Solex Energy LtdQ1 FY25Electrical Equipment

Solex Energy Ltd

Q1 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Revenue guidance

Category 2

→Solex plans a 4 GW module manufacturing capacity by FY27, targeting revenue between INR 3,000 to 3,400 crores, including INR 200 crores from EPC business.
→A 2 GW solar cell manufacturing line is being established, with full operation expected by FY27 end; cell contribution to revenues will be clarified closer to market approach.
→Revenue guidance for FY26 is INR 2,200 to 2,400 crores, with module capacity of 1.5 GW for the full year plus expansion starting October.
→Long-term vision includes 15 GW module capacity and 5 GW cell line by 2030, involving around $1 billion (INR 8,500 crores) investment.
→Expansion relies heavily on demand; module capacity can scale up beyond 4 GW as order book grows.
→EPC business expected to contribute about INR 200-300 crores annually, roughly 10%-12% of total revenue.
→EBITDA margin targeted between 9%-11%, PAT margin sustaining between 5%-7%, expected to improve with scale and efficiency.

Category 3

→Solex Energy reported strong growth with FY25 revenue at INR665 crores, a 81% YoY increase.
→EBITDA margin improved to around 11.4%, with PAT margin at 6.4%, both exceeding earlier estimates.
→Management expects EBITDA margins in the 9-11% range and PAT margins around 6-7% sustainably, with scope for improvement via operational efficiencies.
→Expansion plans include adding 2 GW cell line and 2 GW module line by FY27, supporting revenue growth towards INR3,000-3,400 crores by FY27.
→Long term vision targets 15 GW module and 5 GW cell capacity by 2030, investing around $1 billion (INR8,500 crores) aiming for substantial scale.
→Earnings per share (EPS) grew by 301% YoY in FY25; scale and efficiency gains from expansion expected to improve profits and EPS further.
→Quarterly updates and investor communications will continue, with the company focusing on maintaining/improving margins amid market/technology changes.

Get access to all 5 sections — revenue, margin, fundraise, orderbook, and capex — for Solex Energy Ltd and 1,400+ other companies.

Yes

→Solex is planning a major CapEx of around INR1,500 crores for a 2 GW solar cell line and 2 GW module line, funded approximately with two-thirds debt (INR1,000 crores) and one-third equity (INR500 crores).
→For the current 2.2 GW expansion, funding is through internal accruals and previous preferential allotment funds; no new equity is planned for this phase.
→Management is engaging with bankers and investors to structure the INR500 crores equity raise for the larger expansion, expected within 2-3 months.
→Debt levels will peak around FY27, with INR1,000 crores for expansion plus existing INR400 crores, totaling INR1,400 crores.
→Term loans and working capital loans are planned, including INR150 crores term loan and INR150 crores working capital for interim projects.
→No immediate equity raise for the 2.2 GW module expansion; equity raising plans relate to larger, future expansions.

Yes

→The latest publicly announced order book as of March 31, 2025, was INR 1,756 million (likely meaning crores as per PPT context).
→CRISIL rating report (May 8, 2025) mentioned an order book of INR 1,450 crores, indicating some discrepancy due to timing or data update.
→A significant portion of the order book (~INR 1,020 crores) is concentrated with a single client, but this concentration is expected to reduce to around 40%-50% or lower as new orders are added.
→Many smaller orders (3 MW, 5 MW, 10 MW) are not publicly announced but contribute to the overall order book.
→Several Master Sales Agreements (MSAs) are signed; however, new Purchase Orders (POs) are awaited for exact delivery and booking.
→Firm orders exist for new production lines, with confirmed POs expected as machines arrive for production scheduling.

Yes

→Solex Energy is planning a significant capital expenditure of around INR 1,500 crores for expansion.
→This includes setting up a 2 GW solar cell manufacturing line (~INR 1,200 crores), a 2 GW module line (~INR 200 crores), and working capital (~INR 100 crores).
→The company targets a debt-equity mix of approximately two-thirds debt and one-third equity for this expansion.
→Current expansion includes commissioning a 2.5 GW module line expected to start commercial production by October 2025.
→Plans to start commercial product shipment from the new lines from October 2025.
→Strategic focus on technological upgradation with advanced, robotized, and automated equipment.
→Solex is exploring different technology tie-ups, including back contact technology (TOPcon and HJT).
→They target raising around INR 1,000 crores in debt and about INR 500 crores through equity within the next 2-3 months.
→Expansion expected to complete roughly within 18 months from the start date.

How does Solex Energy Ltd rank vs peers in Electrical Equipment?

Pro feature

1Solex Energy Ltd

Rev 2Mar 3

See full Electrical Equipment sector rankings

Want more stocks like Solex Energy Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.