Solex Energy Q1 FY27 Earnings Call — Analysis (NSE: SOLEX)
Solex Energy reported muted Q1FY27 revenue growth of 1.8% YoY with PAT of ₹8.3 Cr impacted by seasonal softness and full-quarter fixed costs on expanded 4 GW module capacity, while maintaining full-year PAT margin guidance of 5-6% driven by H2 execution.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q1FY27 Total Revenue ₹265.6 Cr ( +1.8% YoY ) . New guidance — FY27 epc segment fy27 revenue ₹100 Cr, ₹150 Cr . New story: Backward integration into cell manufacturing .
Results
Revenue grew 1.8% YoY to ₹265.6 Cr; EBITDA margin contracted 370 bps YoY to 12.7% (₹33.8 Cr) with PAT at ₹8.3 Cr (3.1% margin).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Total Revenue | ₹265.6 Cr | +1.8% | yoy · Q1FY27 · vs ₹261.0 Cr in Q1FY26 |
| EBITDA | ₹33.8 Cr | -20.8% | yoy · Q1FY27 · vs ₹42.7 Cr in Q1FY26 |
| EBITDA Margin | 12.7% | -370bps | yoy · Q1FY27 · vs 16.4% in Q1FY26 |
| Depreciation & Amortization | ₹10.2 Cr | +137.2% | yoy · Q1FY27 · vs ₹4.3 Cr in Q1FY26 |
| Finance Cost | ₹12.5 Cr | +131.5% | yoy · Q1FY27 · vs ₹5.4 Cr in Q1FY26 |
| Profit Before Tax | ₹11.1 Cr | none · Q1FY27 | |
| Profit After Tax | ₹8.3 Cr | none · Q1FY27 · PAT margin 3.1% | |
| Order Book Visibility | ₹3,400 Cr | point_in_time · Q1FY27 · as of Aug-26 across POs, MSAs and pipeline | |
| Executable Order Pipeline (by Dec-26) | ₹845.84 Cr | point_in_time · Q1FY27 · Aug-26 |
Guidance
Management reiterated FY27 PAT margin guidance of 5% to 6% based on an average module capacity utilization assumption of 55%.
What management committed to
- We remain aligned with the FY27 revenue guidance and PAT margin in the range of 5% to 6%. — 5% to 6%, FY27
- For FY27, we are working with an average utilization assumption of around 55% across the year [for 4 GW module capacity]. — 55%, FY27
- Together, these orders represent an executable order pipeline of INR845.84 crore targeted for the execution by the December 31st, 2026. — INR845.84 crore, Q3FY27
- The 2.2 GW N-type TOPCon+ cell line, which is the first phase of our planned 5 GW cell capacity, is on track for commissioning by end of calendar year 2027. — 2.2 GW, Q3FY28
- At present, INR1,050 crore, out of which INR700 crore from the principal lenders and INR350 crore will be our margin [for 2.2 GW cell line]. — INR1,050 crore, FY27
- Around INR100 crore, INR150 crore of business what we target from the EPC business [with margins around 10% to 12%]. — INR100 crore, INR150 crore, FY27
Key themes
H2 seasonality and backward integration into cells
How the narrative shifted
- Seasonal H1 vs H2 execution skew: Management emphasizes that Q1/Q2 are seasonally soft due to monsoon and delivery scheduling, with revenue conversion historically heavily weighted towards H2 (1:3 ratio).
- Backward integration into cell manufacturing: Setting up 2.2 GW (phase 1) of a 5 GW TOPCon cell line is positioned as a structural margin inflection platform rather than incremental module capacity.
- ALMM-2 regulatory transition management: Industry uncertainty around ALMM-2 cell mandates created temporary project delivery holds in Q1, but extensions and grandfathered project supply insulate Solex from cancellation risk.
- Capital discipline and capex de-scoping: Shelved planned 2.5 GW module expansion to avoid market overcapacity, trimming project capex by ₹200 Cr and pivoting funding from QIP to structured debt.
- BESS expansion roadmap: Evaluating technology partners for a 10 GW containerized BESS manufacturing setup to be housed in a separate subsidiary.
Operational commentary
- Completed listing of existing shares on BSE Main Board alongside existing NSE listing without fresh capital dilution.
- Order inflow addition includes ₹42.47 Cr work order for N-type TOPCon 620Wp glass-to-glass modules and LOI for ₹175 Cr with MSA in signing stage, added to ₹628+ Cr order from July 2026.
- 4 GW module manufacturing facility at Tadkeshwar operating as planned, with Line 3 and Line 4 (commissioned Nov-25) fully absorbed.
- Phase 1 of 5 GW solar cell project (2.2 GW N-type TOPCon+ line) is progressing with ₹1,050 Cr capex (₹700 Cr debt, ₹350 Cr equity/NCDs/CCDs); commissioning slated by end of CY2027.
- Secured domestic cell tie-ups via MOUs with 3 cell manufacturers for ~2.5 GW/annum of G12R cell supply ahead of DCR mandate requirements from April 2027.
- Scaled back earlier planned module capacity addition of 2.5 GW, reducing capex by ~₹200 Cr to focus capital exclusively on backward cell integration.
Analyst Q&A
Q. Reason for capex revision from ₹1,500 Cr to ₹1,050 Cr and funding structure change from QIP to structured debt.
Management dropped the additional 2.5 GW module line capex of ₹200 Cr due to sufficient module capacity in the market, reducing overall project cost to ₹1,050 Cr (₹700 Cr debt + ₹350 Cr internal equity/structured debt) focused solely on the 2.2 GW cell line.
Q. Inventory obsolescence risks given rise in finished goods inventory and fast technology shifts.
Management clarified that inventory buildup is seasonal due to monsoon slowdown and holds no obsolescence risk as it comprises latest-generation G12R TOPCon modules scheduled for H2 dispatches.
Q. Specific identity of domestic cell manufacturers with whom Solex has signed MOUs for cell supply.
Management declined to disclose specific counterparty names due to non-disclosure agreements (NDAs), but confirmed one has committed 1 GW/annum and total tied supply is ~2.5 GW/annum of G12R cells.
Q. Status of land acquisition and power connectivity for the 2.2 GW cell manufacturing facility.
Land is procured and verbal approval for 30 MW electricity connection in Gujarat has been received, with written government confirmation awaited before formal closure.
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