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    Solex Energy

    SOLEX
    Capital Goods·18 May 2026
    Management Summary

    Solex Energy delivered an exceptional Q4 and FY26, marked by robust revenue and PAT growth, significant improvement in working capital, and a strong order book. The company is strategically investing in backward integration and advanced module technologies, despite facing challenges from raw material price volatility and geopolitical uncertainties. Management provided conservative guidance for FY27, acknowledging market conditions.

    Highlights

    5

    • FY26 Revenue grew by a remarkable 144% year-on-year to INR 1,621.1 crores.

    • Q4 FY26 Revenue saw exponential growth of 247.6% year-on-year to INR 885.8 crores.

    • Net cash flow from operating activities was INR 200.7 crores as on March 31, 2026.

    • Working capital cycle improved significantly to approximately 35 days in FY26, down from 61 days in FY25.

    • Secured a significant Q4 FY26 work order of INR 271.6 crores for N-type TOPCon solar PV modules.

    Concerns

    3

    • Raw material costs are impacted by current geopolitical conditions and increased logistics costs.

    • Uncertainty regarding the enforcement and potential extension of the ALCM timeline for domestically manufactured cells.

    • Geopolitical conditions make the overall business environment quite uncertain, leading to conservative guidance.

    Key financials

    Metrics

    15

    Periods

    3

    Headline

    5
    • Net Cash Flow from Operations
      ₹200.7 Cr
    • Working Capital Cycle
      35 days
    • Net Debt-to-Equity Ratio
      0.57 :1
    • ROE
      38.4%
    • ROCE
      31.7%

    Q4 FY26

    5
    • Revenue
      ₹885.8 Cr
      YoY+2.5%
    • EBITDA
      ₹98.6 Cr
      YoY+2.5%
    • EBITDA Margin
      11.1%
    • PAT
      ₹58.9 Cr
      YoY+2.9%
    • PAT Margin
      6.6%

    FY26

    5
    • Revenue
      ₹1,621.1 Cr
      YoY+144%
    • EBITDA
      ₹186.7 Cr
      YoY+134.6%
    • EBITDA Margin
      11.5%
    • PAT
      ₹98.3 Cr
      YoY+132.7%
    • PAT Margin
      6.1%

    Segment breakdown

    • Q4 Module Sales₹83.9 Cr83.1%
    • Q4 EPC Sales₹4.6 Cr4.6%
    • FY26 Total EPC Revenue₹12.5 Cr12.4%
    Donut· Share of Revenue

    Order Book

    high confidence

    Total Value

    ₹ 3,400 crores

    as of 2026-03-31

    quantified

    Inflow this qtr

    ₹ 271.6 crores

    Execution

    completion expected by the end of May 2026 for the Q4 work order

    Composition

    Mix2 types
    • Q4 Modules₹ 83.9 crores94.8%
    • Q4 EPC₹ 4.6 crores5.2%

    Share of order book by type (derived from disclosed amounts)

    Pipeline

    deal pipeline tcv

    MoU with Government of Gujarat for 5-gigawatt solar cell and 10-gigawatt BESS manufacturing facilities

    "The company has a robust order book with clear visibility, supported by strategic backward integration plans and new work orders."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹4,000 crores

    INR 700 crores from principal debt and INR 350 crores from equity for cell facility

    Liquidity

    Cash ₹200.7 crores

    Net cash flow from operating activities as on March 31, 2026.

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Top line
    INR 26,000 million
    		High
    Profitability
    PAT margin
    6% to 8%
    		High
    Profitability
    EBITDA from cell capacity
    more than 20%
    		High
    Profitability
    PAT from cell and module integration
    15%
    		Medium
    Capacity
    Cell line operationalization
    2.2 gigawatt
    		High
    Debt
    TOL/TNW ratio
    below 4
    		High
    Capacity Utilization
    Capacity utilization
    55%
    		High

    Land acquisition and connectivity approvals for new facilities

    before 30th June
    CurrentWaiting for connectivity approvals, advanced stage.
    TargetApprovals received, land acquisition closed.

    Why it matters

    Essential prerequisite for the planned 5GW cell and 10GW BESS manufacturing facilities.

    Yes, we are waiting for the connectivity approvals and all. So, you know, it is all in advanced stage... maybe around another 45 days, we should get those approvals. So, before 30th June, we plan to close.

