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Websol Energy System Limited — Q4 FY26 earnings call

Call held 28 Apr 2026

Management summary

Websol Energy reported a landmark FY26, achieving record revenues, EBITDA, and PAT, driven by strong operational performance and capacity expansion. The company doubled its cell capacity to 1.2 GW and is upgrading an existing Mono PERC line to TOPCon technology, aiming for 1.35 GW total capacity by February 2027. Financial health improved significantly, turning net cash surplus and reducing debt-to-equity. While margins saw some compression due to increased module sales, the company maintains a healthy order book and is actively planning further integrated capacity expansion, including ingot and wafer manufacturing.

Highlights

Record revenue, EBITDA, and PAT in the company's history for FY26, with revenue at INR 1,049 crores and PAT at INR 303 crores.
Strong Q4 FY26 performance with revenue of INR 401 crores (132% YoY growth) and PAT of INR 125 crores (158% YoY growth).
Achieved net cash surplus as of March 31, 2026, and significantly improved debt to equity ratio from 0.55x to 0.19x.
Successfully commissioned cell line 2 in September 2025, doubling cell capacity from 600 MW to nearly 1.2 GW, entirely through internal accruals.
High cell utilization maintained at above 90% for combined capacity, with module line achieving 80% monthly utilization.

Concerns

EBITDA margin compression observed over the year, primarily due to the introduction of lower-margin module sales in the product mix.
Uncertainty regarding the exact details and benefits of the new KUSUM 2.0 scheme and SEZ policy reforms.
Management was evasive on providing specific timelines and funding details for the 2 GW Phase 3 capex in Andhra Pradesh, stating they are still evaluating the best approach.

Key financials

2 periods

Q4 FY26

Revenue
₹401 Cr
YoY +132% QoQ +54%
EBITDA
₹146 Cr
YoY +86%
PAT
₹125 Cr
YoY +158%

FY26

Revenue
₹1,049 Cr
YoY +82%
EBITDA
₹429 Cr
YoY +70%
EBITDA Margin
41%
PAT
₹303 Cr
YoY +96%
PAT Margin
28.6%
Cash from Operations
₹255 Cr
Net Worth
₹631 Cr
Debt to Equity
0.19×
ROCE
66%
ROE
67%

What they filed

Q1 FY27: revenue up 70.3%, net profit up 16.4% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	144	147	173	219	168 +17%	261 +78%	401 +132%	373 +70%
Expenses	81	80	95	115	96	155	255	247
EBITDA	63	68	78	103	72 +14%	106 +56%	146 +87%	126 +22%
Margin	44%	46%	45%	47%	43%	41%	36%	34%
Other income	0	0	1	2	3	-3	6	4
Interest	6	5	4	4	5	4	4	4
Depreciation	9	15	10	11	11	16	24	22
Profit before tax	49	48	66	91	60 +22%	84 +75%	125 +89%	104 +14%
Tax rate	14%	14%	27%	26%	23%	23%	0%	25%
Net profit	42	42	48	67	46 +10%	65 +55%	124 +158%	78 +16%
EPS	0.99	0.98	1.14	1.59	1.10	1.54	2.87	1.79

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹1,161 Cr

as of 2026-03-31 quantified

Inflow this quarter

₹412 Cr

Execution

can complete in one financial year

Composition

Mix 2 products

Cells 40%
Modules 60%

Share of order book by product

Pipeline

other

Not directly tendering for government orders; focus on DCR market (PM-KUSUM, PM Surya Ghar) through module manufacturers and solar pump players.

The company closed Q4FY26 with a healthy confirmed order book of INR 1,161 crores, providing good visibility for the next few quarters, and successfully executed previously deferred orders.

