Solex Energy Q1 FY27 Results: Revenue Holds Steady, but Profitability Comes Under Pressure as Expansion Plans Gather Pace
Solex Energy Limited has started FY27 with a mixed set of numbers. The solar module manufacturer maintained revenue at roughly last year’s level in the June quarter, but profitability was lower than in Q1 FY26.
At the same time, the company is entering an important phase of expansion. It is scaling up its module manufacturing capacity, preparing for solar cell manufacturing and building a longer-term plan that includes battery energy storage and backward integration.
The company presented these developments in its Q1 FY27 Investor Presentation for the post-earnings conference call scheduled for August 17, 2026.
Q1 FY27 Financial Performance
Solex Energy reported total revenue of ₹265.63 crore in Q1 FY27, compared with ₹261.05 crore in Q1 FY26. This represents a modest 1.8% year-on-year increase.
However, the improvement at the revenue level did not translate into higher profits.
EBITDA declined to ₹33.79 crore, from ₹42.70 crore a year earlier. The EBITDA margin fell to 12.7% from 16.4%.
Profit after tax came in at ₹8.26 crore, compared with ₹24.71 crore in Q1 FY26. The PAT margin consequently declined to 3.1% from 9.5%.
The quarter also saw higher employee and other operating expenses. Employee benefit expenses increased 78.2% year-on-year, while other expenses rose 79.8%. Finance costs also more than doubled compared with Q1 FY26.
Q1 FY27 at a glance
- Total revenue: ₹265.63 crore
- Revenue growth: 1.8% YoY
- EBITDA: ₹33.79 crore
- EBITDA margin: 12.7%
- PAT: ₹8.26 crore
- PAT margin: 3.1%
- EPS: ₹7.39
The quarter was also significantly weaker sequentially, with Q4 FY26 revenue at ₹885.80 crore, EBITDA at ₹98.62 crore and PAT at ₹58.89 crore.
Why Was Q1 Relatively Soft?
Management described the first quarter as the seasonally softest quarter for the solar industry.
The company also pointed to a wait-and-watch environment following clarification around the ALMM timeline in late May. Importantly, management characterised the impact as a timing issue rather than cancellation of its business pipeline.
Solex said its order book of approximately ₹3,400 crore remained intact as of June 30, 2026.
This distinction is important for investors. The weak Q1 profit numbers need to be viewed alongside the company’s order visibility and the expected stronger second half of the financial year.
Order Book Remains a Major Positive
One of the strongest points in the presentation is the company’s order visibility.
Solex reported an order book of approximately ₹3,400 crore as of June 30, 2026. The company believes this provides a significant revenue pipeline as manufacturing utilisation improves.
The company also highlighted new business secured after the quarter.
In July 2026, Solex received a ₹628.37 crore N-Type TOPCon module order from a global renewable energy group.
It subsequently received a ₹42.47 crore order in August 2026 and an LOI for another ₹175 crore order, with the associated MSA at the signing stage.
Together, these orders and the LOI represent ₹845.84 crore targeted for execution before December 31, 2026, according to management.
Focus Shifts Towards the Second Half
Management expects the business to be stronger in the second half of FY27.
The company described its business as H2-weighted, with the immediate priorities being to increase utilisation across its four module production lines, convert its pipeline into confirmed orders and move forward with the cell manufacturing project.
This makes capacity utilisation and order execution two important factors to watch over the next few quarters.
A large order book is positive, but the financial benefit ultimately depends on how efficiently the company converts those orders into production, revenue and cash flow.
Solex Energy’s Manufacturing Expansion
Solex currently has 4 GW of module manufacturing capacity, achieved in November 2025.
The company has much larger ambitions for the coming years.
Its roadmap calls for module manufacturing capacity to reach 10 GW by FY30. At the same time, the company plans to enter solar cell manufacturing, initially targeting 2.2 GW, followed by additional capacity in subsequent years.
The company is also exploring opportunities in battery energy storage system manufacturing.
2.2 GW Solar Cell Project
The proposed 2.2 GW solar cell manufacturing capacity is one of the most important parts of the company’s expansion strategy.
Solex estimates that approximately ₹1,050 crore of capex will be required for the 2.2 GW cell capacity.
The company is exploring approximately ₹700 crore through debt and around ₹350 crore through a mix of equity and debt to fund the project.
