Infrax Renewables plans Rs 12.29 crore uncontracted machinery

Infrax Renewables Limited plans to deploy Rs 12.29 crore of fresh-offer proceeds on machinery for solar-panel recycling, silver extraction and component manufacturing, but the purchases are uncontracted. The company had placed no equipment orders and entered no definitive vendor agreements, even though machinery represents 39.24% of its Rs 31.33 crore net fresh-offer proceeds.

Why is Infrax Renewables planning a Rs 12.29 crore machinery investment?

Infrax Renewables is planning the Rs 12.29 crore machinery investment to establish manufacturing and recycling activities alongside its existing solar engineering, procurement and construction, or EPC, services. Its present operations include solar photovoltaic, or PV, module and inverter distribution, plus electricity generation through a power purchase agreement with Paschim Gujarat Vij Company Limited.

The proposed facility would add three lines: solar-panel recycling and silver extraction; manufacturing of structures for solar roofing and mounting applications; and solar-frame production. At present, Infrax Renewables procures components needed for rooftop and ground-mounted projects from third-party vendors and suppliers, making the proposed facility a shift towards in-house processing and fabrication.

The recycling line is intended to process end-of-life, damaged or discarded solar panels and recover aluminium, glass, copper, silicon and silver through mechanical, chemical and metallurgical processes. The mounting-structure line would fabricate supports, brackets and purlins from metal coils and sheets, while the frame line would cut, punch, drill and assemble metal sections used as outer solar-module frames.

Infrax Renewables describes the intended result as backward integration, meaning greater control over the supply of components used in its operations. That outcome depends on machinery being procured, installed and commissioned, as well as the company obtaining the approvals needed for commercial production; the stated benefits are plans rather than reported operating results.

How is the Infrax Renewables machinery budget allocated?

Infrax Renewables has allocated the largest portion of the Rs 12.29 crore machinery budget to solar-frame production, followed by solar-panel recycling and silver extraction. The estimates are based on quotations denominated in US dollars, so the final rupee cost can change with exchange rates and final procurement terms.

The recycling and silver-extraction quotation came from Henan Yushunxing Heavy Industry Technology Co. Ltd. on May 20, 2026 and was valid for 180 days. Its proposed equipment includes a pyrolysis stage, screening and separation equipment, dust collection, wet leaching, waste-gas treatment, silver electrolysis and drying equipment.

The mounting-structure quotation dated August 24, 2026 covered two sets each of three purlin-machine types and was valid for 90 days. The solar-frame quotation dated May 15, 2026 covered two long-line units, two short-line units and two computer numerical control, or CNC, connector cutting saws, with a 180-day validity period.

What makes the Infrax Renewables machinery plan uncontracted?

The Infrax Renewables machinery plan is uncontracted because the company states that it had placed zero orders for the proposed machinery and equipment. It also says the quotations were used for budgetary estimates and that no definitive agreements had been signed with the vendors named in those quotations.

The Rs 12.29 crore machinery estimate equals 36.36% of gross fresh-offer proceeds of Rs 33.81 crore and 39.24% of net proceeds of Rs 31.33 crore. Management may change vendors, equipment models or quantities when orders are placed, and may use any resulting surplus for other machinery and equipment requirements.

The quotations have separate timing risks because the mounting-equipment quotation is valid for 90 days, while the recycling and frame-line quotations are valid for 180 days. Infrax Renewables says expiry could increase costs, and it notes that the US-dollar quotations were converted at Rs 95.73 per US dollar on August 24, 2026 and Rs 95.62 per US dollar on June 8, 2026.

Infrax Renewables intends to order machinery within two months of receiving funds, receive it within two months of ordering and install it within one month after delivery. Its stated target is trial run and commercial production within six months of fund receipt, making vendor selection, delivery and installation necessary conditions for the timetable.

What capacity and approvals will the proposed facility need?

Infrax Renewables proposes annual installed capacity of 3,000 metric tonnes for solar-panel recycling and silver extraction, 1,500 metric tonnes for mounting structures and 96,000 solar-frame pieces. SRJ Certification Services Pvt. Ltd., identified as an independent chartered engineer, certified these proposed capacities on August 25, 2026.

The company has leased 4,663.37 square metres of non-agricultural land at Chhappara in Lodhika, Rajkot, Gujarat, for 10 years under a June 9, 2026 lease deed. Its board noted on June 26, 2026 that fresh-offer funds would pay for machinery, while the lease, civil construction, infrastructure and development costs would be met from internal accruals.

Infrax Renewables has received land-conversion approval dated June 7, 2022, building-plan approval dated March 28, 2022 and consent to establish. The stated order is valid until July 14, 2033, while site development, civil works and structural works are scheduled for October 2026.

Several permissions remain at the application stage, including a factory stability certificate, factory licence, electricity load sanction, water approval and fire no-objection certificate. The Gujarat Pollution Control Board approval is listed for after the trial run, while ISO 9001:2015 quality-management certification is listed for after manufacturing begins.

How does the expansion change Infrax Renewables working-capital needs?

Infrax Renewables proposes to allocate Rs 17 crore of net fresh-offer proceeds to working capital, exceeding the Rs 12.29 crore machinery allocation. Working capital is the difference between current assets and current liabilities, and the company plans to deploy Rs 4.65 crore in FY 2026-27 and Rs 12.35 crore in FY 2027-28.

The actual working-capital gap rose from Rs 4.09 crore in FY 2024-25 to Rs 16.66 crore in FY 2025-26. Over the same period, inventory increased from Rs 5.75 crore to Rs 12.72 crore and trade receivables rose from Rs 22.98 lakh to Rs 11.39 crore.

Infrax Renewables attributes the FY 2025-26 increase to expansion into Uttar Pradesh, Madhya Pradesh and Rajasthan, the start of ground-mounted solar projects and a higher business-to-business, or B2B, revenue share. B2B customers accounted for 49.97% of revenue from operations in FY 2025-26, compared with 22.40% in FY 2024-25, and receivable days increased from three days to 23 days.

Management projects the working-capital gap at Rs 27.34 crore in FY 2026-27 and Rs 49.07 crore in FY 2027-28. The projections assume raw-material and work-in-progress inventory for the proposed facility, wider trading activity and longer B2B credit periods, with receivable days projected at 33 days and 34 days respectively.

Conclusion

Infrax Renewables is proposing a material expansion from an outsourced solar EPC and distribution model into recycling and component manufacturing. The Rs 12.29 crore machinery plan is central to that move, but its suppliers, specifications and final costs remain open because no orders or definitive vendor contracts had been completed.

The next disclosed milestones are machinery orders within two months of receiving funds, delivery within two further months and commercial production within six months of fund receipt. The plan will also depend on the pending factory, electricity, water, pollution-control and fire approvals, as well as whether quotation expiry or currency movements alter the machinery budget or schedule.