Sahaj Solar Shines Bright: H1 FY26 Performance and Strategic Outlook

Sahaj Solar Limited, a prominent player in India's rapidly expanding renewable energy sector, has reported a resilient performance for the first half of fiscal year 2026 (H1 FY26). Despite the typical seasonal slowdown experienced by the solar industry during the monsoon, the company demonstrated robust growth, driven by strategic initiatives and a healthy order book. The management's commentary highlighted a clear roadmap for continued expansion and diversification, reinforcing investor confidence in its long-term trajectory.

For H1 FY26, Sahaj Solar recorded a revenue from operations of Rs. 111 crore, marking a 13% year-on-year increase from Rs. 98 crore in the same period last year. This growth was accompanied by a significant 33% rise in EBITDA, reaching Rs. 11 crore, with margins holding steady at 10%. Profit After Tax (PAT) also stood at Rs. 5 crore, maintaining a stable 5% margin. The company's debt-to-equity ratio was reported at 0.8%, reflecting a strong financial position and prudent capital management. A healthy order book of Rs. 320 crore as of September 30, 2025, provides solid revenue visibility for the remainder of the fiscal year, with expectations for accelerated execution in H2 FY26.

Strategic Partnerships Powering New Growth Verticals

A cornerstone of Sahaj Solar's growth strategy is its exclusive partnership with IDMC Limited, a subsidiary of the National Dairy Development Board (NDDB). This collaboration aims to revolutionize India's dairy cold-chain infrastructure by solarizing approximately 10,000 Bulk Milk Coolers (BMCs) across Gujarat, Uttar Pradesh, Rajasthan, and the North-East over the next three years. This initiative is projected to generate Rs. 800-1,000 crore in revenue for Sahaj Solar within this period, with an EBITDA margin exceeding 18%. The project will deploy hybrid solar-battery systems, ensuring uninterrupted chilling in remote locations and significantly reducing reliance on diesel.

Beyond dairy, Sahaj Solar is actively diversifying into other cooling solutions. Leveraging its expertise in solar-plus-storage, the company is developing modular products for the fisheries and fruits and vegetable industries. These new offerings, expected to roll out in the next financial year, aim to reduce agro-product wastage and add significant value for farmers, further expanding Sahaj Solar's market reach and product portfolio.

Robust Capacity Expansion and Market Penetration

Sahaj Solar is undertaking a transformative capacity expansion, increasing its PV module manufacturing capacity from 100 MW to 1600 MW by FY27. The first phase, comprising 750 MW, is slated for completion by March 2026. This expansion incorporates advanced technologies like TOPCon, bifacial, and anti-soiling features, enhancing product quality and supporting both captive consumption and third-party demand. The company's investment in anti-soil and Nano technology coatings for solar panels is also aimed at increasing panel lifespan and reducing degradation.

Geographically, Sahaj Solar is strategically expanding its footprint. Domestically, it is strengthening its presence across key Indian states such as Haryana, Uttar Pradesh, Maharashtra, Tripura, Assam, and Gujarat. Internationally, the company is making inroads into fast-growing African markets like Uganda, Zambia, and Kenya, with a 10 MW project in Zambia scheduled for groundbreaking in January 2026. This global diversification is crucial for mitigating the seasonal impact on domestic revenues and ensuring more consistent project execution throughout the year.

Government Initiatives and Operational Excellence

Sahaj Solar has successfully capitalized on various government-led solar initiatives. The company qualified for UPNEDA's largest-ever 500 MW rooftop RESCO tender in Uttar Pradesh, with an intent to execute 50-100 MW. It also secured a Rs. 62.8 crore / 12 MW UPNEDA Turnkey Solar Project and a Rs. 57.34 crore MSEDCL PM-KUSUM B Order for 2,185 off-grid DC solar pumps. These wins underscore Sahaj Solar's strong execution capabilities and its position as an empaneled partner for key government programs like the Jal Jeevan Mission and PM KUSUM.

Outlook: Sustained Growth and Innovation

Sahaj Solar's management projects a robust revenue growth of 35-40% (3-year CAGR) and an EBITDA margin of over 12% in the next three years. The company anticipates a turnover of Rs. 260-300 crore in H2 FY26, aiming for a cumulative PAT margin of 8.5-9% for the full fiscal year. The strategic focus on vertical integration, new product development, and market expansion, coupled with strong government support, positions Sahaj Solar for sustained growth and leadership in the renewable energy sector. The company's proactive approach to technological advancements and market diversification reflects its commitment to delivering long-term value to its stakeholders and contributing significantly to India's clean energy transition.