Detailed Narrative
FY25 Performance Overview and Growth Drivers
Solex Energy reported a robust financial performance for FY25, with revenue reaching ₹665 crores, marking an 81% year-over-year increase. The company's PAT surged by 390% to ₹42 crores, resulting in a PAT margin of 6.4%, while EPS stood at ₹43. This growth was primarily driven by strong contributions from both module manufacturing (₹497 crores) and the EPC business (₹166 crores).
Capacity Expansion and Technology Upgrades
The company currently operates at 1.5 gigawatt module manufacturing capacity. An additional 2.5 gigawatt capacity is slated to become operational by September/October 2025, bringing the cumulative capacity to 4 gigawatts. Solex is strategically investing in advanced technologies like N-type TOPcon and HJT to produce high-efficiency modules, catering to both domestic and international markets, particularly targeting the USA.
Strategic Focus on Manufacturing and EPC Business
Solex Energy maintains its primary focus on module manufacturing, with its subsidiary, Solex Green Energy Private Limited, managing the EPC business. The EPC segment contributed ₹166 crores to FY25 revenue, and management projects an annual EPC revenue of ₹200-300 crores, aiming for 10-12% of total revenue. The company adopts a selective approach to EPC projects, prioritizing manufacturing as its core domain.
Future Growth Trajectory and Vision 2030
For FY26, Solex Energy forecasts a turnover between ₹2,200 crores and ₹2,400 crores. The company's ambitious Vision 2030 targets establishing 15 gigawatts of module and 5 gigawatts of cell manufacturing capacity. This expansion involves a significant CapEx of ₹1,500 crores for a 2 gigawatt cell line and an additional 2 gigawatt module line, with funding planned through ₹1,000 crores of debt and ₹500 crores of equity.
Working Capital and Debt Management
FY25 saw negative cash flow from operations due to increased receivables (₹111.24 crores) and inventory buildup. Management attributed this to inventory procurement for the newly commissioned second production line and strong sales in March. Current debt stands at approximately ₹150 crores, with plans for total debt to reach ₹1,400 crores following the completion of future cell and additional module line expansions.
Addressing ALM List-2 and Cell Manufacturing Plans
In response to concerns regarding ALM List-2 implementation and cell sourcing, management stated that they anticipate having their own cell lines operational before the full enforcement of ALM List-2. They also believe the government will likely extend the ALCM implementation date due to insufficient domestic cell manufacturing capacity, and any increases in cell prices would be passed on to module prices.
Mainboard Migration and Operational Excellence
Solex Energy's migration to the mainboard has been delayed as the company is currently under ESM. Management confirmed plans to provide quarterly results and expressed confidence in meeting all criteria for mainboard listing once out of ESM. The company emphasized its advanced Manufacturing Execution System (MES) software and comprehensive testing facilities as key differentiators, ensuring transparency and quality control in its operations.