    How to verify

    capital_allocation.capex.purposes

    Risks & concerns

    4
    RiskSeverity

    Raw material price volatility and logistics costs

    Geopolitical conditions and increased logistics costs are impacting raw material prices, with some orders having price locks but overall uncertainty remains. — Both acknowledged

    medium

    Uncertainty around ALCM enforcement and domestic cell supply

    The June 2026 ALCM timeline is aggressive given insufficient domestic cell manufacturing capacity, posing a risk if strictly enforced. — Both acknowledged

    medium

    Geopolitical conditions and market uncertainty

    The current geopolitical situation makes the market volatile, requiring a cautious approach to future projections. — Management acknowledged

    medium

    Complexity and scaling of cell manufacturing technology

    Cell manufacturing, especially TOPCon, is complex, with potential for teething issues and challenges in scaling utility. — Analyst acknowledged

    low

    Q&A highlights

    8

    “So basically this is a part of our backward integration plan which we have already announced that we want to go for 10-gigawatt of module, 10-gigawatt of solar cells, 2-gigawatt of wafer and ingot, and 10-gigawatt of BESS. This is what we have already announced previously. So this MoU is a part of that expansion in terms of the cell manufacturing and BESS.”

    Clarified the strategic intent and scale of the backward integration plan, detailing the planned capacities for cells, wafers, and BESS.

    asked by Sahil Sheth

    2 min read7 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY26 and Q4

    Solex Energy reported a remarkable 144% year-on-year revenue growth in FY26, reaching INR 1,621.1 crores, with EBITDA growing 134.6% to INR 186.7 crores and PAT surging 132.7% to INR 98.3 crores. Q4 FY26 also saw exponential growth, with revenue up 247.6% to INR 885.8 crores and PAT up 289.4% to INR 58.9 crores. The company generated INR 200.7 crores in net cash flow from operating activities by March 31, 2026.

    02

    Strategic Backward Integration and Capacity Expansion

    The company signed an INR 4,000 crore MoU with the Government of Gujarat for the phased development of 5-gigawatt solar cell and 10-gigawatt Battery Energy Storage System (BESS) manufacturing facilities. This initiative aims to deepen backward integration and enhance supply chain control. The first phase of the 2.2 gigawatt cell line is targeted to be operational by the last quarter of 2027, with an expected EBITDA contribution of over 20% by FY29.

    03

    Robust Order Book and Execution

    Solex Energy has an order book of almost INR 3,400 crores, split into confirmed POs, signed MSAs, and advanced stage orders. In Q4 FY26, a significant work order worth INR 271.6 crores was secured for N-type TOPCon solar PV modules, with completion expected by the end of May 2026. The company executed over 200 EPC projects across diverse sectors in FY26, demonstrating strong operational capabilities.

    04

    Improved Working Capital and Healthy Balance Sheet

    The working capital cycle significantly improved to approximately 35 days in FY26, down from 61 days in FY25, indicating enhanced operational efficiency. The net debt-to-equity ratio remains comfortably positioned at 0.57:1, with ROE at 38.4% and ROCE at 31.7% as of March 31, 2026, reflecting strong financial discipline.

    05

    Navigating Raw Material and Regulatory Headwinds

    Management acknowledged challenges from raw material price volatility due to geopolitical conditions and increased logistics costs, but stated that Q1 and H1 FY27 supply chains are largely secured. The company is also prepared for potential enforcement of the ALCM timeline for cells, having arrangements for ALMM-compliant orders and domestic cell procurement, while also advocating for an extension.

    06

    Conservative Outlook for FY27

    For FY27, Solex Energy is targeting a top line of INR 2,600 crores with a PAT margin in the range of 6% to 8%. This guidance is conservative, based on an assumed 55% capacity utilization, due to the uncertain geopolitical environment. The company aims to outperform these estimates if market conditions stabilize.

    07

    Funding and Land Acquisition Progress

    The company expects to close land acquisition and secure connectivity approvals for its new facilities by June 30, 2026. Additionally, a term sheet for INR 35 crores (comprising INR 20 crores NCD and INR 15 crores CCD) is in the final stages of legal due diligence and is expected to close by June 30, 2026, providing crucial funding for expansion.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.