Solex Energy LtdQ3 FY25Electrical Equipment

Solex Energy Ltd

Q3 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 1

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Revenue guidance

Category 1

→Solex is on track to achieve around Rs. 2,000 - 2,200 crore revenue for FY26, primarily from the ramp-up of Line-3 and Line-4 (4 GW capacity) operational from October end.
→H2 FY26 is expected to see higher capacity utilization and stronger sales, recovering from delayed deliveries due to an extended monsoon.
→The company anticipates surpassing past turnover levels with increased scale of operations and expects EBITDA margins of 16-18% in H2 FY26.
→New cell line production (2.2 GW N-Type TOPCon Plus) is targeted for commissioning by March 2027, which will further drive growth.
→An incremental 2.5 GW module capacity is planned, with options being explored for location, expected online by end of H1 FY27.
→The order book stands strong at Rs. 4,000+ crore, including pending POs and Master Sales Agreements, to be executed during FY26 and FY27.
→Export opportunities, especially to the US and Europe, are expected to increase, contributing to future volume and revenue growth.

Category 2

→**Revenue Growth:** Expectation to achieve Rs. 2,000-2,200 crore revenue in FY26, with strong order book of Rs. 4,000+ crore for FY26-FY27. H2 FY26 is expected to see higher capacity utilization and revenue conversion from inventory pile-up in H1 due to extended monsoon delays.
→**EBITDA Margins:** Anticipated improvement to 16%-18% EBITDA margins in H2 FY26 due to better absorption of fixed costs with commission of new lines; current EBITDA margin improved to 14.7% in H1 FY26 from 9.6% in H1 FY25.
→**Profit After Tax (PAT):** PAT margin rose to 7.3% in H1 FY26; with scale-up and operational efficiency, PAT expected to surpass prior year levels.
→**EPS:** With operating profit growth and capacity ramp-up, EPS improvement is expected alongside revenue and margin growth.
→**Long-Term:** Commissioning of advanced 2.2 GW N-Type TOPCon Plus cell line by March 2027 to further drive profitability and technological competitiveness.

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Yes

→Solex Energy is planning a total CapEx of Rs. 1,500 crore, including Rs. 1,100 crore for the cell line, Rs. 200 crore for the proposed module, and Rs. 100 crore for working capital.
→Funding plan:
→ - Rs. 1,000 crore from bank debt.
→ - Rs. 500 crore through raising equity via a Qualified Institutional Placement (QIP).
→Discussions with bankers and financial institutions are ongoing, and engagement is expected to close soon.
→The company is progressing on planned funding structures, with discussions at an advanced stage.
→Current elevated debt-to-equity ratio is due to project-related drawdowns, expected to improve as operating cash flow strengthens in H2 FY26.

Yes

→Current order book stands at over Rs. 4,000 crores, inclusive of Rs. 100 crores from EPC orders (as of September 30, 2025).
→Order book execution timeline spans FY ‘26 and FY ‘27, with certain orders to be delivered by March 31, 2026, and others in FY ‘27.
→Order book comprises three stages:
→ - Confirmed Purchase Orders (POs) received.
→ - Master Sales Agreements (MSA) signed, awaiting POs.
→ - Finalization of MSAs underway.
→Work-in-progress (WIP) orders amount to approximately Rs. 1,300 crores, scheduled for delivery by March 31, 2026.
→Including existing inventory of Rs. 153 crores (finished goods ready for dispatch), total deliverables approximate Rs. 1,450 crores for immediate sale.
→Dispatches of accumulated inventory are underway, with expectation to clear by early December 2025, aiding revenue recognition in H2 FY ‘26.

Yes

→Solex Energy is undertaking a total CapEx of Rs. 1,500 crore:
→ - Rs. 1,100 crore for setting up a 2.2 GW N-Type TOPCon Plus solar cell manufacturing facility targeting commissioning by March 2027.
→ - Rs. 200 crore proposed for additional 2.5 GW module capacity.
→ - Rs. 100 crore for working capital.
→Land for the cell manufacturing project has been identified; power and water infrastructure discussions are at advanced stages.
→Funding for these investments is in advanced discussions with financial institutions, with expected bank debt of Rs. 1,000 crore and Rs. 500 crore to be raised via equity (QIP).
→The company is exploring options for the incremental 2.5 GW module capacity, including acquiring adjoining land, establishing capacity where cell lines are set up, or a new facility in southern India.
→Technology collaborations include ISC Konstanz, aiding advanced technology integration and faster execution.

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