For investors, this expansion creates both an opportunity and a consideration: greater backward integration could strengthen the business over the long term, but it also brings additional capital requirements and financing costs.
Ambitious FY28 Growth Aspirations
Solex has laid out an ambitious growth trajectory.
The presentation shows revenue moving from approximately ₹1,618 crore in FY26 to an aspirational ₹2,600 crore in FY27 and ₹4,500 crore in FY28.
The company has also presented an aspirational FY28 PAT range of ₹225 crore to ₹270 crore, corresponding to a targeted PAT margin of around 5–6%.
These are management aspirations rather than guaranteed outcomes. Actual performance will depend on order execution, capacity utilisation, pricing, margins, financing costs and the broader solar market.
Long-Term Vision: From Module Maker to Integrated Energy Company
Solex’s longer-term strategy goes beyond manufacturing solar modules.
Its stated 2030 roadmap includes:
- 10 GW solar module manufacturing
- 10 GW solar cell manufacturing
- 10 GW BESS manufacturing
- 2 GW ingot and wafer manufacturing
The company describes this as a move towards backward integration and an end-to-end clean energy platform.
The strategy is designed to give Solex greater control over its supply chain while expanding its presence across various segments of the solar and energy storage ecosystem.
Technology Remains a Key Focus
Solex is also investing in newer solar technologies.
Its current portfolio includes N-Type TOPCon modules, while the company is working on technologies including rear-contact and tandem technologies.
The presentation highlights products such as the Tapi-R series, which uses N-Type TOPCon rectangular-cell technology, and Tapi-RC modules with N-Type rear-contact cells.
The company also says it is working with technology and automation partners to improve manufacturing processes, inspection and automation capabilities.
Balance Sheet and Capital Requirements
Solex’s expansion is already reflected in its balance sheet.
As of March 31, 2026, total borrowings stood at approximately ₹269.3 crore, compared with around ₹147.5 crore a year earlier when current and non-current borrowings are combined.
Trade payables also increased significantly during FY26, while property, plant and equipment rose as the company invested in manufacturing capacity.
The company reported a FY26 net debt-to-equity ratio of 0.57:1, which it highlights as evidence of balance-sheet strength.
However, the planned cell manufacturing investment means funding and leverage will remain important areas for investors to monitor.
Solar Industry Tailwinds
Solex expects India’s solar market to continue benefiting from strong policy support and rising electricity demand.
The presentation highlights measures including ALMM, Domestic Content Requirements, the Production Linked Incentive scheme and customs duties on imported modules and cells as important supports for domestic solar manufacturing.
The company also points to India’s long-term target of increasing renewable and solar capacity, creating a favourable demand environment for domestic manufacturers.
What Investors Should Watch
The Q1 FY27 numbers themselves were mixed. Revenue remained stable, but EBITDA and PAT declined sharply compared with the previous year.
The bigger investment story is therefore about execution from here.
Investors may want to track:
- Utilisation of the four existing module lines
- Conversion of the ₹3,400 crore order book into revenue
- Execution of the ₹845.84 crore identified order pipeline
- Progress on the 2.2 GW cell manufacturing project
- Funding requirements and resulting finance costs
- EBITDA and PAT margin recovery
- Progress towards FY27 and FY28 aspirations
- Expansion from 4 GW towards 10 GW module capacity
- Entry into BESS and ingot-wafer manufacturing
Points to considered
Solex Energy’s Q1 FY27 performance presents a mixed picture.
Revenue was broadly stable, but profitability weakened substantially, with EBITDA falling 20.9% and PAT declining 66.6% year-on-year.
At the same time, the company enters the rest of FY27 with a large order book, fresh orders, expanding manufacturing capacity and an ambitious backward-integration strategy.
The key question for investors is now whether Solex can convert its strong order visibility and capacity expansion into higher utilisation, stronger margins and sustained profit growth.
The company itself expects the business to be H2-weighted, making the next two or three quarters particularly important for judging whether its growth plans are translating into financial performance.
Investor note: The revenue and profit figures, order book, expansion plans and future targets discussed above are based on Solex Energy’s Q1 FY27 investor presentation. The company’s stated future revenue and profit figures are aspirations and should not be treated as guaranteed results. The presentation itself notes that forward-looking statements are subject to risks and uncertainties.