Solex Energy FY26 income jumps 144% to Rs 1,621 crore amid expansion push

Solex Energy Limited reported a total income of Rs 1,621.1 crore for the financial year ended March 31, 2026, marking a 143.9% year-on-year (YoY) increase from Rs 664.8 crore in FY25. Revenue for the fourth quarter of FY26 stood at Rs 885.8 crore, up 247.6% YoY.

The company’s Profit After Tax (PAT) for FY26 rose 132.7% YoY to Rs 98.3 crore from Rs 42.2 crore in the previous year. Q4 FY26 PAT surged 289.4% YoY to Rs 58.9 crore. PAT margin for the full year stood at 6.1%, while Q4 PAT margin expanded by 71 basis points YoY to 6.6%.

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for FY26 increased 134.6% YoY to Rs 186.7 crore, with a margin of 11.5%. Q4 EBITDA rose 246.1% YoY to Rs 98.6 crore, with a margin at 11.1%.

Chetan Shah, Chairman and Managing Director, said FY26 marked Solex Energy’s transition from a manufacturing-focused company to an integrated clean energy enterprise with global ambitions. He stated that the company generated net cash flow from operating activities of Rs 200.7 crore as of March 31, 2026.

According to management, the company’s working capital cycle improved to nearly 35 days in FY26 from 61 days in FY25, while the net debt-to-equity ratio stood at 0.57:1. Return on Equity (ROE) was reported at 38.4% and Return on Capital Employed (ROCE) at 31.7%.

During the FY26 earnings call, management indicated that solar module prices in India are expected to rise in the coming months due to supply-side constraints and global market pressures. The company stated that non-Domestic Content Requirement (DCR) solar modules, currently priced at Rs 13-14 per watt peak, could increase to around Rs 16 per watt peak if prevailing conditions continue.

Management cited geopolitical tensions, global trade disruptions, rising logistics costs, rupee volatility against the US dollar, and tightening domestic solar cell availability ahead of the Approved List of Models and Manufacturers (ALMM) implementation timelines as key pressure points.

“The solar manufacturing industry is currently operating in a highly volatile environment shaped by global trade disruptions and imported raw material dependence. Prices are going up for sure,” management said during the earnings call.

The company also highlighted constraints in domestic solar cell availability, noting that India currently lacks sufficient domestically manufactured solar cell capacity as several planned facilities remain under construction.

To reduce supply chain dependence, Solex Energy is accelerating backward integration initiatives. During the quarter, the company signed a Rs 4,000 crore memorandum of understanding (MoU) with the Gujarat government to establish solar cell and Battery Energy Storage Systems (BESS) manufacturing facilities.

The proposed expansion includes 5 GW of solar cell manufacturing capacity, 10 GW of BESS manufacturing capacity, and future wafer and ingot capacity additions. The first 2 GW phase of the solar cell facility is expected to become operational by December 2027.

Under its Vision 2030 roadmap, the company has proposed an investment of $1.5 billion to develop an integrated solar manufacturing ecosystem comprising 10 GW module capacity, 10 GW cell capacity, 10 GW BESS capacity, and 2 GW wafer and ingot capacity.

As of March 31, 2026, Solex Energy’s order book exceeded Rs 3,400 crore. The company also executed more than 200 engineering, procurement and construction (EPC) projects during FY26.