Solex Energy FY26: A year of rapid scale-up, and a clear push toward integration

Solex Energy closed FY26 with a step-change in scale. Total revenue rose 143.9% year-on-year to INR 1,621.1 crore, driven by higher execution in modules and project activity. EBITDA increased to INR 186.7 crore and PAT to INR 98.3 crore, showing that profitability kept pace even as the company expanded capacity and operations.

The company’s commentary frames FY26 as an inflection point. Management described a shift from being largely a manufacturing-focused player to becoming a more integrated clean energy company with global ambitions. That message was supported by both performance metrics and the roadmap disclosed across the investor presentation, the May 2026 earnings call, and the May 5, 2026 press release on its Gujarat manufacturing MoU.

FY26 performance: growth with improving efficiency metrics

The FY26 profit and loss statement shows a clear scale-up across the board. Total revenue grew to INR 1,621.1 crore while operating costs rose broadly in line with activity, keeping EBITDA margin at 11.5% for the year versus 12.0% in FY25. PAT margin was 6.1%.

Operationally, management highlighted execution of 200-plus EPC projects in FY26 and stressed logistics and procurement capability as key enablers. Working capital efficiency was a notable theme. Management stated that working capital days improved to around 35 days in FY26 from 61 days in FY25, and that net cash flow from operating activities was INR 2,007 million as of March 31, 2026. Net debt-to-equity was stated at 0.57:1 as of March 31, 2026.

In Q4 FY26, the ramp-up in performance was sharp. Total revenue was INR 885.8 crore, up 247.6% year-on-year, with EBITDA of INR 98.6 crore and PAT of INR 58.9 crore.

Note: INR crore figures are converted from INR million disclosed in the presentation.

What the business is selling: modules dominate the disclosed Q4 mix

The presentation describes a diversified portfolio, including PV modules up to 700 WP, EPC services, and other solar products such as pumps and lighting systems. But the clearest revenue mix disclosure in the provided documents comes from the earnings call.

Management stated that, for Q4 FY26 on a consolidated basis, module sales were INR 839 crore while EPC was INR 46 crore. This implies that modules accounted for roughly 95% of the disclosed Q4 sales split.

For FY26, management also discussed EPC revenue separately, stating total EPC revenue was INR 125 crore, and that EPC in the holding company was limited (maintenance-related), with major EPC activity in a subsidiary. For FY27, management indicated EPC revenue may remain in the INR 125 to INR 150 crore range.

Technology, capacity, and the move toward integration

Solex’s manufacturing narrative is built around capacity scale and technology transition. The company reported total PV module capacity of 4 GW achieved in November 2025, with a transition toward N-Type TOPCon technology while optimizing existing PERC lines. It also positioned its manufacturing as automation-led, citing use of AI and automated optical inspection, and MES-driven manufacturing to improve traceability and compliance.

The longer-term roadmap is more ambitious. The presentation outlines a 2030 integrated capacity plan including 10 GW modules, 10 GW cells, 10 GW BESS, and 2 GW ingot and wafer manufacturing, alongside an investment plan of about USD 1.5 billion for a fully integrated solar ecosystem.

A key near-term step in that direction is solar cell manufacturing. The company disclosed a plan for 2.2 GW cell capacity in FY27 with capex of about INR 1,050 crore, funded by a mix of around INR 700 crore debt and around INR 350 crore through a mix of equity and debt.

On the concall, management added specificity on funding execution. It stated that the term sheet process was underway and indicated a proposed split of around INR 200 crore via NCD and INR 150 crore via CCD, with an intended closure timeline between June 15 and June 30, 2026.

Gujarat MoU: cells and storage become the next strategic chapter

On May 5, 2026, Solex announced a landmark MoU with the Government of Gujarat for an investment of approximately INR 4,000 crore to establish an integrated solar cell and BESS manufacturing ecosystem.

The press release states that Solex will set up a 5 GW solar cell manufacturing facility in phases (Phase I: 2 GW, Phase II: 3 GW) and a 10 GW Battery Energy Storage System manufacturing facility.

In the earnings call, management clarified that land would be purchased as freehold land and no land subsidy was expected. It also indicated that subsidies may be pursued under relevant policy schemes. Separately, the company discussed that connectivity and approvals were in advanced stages for land acquisition, with an expectation of receiving approvals within about 45 days and a plan to close before June 30.

On commissioning timelines for the first cell phase, management guided that the first 2.2 GW cell line would be operational by December 2027. It acknowledged that technology, equipment availability, and utilities are meaningful challenges, and described a strategy of building a senior team and partnering with an experienced TOPCon cell manufacturer to support design, construction, and operations.

Guidance and the key watch-items for FY27

Management provided explicit FY27 guidance and also acknowledged near-term uncertainties.

On the upside, it stated a topline target of INR 26,000 million, which is INR 2,600 crore, for FY27 and guided to a PAT margin range of 6% to 8%.

On the risk side, the call discussed raw material cost pressures, driven largely by logistics costs and crude-linked inputs. Management said supply for Q1 was secured, while Q2 would be closely watched due to the monsoon season, and it flagged uncertainty in pricing.

There was also discussion around ALCM implementation. Management agreed that domestic cell supply constraints could make the June 2026 ALCM timeline difficult, and noted that industry representations for extension were ongoing. It stated Solex was preparing for both outcomes, including arrangements with domestic cell manufacturers for ALCM-compliant modules and continuing to service ALMM-compliant orders.

Takeaways

FY26 established Solex Energy as a company that can scale quickly. It delivered 143.9% revenue growth with stable double-digit EBITDA margins, improved working capital days, and strong return ratios as disclosed.

The next phase is about execution under complexity. The company is pursuing backward integration into cells and expanding into storage, supported by a Gujarat MoU and a defined funding plan for the first cell phase. Investors will likely track three items closely in FY27 and beyond: sustained margins during input-cost volatility, progress on financing and approvals for capex, and whether commissioning timelines for the cell line remain on track toward December 2027.