Solex Energy Q4 FY26 earnings call
In brief
Solex Q4 FY26 revenue INR 885.8 cr (+247.6% YoY); FY27 revenue target INR 2,600 cr at 6-8% PAT margin
- Management's tone
- Confident
- What was said
- Leaned positive
- Guidance
- Guidance raised
- Analyst pushback
- Medium
- Stock, next session
- +4.09% (Nifty 50 +0.03%)
- Q4 FY26 revenue grew 247.6% YoY to INR 8,858 million; FY26 revenue up 144% to INR 16,211 million with PAT margin of 6.1%.
- Management targets FY27 top line of INR 26,000 million with PAT margin range of 6-8%, assuming conservative 55% capacity utilization.
- Signed INR 4,000 crore MoU with Government of Gujarat for 5GW cell plus 10GW BESS manufacturing; first cell phase (2.2 GW) targeted by December 2027.
- Order book visibility of INR 3,400 crores split across confirmed POs, signed MSAs and advanced-stage orders; FY26 module sales exceeded 1 gigawatt.
- Working capital cycle improved to ~35 days in FY26 from 61 days in FY25; ROE at 38.4% and ROCE at 31.7%.
An AI read of the company's transcript · the filing
The numbers
The quarter, Q4 FY26
| This quarter | A year ago | Last quarter | Margin | |
|---|---|---|---|---|
| Revenue | ₹886 cr | +127.6% | +178.6% | |
| EBITDA (excl. other income) | ₹98.5 cr | — | +280.2% | 11.1% |
| Net profit | ₹57.9 cr | — | +564.5% | 6.5% |
| EPS (₹) | ₹53.61 | +99.7% | +564.3% |
From the company's filed results for the quarter ended 31 Mar 2026 (consolidated), not from the call. EBITDA here excludes other income, so it can differ from the figure management quotes.
Where management's figures differ from the filing
- Q4 FY26 revenue YoY growth: said +247.6% YoY (Q4 FY26 revenue INR 8,858 million); filed +127.6% YoY (Revenue ₹885.53 cr). Revenue absolute matches filed figure, but management cited +247.6% YoY versus filed +127.6% YoY for the same quarter — a >100 percentage-point gap.
What moved the numbers, as management explained it
- Q4 FY26 revenue growth driven by volume ramp-up as TOPCon lines 3 and 4 became fully operational in the last quarter of FY26, alongside demand traction from IPPs.
- Module ASP rising to INR 13.50-14/Wp (potentially INR 16) on dollar appreciation and raw material inflation from crude-linked inputs (EVA, plastics, granules) and logistics costs.
- Mix shift toward TOPCon (62% utilisation) versus Mono PERC (35%); TOPCon contributed higher capacity per line in FY26.
- Other income included only INR 80 lakhs of subsidy this year; FY26 reported margins were not boosted by subsidy recognition. (one-off)
- Cost pressure from crude-linked raw materials and Southeast Asian logistics flagged, though partly offset by dollar-linked orders and vendor price-locks.
The numbers management led with
- Order book visibility: INR 3,400 crore (INR 34,000 million) across confirmed POs, signed MSAs, and advanced-stage pipeline
- Capital raise: INR 350 crore (INR 200 crore NCD + INR 150 crore CCD); term sheet signed, expected closure June 15-30, 2026
- Total capex planned: INR 1,050 crore (INR 700 crore from principal debt + INR 350 crore from equity)
- Gujarat MoU value: INR 4,000 crore (INR 40,000 million) MoU with Government of Gujarat for 5 GW cell + 10 GW BESS
Guidance
Guidance on this call
| What | For | What management said |
|---|---|---|
| FY27 top line | FY27 | targeting a top line of INR 26,000 million for FY 27 |
| FY27 PAT margin | FY27 | with a PAT margin in the range of 6% to 8% |
| FY29 EBITDA (post cell line stabilisation) | FY29 | EBITDA will be more than 20% for FY 29 |
| Cell + module PAT margin | FY29 | With the cell line, we are targeting around PAT of 15% |
| Cell line first-phase commissioning (Cell manufacturing) | Q3 FY27 | by end of the 2027... December 2027 just to be clear it will be operational (2.2 GW first phase) |
| TOL/TNW with cell line | FY27 | TOL/TNW will be below 4 with the cell line |
| FY27 capacity utilisation assumption (Module manufacturing) | FY27 | the visibility what we are giving is considering 55% of the capacity utilization |
The business
By business
Module manufacturing
Q4 FY26 module sales INR 839 cr; FY26 total module sales over 1 GW; TOPCon lines 3 and 4 ramped up in Q4 with utilisation reaching 81% in March.
