Insolation Energy Ltd Q2FY26 – Solar Modules Pe Full On Voltage, Margins Pe Full Sunshine ☀️

1.At a Glance

Insolation Energy Ltd (BSE: 543620), Jaipur’s solar sensation, just dropped its H1FY26 results with enough wattage to light up a small city. The stock currently trades at ₹153 – down from its peak of ₹435, which means anyone who bought at the top is now in the “renewable pain” business. Yet, beneath the stock correction lies a manufacturing beast with a market cap of ₹3,364 crore, an annualized revenue run rate of ₹1,498 crore, and a PAT of ₹145 crore.

Their Return on Equity (ROE) at34.9%and Return on Capital Employed (ROCE) at34.7%scream efficiency louder than your inverter when the light goes out. Quarterly sales have powered up 26.9% YoY, and profit surged 30.7%, showing that even when the stock sulks, the company’s panels don’t.

Insolation is rapidly morphing from a mid-size solar fabricator into a full-stack renewable energy powerhouse, riding India’s “Surya se Samriddhi” dream. With 3GW of new module capacity already lit up, another 1.5GW on the way, and a 4.5GW cell line coming soon, Insolation isn’t just selling panels—it’s charging into the future, one megawatt at a time.

2.Introduction

Welcome to the high-voltage world of Insolation Energy Ltd—where Jaipur’s sun, silicon, and sarcasm collide. Incorporated in 2015, the company’s rise resembles a solar flare—bright, fast, and slightly unpredictable. From a humble 200 MW setup, Insolation now operates multiple manufacturing units with a combined950 MW existing capacityand a roadmap to hit7.5 GW+once all projects go live.

If you blinked during FY22–FY25, you missed a 243% revenue surge. That’s not growth; that’s what happens when sunlight meets good management and government subsidies. With India’s solar capacity expected to cross 500 GW by 2030, Insolation wants to be the next “Adani Green, but without the grey areas.”

Its flagship brandINA Solarhas become a household name in North India’s rooftop market—especially in states like Rajasthan, Haryana, and Gujarat. You’ll find their panels everywhere, from government schemes like PM Surya Ghar Muft Bijli Yojana and PM-KUSUM to industrial rooftops and BSNL’s telecom towers.

And here’s the juicy bit: while other manufacturers chase export markets, Insolation quietly built dominance in domestic tenders. They’ve cracked the government EPC game, landed multiple turnkey solar orders, and are now expanding vertically into solar cells and aluminum framing—because why just make panels when you can own the entire supply chain?

3.Business Model – WTF Do They Even Do?

At its core, Insolation Energy Ltd is a vertically integrated renewable manufacturing player that makessolar modules, PCUs (inverters), and solar batteries, and executes EPC (Engineering, Procurement, and Construction) projects under itsINA Solarbrand. Let’s decode it like a detective unravelling a financial thriller:

• Solar Module Manufacturing (87% of revenue):The bread and butter. They produce Polycrystalline, Monocrystalline, Mono PERC, and fancy-sounding Dual Glass & Bifacial modules ranging from40Wp to 590Wp. Basically, if it captures sunlight, they’ll sell it.
• Trading (13% of revenue):The side hustle. Think accessories, inverters, and components—small in margin but handy in visibility.
• Solar EPC & O&M:They design, install, and maintain solar plants for every type of client—corporate, residential, industrial, and agricultural. Once they’ve sold the plant, they keep earning through long-term O&M contracts. Smart, right?
• Solar PCUs & Batteries:Their inverters (440VA–10,000VA) and tall tubular lead-acid batteries (40Ah–230Ah) make them a one-stop energy solution provider.

The company’s business flywheel is simple yet potent:Make panels → Install panels → Maintain panels → Get government subsidies → Repeat.

And now, they’re turning that flywheel into a turbine by launchingN-Type TopCon solar panels (600W)—the next-gen tech that makes your regular panel look like a Nokia 1100 in a smartphone world.

4.Financials Overview

Commentary:Revenue is growing faster than rooftop installations before subsidy deadlines. EBITDA margins have improved from 13% to 14.7%, reflecting operational leverage from their 3GW plant going live. The EPS jump makes it clear: the company’s profits are not a mirage in the desert—they’re solar-powered reality.

5.Valuation Discussion – Fair Value Range Only

Let’s turn on the calculator:

A. P/E Based Approach

• EPS