Solarium Green Energy FY26: Growth Accelerates, Margins Cool as EPC Mix Shifts

Solarium Green Energy Limited ended FY26 with a sharp step-up in scale, but also with visible pressure on margins. Consolidated revenue from operations rose to 368.15 crore, up from 230.08 crore in FY25. EBITDA increased to 35.28 crore from 26.92 crore, while profit after tax came in at 20.46 crore versus 18.60 crore a year earlier.

The headline numbers point to a company that is growing quickly, but changing its mix while building manufacturing capability. Management attributes FY26 revenue growth to a strategic shift towards larger ground-mounted EPC projects. The stated intent was to reduce exposure to long receivable cycles that can come with government-distributed projects, and to build a platform for higher execution throughput.

A key data point supporting this strategy is the 50 MW solar project secured in Maharashtra, with a contract value exceeding 185 crore. At the same time, management acknowledges the trade-off: large-scale EPC typically carries lower gross margins than some other segments, and this has moderated profitability.

Segment mix shows the pivot to large projects

Solarium discloses vertical-wise revenue that makes the business mix change clear. In FY26, C&I and ground-mounted plus government projects contributed 227 crore, far ahead of residential rooftop at 80 crore and distribution sales at 61 crore.

Residential rooftop remained a meaningful part of the portfolio. The company also positions itself as the second largest player under PM Surya Ghar Yojana among 20,000+ vendors, and states it is expanding into complete solar kit solutions. During the year, it commenced supplies of solar kits for the residential market, and these revenues are classified under the distribution vertical. Management notes that this reclassification explains the movement between residential rooftop and distribution segment revenues.

The overall mix matters because it shows why the income statement improved in absolute terms but weakened on margins. It also explains why H2FY26, despite strong revenue growth, had lower profitability ratios.

FY26 profitability: higher scale, lower margins, higher finance cost

The presentation reports a FY26 gross profit of 111 crore with a gross margin of 30.2%, compared with FY25 gross profit of 79 crore and margin of 34.5%. EBITDA margin also softened to 9.6% in FY26, compared with 11.7% in FY25. PAT margin reduced to 5.6% from 8.1%.

The half-year comparison shows the same pattern more sharply. H2FY26 revenue increased to 251 crore from 148 crore in H2FY25, but gross margin declined to 23.5% from 32.4%. EBITDA margin fell to 7.5% from 10.1%, and PAT margin reduced to 4.4% from 7.4%. In absolute terms, H2FY26 gross profit rose to 59 crore from 48 crore, EBITDA increased to 19 crore from 15 crore, and PAT was 11 crore versus 11 crore.

Management provides two specific drivers. First, the shift toward large-scale EPC moderated margins due to the lower margin profile of that segment. Second, the commencement of the module manufacturing facility led to incremental finance costs, which had a corresponding impact on profitability. This is visible in FY26 finance costs rising to 10.47 crore from 3.45 crore in FY25.

Integration and ALMM context: modules, captive consumption, and cell sourcing

A central part of Solarium’s strategy is vertical integration. The company highlights a 1.2 GW fully automated module manufacturing line in Ahmedabad, producing panels up to 725 Wp. The presentation also claims manufacturing scale and process automation, including AI-powered quality control and RFID traceability.

Management commentary links the manufacturing ramp-up to the current financial profile. It states that the start of operations at the module facility increased finance costs in FY26. But it also frames manufacturing integration as a long-term advantage that supports sustainable growth.

On regulatory developments relating to ALMM-II, management states it remains well positioned. It explains that a significant portion of the current order book relates to module supply for projects bid prior to 31 August 2025 by customers, where use of non-DCR cells continues to be permissible. It also states that the EPC order book includes about 65 MW of confirmed captive module consumption. Beyond the order book, it cites a forward pipeline exceeding 300 MW of projects under active discussion.

In parallel, management says it is at an advanced stage of securing domestically manufactured cells to support the residential EPC and solar kit segments. The disclosure is notable because it connects regulation, supply chain planning, and business continuity for the company’s key growth areas.

Balance sheet scale-up: larger working capital footprint

The balance sheet expanded materially by FY26, reflecting the larger business size and the manufacturing build-out. Total assets increased to 459.08 crore in FY26 from 234.43 crore in FY25.

Working capital lines also increased. Trade receivables rose to 152.61 crore in FY26 from 90.90 crore in FY25, and inventories increased to 99.68 crore from 38.03 crore. Current liabilities increased to 252.31 crore from 92.45 crore, and trade payables rose to 96.88 crore from 16.76 crore.

Cash and bank balances stood at 90.40 crore in FY26 compared with 77.00 crore in FY25, indicating the company ended the year with meaningful liquidity even as scale and working capital needs grew.

What stands out going forward

The presentation positions Solarium in three areas: residential rooftop solar, large EPC, and module manufacturing. On residential, the company argues the market is a 1 lakh crore+ opportunity and still largely unorganised. It also claims scale through 450+ Saarthi partners and presence in 25+ cities, anchored by solar kits and a distributor model.

On EPC, Solarium emphasizes execution capability across about 15 states and UTs, supported by a 400+ team. It also highlights backward integration through an in-house structure manufacturing facility with 1,200 MTPA capacity, which it claims creates a 5% cost advantage on every project.

On manufacturing, the key questions are speed of ramp-up, captive consumption, and the impact of finance costs on profitability. Management’s commentary indicates it expects manufacturing integration and ramp-up to support sustainable long-term growth, alongside a healthy pipeline.

The FY26 story, therefore, is not just about higher revenue. It is about a company reshaping its revenue mix toward larger EPC projects, while simultaneously investing in module manufacturing that should increasingly feed its own projects and residential offerings. Investors tracking future periods will likely focus on whether margins stabilise as the new mix matures, how finance costs evolve, and how much of the 65 MW captive consumption and 300 MW pipeline converts into executed revenue.