Q4 FY26 module sales INR 839 cr · FY26 module sales >1 GW · TOPCon utilisation 62% (FY26) · Mono PERC utilisation 35% · Module price INR 13.50-14/Wp, can go up to INR 16
Outlook: FY27 plan built on conservative 55% capacity utilisation; pricing trending up on dollar and raw material cost.
Solar cell manufacturing (planned)
Backward integration with 5 GW TOPCon plus IBC cells; first phase 2.2 GW to operationalise by Q4 2027 (December 2027) with technology partner arrangement.
5 GW total cell capacity planned · 2.2 GW first phase · Targeted PAT ~15% with cell line
Outlook: First phase (2.2 GW) expected operational by December 2027; full ramp-up expected FY29.
EPC
Total EPC revenue FY26 ~INR 125 cr, mostly routed through subsidiary; holding-company level only INR 10-15 cr (existing project maintenance).
FY26 EPC revenue INR 125 cr · Holding-company EPC revenue INR 10-15 cr
Outlook: EPC revenue expected INR 125-150 cr next year.
BESS (Battery Energy Storage Systems)
10 GW BESS planned in two 5 GW phases; to be housed in a separate subsidiary; 50 GW India BESS award pipeline visibility within 24 months cited.
10 GW BESS capacity planned · 50 GW India BESS award visibility in 24 months
Outlook: Independent BESS business; final numbers to be shared once plans are finalised.
Balance sheet, capex and funding
- Net cash flow from operating activities INR 2,007 million as on March 31, 2026.
- Net debt-to-equity ratio at 0.57:1.
- Working capital cycle improved to ~35 days in FY26 from 61 days in FY25.
- Capex plan: INR 1,050+ cr total, with INR 700 cr principal debt and INR 350 cr equity; INR 350 cr additional via NCD (~INR 200 cr) and CCD (~INR 150 cr).
- Term sheet for INR 350 cr NCD/CCD received; expect closure by June 15-30.
- TOL/TNW to remain below 4 with cell line.
The industry, as management sees it
India's solar industry faces raw material inflation from geopolitical and logistics cost pressures; module prices rising (INR 13.50-14/Wp to potentially INR 16/Wp). Domestic cell supply is constrained — most cell manufacturing lines are still under construction, making the June 2026 ALCM deadline aggressive. BESS opportunity in India is large: ~50 GW expected to be completed in 24 months (20 GW already awarded, 30 GW in award pipeline). Seasonal pattern of Q1/Q2 lower and Q3/Q4 higher traction expected to continue.
Risks management named
- Raw material inflation driven by geopolitical conditions and logistics costs; EVA and plastic-based materials impacted by crude oil prices
- ALCM (Approved List of Models and Manufacturers) on solar cells — domestic cell supply constrained as most cell lines still under construction; extension of ALCM timeline uncertain
- Silver price inflation; no proven replacement for silver in cell manufacturing yet; copper substitution still in testing/qualification phase
- Module price increases in domestic market: INR 13.50-14/Wp (non-DCR) currently, potentially rising to INR 16/Wp due to dollar-INR movement and raw material costs
- Monsoon season (Q2) historically creates execution headwinds for solar installation projects
Q&A
Q&A dominated by backward integration strategy (cell/BESS), raw material inflation, ALCM policy risk, and FY27 guidance conservatism. Individual investors (majority of questioners) focused on cell commissioning timeline, margin improvement path, and working capital dynamics. Management handled most questions directly; pushed back on raw material price specifics and peer margin comparisons. ALCM and cell technology complexity emerged as the most probed topics — management projected confidence but acknowledged industry-wide supply constraints.
