Websol Energy System Limited

Websol Energy System Limited achieved its highest ever revenue, EBITDA, and PAT in FY26. Revenue from operations grew by 82% YoY to INR 1,049 crores, with EBITDA reaching INR 429 crores (41% margin) and PAT at INR 303 crores (28.6% margin), marking a 96% YoY increase. The fourth quarter of FY26 was particularly strong, with revenue of INR 401 crores (132% YoY, 54% QoQ) and PAT of INR 125 crores (158% YoY), making it the best quarter across all parameters. The company also generated INR 255 crores in cash from operations, representing 84% of its PAT.

The company successfully commissioned cell line 2 in September 2025, doubling its cell capacity from 600 MW to nearly 1.2 GW, funded entirely through internal accruals. Websol is further upgrading one of its existing Mono PERC cell lines to TOPCon technology, which will increase total cell capacity to 1.35 GW and target cell efficiency above 24.5%. Commercial production for the TOPCon line is expected to begin by February 2027, with a ramp-up to full capacity within two months. The company is also evaluating next steps for a planned integrated 4 GW cell and module facility in Andhra Pradesh, targeting June 2027, and an ingot and wafer facility by June 2028 to meet ALMM List 3 requirements.

Websol's balance sheet is the strongest in its 30-year history, having turned net cash surplus as of March 31, 2026. Net worth more than doubled from INR 278 crores to INR 631 crores, and the debt to equity ratio significantly improved from 0.55 times to 0.19 times. The company is in advanced discussions to repay the outstanding INR 92 crores net debt under the IREDA facility, expecting the release of pledged promoter shares in the next month or two. For FY26, the Board recommended a dividend of INR 0.25 per share. Future capex, including INR 250-270 crores for the TOPCon upgrade and larger investments for the 2 GW and ingot/wafer facilities, will be funded through a mix of comfortable cash surplus and prudently raised debt.

The company closed Q4 FY26 with a confirmed order book of INR 1,161 crores, comprising approximately 40% cells and 60% modules, with a healthy book-to-bill ratio of 1.02x for the quarter. This order book is expected to be completed within one financial year. Websol primarily focuses on the DCR (Domestic Content Requirement) market, serving schemes like PM-KUSUM and PM Surya Ghar, and does not directly tender for government orders. While cell and module realizations have seen some softening (13-13.5 cents/watt for cells, 22-22.5 cents/watt peak for modules), management expects cell margins to remain healthy over the next 2-3 years, despite variability.

Websol's growth strategy combines additional capacity, full utilization of existing assets, productivity gains, technology progression, backward integration, and better cash conversion. The company is actively working on strengthening its position across the full value chain, including ingot and wafer manufacturing, to meet the ALMM List 3 deadline. While BESS and other ancillary opportunities are being explored, the primary focus remains on the core cell, module, ingot, and wafer business. Management expressed confidence in the demand environment, driven by government initiatives, and is prepared to adapt to evolving technologies by designing flexible manufacturing processes.