Solex Energy Limited Shines Bright in H1 FY26, Reinforcing Leadership in India's Solar Sector

Solex Energy Limited, a leading manufacturer of Solar Photovoltaic (PV) modules and provider of EPC services, has unveiled its financial results for the second quarter and half year ended September 30, 2025, showcasing a robust performance that underscores its growing leadership in India's renewable energy landscape. The company reported a significant 51.6% year-on-year revenue growth for H1 FY26, reaching INR 415.68 crore. This impressive top-line expansion was complemented by a remarkable 131.0% year-on-year increase in EBITDA, which stood at INR 60.91 crore, with the EBITDA margin expanding by 503 basis points to 14.7%. Profit After Tax (PAT) also registered a substantial rise of 133.2% year-on-year, reaching INR 30.49 crore, and the PAT margin improved by 257 basis points to 7.3%. These figures reflect strong operational performance and enhanced cost efficiencies, even amidst sector-wide challenges.

Navigating Challenges with Strategic Execution

While the first half of FY26 demonstrated significant growth, the second quarter experienced muted revenue growth. Dr. Chetan Shah, Chairman and Managing Director of Solex Energy Limited, transparently addressed this, attributing it to an extended monsoon season that impacted customer site readiness across various Independent Power Producer (IPP) and commercial and industrial (C&II) project locations. This led to a temporary increase in finished goods inventory and working capital days, which rose from 61 days in FY25 to 102 days in H1 FY26. However, with site installations now stabilizing and deliveries underway, the company anticipates this inventory will translate into revenue in the second half of FY26, providing strong visibility for H2 FY26. The management remains confident in achieving its targeted full-year performance, with all four module lines now operational and delivery momentum improving.

Solex Energy Limited's commitment to quality and operational excellence is evident in its state-of-the-art, fully automated 4 GW solar PV manufacturing facility in Surat. The company's pioneering MES-driven manufacturing process ensures higher efficiency, better quality, complete traceability, and strict compliance, providing added comfort to large IPPs and institutional customers. This robust operational framework, coupled with a healthy and diversified order book exceeding INR 4,000 crore as of September 30, 2025, including over INR 100 crore from EPC orders, provides clear visibility towards achieving its long-term goals.

Strategic Growth and Technological Leadership

Solex Energy Limited is strategically positioned for accelerated growth, driven by ambitious expansion plans and a focus on next-generation technologies. The company has achieved 4 GW of module capacity by October 2025 and plans an additional 2.5 GW module capacity by FY27, targeting a total of 10 GW by FY30. A significant strategic move is the foray into solar cell manufacturing, with a target to commission a new 2.2 GW N-Type TOPCon Plus cell line by March 2027, expanding to 10 GW by FY30. This vertical integration is crucial for strengthening India's domestic value chain and reducing reliance on imports.

To bolster its technological prowess, Solex has forged a strategic R&D partnership with Germany's ISC Konstanz, a globally respected institute known for inventing back-contact technology. This collaboration will provide comprehensive technological support for upgrading Solex's TOPCon cell line and adopting advanced Rear Contact and c-Si tandem/perovskite solar technologies, ensuring high efficiency and optimal return on investment for its cell manufacturing initiatives.

The company's commitment to innovation is further highlighted by the unveiling of India's first Rear Contact Solar Module, TAPI Rear Contact (TRC), which boasts up to 24.60% efficiency and 665W power output. Commercial production of TRC is slated for FY27, marking Solex's entry into the premium solar technology segment.

Milestones and Future Outlook

Solex Energy Limited achieved a significant corporate milestone by successfully migrating from the NSE Emerge platform to the NSE Main Board on October 8, 2025. This move enhances the company's market visibility and reinforces investor trust, signaling a new chapter of growth and corporate excellence. The company's vision for 2030 includes establishing 10 GW of solar module and 10 GW of solar cell manufacturing capacity, aligning with the Government of India's AatmaNirbhar Bharat and Viksit Bharat initiatives.

Management's prudent financial discipline is evident in its leverage position, with a Net Debt-to-Equity ratio of 0.78:1 as of March 31, 2025, which, despite a temporary elevation due to project-related drawdowns, is expected to improve as operating cash flow strengthens in H2 FY26. The company's Investment Grade Rating from CRISIL further attests to its financial stability.

Solex Energy Limited continues to demonstrate thought leadership by anticipating sector trends, such as the growing demand for N-Type modules and the emergence of Battery Energy Storage Systems (BESS), and proactively adapting its strategies. The company's focus on execution scalability, margin durability, and strengthening its long-term competitive position, coupled with its strategic expansions and technological advancements, positions it as a key player in India's clean energy transition.