Solex Energy

Solex Energy reported robust financial growth for Q3 and 9M FY26. For the nine months, total revenue stood at ₹735.1 crores, marking a 79.3% year-on-year increase. EBITDA for the period grew by 72.5% to ₹88.1 crores, and Profit After Tax (PAT) increased by 45.3% to ₹39.4 crores. In Q3 FY26 alone, revenue reached ₹319.4 crores, a significant 135.3% year-on-year growth. However, Q3 EBITDA was ₹27.2 crores and PAT was ₹8.9 crores, with gross margins contracting to 17% from the previous 30-32% due to higher fixed costs associated with the new facility ramp-up.

The company successfully commenced commercial production of its 2.2-gigawatt solar PV module facility at Tadkeshwar in November 2025, marking a major milestone. This new capacity, particularly lines 3 and 4, reached full-fledged production at optimum levels by December. Management anticipates that operating leverage from improved utilization will normalize margins in Q4, targeting approximately 70% utilization for the quarter. Solex Energy is also progressing on its Vision 2030 roadmap, including an R&D partnership with ISC Konstanz Germany for next-generation solar cell development.

Solex Energy boasts a strong order book with visibility exceeding ₹4,000 crores, including EPC orders. During Q3 FY26, the company secured new orders worth ₹833 crores (₹544 crores from Zelestra Group and ₹289 crores from a reputed IPP). Despite the healthy order book, execution faced challenges, with EPC projects running 2-3 months late due to extended monsoon and client site readiness. However, management confirmed that no orders have been cancelled or delayed, and they are confident of achieving their FY26 revenue guidance of ₹1,700-1,800 crores.

A significant concern raised was the substantial increase in raw material prices, particularly solar cells, which have surged by 110-120%. This inflation is primarily attributed to the rising cost of silver used in ribbons. While the company has secured raw materials for current FY26 orders under fixed-price contracts, a portion of the ₹4,000 crore order book for future execution may require renegotiation. Management indicated that some orders already have actual cell pricing, while others might need to be revisited with clients due to the drastic price changes.

Solex Energy is aggressively pursuing backward integration and diversification. The company plans to establish a 2.2-gigawatt N-type TOPCon Plus solar cell production line, targeting operations by 2027, and aims for 10 gigawatts of solar cell manufacturing and 2 gigawatts of ingot and wafer production by 2030. Additionally, Solex is exploring opportunities in Battery Energy Storage Systems (BESS), viewing it as the next game-changer in renewable energy. The BESS opportunity is expected to commence in late FY27 (Dec 2026/Jan 2027) and peak around October 2028, with the company actively seeking technology partners for containerized solutions.

The solar sector is benefiting from strong structural support, as evidenced by the Union budget '26-'27. A budgetary allocation of ₹30,540 crores for solar energy schemes represents a 32% increase over FY26 revised estimates. The PM Surya Ghar Muft Bijli Yojana received ₹22,000 crores (29% increase), expected to accelerate rooftop solar adoption. Furthermore, ₹5,000 crores allocated under PM KUSUM will boost agri photovoltaic projects, strengthening long-term demand visibility for domestic manufacturers like Solex.