Solarium Green Energy Ltd Q1 FY27 Earnings Analysis

- Revenue is expected to continue growing at rates similar to or higher than the past couple of years, driven by ramp-up in manufacturing and large EPC project execution. - With the manufacturing facility now active and a robust order book of over ₹300 crores, growth rate is anticipated to accelerate further. - The company has a forward pipeline of 300 MW+ EPC projects under active discussion, with a hopeful conversion of around 60% within 2-3 months. - Margins are expected to improve, targeting an exit EBITDA margin of around 10-12% in FY27, up from the current 8-9%. - Finance costs proportionate to revenue are expected to reduce progressively as manufacturing operations generate returns. - Working capital requirements are foreseen to be lower with large EPC contracts due to better cash collection during project execution. - Manufacturing is targeting 50-60% captive consumption, supporting integration and growth.

- FY26 EBITDA grew 31% YoY to ₹35.3 crores; EBITDA margin at ~9.6%. - Gross profit increased 40% YoY to ₹111 crores; gross margin moderated to 30% due to EPC mix. - PAT was ₹20.5 crores, slightly up from FY25, influenced by higher finance costs and working capital build-up. - Management expects margins to stabilize or improve to 10-12% EBITDA range by FY27 as manufacturing integration deepens. - Revenue growth anticipated to accelerate with active 303 MW EPC order book and ramping manufacturing. - Finance costs expected to normalize from elevated FY26 levels as manufacturing assets generate returns. - Working capital management will improve with larger EPC contracts, reducing receivable cycle. - Manufacturing utilization currently ~45%; target 40-50% captive consumption aiding scale and margins. - Overall positive outlook on earnings growth, margin expansion, and improving cash conversion going forward.

- No major CAPEX is foreseen in FY27; focus will be on execution and ramp-up of manufacturing volumes. (Page 10) - FY26 included a significant CAPEX of approximately ₹90 crores for commissioning the 1.2 GW module manufacturing facility. (Page 5) - Additionally, ₹100 crores working capital was invested for manufacturing operations in FY26. (Page 5) - Finance costs related to these CAPEX and working capital were ₹10.5 crores in FY26, expected to stabilize as manufacturing scales. (Page 5) - The company plans to stabilize operations in ground-mount EPC projects and enter BESS integration as EPC player in medium to long term, signaling strategic investment emphasis there. (Page 14) - No further large CAPEX is planned currently; focus is on leveraging existing manufacturing and project infrastructure. (Page 10)

- No major new CAPEX is foreseen for FY27, indicating limited immediate need for fresh fundraising. - Current debt consists of approximately ₹100 crore working capital loans and ₹50 crore term loan repayable over six years. - Finance cost increased due to borrowing for manufacturing facility setup but is expected to stabilize. - No explicit mention of new fundraising plans through debt or equity in the call transcript. - The company is focused on ramping up operations and improving margins with existing capital structure. - Monitoring of working capital and finance cost remains a priority to support growing EPC order book. - Overall, no announced plans for new debt or equity raising in the near term as per the latest disclosures.

- Current executed order book: Over ₹300 crores as of FY26. - Large EPC segment: Confirmed 50 MW ground-mounted solar project in Maharashtra valued at ₹185 crores. - Active discussions/pipeline: Over 300 MW of EPC projects are under advanced discussion. - Expected conversion: Around 60% conversion of the 300 MW pipeline expected within the next 2-3 months. - Residential segment: Monthly run rate of ₹10-12 crores, expected to rise to ₹16-18 crores including solar kits by end of calendar year. - Captive module consumption: Approximately 65 MW of confirmed captive module consumption within EPC order book. - Orders for external module sales: ₹35-40 crores currently to be supplied month-on-month. - Majority of current order book expected to be executed within FY27, with a significant portion in H1.