Source: Prepared remarks

Capital allocation

high confidence

Capex Capex disclosed Phase 2 (cell line 2) was entirely through internal accruals. For TOPCon upgrade, current surplus is being used, with potential for some debt later. For future large-scale capex, a mix of comfortable cash surplus and prudently raised debt is planned.
- Upgrade existing Mono PERC cell line to TOPCon technology (1.2 GW to 1.35 GW capacity increase) ₹250 Cr
- Integrated 4 GW cell and module facility in Andhra Pradesh
- Ingot and wafer facility
We are upgrading one of our existing Mono PERC cell lines to TOPCon technology. This will take our total cell capacity from 1.2 GW to 1.35 GW... We see this as an important milestone in itself and also as a stepping stone towards our planned integrated 4 GW cell and module facility. Our capex and growth plan remain on track. On Andhra Pradesh, we are evaluating the next steps... We have not raised any funds for Phase 2. That matters to us because in this business, it is not only about expansion; it is also about how disciplined you are with your capital... We are expecting as of now that it will cost around INR 250 to INR 270 crores for this upgrade... So, we have definitely started on the project and as we have a comfortable cash surplus with us, currently we are making do of all the expenses through this. At some point of time, definitely we would have to raise some amount of debt, but the idea is to use our current surplus to get down the debt component as much as possible... we were earmarking INR 250 crores for the TOPCon upgradation. Apart from that, in the last call I think you'd mentioned somewhere around INR 2,800 crores to INR 3,000 crores of capex for the next phase. So, that takes us to about INR 3,000-3,200 total... And we're also talking about adding ingot wafer, so which is could be INR 300 crores, INR 400 crores, INR 500 crores for a GW. So, how confident are we on funding this entire capex expense over the next 2 to 3 years? Yes, so of course we have like surplus cash as of now for the immediate expansions. And as I said, we will be raising some amount of debt also to support the quick expansion. So, as per our projections, we don't see any concern as of now. Obviously, the idea is to manage the debt level prudently, which is what will be our interest area going forward.
Debt Net cash ₹92 Cr
- Repayment Repayment of outstanding net debt under IREDA facility, with discussions for release of pledged shares expected in the next month or two. ₹92 Cr
So, the outstanding net debt under the IREDA facility is at approximately INR 92 crores... we have turned net cash surplus as of March 31, 2026.
Dividend ₹0.25/share (final)

Reflecting the strong performance of the year and our confidence in the business, the Board has recommended a dividend of INR 0.25 per share for FY26, subject to shareholder approval.
Liquidity Liquidity disclosed The company turned net cash surplus as of March 31, 2026, and has a comfortable cash surplus to fund immediate expansions.

So, as you correctly mentioned, we have turned net cash surplus as of March 31, 2026... So, we have definitely started on the project and as we have a comfortable cash surplus with us, currently we are making do of all the expenses through this.

Guidance & targets

Capacity

Total Cell Capacity after TOPCon upgrade Capacity · by February 2027 · High confidence 1.35 GW

From 1.2 GW today

We are upgrading one of our existing Mono PERC cell lines to TOPCon technology. This will take our total cell capacity from 1.2 GW to 1.35 GW and more importantly, it positions us at the higher end of the efficiency curve.

— Sohan Lal Agarwal

Efficiency

Cell Efficiency on upgraded TOPCon line Efficiency · post upgrade · High confidence more than 24.5%

We are targeting cell efficiency of more than 24.5% on this upgraded line.

— Sohan Lal Agarwal

Project Timeline

Commercial production start for TOPCon upgraded line Project Timeline · by February 2027 · High confidence February 2027

We have already started on this project and it seems that by February 2027, which is less than one year from today, we will be able to upgrade the line and start commercial production.

— Sanjana Khaitan
Ramp-up to full capacity for TOPCon line Project Timeline · post commercial start · High confidence 2 months

And it would take around 2 months to come to full capacity level, but slowly we will start off with small capacities because we need to change the process steps to integrate it. And then, a lot of trials will be there of course, but it will not take more than 2 months to come to the full capacity.

— Sreeram Vasanthi
Andhra Pradesh 2 GW facility operational Project Timeline · by June 2027 · Medium confidence June 2027

Yes, there are no plans of postponing the expansion commitment. Definitely our best effort is to ensure that we are able to bring up the capacity as we've already promised. I think June 2027 is what we are targeting.

— Sanjana Khaitan
Ingot and wafer facility readiness (ALMM List 3 deadline) Project Timeline · by June 2028 · High confidence June 2028

So, the target is that by the deadline of June 2028 ALMM-III, we will be completely ready. So, we are in quite a good situation as far as the ingot and the wafering plant is.