Not answered directly
- Module price percentage increase — refused to quantify
- Peer EBITDA margin comparison — declined to comment
- KP Group order quantum — deferred pending internal closure
Asked for a number, answered without one
- Domestic module price increase percentage: The situation is so uncertain, so it is, you know, too difficult to guess any numbers... it's too difficult to predict any price.
- Cash flow highlights for the year: Cash flow is part of the published account. If you could ask specific questions on it will be more helpful.
Every question, with its answer
1. Gujarat MoU & Backward Integration
Sahil Sheth, Anand Rathi Institutional Equities
Question. Can you provide specifics on the INR 4,000 crore MoU with the Government of Gujarat and whether any subsidized land or utilities are being provided?
Answer, Chetan Shah, Chairman and Managing Director. MoU is part of backward integration plan announced previously — 10 GW module, 10 GW solar cells, 2 GW wafer/ingot, and 10 GW BESS. The MoU covers 5 GW cell manufacturing (TOPCon + IBC in two phases: 2 GW and 3 GW) and 10 GW BESS in two phases of 5+5 GW. Freehold land being acquired; no government land, no land subsidy. Manufacturing subsidies under the electronic policy scheme will be applied for.
Follow-up. Are we getting any kind of subsidized rate for the land or the utilities required for the plant from the government?
Answer. No. Freehold land acquisition; no subsidy on land purchase. Manufacturing subsidies under electronic policy scheme will be applied for.
2. Raw Material Inflation
Sahil Sheth, Anand Rathi Institutional Equities
Question. Many peers reported sharp EBITDA contraction this quarter due to raw material inflation. What is your view on raw material prices and how much inventory do we hold as a hedge?
Answer, Chetan Shah, Chairman and Managing Director. Raw material inflation is mainly from geopolitical conditions impacting logistics costs; EVA and plastic-based materials dependent on crude oil are affected. Some vendor arrangements for price lock exist. Most orders are dollar-linked providing immunity from INR depreciation. For uncontrollable price increases, in constant dialogue with clients. Current situation is very uncertain so we are watching closely.
Partly answered.
3. Raw Material Inflation
Ayush Agarwal, Mapl Value Investing Fund
Question. Why was Q4 / H1 not as affected by raw material inflation as peers, and what is the outlook for H2?
Answer, Chetan Shah, Chairman and Managing Director. H1 and Q4 secured with existing inventory supply chain. Q2 (monsoon season) visibility is still being monitored as logistics from Southeast Asian countries remain costly. Full year supply chain visibility is clear except for potential uncontrollable situations in H2. Expects current situation to settle in a few months.
Follow-up. Given the rise in silver prices, are you trying to reduce silver input in modules?
Answer. No proven replacements for silver exist yet. Industry is shifting to copper but tests for 30-year product performance warranty under rigorous climatic conditions are still ongoing. Once tests pass, cost reduction expected. Solex is tracking this closely.
4. Module Pricing
Ayush Agarwal, Mapl Value Investing Fund
Question. Have module prices gone up in the domestic market (DCR and non-DCR) as a result of input cost increases?
Answer, Chetan Shah, Chairman and Managing Director. Yes, prices are going up due to dollar movement (now 96+) and raw material cost increases. Most orders are dollar-protected. Modules currently sold at INR 13.50-14/Wp (non-DCR), potentially rising to INR 16/Wp under current conditions. Situation is too uncertain to predict exact numbers.
Follow-up. Can you share any percentage estimate of module price increase in domestic market?
Answer. Refused to give a specific percentage. Said customers are making calls at prevailing prices. Confirmed prices are going up for sure.
Partly answered.
5. ALCM Policy Risk
Ayush Agarwal, Mapl Value Investing Fund
Question. With the June 2026 ALCM deadline on cells being aggressive and India not having enough cell capacity, how likely is it that MNRE/government will enforce this, and what happens if they do?
Answer, Chetan Shah, Chairman and Managing Director. Solex is prepared for both scenarios. The group of module manufacturers has already represented to the Government of India for extension of ALCM. Most cell lines are under construction and will take time. Government is monitoring the situation. For Solex: ALMM-compliant orders can use imported cells; for ALCM orders, arrangements exist with existing domestic cell manufacturers for cell supply.
