Emmvee Photovoltaic: 7x Profit Jump & 70% Upside Target

Emmvee Photovoltaic Power has captured investor attention following a remarkable financial performance and a highly positive outlook from global brokerage firm Jefferies. The company's stock surged after it reported a nearly seven-fold increase in net profit for the second quarter of FY26. This strong earnings report, coupled with a 'Buy' initiation from Jefferies suggesting a 70% potential upside, has solidified Emmvee's position as a key player in India's booming solar energy sector.

Jefferies Initiates Coverage with a 'Buy' Rating

Jefferies has initiated its coverage on Emmvee Photovoltaic Power with a 'Buy' recommendation, setting a price target of ₹320 per share. This target implies a significant 70% potential upside from its recent closing price of ₹187.8. The brokerage highlighted that the stock is currently trading at a considerable discount compared to its industry peers. The bullish stance is supported by a strong forecast for India's solar sector, which is expected to see a 24% compound annual growth rate (CAGR) in installations between FY25 and FY28. This growth is driven by favorable economics of solar power over thermal energy and supportive government policies.

Stellar Financial Performance in H1 FY26

Emmvee Photovoltaic delivered a historic performance in the first half of the fiscal year 2026, its first earnings disclosure since its successful public listing. The company's financial metrics showed outstanding growth across the board. Revenue from operations for H1 FY26 surged by 193.5% year-on-year to ₹2,158.8 crore. This momentum was reflected in its profitability, with Profit After Tax (PAT) jumping nearly seven-fold, or 578.6%, to ₹425.5 crore from ₹62.7 crore in the same period last year. The company's EBITDA for the first half climbed 370.7% to ₹749.9 crore.

Q2 FY26 Results Highlights

The second quarter continued the strong growth trajectory. Consolidated revenue from operations for Q2 FY26 increased by 181.1% year-on-year to ₹1,131 crore. Net profit for the quarter soared by 577.8% to ₹237.9 crore, compared to ₹35.11 crore in the corresponding quarter of the previous year. The company's operating efficiency was evident in its EBITDA, which grew 331.3% to ₹399.4 crore, with the EBITDA margin expanding significantly to 35.2% from 22.89% in Q2 FY25.

Strategic IPO and Debt Reduction

A key milestone for Emmvee during this period was the successful completion of its Initial Public Offering (IPO), which raised ₹2,900 crore. The IPO included a fresh issue of ₹2,143.9 crore. A significant portion of these proceeds, approximately ₹1,621 crore, was strategically used to repay long-term debt. This move has substantially strengthened the company's balance sheet, reduced its financial leverage, and lowered interest costs, positioning it for more robust financial health and future growth.

Favorable Policies and Industry Tailwinds

The Indian government's supportive policies are a major catalyst for domestic solar manufacturers like Emmvee. The Approved List of Models and Manufacturers (ALMM) and the Domestic Content Requirement (DCR) norms create a protected market for local players, particularly in government-backed projects. These policies help improve pricing power and profitability for companies that manufacture cells and modules domestically. Jefferies notes that similar protections for ingot and wafer manufacturing could provide further medium-term benefits. The overall industry outlook remains strong, with projections indicating annual solar PV installations in India could reach 65 GWdc by FY28.

Management's Vision for Growth

Mr. Manjunatha Donthi Venkatarathnaiah, Chairman and Managing Director of Emmvee, described the first half of FY26 as "historic." He attributed the exceptional results to the company's robust manufacturing ecosystem and the strong customer trust in its high-quality solar solutions. He emphasized that following the IPO, Emmvee is "better capitalized than ever" and is well-prepared to accelerate its expansion plans. The company aims to scale its cell capacity to 8.9 GW and module capacity to 16.3 GW by the end of FY27, aligning with India's ambitious goal of achieving 500 GW of renewable energy capacity.

Market Reaction and Conclusion

The combination of stellar earnings and a strong endorsement from Jefferies triggered a positive reaction in the stock market. Emmvee's share price jumped over 8% to hit an intraday high of ₹237.45 following the announcements. The stock, which had a quiet debut on November 18, 2025, has demonstrated strong momentum, rewarding investors. With a strengthened balance sheet, expanding manufacturing capabilities, and a supportive policy environment, Emmvee Photovoltaic Power is strategically positioned to capitalize on the significant growth opportunities in India's renewable energy landscape.