Alpex Solar Shines Bright: A Deep Dive into Q2 & H1 FY26 Performance and Strategic Expansion

Alpex Solar Limited, a prominent player in India's rapidly expanding solar energy sector, has reported an exceptional financial performance for the second quarter and first half of the fiscal year 2026. The company, known for its commitment to high-efficiency solar solutions, has demonstrated robust growth across key financial metrics, underscoring its strategic initiatives and operational discipline. This period marks a significant milestone for Alpex Solar, as it continues its journey towards becoming an integrated solar cell and module manufacturing powerhouse.

For Q2 FY26, Alpex Solar's revenue from operations surged by an impressive 2.78 times year-on-year, reaching ₹522.9 crore. This strong top-line growth was complemented by a substantial increase in profitability, with EBITDA rising by 2.50 times to ₹79.7 crore and Profit After Tax (PAT) climbing by 2.22 times to ₹52.67 crore. The momentum continued into the first half of FY26, where revenue from operations grew by 3.41 times to ₹903.24 crore. EBITDA for H1 FY26 saw a nearly four-fold increase, reaching ₹144.5 crore, while PAT soared by 3.83 times to ₹94.94 crore. These figures not only highlight the company's operational efficiency but also its successful execution of growth strategies.

The company's revenue split for Q2 FY26 indicates a strong focus on manufacturing, with Solar PV Module Manufacturing contributing 88.79% of total revenues, amounting to ₹464.30 crore. EPC Services of AC/DC Solar Pumps accounted for the remaining 11.21%, generating ₹58.60 crore. This breakdown underscores the company's core strength in module production while also highlighting its presence in solar pump solutions.

Strategic Leap: TOPCon Technology and Vertical Integration

Alpex Solar is not merely expanding; it is strategically transforming its manufacturing capabilities. The company has announced a significant upgradation of its solar cell manufacturing plan, transitioning directly from the earlier proposed phased MonoPERC technology to the advanced G12R generation TOPCon solar cell technology. This move, with an aggregate capacity of 2.2 GW to be established at its Kosi Kotwan facility, is a testament to Alpex Solar's commitment to aligning with emerging global technological standards and reinforcing its dedication to high-efficiency, next-generation renewable energy solutions. This strategic shift is expected to avoid future conversion costs, factory downtime, and associated revenue loss, ensuring long-term profitability and operational continuity. The estimated additional capital expenditure of ₹136 crore for this enhancement will be financed entirely through internal accruals, reflecting the company's disciplined capital allocation.

Beyond solar cells, Alpex Solar is also aggressively expanding its solar module manufacturing capacity to 3.6 GW by FY26-27. This includes a 1.2 GW additional line expected to be fully operational by December 2025, with another 1.2 GW module capacity planned for the next financial year. Furthermore, the company is backward integrating into aluminium frame manufacturing, with a Phase 2 expansion to 6,000 MT per annum operational by the end of the current fiscal year, contributing to a total capacity of 12,000 MTPA. This makes Alpex Solar the first company in the renewable energy space to announce such backward integration, a move designed to provide greater flexibility and insulate profit margins. The management expects the full 3.6 GW module capacity, 2.2 GW cell capacity, and 12,000 MTPA aluminium frame capacity to be fully functional from the next financial year onwards, with the 3.6 GW module capacity specifically available by August of the next year.

Expanding Horizons: EPC, IPP, and Future R&D

Alpex Solar's vision extends beyond manufacturing, encompassing a broader role as an integrated solar products and solutions provider. The company is expanding its EPC (Engineering, Procurement & Construction) capacity to 150 MW, with 35 MW targeted by FY26 and the remaining 115 MW by FY27. Similarly, its Independent Power Producer (IPP) capacity is set to reach 100 MW, with 10 MW by FY26 and the balance 90 MW by FY27. These expansions are crucial for catering to diverse market demands and further insulating the company's profits. The company's commitment to innovation is also evident in its R&D efforts through its subsidiary Alpex GH2 Private Limited, which is currently working on hydrogen storage devices, signaling potential future growth verticals.

Management's Confident Outlook

The management expressed strong confidence in the company's trajectory, highlighting that the Q2 and H1 FY26 performance represents the best in the company's history. They anticipate exceeding the initial ₹1500 crore revenue guidance for the current fiscal year by a reasonable margin. For the next fiscal year, the company aims for a 2x growth in revenue, potentially reaching ₹3200 crore for FY27. EBITDA margins are projected to be more than 29-30% on an annualized basis for the next fiscal year. The leadership team, comprising seasoned professionals with decades of experience, emphasized their conservative yet swift approach to decision-making and execution. They believe their vertical integration strategy and technological advancements will provide a competitive edge, especially with the implementation of ALMM List 2, which will boost demand for local cells. Alpex Solar is poised for sustained growth, driven by its strategic expansions, technological prowess, and a disciplined approach to capital allocation, ensuring a sustainable and energy-efficient future.