Follow-up. When will the cell facility come online, and what is the strategy given technology complexity and teething issues observed in the industry?
Answer. A senior experienced team is in place. A professional TOPCon cell manufacturer with ~100 GW individual scale experience has been onboarded under a KPI-based arrangement to help with facility design, construction, operation, process control, and training. Utility design incorporates Indian conditions learned from others' experiences. Water supply secured. Commissioning timeline: Q4 FY27 (December 2027) for first phase 2.2 GW.
6. Margin Targets from Integration
Srishti Kapoor, Individual Investor
Question. What margin benefits can we expect from backward integration into cells, wafers, and BESS?
Answer, Vipul Shah, Non-Executive Director. Cell manufacturing target PAT margin of 15%. BESS is an independent business (not backward integration from solar module perspective) — India has 50 GW BESS opportunity in 24 months; BESS to be set up as a separate subsidiary with independent financial targets to be announced upon final plan.
Follow-up. What is the ballpark debt-to-equity target going forward, and how will leverage change with upcoming capex?
Answer. Out of INR 1,050 crore total capex, INR 700 crore from principal debt and INR 350 crore from equity. TOL/TNW will be below 4 with the cell line.
7. Cell Line EBITDA Contribution
Deeya Jain, Individual Investor
Question. What additional EBITDA can we expect from the cell capacity expected to be commercialised by December 2027?
Answer, Vipul Shah, Non-Executive Director. Cell line EBITDA expected above 20% by FY29 (when fully stabilised and optimally utilised). Estimates are reasonable — cell price reduced at current prevailing rates and current manufacturing cost taken. FY28 will not have a full year of cell line efficiency due to ramp-up; major improvement from FY29 onwards.
Follow-up. What was the module capacity utilisation for FY26?
Answer. FY26 module sales over 1 GW. Mono PERC utilisation was 35%; TOPCon utilisation was 62% average. Line 3 and Line 4 only became fully operational in the last quarter; Q4 had very high utilisation with both lines at full capacity.
8. Order Book & Pipeline
Deeya Jain, Individual Investor
Question. What additional orders are we looking at for FY27 beyond the current INR 3,400 crore order book?
Answer, Chetan Shah, Chairman and Managing Director. Current order visibility is INR 3,400 crore split across confirmed POs, signed MSAs, and advanced-stage pipeline. New orders keep coming in as we execute existing ones and simultaneously add new ones.
Partly answered.
9. Margin Comparison with Peers
Ankur Nahar, Individual Investor
Question. Why are EBITDA margins below peers despite strong revenue growth, and what steps are being taken to improve margins over the next 2-3 years?
Answer, Chetan Shah, Chairman and Managing Director. Cannot compare margins with peer companies as there are no standard benchmark numbers from manufacturers. Solex is a fast-growing company continuously expanding and adding capacity. Margins are improving gradually.
Follow-up. What capacity utilisation levels do you expect in FY27 as new capacities ramp up?
Answer. INR 2,600 crore revenue target is conservative and based on 55% capacity utilisation — comfortably expect to cross this number.
Partly answered.
10. Land Acquisition
Vatsal Mehta, Moneybee
Question. What is the status on the due diligence for the 60-70 acres of land acquisition and when do you expect approvals?
Answer, Chetan Shah, Chairman and Managing Director. Waiting for power connectivity approvals — all in advanced stage. Expected timeline is around 45 days to get approvals; plan to close before June 30, 2026.
Follow-up. What is the update on the term sheet for INR 350 crore from NCD and CCD, and can you give the breakup?
Answer. Term sheet received; due diligence and legal due diligence under process. Expected closure by June 15-30, 2026. Breakup: INR 200 crore NCD + INR 150 crore CCD.
11. Seasonality & Q4 Bunching
Janak Naik, Individual Investor
Question. Was Q4 performance driven by bunching up completion at year-end, or is it sustainable going forward?
Answer, Vipul Shah, Non-Executive Director. Solar industry has a seasonal pattern — Q1 and Q2 are typically lower due to monsoon (6-month monsoon last year impacted ground readiness), and Q3 and Q4 see higher traction. Expect similar trend to continue for FY27 as well.