— Sreeram Vasanthi

Margins

Cell margins Margins · next 2-3 years · Medium confidence remain healthy with some variability

Yes, and with respect to margin, definitely over the next 2 years, 3 years, we expect cell margins to remain healthy. Obviously, there will be some variability, like for example, recently we have seen how silver price increase has hit margins and obviously some softening has come on account of the final sale price also.

— Sanjana Khaitan

Capex

Cost for TOPCon upgrade Capex · current project · High confidence INR 250-270 crores

Yes, hi Naman, Amrit this side. We are expecting as of now that it will cost around INR 250 to INR 270 crores for this upgrade.

— Amrit Daga

Production Impact

Revenue loss during TOPCon upgrade Production Impact · during upgrade · High confidence 15 days

So, Mr. Shah, we are expecting a capex around INR 250 to INR 270 crores as of now. And we are estimating that a revenue loss will be around for 15 days.

— Amrit Daga

Realization

Cell realization (DCR) Realization · current · High confidence 13-13.5 cents per watt

In line with what we have shared on the previous call, the cell realization is around 13 to 13.5 cents per watt and the module realization is around 22 to 22.5 cents per watt peak.

— Amrit Daga
Module realization (DCR) Realization · current · High confidence 22-22.5 cents per watt peak

— Amrit Daga

Useful Life

Useful life for new TOPCon equipment Useful Life · post commissioning · High confidence 8 years

Yes, so we've already reduced the useful life for the new equipment which is the TOPCon to 8 years and for the Mono PERC we are maintaining it at 3 years.

— Sanjana Khaitan
Useful life for Mono PERC equipment Useful Life · current · High confidence 3 years

— Sanjana Khaitan

Tax Rate

Effective tax rate Tax Rate · FY27 · High confidence standard income tax rate

Yes, as of now we have utilized all our tax credits. The next year's rate will be standard income tax rate that is applicable to all companies.

— Amrit Daga

Utilization

Optimum utilization level post TOPCon upgrade Utilization · post upgrade · High confidence over 90%

Yes, right now in case of cell our utilization on a combined basis is over 90% and that we believe is the highest which can be maintained. With respect to TOPCon, obviously our target would be the same, but as Ms. Vasanthi said it will take approximately over 2 months to get to that level after commissioning. But of course, the target would remain the same that we have to go over 90%.

— Sanjana Khaitan

What to watch in Q1 FY27

Release of IREDA pledged shares

next month or two

Current Outstanding net debt of ~INR 92 crores, 80%+ promoter shares pledged

Target Pledged shares released

Why it matters

Resolution of this long-standing issue will improve promoter shareholding flexibility and market perception.

And we are currently in advanced discussions with IREDA for repayment of the loan and release of the pledged shares. Of course, there is a process involved which includes certain standard procedural steps and I would like to say that we are on track to complete the repayment and get the requisite shares released. So, hopefully in the next month or two, we should be able to get this job done.

Risks & concerns

Margin pressure due to product mix shift and raw material/sale price volatility
medium

EBITDA margin reduced due to higher module sales (lower margin) and impact of silver price increase/softening final sale prices, though cell margins are expected to remain healthy with variability.

Management acknowledged
Technology obsolescence (shift from TOPCon to Back Contact)
medium

Management stated TOPCon will be stable for at least 1-2 years and future facilities are being designed with flexibility to integrate newer technologies like Back Contact when they mature.

Analyst acknowledged
Potential oversupply in the cell market
low

Management clarified that announced capacities often do not translate to immediate supply, and operating capacities are typically lower than nameplate, suggesting the market is not as oversupplied as perceived.

Analyst downplayed
Working capital intensity (increase in debtors and inventory)
low

Increase attributed to capacity expansion, module production ramp-up (higher raw material inventory), and increased business volumes, with receivables largely backed by Letters of Credit.

Analyst acknowledged

Q&A highlights

5 direct, 2 evasive

Phase 3 capex (2 GW) update and timelines Evasive

What we are doing right now is we are evaluating what is best for the company, the right sequencing, the right funding structure and the right execution approach for a project of this scale. So, once we have like a little more detail on that, we will definitely come back with the necessary communication.

Management deferred providing specific details on the next major capacity expansion, indicating ongoing strategic evaluation rather than firm plans, which could imply potential delays or changes in approach.

Asked by Amit Mishra

Promoter holding pattern increase after warrant conversion Evasive

We'll see. Let us wait for this. Right time we'll take the action.

