Earnings Call

Solex Energy Highlights 144% FY26 Revenue Growth, ₹3,400 Crore Order Visibility and Aggressive Backward Integration Plans

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Solex Energy Limited shared its Q4 and FY26 earnings conference call transcript, highlighting strong revenue and profit growth, improving working capital efficiency, robust order visibility, and expansion plans across solar cells and battery energy storage systems (BESS). Management also outlined its Gujarat expansion roadmap and operational strategy amid rising raw material costs and evolving domestic solar manufacturing policies.

PRICE-SENSITIVE TRIGGER

Event: Submission of Q4 and FY26 Post Earnings Conference Call Transcript

Type: Earnings Call

Impact: Positive

Immediate Effect: Management reaffirmed strong growth visibility for FY27, announced large-scale backward integration plans, and highlighted improving operational efficiency, strengthening investor confidence around execution and expansion capabilities.

Key Metrics:

FY26 Revenue:
- ₹1,621.1 crore
- Up 144% YoY
FY26 EBITDA:
- ₹186.7 crore
- Up 134.6% YoY
FY26 EBITDA Margin:
- 11.5%
FY26 PAT:
- ₹98.3 crore
- Up 132.7% YoY
FY26 PAT Margin:
- 6.1%
Q4 FY26 Revenue:
- ₹885.8 crore
- Up 247.6% YoY
Q4 FY26 EBITDA:
- ₹98.6 crore
- Up 246.1% YoY
Q4 FY26 EBITDA Margin:
- 11.1%
Q4 FY26 PAT:
- ₹58.9 crore
- Up 289.4% YoY
Q4 FY26 PAT Margin:
- 6.6%
- Expanded 71 bps YoY
Net Cash Flow from Operations:
- ₹200.7 crore as of March 31, 2026
Working Capital Cycle:
- Improved to ~35 days from 61 days in FY25
Net Debt-to-Equity:
- 0.57x
Return Ratios:
- ROE: 38.4%
- ROCE: 31.7%
FY27 Revenue Guidance:
- ₹2,600 crore
FY27 PAT Margin Guidance:
- 6%–8%
Current Order Visibility:
- Over ₹3,400 crore

Highlight:

Solex Energy reported 144% FY26 revenue growth with strong profitability expansion while simultaneously improving working capital efficiency and maintaining healthy leverage levels.

What Happened ?

Solex Energy Limited submitted the transcript of its Q4 and FY26 earnings conference call to stock exchanges, where management discussed strong financial performance, operational execution, expansion plans, and industry outlook.

Management highlighted that FY26 marked a strategic transition for Solex from a manufacturing-focused business into an integrated clean energy company with ambitions across solar modules, solar cells, wafers, ingots, and battery energy storage systems (BESS).

The company announced a ₹4,000 crore MoU with the Government of Gujarat aimed at developing:

5 GW solar cell manufacturing capacity
10 GW BESS manufacturing capacity
Expanded backward integration capabilities

Solex also confirmed:

Over 200 EPC projects executed
A major ₹271.6 crore TOPCon module supply order under execution
Strong operating cash flow generation
Significant improvement in working capital management
Conservative FY27 growth guidance despite geopolitical and raw material uncertainties

Management further discussed:

Cell manufacturing timelines
ALCM implementation preparedness
Raw material inflation management
TOPCon technology strategy
Capacity utilization trends
Future margin expectations

Key Details

Operational Expansion and Strategic Growth Roadmap:

Solex executed over 200 EPC projects during FY26 across multiple sectors.
The company secured a ₹271.6 crore order for N-type TOPCon solar PV modules, expected to be completed by May 2026.
The Gujarat MoU supports:
- 5 GW TOPCon + IBC solar cell manufacturing
- 10 GW BESS manufacturing
- Expanded backward integration strategy
Management indicated:
- 2 GW + 3 GW phased solar cell expansion
- 5 GW + 5 GW phased BESS rollout
Planned solar cell facility commissioning timeline:
- By December 2027 for first 2.2 GW phase
Expected PAT margin from integrated cell manufacturing:
- Around 15% after stabilization
FY26 module sales crossed:
- 1 GW volume milestone
FY26 capacity utilization:
- TOPCon: 62%
- Mono PERC: 35%
FY27 utilization guidance:
- Around 55% on a conservative basis
Planned funding structure for expansion:
- ₹200 crore NCD
- ₹150 crore CCD
Expected debt structure:
- Total outside liabilities to tangible net worth below 4x post expansion

Note:

Management emphasized that geopolitical uncertainty and raw material inflation remain near-term variables, but the company believes it is operationally prepared through vendor agreements, supply chain planning, and domestic sourcing arrangements.

Risk Analysis

Summary:

Despite strong growth momentum, Solex Energy remains exposed to solar industry volatility including raw material inflation, logistics disruptions, regulatory changes, and execution risks associated with large-scale manufacturing expansion.

Key Risks:

Rising logistics and commodity prices are increasing raw material costs across the solar value chain.
Uncertainty around ALCM implementation timelines could impact domestic cell supply availability.
Solar cell manufacturing execution involves:
- Technology integration risks
- Utility infrastructure challenges
- Water availability management
- Yield stabilization requirements
Geopolitical developments may affect:
- Import supply chains
- Dollar-linked procurement costs
- Module pricing visibility
Rapid capex expansion may increase leverage temporarily during project ramp-up phases.

Worst Case Scenario:

Sustained raw material inflation, delays in solar cell commissioning, or regulatory disruptions in domestic manufacturing policy could pressure margins, execution timelines, and return ratios during the expansion phase.

Risk Level: Medium

Company Commentary

Management stated FY26 marked Solex Energy’s transition into a fully integrated clean energy enterprise with global ambitions.
The company targets ₹2,600 crore revenue in FY27 with PAT margins of 6%–8%.
Solex management confirmed that the company is prepared for both outcomes regarding ALCM implementation through imported and domestic solar cell sourcing arrangements.
Management expects operationalization of the first solar cell manufacturing phase by December 2027.
The company reiterated confidence in sustaining high growth while maintaining profitability and operational discipline.

Official Exchange Filing: Solex Energy Limited