12. Capacity Utilisation Breakdown
Aditi Kasbekar, Individual Investor
Question. What was the full-year FY26 utilisation for the 700 MW Mono PERC line and the TOPCon lines?
Answer, Vipul Shah, Non-Executive Director. Mono PERC utilisation was around 35% and TOPCon was 62% average for FY26. TOPCon ramped up from 40% to 51% to 81% across Q3-Q4. Last quarter (Q4) had both Line 3 and Line 4 at full capacity utilisation. 55% is the conservative utilisation assumption for FY27 guidance.
Follow-up. Was there any subsidy income in the total other income of INR 31 million?
Answer. Yes, INR 80 lakh was from subsidy income. EPC revenue is INR 125 crore (mainly in subsidiary); holding company had only INR 10-15 crore from maintenance of existing projects. FY27 EPC expected in INR 125-150 crore range.
13. FY27 Revenue Guidance Conservatism
Rahul K, Individual Investor
Question. Why is FY27 revenue guidance at INR 2,600 crore (lower than Q4 annualised run-rate of INR 3,300 crore)? Is it only due to being conservative or other reasons?
Answer, Vipul Shah, Non-Executive Director. Purely conservative. Geopolitical situation is quite uncertain, so we have to be cautious. It is better to give conservative estimates and then outperform.
14. Q4 Module Sales
Mihir Dhami, Augmenta
Question. What were the Q4 module sales and utilisation levels?
Answer, Vipul Shah, Non-Executive Director. Q4 total sales INR 885 crore; out of this, INR 839 crore from modules and INR 46 crore from EPC. Module sales for Q4 were INR 839 crore.
15. KP Group Order Flow
Vijayraj Solanki, Individual Investor
Question. How many orders are from KP Group (Surat-based, with 30-year friendship between Chetan Shah and Faruk Bhai)?
Answer, Chetan Shah, Chairman and Managing Director. Last year orders from KP Group were already executed. This year discussions are ongoing — checking KP Group's execution pipeline and Solex's capacity availability as other orders are also on hand. Once there is closure, it will be announced. Numbers too early to comment on.
Follow-up. What drives the improvement in return ratios and working capital days?
Answer. ROE improvement driven by completed capex utilisation and profitability addition. Working capital improvement from scale, vendor relationship optimisation, and close monitoring. Target is to maintain these levels.
Partly answered.
What was said
Topic by topic, in the order it was spoken
FY26 Annual Performance · Chetan Shah (CMD)
- FY26 revenue of INR 16,211 million, up 144% YoY; PAT margin at 6.1%
- Q4 FY26 revenue INR 8,858 million, up 247.6% YoY; PAT at INR 589 million, up 289.4% YoY
- Net cash flow from operating activities at INR 2,007 million as of March 31, 2026
- ROE at 38.4% and ROCE at 31.7% as of March 31, 2026
Working Capital & Balance Sheet · Chetan Shah (CMD)
- Working capital cycle improved to 35 days in FY26 from 61 days in FY25
- Net debt-to-equity ratio at 0.57:1 — comfortably positioned
- Targeting FY27 PAT margin in range of 6% to 8%
Order Book & Q4 Work Order · Chetan Shah (CMD)
- Q4 secured INR 2,716 million work order from leading IPP for N-type TOPCon 615-620Wp glass-to-glass G12R modules; completion by end of May 2026
- Order book visibility exceeding INR 3,400 crore split across confirmed POs, signed MSAs, and advanced-stage pipeline
Gujarat MoU & Backward Integration Strategy · Chetan Shah (CMD)
- INR 4,000 crore MoU with Government of Gujarat for backward integration
- Planned: 5 GW solar cell manufacturing (TOPCon + IBC in two phases: 2 GW + 3 GW), 2 GW wafer/ingot, 10 GW BESS
- Freehold land acquisition (no govt land, no land subsidy); manufacturing subsidies under electronic policy scheme to be applied for
- Land acquisition for 60-70 acres at advanced stage; awaiting power connectivity approvals; expected closure before June 30, 2026
Cell Technology & ALCM Risk · Chetan Shah (CMD)
- Industry represented to Govt of India for extension of ALCM imposition on cells (June 2026 deadline seen as aggressive given domestic cell supply constraints)
