Sahaj Solar pauses 750 MW UAE plant as African bids advance

Sahaj Solar Limited has paused its 750 megawatt UAE solar-module project because of Middle East geopolitics, while its Mauritius bids had reached technical and financial qualification in some cases and its Zambia project was under regulatory review. Management hoped for African outcomes before the Christmas vacation, with revenue expected only in the next financial year.

Why did Sahaj Solar pause the UAE project?

Sahaj Solar paused its 750 megawatt solar-module manufacturing project in the United Arab Emirates because of the existing geopolitical situation in the Middle East. Management said it would initiate the project once conditions in the region cool down, leaving the restart dependent on developments outside the company’s stated operating timetable.

Preparatory work has not stopped entirely, as Sahaj Solar said company incorporation and related processes were continuing for the 750 megawatt project. Management did not disclose a commissioning date, capital-spending amount or projected revenue contribution for the UAE facility, so the call provided no commercial-launch timetable.

What is the status of Sahaj Solar’s Mauritius and Zambia projects?

Sahaj Solar said it was technically and financially qualified for some of the multiple projects for which it bid in Mauritius, and was awaiting final results from the relevant department. This moves those opportunities beyond bid submission, although management did not disclose the number of qualified projects, their capacity, contract value or award date.

In Zambia, Sahaj Solar said its signed project had received Attorney General approval and been sent to the country’s regulatory board for sign-off. Management described both the Mauritius and Zambia opportunities as being at an advanced stage and said it hoped to receive outcomes before the Christmas vacation, subject to the respective authorities’ decisions.

When could Sahaj Solar earn African-project revenue?

Sahaj Solar expects the Zambia and Mauritius projects to contribute revenue in the next financial year rather than the current year. Management said that, after approvals, it would work towards financial closure in the first quarter of the next calendar year and begin work in the next financial year.

That timing differs from Sahaj Solar’s approximately Rs 300 crore existing order book, which management expects to close in the financial year ending March 31, 2027. The order book includes around Rs 100 crore of solar water-pumping systems and Rs 35 crore to Rs 40 crore of off-grid battery energy storage system, or BESS, projects.

Management also said it expects to win Rs 150 crore to Rs 200 crore of projects from bids already submitted in the current year. It estimated that 30% to 40% of those potential awards could be executed this year, while the majority would fall into the next year, separating near-term execution from the expected African revenue timing.

What will drive Sahaj Solar’s current-year execution?

Sahaj Solar expects non-solar-water-pump activities to generate more second-half revenue than solar water pumping. Management said the mix had already changed in the first half of FY27, with solar engineering, procurement and construction contracts and off-grid solar-plus-BESS systems contributing more revenue than solar water pumps.

Management said its industry normally records second-half revenue at three to four times first-half levels, while Sahaj Solar expects its own second-half turnover to be about two to three times first-half turnover in FY27. That outlook is based on executing the Rs 300 crore order book by March 31, 2027, rather than on Zambia or Mauritius revenue.

Sahaj Solar said its gross margin had broadly remained at 17% to 18% on current work and that it aimed to maintain the same earnings before interest, taxes, depreciation and amortisation margin in the second half, if not improve it. Management linked that view partly to stabilising commodity prices, but did not provide an FY27 margin target.

How does BESS capacity fit Sahaj Solar’s expansion plan?

Sahaj Solar plans to spend Rs 25 crore on plant and machinery over the next six months to establish a 1.8 gigawatt-hour BESS plant. Management said batteries had already been produced and sent for Bureau of Indian Standards approval and testing, with BESS certification expected before December.

The BESS investment relates to the current order book because Rs 35 crore to Rs 40 crore of the roughly Rs 300 crore backlog comprises off-grid BESS projects. Sahaj Solar also said it had deployed two new milk-cooling product ranges in Uttar Pradesh and Himachal Pradesh, where rigorous testing was under way.

Management said the milk-cooling partner had supplied and installed more than 150,000 bulk milk coolers across India, while wider scaling could depend on an expected subsidy scheme from the Ministry of Animal Husbandry and Fisheries and Dairying. Sahaj Solar said solar-plus-battery products were already installed at certain locations without subsidies, but gave no sales, revenue or deployment target.

Conclusion

Sahaj Solar’s international expansion is split between a deferred 750 megawatt UAE manufacturing plan and African engineering, procurement and construction opportunities progressing through approvals. The UAE project has no disclosed restart date, while Mauritius has qualification progress and Zambia has moved from Attorney General approval to regulatory review; management does not expect either African project to generate revenue in the current financial year.

The disclosed next milestones are management’s hoped-for Mauritius and Zambia outcomes before the Christmas vacation, financial closure in the first quarter of the next calendar year, and BESS certification before December for the 1.8 gigawatt-hour plant. Sahaj Solar also plans to close its approximately Rs 300 crore order book by March 31, 2027, while management expects Rs 150 crore to Rs 200 crore of further bid wins in the current year.