Sahaj Solar H1 FY27 revenue rose 42% while PAT fell 16%

Sahaj Solar Limited, referred to here as Sahaj Solar, reported H1 FY27 revenue from operations of Rs 158 crore, up 42% year on year, but profit after tax (PAT) declined 16% to Rs 4 crore. The result reflected an 18% gross margin versus 22% a year earlier and management-cited finance costs of Rs 7.8 crore.

Why did Sahaj Solar’s H1 FY27 profit fall?

Sahaj Solar’s PAT fell because gross-profit growth lagged revenue growth and finance costs increased. Revenue from operations rose from Rs 111 crore in H1 FY26 to Rs 158 crore in H1 FY27, while PAT declined from Rs 5 crore to Rs 4 crore. Total income was Rs 160 crore, including Rs 2 crore of other income, compared with Rs 112 crore in the prior-year half.

PAT margin fell to 3% from 5%, a decline of 187 basis points, or bps, where one basis point is one-hundredth of a percentage point. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 37% to Rs 15 crore from Rs 11 crore, but this was below the 42% revenue increase. Sahaj Solar reported return on equity of 6% and return on capital employed of 15.5% for H1 FY27.

How did Sahaj Solar’s margins and costs change?

Sahaj Solar’s gross margin declined to 18% in H1 FY27 from 22% in H1 FY26, while gross profit increased Rs 4 crore to Rs 29 crore. Cost of goods sold rose from Rs 87 crore to Rs 131 crore. The 17% increase in gross profit was therefore below the 42% growth in revenue, and management described gross-margin moderation to 18.1% as a reason for lower PAT.

Finance costs were Rs 8 crore in the H1 FY27 profit-and-loss statement, compared with Rs 4 crore in H1 FY26; management cited Rs 7.8 crore in its commentary. The increase broadly matched the Rs 4 crore rise in EBITDA. Profit before tax consequently fell to Rs 6 crore from Rs 7 crore, while current tax expense was Rs 2 crore in each half-year period.

Employee-benefit expense increased to Rs 5 crore from Rs 4 crore, while other expenses were unchanged at Rs 9 crore. H1 FY27 EBITDA margin was 10%, compared with 10% in H1 FY26, although the detailed statement records a 36-bps decline. This compared with Sahaj Solar’s FY26 EBITDA margin of 13% and PAT margin of 7%, versus 10% and 3% respectively in H1 FY27.

How did Sahaj Solar’s cash, debt and working capital move?

Sahaj Solar reduced gross debt by about Rs 59 crore to Rs 116.5 crore in H1 FY27, according to management. Its debt-to-equity ratio declined to 0.82 times from 1.27 times at March 2026. The balance sheet shows long-term borrowings falling to Rs 16 crore from Rs 46 crore and short-term borrowings falling to Rs 101 crore from Rs 130 crore.

Management said operating cash flow was Rs 73.8 crore and trade receivables fell by Rs 92.4 crore during H1 FY27. Reported trade receivables were Rs 230 crore at the half-year end, compared with Rs 323 crore at FY26. Cash and bank balances increased to Rs 19 crore from Rs 10 crore, while inventories rose to Rs 28 crore from Rs 23 crore.

Working-capital indicators moved in different directions. Debtor days declined to 266 in H1 FY27 from 281 in FY26, but inventory days increased to 33 from 20. Creditor days rose to 137 from 103, and total assets declined to Rs 402 crore from Rs 479 crore over the same period.

What could affect Sahaj Solar’s second-half performance?

Sahaj Solar said the second half historically contributes the larger share of annual revenue, and management said it would focus on margin improvement and project execution. The company disclosed an order book of Rs 300 crore as of September 30, 2026. Its listed awarded EPC pipeline comprised Rs 77 crore of solar water-pumping systems, Rs 44 crore of off-grid solar systems with battery energy storage systems, and Rs 178 crore of grid-connected solar systems.

The solar water-pumping offering includes alternating-current and direct-current pumps ranging from 1 horsepower to 10 horsepower. Sahaj Solar said it manufactures solar panels and module mounting structures in house, while controllers are designed with group-company support. It also disclosed a winning bid for a 16.5-megawatt PM-KUSUM C power plant as part of its move into broader solar operations.

Management’s three-year guidance is for revenue compound annual growth of 35% to 40% or more and EBITDA margin above 12%. The stated drivers are anti-soiling and nano-coating panel technology, government solar programmes including PM-KUSUM, and international-market entry. The board has also approved an investment of up to Rs 25 lakh in Mauritius subsidiary Sahaj Energies Limited for working capital related to a solar EPC contract.

Conclusion

Sahaj Solar’s H1 FY27 result combined faster sales with lower net earnings. Revenue increased 42% to Rs 158 crore and EBITDA increased 37% to Rs 15 crore, but a four-percentage-point gross-margin decline and higher finance costs reduced PAT by 16% to Rs 4 crore. Receivables, borrowings and the debt-to-equity ratio fell, while cash increased.

The next disclosure to watch is whether second-half project execution converts the Rs 300 crore order book and awarded EPC projects into revenue while improving margins. Management’s stated objectives are revenue growth of 35% to 40% or more over three years and EBITDA margin above 12%, while lower debt is expected by management to reduce the finance-cost burden.