concerns

    4

    • EBITDA margin compressed to 12.7% in Q1 FY27 from 16.4% in Q1 FY26, primarily due to softer volumes and absorption of fixed costs from expanded capacity.

    • PAT margin declined to 3.1% in Q1 FY27, impacted by increased depreciation (₹10.2 crore vs ₹4.3 crore YoY) and finance costs (₹12.5 crore vs ₹5.4 crore YoY).

    • FY27 module capacity utilization assumption is conservative at 55%, reflecting market uncertainties related to ALMM and seasonal factors.

    • Delays in land and funding approvals for the cell line project have pushed timelines, though management asserts overall project is on track.

    Key financials

    Single quarter

    08 metrics
    1. 01Revenue₹265.6 Cr+1.8%YoY
    2. 02EBITDA₹33.8 Cr-20.8%YoY
    3. 03EBITDA Margin12.7%
    4. 04PAT₹8.3 Cr
    5. 05PAT Margin3.1%

    Order Book

    high confidence

    Total Value

    ₹ 3,400 crores

    as of 2026-08-17

    quantified

    Inflow this qtr

    ₹ 217.47 crores

    Execution

    INR845.84 crore targeted for the execution by the December 31st, 2026.

    Composition

    Confirmed Purchase Orders(client type)
    Signed MSAs (formal POs awaited)(client type)
    MSAs (advanced discussion stage)(client type)

    Pipeline

    qualified rfp

    Healthy inquiry pipeline from both existing IPP relationships and new customers.

    Cancellations / Deferrals

    • deferred:Customer-driven rescheduling of module deliveries due to ALMM uncertainty, but these are timing shifts, not cancellations.

    "The order book visibility of approximately INR3,400 crore is spread across confirmed purchase orders, signed MSAs, and MSAs at advanced discussion stage, and is not contingent on ALMM outcomes."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹1,050 crores

    cut — no rigid capex plan for additional 2.5 GW module line, focus on 2.2 GW cell line · ₹700 crore from principal lenders (debt) and ₹350 crore from equity (margin)

    Debt

    Debt disclosed

    Guidance & targets

    7
    CategoryTargetPriority
    Profitability
    PAT Margin
    5% to 6%
    		High
    Profitability
    EPC Margin
    10% to 12%
    		Medium
    Capacity
    Module Capacity Utilization
    around 55%
    		High
    Capacity
    N-type TOPCon+ cell line commissioning
    end of calendar year 2027
    		High
    Capacity
    DCR Cell Supply
    2.5 gigawatt of cells per annum
    		High
    Order Book
    Executable Order Pipeline Execution
    INR845.84 crore
    		High
    Revenue
    EPC Business Revenue
    INR100-150 crore
    		Medium

    What to watch in Q2 FY27

    4

    Cell Line Funding & Electricity Approval

    Next quarter
    CurrentFunding at final stage of evaluation with investors/funding agency; verbal approval for 30 MW electricity, awaiting written approval.
    TargetFormal announcement of finance closure and written electricity approval for the 2.2 GW cell line project.

    Why it matters

    These are critical prerequisites for the 2.2 GW cell line project to proceed as planned and will de-risk the project timeline.

    We will announce everything once the finance closure is done and then we get a confirmation from the electricity connection.

    Risks & concerns

    4
    RiskSeverity

    ALMM-2 Uncertainty and Market Disruption

    Initial broad expectation of ALMM-2 timeline extension, followed by clarification of no extension, led to projects being put on hold and customer-driven rescheduling of module deliveries. This caused a turbulent year for the industry. — Management acknowledged

    medium

    Seasonal Business Impact on H1 Performance

    The utility-scale solar project execution business is inherently H2 weighted, making Q1 and Q2 seasonally softer. This leads to fixed costs and depreciation being absorbed over a smaller revenue base in H1. — Management acknowledged

    low

    Operational Challenges in Indian Cell Manufacturing

    Indian cell manufacturing faces challenges related to infrastructure (power, water) and the highly recipe-driven nature of TOPCon technology, which has caused ramp-up issues for other players. — Analyst acknowledged

    medium

    Grid Stability and Connectivity Issues

    A sudden surge in solar generation, particularly in Western India, has led to temporary load curtailment and connectivity challenges, causing delays in DISCOM approvals for IPPs. — Analyst acknowledged

    low

    Q&A highlights

    7

    “Rishi, this vision was there when we were planning for adding an additional 2.5 gigawatt of module line. Looking to the current market dynamics, we have planned to not to go with the additional module capacity because we foresee that lot of module capacity will be available in the market as and when Solex requires. Almost INR200 crore has been reduced because of no rigid capex plan for the module line. Plus, while working with the vendors and our team, the project cost is around INR1,050 crore.”

