Solarworld Ene. Q1 FY27 Results (NSE: SOLARWORLD)
Signal: Margin pressure
The read
The business is scaling rapidly, with Q1 revenue up 146.8% to ₹1,684 million and order book at ₹31,548 million, but the margin arc remains fragile: EBITDA margin fell 1,460bps to 11.6% from 26.2% as input costs and rupee depreciation pressured the quarter. The proposed 2.4 GW cell line targeted for June 2027 and the ready 3.4 GW BESS line could improve integration and mix, but execution, utilisation and pass-through will determine whether scale converts into profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹168.4 Cr | +146.8% | N/A |
| Net profit | ₹9.5 Cr | -26.4% | |
| EPS | ₹1.1 | -36.8% | |
| EBIT margin | 11.6% |
P&L walk
Revenue increased 146.8% to ₹1,684 million as utility-scale EPC projects moved into execution, but EBITDA rose only -1.9% to ₹207 million and margin contracted 1,460bps to 11.6% because higher copper, aluminium, steel and imported-cell costs plus rupee depreciation were absorbed; PAT fell 26.4% to ₹95 million and EPS fell 36.8% to ₹1.10.
Key positives
- Revenue from operations reached ₹1,684 million, up 146.8% YoY, as utility-scale EPC projects moved into execution.
- Order book increased to ₹31,548 million as of 30 September 2026 from ₹28,130 million at 31 March 2026, with BESS already representing 36% or ₹11,389 million.
- The 3.4 GW BESS line is ready for product launch, with approximately 1 GW of capacity covered by orders and a guided 14–15% PBT margin.
- Net cash stood at ₹3,165 million and debt-to-equity at 0.30x as at 31 March 2026, providing balance-sheet capacity for expansion.
- FY26 revenue grew 152.6% to ₹13,762 million and FY26 PAT grew 56.4% to ₹1,205 million, confirming the scale-up trajectory despite Q1 margin pressure.
Key concerns
- EBITDA margin fell 1,460bps YoY to 11.6% from 26.2%, with management attributing the pressure to higher copper, aluminium, steel and imported-cell costs and rupee depreciation.
- Q1 EBITDA declined 1.9% to ₹207 million despite 146.8% revenue growth, showing weak operating conversion during the current scale-up phase.
- EPS declined 36.8% to ₹1.10 while PAT declined 26.4% to ₹95 million, creating a material PAT-to-EPS divergence that is not explained in the filing.
- The order book includes projects marked under suspension, and one ₹4,097.62 million order remains subject to receipt of a formal Letter of Award.
- The proposed 2.4 GW cell manufacturing JV requires shareholder approval and carries a commitment of up to ₹4,200 million from Solarworld.
Research and educational content only. Not investment advice.