The promoter's response was non-committal regarding increasing their stake, which is a key indicator of management's confidence and alignment with minority shareholders.

Asked by Sushil Choksey

Module vs cell margins and separate reporting Partial

We do not report the margins separately. We do report the margin on consolidated basis because we are using our own cell to make modules. Obviously as you are aware that the module margins are lower in comparison of solar cell.

Management declined to provide a clear breakdown of margins between cells and modules, making it harder for analysts to assess the profitability of different product lines, especially given the increasing module contribution.

Asked by Maitri

Risk of demand shifting from TOPCon to Back Contact (BC) technology and technology choice lock-in Direct

See TOPCon, people have just started putting TOPCon and that is not as easy as a PERC technology. So, that will take some time to stabilize. So, 1 year definitely TOPCon will continue... we will keep space available. I mean, spaces left for these for to adapt back contact as well, so that when that becomes mature, we will be able to insert these equipment in between and we will be able to run.

Management addressed the technology obsolescence risk by stating TOPCon will be stable for at least two years and they are designing future facilities with flexibility to adapt to newer technologies like BC, which is crucial for long-term competitiveness in a rapidly evolving sector.

Asked by Ashish Khurana

Funding for the total capex (TOPCon upgrade + 2GW facility + ingot/wafer) Direct

Yes, so of course we have like surplus cash as of now for the immediate expansions. And as I said, we will be raising some amount of debt also to support the quick expansion. So, as per our projections, we don't see any concern as of now. Obviously, the idea is to manage the debt level prudently, which is what will be our interest area going forward.

Management confirmed confidence in funding significant future capex through a combination of existing cash surplus and prudently raised debt, alleviating concerns about capital availability for ambitious growth plans.

Asked by Hriday Choksey

Change in sequencing of capex plans and what is driving it Direct

I don't think there has been any change. Definitely we are going to expand and scale up as committed, but we do not have any additional update to give at this moment and that is why we are waiting to come back with announcements on the same. So, definitely as mentioned earlier also, we are working hard on the timeline of June 2027 and whatever capacities we've announced remain in place.

The analyst probed a perceived shift in capex commentary, but management clarified that their commitment to expansion and timelines (June 2027 for Andhra Pradesh) remains unchanged, emphasizing that they are working on details before making further announcements.

Asked by Ankush Agrawal

Increase in debtors and inventory, and customer liquidity issues Direct

So, the increase in the working capital is largely driven by the inventory and the receivables. So, first on inventory, this is higher due to the capacity expansion with our cell line capacity doubling and the ramp-up of module production. In addition, the shift in product mix towards module has led to higher raw material inventory as module operations are inherently more inventory intensive. And regarding receivables, the increase reflects also the higher business volumes and the more diversified customer base. Importantly, the portion of these receivables is backed by letter of credit from prime banks, which mitigate credit risk.

Management provided a detailed explanation for the increase in working capital, attributing it to capacity expansion, product mix shift, and higher business volumes, while reassuring that receivables are backed by Letters of Credit, mitigating a potential red flag for the sector.

Asked by Hardik Jain

Diversification vision beyond current core business (BESS, HJT, smart metering, ingot/wafer) Direct

Yes, so definitely we have primarily been cell manufacturers and that is where our interest area lies. We feel that is a product we understand very well and we have a very well-qualified team who has been able to perform really well and bring up capacities in very short timeframes. So, definitely that is our primary area of interest. However, we would like to complete the value chain by forward integrating on module... And interest area is also to go backward into wafer and ingot... With respect to BESS and other ancillary opportunities... definitely it's a space which is growing and it's an ancillary product for our customer base... but we are concentrating more right now on the wafer, ingot, cell, and module story and we'll see how the BESS space develops for us.

Management outlined a clear strategic focus on strengthening the core cell, module, ingot, and wafer value chain, while acknowledging BESS as an exploratory, growing ancillary opportunity, providing clarity on long-term diversification priorities.

Asked by Nitin Shakdher

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Detailed narrative

Record Financial Performance in FY26 and Q4 FY26

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.

Significant Capacity Expansion and Technology Upgrades

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.

Strengthened Financial Position and Capital Allocation

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.

Healthy Order Book and Market Dynamics

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.

Strategic Focus and Future Outlook

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.

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

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