Sahaj Solar Ltd Q1 FY27 Earnings Analysis

- Sahaj Solar Limited expects revenue growth of at least 30% plus for FY27 and over the next 3 years. - The current order book stands at INR 402 crores, which is planned to be fully executed during FY27. - The growth is driven by solar and battery energy storage system (BESS) projects, solar water pumps (KUSUM 2 scheme), off-grid solutions including work with Border Security Forces, and international projects (e.g., Zambia, Mauritius). - Bulk milk chiller deployment (~10,000 units over 3 years) with NDDB partnership will contribute to growth. - New technologies like anti-soil coating and nano technology coating on solar panels are expected to enhance product lifespan and reduce degradation, supporting sales growth. - They have bid for over INR 1,000 crores in new orders pending confirmation. - International ventures signal higher margin opportunities but margins from these are not yet factored into projections.

- Sahaj Solar Limited expects at least 30% revenue growth in FY27 and over the next 3 years, driven by projects like solar plus BESS solutions, off-grid solutions, and international markets such as Zambia and Mauritius. - EBITDA margins are expected to remain stable around 12-13% despite growth, supported by improved payment cycles and operational efficiencies. - PAT margins in FY26 faced pressure from higher interest costs but are expected to improve as interest costs normalize and revenue scales. - Operational cash flows are expected to turn positive by the end of Q3 or early Q4 FY27, improving profitability and cash generation. - The company aims to sustain EBITDA margins and gradually improve PAT margins with better working capital management and project execution. - New product developments and partnerships (e.g., with IDMC and NDDB) are anticipated to contribute to future earnings growth, though not yet reflected in the current order book.

- The company is currently utilizing its existing 100 megawatt module manufacturing capacity at around 30-35% for internal consumption, operating typically on a one-shift basis. - Plans for further module manufacturing capacity expansion have been put on hold due to existing market conditions; no immediate expansion is planned. - A 750 megawatt module manufacturing plant initially planned for India has been shifted to Dubai, reflecting a strategic realignment considering geopolitical factors. - The company has upgraded its existing 100 megawatt module manufacturing line with new technology and is running it at approximately 60% capacity. - New strategic investments include expansion into international markets such as Zambia and Mauritius, with ongoing projects like a 10 megawatt EPC project in Zambia expected to execute in FY27. - Additionally, significant development is underway for bulk milk chillers (around 10,000 units over 3 years) in partnership with NDDB, marked as a future growth area but not yet fully included in order books.

- Sahaj Solar Limited took a working capital loan of INR125 crores from IREDA in Q4 FY26 to address working capital gaps. - The company has repaid an earlier INR100 crores working capital loan from IREDA by April 2026, two months ahead of schedule. - No explicit mention of planned new fundraising through debt or equity in the near future was given. - The management expects interest costs to reduce from the current 11-12% range to 9-10% as financial performance improves. - The current debt-equity ratio stands at about 1.26-1.27, and the company appears comfortable at this level for the time being. - The company is managing working capital through internal cash flow and current loan facilities without indicating additional fundraising plans.

- Current order book stands at INR 402 crores, expected to be fully executed in FY27. - The order book includes: - Solar water pumping systems: INR 107 crores - Off-grid solar systems with BESS: INR 44 crores - Grid-connected solar systems: INR 251 crores - Additional pipeline includes international projects such as a 10 MW Zambia project valued around INR 55 crores, currently under execution with expected completion in FY27. - The company has bid for over INR 1,000 crores worth of new orders, though award confirmations are pending. - A 4.8 MW DREBP project in Gujarat has been awarded and execution started; expected to be completed in FY27. - Dairy cold chain project involving 10,000 bulk milk chillers over next 3 years is anticipated but currently not included in the order book.