/** blogpostTitle: Insolation Energy FY26: Scale-Up Year, Now Eyes Backward Integration blogpostSlug: insolation-fy26 blogpostCoverImageUrl: null blogpostCoverImageDescription: Ultra-realistic corporate finance scene showing a clean desk with a laptop displaying three simple line-and-bar charts: one chart rising from FY21 to FY26 revenue reaching 2,146 crore, a second chart showing EBITDA reaching 305 crore with margin around 14%, and a third chart showing planned capacity blocks labeled 5.5 GW modules, 4.5 GW cells (under construction), and 18,000 MTA aluminium frames. Background includes a faint industrial solar manufacturing facility silhouette, no logos, no text labels. blogpostShortTitle: INA Solar FY26 growth and integration */

Insolation Energy FY26: Scale-Up Year, Now Eyes Backward Integration

Insolation Energy Limited (INA Solar) closed FY26 with a sharp step-up in scale. Revenue from operations rose to 2,146 crore, up 61% year on year. EBITDA increased 79% to 305 crore and profit after tax (PAT) grew 59% to 201 crore. The company reported an EBITDA margin of 14% and PAT margin of 9.3% for the year.

The year also marked a corporate milestone. INA Solar migrated to the BSE and NSE main board, with shares listed on 9 March 2026. Management positioned this as an inflection point in the company’s journey from a rapidly scaling module manufacturer to a broader integrated clean energy platform.

What stood out in Q4 FY26

The March quarter showed how quickly volumes have ramped. Q4 FY26 revenue from operations was 794 crore, up 100% year on year. EBITDA rose 93% to 111 crore and PAT increased 65% to 70 crore.

Margins were mixed on a year-on-year basis for the quarter. The company’s presentation showed Q4 FY26 EBITDA margin at 13.9% versus 14.5% in Q4 FY25 and PAT margin at 8.8% versus 10.7%. In the earnings call, management acknowledged that raw material prices had moved up in recent months and indicated the response would be a mix of partial pass-through to customers and partial absorption, depending on market conditions.

A second operational detail was the uneven dispatch pattern typical in utility-scale solar. Management noted that dispatches tend to bunch up toward quarter-end. It cited strong month-end dispatches in March, which helped Q4 close at a higher run-rate.

The operating engine: modules today, cells next

INA Solar reported 5.5 GW of active module manufacturing capacity. The investor presentation describes the company as having built a pan-India presence, supported by 700 plus channel partners and more than 25,000 customers. Management repeatedly emphasized the advantage of multi-channel demand. It highlighted sales into government schemes, EPC contractors, developers, OEMs, and distributors.

On the earnings call, management also shared an indicative mix of where business comes from. It stated that the utility segment is around 65%, KUSUM projects around 15%, PM Surya Ghar around 5%, OEM around 5%, and the remaining around 10% as miscellaneous.

The bigger strategic shift is backward integration. The company is building a 4.5 GW TOPCon solar cell facility at Narmadapuram, Madhya Pradesh. In the presentation, this project is described with an FCO of December 2026 and financial closure through IREDA. Progress updates included civil work completion, utility vendor finalisation, and early-stage construction milestones.

During Q&A, management gave more colour on timing. It said ramp-up would start in Q4 FY27 and take roughly three to four months, with full ramp-up targeted by Q1 FY28. The company also linked this project to the evolving regulatory framework. Management expects domestic cell manufacturing to strengthen competitiveness under ALMM Part 2.

Aluminium frames and IPP: integration plus recurring revenue

Alongside cells, INA Solar is setting up aluminium frame manufacturing at the same Narmadapuram location. The investor presentation pegs COD at September 2026 and notes construction progress including PEB erection and civil work completion. In the call, management said commissioning is expected in Q1 FY27.

The framing unit is positioned as a backward integration lever rather than a standalone growth vertical. Management explicitly stated that aluminium frames will be largely for internal use.

The group is also scaling its IPP presence through its infrastructure subsidiary. The investor presentation shows an IPP schedule of 50 MW live, 120 MW land cleared, and 300 MW plus targeted in FY27. On the call, management stated plans to commission around 325 MW AC (around 400 MW DC) in FY26–FY27, with about 38 to 40 MW already commissioned.

Importantly, management provided revenue guidance for IPP power sales. It guided around 135 crore revenue for FY27 and around 300 crore for FY28, noting that commissioning happens in phases.

Capital allocation: big FY27 spend, higher leverage, and FCF watchpoints

The most investor-relevant forward item is capital intensity. The CFO guided total FY27 capex of about 2,500 crore, comprising about 1,500 crore for the cell line and about 1,000 crore for KUSUM IPP projects.

Debt is expected to rise with this build-out. In Q&A, the CFO indicated peak debt could be around 1,500 crore in FY27. It also discussed the IREDA loan for the cell facility, stating that a total loan of 1,134 crore was sanctioned, with 340 crore drawn down by 31 March. It cited interest rates around 9.20% pre-COD and 8.95% post-COD for the IREDA facility, and working capital borrowing at around 8%.

Investors also asked about free cash flow, since the company is in a heavy capex phase. The CFO acknowledged negative free cash flow during the build-out and suggested that after the cell plant goes live in Q4 FY27, positive free cash flow could be visible in the next 6 to 8 months, as the heavy capex largely completes within FY27.

Management tone and near-term operating assumptions

On margins, management’s near-term stance is conservative. It indicated it expects to maintain EBITDA margins around FY26 levels for FY27, and later clarified a 14% to 15% range with some benefit from aluminium integration. It also stated margins should improve as the cell line becomes operational.

On growth, management indicated it is looking for similar or potentially higher growth versus FY26, but flagged that this depends on market conditions. ALMM Part 2 implementation from 1 June 2026 was referenced as an important variable.

The call also offered a snapshot of module pricing. Management stated non-DCR module prices were around 13 to 14 rupees per watt, while DCR prices were around 20 to 22 rupees per watt, varying by product and location.

Takeaways

FY26 established INA Solar as a scaled domestic module manufacturer with strong year-on-year financial growth and improving margins. The next phase is defined by execution risk and balance sheet management.

FY27 is expected to be capex-heavy, with higher leverage and continued working capital needs as order sizes increase. The market will closely track commissioning milestones for the 4.5 GW TOPCon cell facility and aluminium frames, along with the company’s ability to protect margins in a volatile input-cost environment.

If the cell ramp-up plays out along management’s stated timeline and the IPP portfolio scales as guided, FY28 could look structurally different, with deeper integration and an additional recurring revenue layer from power sales.