Solex H1 FY27 revenue rises 30% as net profit falls 60%

Solex Energy reported H1 FY27 total revenue of Rs 539.9 crore, up 29.9% year on year, but net income after tax fell 60.2% to Rs 12.1 crore. The decline followed EBITDA margin compression and increases of more than 125% in both depreciation and amortisation and finance cost.

What drove Solex’s H1 FY27 profit decline?

Solex’s H1 FY27 profit decline was driven by operating expenses growing faster than revenue, followed by substantially higher depreciation and finance cost. Total operating expenses rose 34.7% year on year to Rs 477.7 crore, against a 29.9% increase in total revenue to Rs 539.9 crore. EBITDA, or earnings before interest, tax, depreciation and amortisation, therefore increased only 2.1% to Rs 62.2 crore.

The charges below EBITDA reduced earnings further. Depreciation and amortisation rose 138.8% to Rs 20.8 crore from Rs 8.7 crore in H1 FY26, while finance cost increased 127.8% to Rs 25.7 crore from Rs 11.3 crore. Earnings before interest and tax fell 20.7% to Rs 41.4 crore, and profit before tax, which includes exceptional items according to the presentation, declined 61.7% to Rs 15.7 crore.

Tax expense declined 66.2% to Rs 3.5 crore in H1 FY27 from Rs 10.4 crore, but this did not offset the decline in profit before tax. Net income after tax was Rs 12.1 crore, versus Rs 30.5 crore a year earlier, and earnings per share fell to Rs 10.9 from Rs 27.2. Net margin narrowed from 7.4% to 2.3%, a reduction of 508 basis points, where one basis point equals one-hundredth of a percentage point.

How did Solex’s sales and operating margin change?

Solex’s H1 FY27 sales increased, but its operating margin contracted. Net sales rose 28.6% to Rs 533.4 crore from Rs 414.6 crore, while other income increased to Rs 6.5 crore from Rs 1.1 crore, producing reported total revenue of Rs 539.9 crore. Cost of revenue climbed 35.5% to Rs 402.8 crore, exceeding the growth rate of net sales.

Employee benefit expenses increased 51.7% to Rs 29.9 crore from Rs 19.7 crore, while other expenses rose 19.3% to Rs 45 crore from Rs 37.8 crore. EBITDA margin consequently declined to 11.7% from 14.7% in H1 FY26. The 303-basis-point change indicates that EBITDA did not grow in line with revenue during the half year.

The presentation’s historical snapshot contains a revenue figure that differs from the detailed profit and loss statement. It lists H1 FY27 total revenue as Rs 533.9 crore, compared with Rs 539.9 crore in the detailed statement, while retaining H1 FY26 revenue of Rs 415.7 crore. The detailed statement is the basis for the reported 29.9% total-revenue growth; the presentation does not explain the Rs 6 crore difference.

What changed in Solex’s Q2 FY27 earnings?

Solex’s Q2 FY27 revenue rose sharply from a year earlier, but quarterly profit declined both year on year and sequentially. Total revenue was Rs 274.3 crore, up 77.4% from Rs 154.6 crore in Q2 FY26 and 3.3% above Rs 265.6 crore in Q1 FY27. Net sales reached Rs 272.6 crore, up 75.8% year on year.

Q2 EBITDA rose 56.0% year on year to Rs 28.4 crore, but was 15.9% below Q1 FY27 EBITDA of Rs 33.8 crore. EBITDA margin was 10.4%, down from 11.8% a year earlier and 13.0% in the preceding quarter. Cost of revenue rose 107.5% year on year to Rs 216.4 crore, while total operating expenses increased 80.2% to Rs 245.9 crore.

Depreciation and amortisation was Rs 10.6 crore in Q2 FY27, 138.9% above the prior-year quarter, and finance cost was Rs 13.3 crore, up 125.2%. Net income after tax was Rs 3.9 crore, down 32.7% from Rs 5.8 crore in Q2 FY26 and 52.9% from Rs 8.3 crore in Q1 FY27. The detailed statement reports Q2 earnings per share of Rs 3.5, whereas the historical snapshot reports Rs 3.4, a difference not explained in the presentation.

How did Solex’s balance sheet move by H1 FY27?

Solex’s total assets were Rs 1,084.5 crore at H1 FY27, down from Rs 1,181.4 crore at FY26 but above Rs 497.6 crore at FY25. Inventories increased to Rs 434 crore from Rs 290.5 crore at FY26, while trade receivables declined to Rs 167.9 crore from Rs 356.7 crore. Cash and cash equivalents fell to Rs 51.8 crore from Rs 123.4 crore.

Borrowings were Rs 164.8 crore under non-current liabilities and Rs 181.4 crore under current liabilities at H1 FY27, totalling Rs 346.2 crore. That was Rs 76.9 crore above the combined Rs 269.3 crore at FY26, as current borrowings rose from Rs 76.1 crore even though non-current borrowings fell from Rs 193.2 crore. Plant, property and equipment stood at Rs 279.1 crore, compared with Rs 273.9 crore at FY26 and Rs 110.1 crore at FY25.

Total equity increased to Rs 267.5 crore at H1 FY27 from Rs 256.1 crore at FY26, including other equity of Rs 256.7 crore. Total current liabilities fell to Rs 593 crore from Rs 671.2 crore, principally because trade payables declined to Rs 230.2 crore from Rs 458.4 crore. Other current liabilities, however, rose to Rs 181.2 crore from Rs 136.7 crore over the same period.

Conclusion

Solex’s H1 FY27 results show a divergence between sales expansion and earnings conversion. Total revenue rose 29.9% to Rs 539.9 crore, while net income after tax fell 60.2% to Rs 12.1 crore. Operating expenses grew faster than revenue, EBITDA margin declined to 11.7%, and higher depreciation and finance cost reduced profit before tax to Rs 15.7 crore.

What to watch next is management’s stated expansion ambition and whether financial performance develops alongside it. Solex’s Vision 2030 roadmap includes 10 gigawatts each of solar-module, solar-cell and battery energy-storage-system capacity, plus 2 gigawatts of ingot and wafer manufacturing. Management presents FY28 revenue of Rs 4,500 crore and profit after tax of Rs 225 crore to Rs 270 crore, with a 5% to 6% margin, as aspirational targets.