- Solex prepared for both ALCM and non-ALCM scenarios: ALMM-compliant orders can use imported cells; ALCM orders covered by arrangements with existing domestic cell manufacturers
- Partnered with a professional TOPCon cell manufacturer for facility design, construction, operation, and process control — KPI-based arrangement
- Cell facility commissioning: first phase 2.2 GW by Q4 FY27 (December 2027); water supply secured; Indian conditions incorporated into global best practices
Raw Material & Input Cost Pressures · Chetan Shah (CMD)
- Raw material inflation mainly from geopolitical conditions affecting logistics costs; EVA and plastic-based materials impacted by crude oil
- H1 and Q4 FY26 secured with existing inventory supply chain; Q2 (monsoon) visibility still being monitored
- Most orders linked to dollar, providing immunity from INR depreciation
- Module prices in domestic market at INR 13.50-14/Wp (non-DCR), potentially rising to INR 16/Wp under current conditions
- Silver price inflation: no proven replacement for silver in cell manufacturing; copper substitution still in climatic/rigorous testing phase
FY27 Guidance & Capacity Utilisation · Vipul Shah (Non-Executive Director)
- FY27 revenue target INR 2,600 crore (conservative); based on 55% capacity utilisation
- Module capacity utilisation: Mono PERC at 35%, TOPCon at 62% average in FY26; Q4 utilisation significantly higher with Line 3 and Line 4 at full capacity
- FY26 module sales over 1 GW; TOPCon ramp-up progressed from 40% to 51% to 81% utilisation across Q3-Q4 FY26
- EPC revenue in FY26 at INR 125 crore (consolidated subsidiary); expected INR 125-150 crore in FY27
Capital Raise & Leverage · Vipul Shah (Non-Executive Director)
- Term sheet received for INR 350 crore raise: INR 200 crore NCD + INR 150 crore CCD; due diligence under process; expected closure June 15-30, 2026
- Capex of INR 1,050 crore: INR 700 crore from principal debt from lenders + INR 350 crore equity
- Total Outside Liability / Tangible Net Worth (TOL/TNW) to remain below 4 with cell line expansion
- INR 80 lakh subsidy income recognised in FY26 from government schemes
BESS Business & Margin Targets · Vipul Shah (Non-Executive Director)
- BESS to be set up as a separate subsidiary; India has ~50 GW BESS opportunity in 24 months (20 GW awarded, 30 GW in award pipeline)
- Cell manufacturing PAT margin target at 15%; cell line EBITDA expected above 20% by FY29 (stabilised, full-year utilisation)
- FY28 will see partial contribution from cell line as ramp-up continues; major improvement from FY29 onwards
In their words
The financial year 2026 marks a pivotal year as Solex transitioned from a manufacturing-centric firm to a fully integrated clean energy enterprise with global ambitions.
There are no proven replacements for silver as of now. When we talk about the 30-year product performance warranty, it has to pass through the rigorous tests for various climatic conditions. And those tests are still in process.
This is a very conservative number. It is better to give a conservative estimate and then outperform it.
To check next time
What management committed to on this call, or the dates they gave.
- Closure of land acquisition (~60-70 acres) including connectivity approvals, planned before June 30.
- Closure of INR 350 cr NCD/CCD funding expected by June 15-30.
- FY27 capacity utilisation versus the conservative 55% planning assumption.
- Government of India decision on ALCM timing for cell sourcing in DCR modules.
- Progress on first-phase 2.2 GW cell line commissioning towards December 2027.
Transcript
We have not transcribed this call's recording. Read the company's transcript (PDF).
The stock after the call
| After the call | Close | Stock | Nifty 50 |
|---|---|---|---|
| Next session Mon 18 May 2026 | ₹1,370.40 | +4.09% | +0.03% |
| 5 sessions Fri 22 May 2026 | ₹1,299.60 | −1.28% | +0.32% |
| 20 sessions Mon 15 Jun 2026 | ₹1,085.20 | −17.57% | +0.89% |
From the close of Fri 15 May 2026, ₹1,316.50: the close before the call day (the call's time is not on file). Adjusted daily closes; the move includes everything else that happened in those sessions.