    Clarifies the revised capex amount for the cell line and the strategic rationale behind reducing the overall expansion plan.

    asked by Rishi

    3 min read7 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance and Margin Compression

    Solex Energy Limited reported Q1 FY27 revenue of ₹265.6 crore, a 1.8% increase year-on-year from ₹261 crore in Q1 FY26. However, EBITDA for the quarter stood at ₹33.8 crore, down from ₹42.7 crore in Q1 FY26, resulting in an EBITDA margin compression to 12.7% from 16.4%. Profit After Tax (PAT) was ₹8.3 crore, yielding a PAT margin of 3.1%. This margin pressure is attributed to seasonally softer volumes, coupled with the full quarter impact of increased depreciation (₹10.2 crore vs ₹4.3 crore YoY) and finance costs (₹12.5 crore vs ₹5.4 crore YoY) from recently commissioned lines and higher working capital deployment.

    02

    Robust Order Book and New Inflows

    The company maintains a strong order book visibility of approximately ₹3,400 crore, spread across confirmed purchase orders, signed MSAs, and MSAs at advanced discussion stages. In Q1 FY27, Solex secured a new work order of ₹42.47 crore for N-type TOPCon solar PV modules and received an LOI for a further ₹175 crore order. These new inflows contribute to an executable order pipeline of ₹845.84 crore, targeted for execution by December 31, 2026. Management emphasized that recent market disruption🌐s led to delivery rescheduling, not cancellations, and the order book remains intact.

    03

    Strategic Cell Manufacturing Project Update

    Solex is progressing with its 2.2 GW N-type TOPCon+ cell line, the first phase of a planned 5 GW cell capacity, targeting commissioning by the end of calendar year 2027. The capex plan for this project has been revised to ₹1,050 crore (from an earlier ₹1,500 crore), with funding structured as ₹700 crore debt and ₹350 crore equity, currently in advanced stages of discussion and due diligence. Land for the facility has been procured, and an application for a 30 MW electricity connection has received verbal approval, with written approval pending. The company is collaborating with ISC Konstanz and onboarding an experienced TOPCon cell manufacturer to de-risk the project.

    04

    BESS Expansion and Vision 2030

    The company is actively evaluating technology partners for a containerized Battery Energy Storage System (BESS) manufacturing setup, which will be housed in a separate subsidiary. This initiative is part of Solex's ambitious Vision 2030, aiming to build 10 GW each of module and solar cell capacity, 10 GW of BESS infrastructure, and 2 GW of wafer and ingot capacity. Management highlighted the strategic importance of BESS in addressing grid stability issues arising from the rapid increase in solar generation, particularly in Western India.

    05

    Market Dynamics and ALMM Impact

    The market experienced significant uncertainty due to the ALMM-2 (Approved List of Models and Manufacturers) policy. An initial expectation of extension was later clarified as non-extension, leading to project holds and customer-driven rescheduling of module deliveries. Solex has mitigated this by having supply arrangements for ALCM-compliant orders with domestic cell manufacturers and an imported cell supply chain for other orders. The company noted that the situation is improving with recent clarity and selective extensions, leading to order conversions.

    06

    Conservative Utilization and H2-Weighted Business

    Solex's business is inherently H2-weighted⚖️, with the bulk of module dispatches and revenue conversion occurring in the second half of the fiscal year. For FY27, the company has adopted a conservative module capacity utilization assumption of around 55%, despite having expanded capacity to 4 GW. This conservatism is attributed to the turbulent market conditions caused by ALMM uncertainty, the wait-and-watch approach adopted by developers, and production losses experienced in the first half of the year.

    07

    Export Market Strategy and Competitiveness

    Solex is strategically focusing on export markets with a preference for Indian modules, including the Middle East, Africa, and Europe, with plans to establish a presence in the US market. Management asserted that Indian modules are competitive in pricing and at par or better in quality and reliability compared to Chinese counterparts. They anticipate that the removal of grants by the Chinese government will lead to a more level playing field in the coming quarters⏳, enhancing Solex's export competitiveness, although export revenue is expected to be lower for FY27.

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