Sahaj Solar FY26: Revenue Growth, Order Book, and the Working Capital Test

/** Sahaj Solar Limited: FY26 execution-led growth meets a working capital test

Sahaj Solar Limited closed FY26 with a sharp step-up in scale, while also surfacing the trade-offs of a government-order heavy model: receivables, borrowing, and interest costs. In its H2 and FY26 investor presentation and earnings call, the company positioned FY26 as a landmark year with a 27% rise in revenue from operations to INR419 crore, up from INR330 crore in FY25. H2 FY26 was even stronger at INR308 crore, up 33% year-on-year.

Profitability stayed broadly stable at the operating line. FY26 EBITDA was INR54 crore, up from INR43 crore in FY25, with EBITDA margin holding near 13%. H2 EBITDA margin was 14%. At the bottom line, PAT for FY26 was around INR30 crore, with a margin near 7%, slightly lower than the prior year level on account of higher finance costs.

The headline performance, however, cannot be read in isolation from balance sheet movement. FY26 ended with higher borrowings and a materially larger receivable book. Management repeatedly returned to this theme, describing FY26 as a year where execution was strong but collections were delayed, particularly in government-linked programs.

FY26 financial snapshot: growth is visible, but cash conversion lagged

The company reported that revenue growth was driven by demand tailwinds and improved execution across projects. At the same time, it acknowledged supply chain volatility toward the end of the year, which created cost pressures in the final weeks of FY26. Management cited higher prices across key inputs such as copper, aluminium, PP-based material, and magnets used in pumps and related components.

The company’s financial disclosures show how the year’s growth translated into profitability:

The key change in FY26 was finance costs. The company said it took a working capital loan from IREDA, and this pushed up interest costs during the year. In Q&A, management also stated its average borrowing cost was around 11% to 12%, with an internal target to gradually bring it down toward 9% to 10% as performance improves.

Working capital and leverage: the central investor question for FY27

FY26 ended with a working capital build-up. Trade receivables increased to INR323 crore, and total debtor days rose to 281. Management attributed the increase largely to delayed payments from government customers. It also tried to contextualize the receivable number by pointing out that some receivables are structurally linked to creditors. On the call, management stated around INR60 crore of debtors were linked with creditors under an arrangement where creditors would realize their share upon debtor collections.

Borrowings increased at year-end, and the debt-equity ratio was stated at 1.27. Management explained that the ratio moved up because the IREDA loan was taken late in the fiscal year. It also added a key post year-end data point: the company repaid its INR100 crore working capital loan during the first week of April 2026.

Cash flow was another recurring theme. Multiple participants highlighted negative operating cash flows in recent years. Management acknowledged this and tied the issue to the receivable cycle. It stated that the debtor cycle is gradually improving and indicated that operating cash flow should turn positive from H2 of the current year. In another response, management suggested normalization by end of Q3 or beginning of Q4, while also noting that the nature of the business requires structurally high working capital.

Order book and execution: FY27 hinges on delivery and collections

Sahaj Solar disclosed an order book of INR402 crore as of March 31, 2026. On the call, management stated it expects the entire order book to be executed during FY27. It also gave execution timelines by project type, saying projects can range from 3 to 12 months, with some extending to 18 months.

The presentation also provides an indicative split of the order book by project category:

This is an order book split, not a revenue mix. Still, it offers a directional view of where execution effort is concentrated: a large portion sits in grid-connected solar systems, followed by solar water pumping.

The company also highlighted specific project wins and pipeline items:

• A 4.8 MW DREBP project in Gujarat, which management said will be fully executed in FY27 and is already under execution.
• A INR62.8 crore, 12 MW UPNEDA turnkey solar project in Uttar Pradesh, described as full EPC from survey to O&M.
• Qualification for UPNEDA’s 500 MW rooftop RESCO tender across government and semi-government buildings in Uttar Pradesh. Management stated it intends to do 50 to 100 MW under this opportunity.

Internationally, the company reiterated its intent to expand in Africa. It discussed operations in Uganda and Zambia and showed an international pipeline item for Zambia with estimated value of INR55 crore and agreement signed. On the call, management stated the Zambia project is under execution and expected to be executed in FY27. It also mentioned Mauritius as another geography where a company has been incorporated, with projects in pipeline.

Strategy and new initiatives: dairy cold chain partnership and vertical integration

A notable strategic announcement was the exclusive partnership with IDMC Limited, a subsidiary of NDDB, to solarize India’s dairy cold-chain infrastructure by deploying hybrid solar-battery systems for Bulk Milk Coolers. The stated scope is about 10,000 BMCs over the next three years, across geographies including Gujarat, Uttar Pradesh, Rajasthan, and the North-East.

Management added that proof-of-concept has been demonstrated and approved by NDDB. It expects orders to start coming in over the next three years, and indicated that initial flows may begin in FY27, potentially in H2. Importantly, it clarified that this opportunity is not included in the current INR402 crore order book and did not quantify expected revenue contribution yet.

The company also leaned on the vertical integration narrative. It described in-house PV module manufacturing and in-house development of mounting structures and controllers, supported by subsidiaries. It also said it is deepening integration to improve margins and project execution reliability.

On the product side, management referred to expanding into AC and LT distribution panels and compact substations. It also cited anti-soiling and nano coating technology as a key driver, expecting it to increase panel lifespan and reduce degradation.

Manufacturing capacity and capex: reprioritization signals caution

Sahaj Solar’s module manufacturing capacity was stated at 100 MW annually. On utilization, management provided two different markers: one response referenced around 60% utilization, while another noted one-shift utilization and around 30 to 35 MW of utilization for internal consumption. Both comments suggest that utilization is linked to project needs and shift scheduling rather than full external merchant sales.

The more important takeaway was on expansion plans. In response to questions on capacity expansion, management stated that module expansion in India has been put on hold considering the market situation. It also said a previously discussed 750 MW plant was shifted to Dubai, and that the UAE plant is under consideration and not yet set up.

This reprioritization is a meaningful signal. It suggests management is choosing to calibrate capex and manufacturing exposure rather than expand aggressively in a volatile environment.

What to track from here

Sahaj Solar’s FY26 narrative is a mix of strong execution and cash flow strain. The company is operating in segments where government programs can drive scale, but payment cycles can be unpredictable. FY27 guidance is optimistic: management reiterated at least 30% plus revenue growth and expects to maintain 12% plus EBITDA margin over the next three years.

For investors, the key variables to track based on the company’s own commentary are:

1. Collection improvement and operating cash flow: whether debtor days and receivable levels start normalizing as management expects.
2. Interest cost trajectory: whether borrowing cost reduces toward the 9% to 10% target and whether leverage moderates after the post year-end repayment.
3. Execution of the INR402 crore order book in FY27: both on timelines and on quality of working capital conversion.
4. Traction in new initiatives: especially the IDMC dairy cold-chain partnership, which is not in the order book but could become a meaningful growth lever if orders ramp.
5. International execution: whether the Zambia pipeline converts into revenue and margin, and how quickly.

The company has laid out a clear growth ambition. FY27 will likely be the year where the market tests not just execution capability, but also the discipline of working capital management.