1. At a Glance
Surana Solar turned in a Q1 FY26 profit of ₹0.12 Cr (yes, lakhs) on sales ₹2.09 Cr, while losses from operations (-₹1.81 Cr) were rescued by ₹2.37 Cr other income. Amid this, they quietly launched a 180 MW TopCon solar module facility in Hyderabad—because why not expand when you’re barely profitable?
2. Introduction
Picture a startup burning cash but unveiling a shiny new gadget at CES—that’s Surana Solar this quarter.
- Sales collapsed to ₹2.09 Cr (–17% QoQ).
- Net profit ₹0.12 Cr only because other income saved the day.
- Promoter holding slipped to 43% (down from 65% in 3 years).
Still, the new plant smells like a growth story waiting to happen… if execution aligns with ambition.
3. Business Model (WTF Do They Even Do?)
SSL makes solar photovoltaic modules, EPC power projects (1–15 MW), and trades solar products. They also dabble in wind and solar energy generation. Basically, they sell the dream of clean energy while struggling to clean up their own P&L.
4. Financials Overview
| Metric | Q1 FY26 | Q4 FY25 | YoY / QoQ |
|---|---|---|---|
| Revenue | ₹2.09 Cr | ₹2.52 Cr | –17% |
| Operating Profit | –₹1.81 Cr | –₹1.10 Cr | Loss deepens |
| Other Income | ₹2.37 Cr | ₹0.42 Cr | Lifesaver |
| Net Profit | ₹0.12 Cr | –₹0.82 Cr | Positive only via other income |
| EPS | ₹0.04 | –₹0.17 | Green, barely |
Verdict: Operationally weak, financially alive thanks to non-core income.
5. Valuation – What’s This Stock Worth?
- CMP ₹32.4, P/E 45x (on negligible EPS)
- Book Value not disclosed (CMP/BV ~3.7)
Fair Value Range: ₹25–₹35, unless the new plant actually drives revenue.
6. What-If Scenarios
- Bull Case: 180 MW plant boosts sales → revenue spikes, margins turn positive, stock re-rates.
- Bear Case: Plant underutilized → continues to rely on other income.
- Base Case: Slow ramp-up → stock stagnates near ₹30.
7. What’s Cooking (SWOT Analysis)
Strengths:
- New 180 MW TopCon plant operational.
- Part of Surana Group.
Weaknesses:
- Chronic operational losses.
- Promoter stake dilution (–22% in 3 years).
Opportunities:
- Solar demand tailwinds.
- EPC and module exports.
Threats:
- Chinese imports crushing prices.
- SEBI penalties (recently paid) hint at compliance lapses.
8. Balance Sheet 💰
| Item | FY25 |
|---|---|
| Equity Capital | ₹24.6 Cr |
| Reserves | ₹17.6 Cr |
| Borrowings | ₹29.4 Cr |
| Total Liabilities | ₹100 Cr |
| Total Assets | ₹100 Cr |
Debt exists but isn’t scary; however, reserves are tiny.
9. Cash Flow (FY25)
- Ops: ₹17.6 Cr (historical)
- Investing: –₹14.2 Cr
- Financing: –₹0.31 Cr
Net cash positive, but historical numbers don’t reflect Q1’s weakness.
10. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| P/E | 45x |
| ROE | Negligible |
| OPM | –86% |
| D/E | ~1.2 |
| PAT Margin | ~6% (only due to other income) |
Nothing sexy, mostly stressy.
11. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | OPM % | PAT (₹ Cr) |
|---|---|---|---|
| FY13 | 92.6 | 11% | 2.6 |
| FY25 | 38.8 | 1% | –0.05 |
| Q1 FY26 | 2.1 | –87% | 0.12 |
Revenue shrunk, margins evaporated.
12. Peer Comparison
| Company | P/E | ROE | OPM |
|---|---|---|---|
| Suzlon | 40x | 20% | 17% |
| CG Power | 104x | 26% | 13% |
| BHEL | 155x | 0.8% | 4% |
| Surana Solar | 45x | Negligible | –86% |
Peers at least make profits; Surana Solar is hanging by sunlight.
13. EduInvesting Verdict™
Surana Solar is like a solar panel in monsoon—lots of potential, but barely any output. Q1 profit came from other income, not operations. The 180 MW TopCon plant is the only exciting trigger; execution will decide whether the stock remains a penny chaser or a clean energy turnaround.
Written by EduInvesting Team | 28 July 2025
Tags: Surana Solar, Solar Energy Stocks, Q1 FY26 Results, 180 MW TopCon Plant, EduInvesting Premium
