1. At a Glance
A solar company with a shut plant just posted ₹117 Cr quarterly profit. Revenues were ₹195 Cr, and market cap has crossed ₹1,000 Cr. Is it magic? Is it a one-time income spike? Is it… Waaree Energy 2.0? We decode this solar thriller.
2. Introduction with Hook
If stock markets love comeback stories, Indosolar is Bollywood-level drama: bankrupt → zero revenue for years → boom, ₹117 Cr net profit and stock up 300% in 12 months.
- Plant shut since 2018
- Book Value: ₹9.71 vs CMP: ₹256 (That’s 26.4x!)
- Promoter Holding: 96.15%
- ROE: 421% in FY25 (but wait till you see how)
Some say “turnaround”. Others say “shell company with solar dreams”. We say… grab popcorn.
3. Business Model (WTF Do They Even Do?)
Indosolar Ltd manufactures solar photovoltaic cells. But not right now. Their Greater Noida plant has been closed since 15 May 2018. The company:
- Proposes to start a module manufacturing line at the same site
- Is not operational but reported sales and profits in FY25 and Q1 FY26
- Lives rent-free in the “Possible Revival” section of investor forums
So far, it looks more like a corporate entity than a business.
4. Financials Overview
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹324 Cr | ₹0 Cr | ₹0 Cr |
| Net Profit | ₹55 Cr | -₹15 Cr | ₹1,081 Cr (includes massive one-time other income) |
| Q1 FY26 Profit | ₹117 Cr | – | – |
| ROCE | 78.3% | -11% | -44% |
| Debt | ₹50 Cr | ₹99 Cr | ₹60 Cr |
How do you go from zero ops to ₹324 Cr revenue and ₹55 Cr profit? Either operations have quietly resumed… or there’s a juicy Other Income secret.
5. Valuation
CMP: ₹256
Book Value: ₹9.71
P/E: 6.03 (on TTM profits)
Market Cap: ₹1,065 Cr
ROE (FY25): 421%
Valuation Guess:
- Based on BV (even 5x): ₹50 max
- Based on P/E: Looks cheap if recurring
- Based on fundamentals: Still speculative
Fair Value Range (conservative): ₹30–₹60
But if they restart ops? Sky’s the limit (in theory).
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 profit ₹117 Cr – unexplained but eye-popping
- Plant still shut – no official update on restart
- New board appointments – AGM scheduled
- Public float just 3.86% – ultra low liquidity
- Changed NSE ticker to “WAAREEINDO” – hint of acquisition or rebranding?
This isn’t just cooking. It’s solar-themed biryani with secret masala.
7. Balance Sheet
| Item | FY25 | FY24 | FY23 |
|---|---|---|---|
| Equity Capital | ₹42 Cr | ₹42 Cr | ₹42 Cr |
| Reserves | -₹1 Cr | -₹56 Cr | -₹41 Cr |
| Borrowings | ₹50 Cr | ₹99 Cr | ₹60 Cr |
| Fixed Assets | ₹122 Cr | ₹47 Cr | ₹48 Cr |
| CWIP | ₹0 | ₹94 Cr | ₹4 Cr |
| Net Worth | ₹41 Cr | Negative | Negative |
Technically solvent now. But just about. Plant, if operationalized, could change the game. For now: financially minimalist.
8. Cash Flow – Sab Number Game Hai
| Year | Operating | Investing | Financing | Net Cash |
|---|---|---|---|---|
| FY25 | ₹85 Cr | -₹20 Cr | -₹53 Cr | ₹12 Cr |
| FY24 | ₹18 Cr | -₹56 Cr | ₹38 Cr | ₹0 Cr |
| FY23 | -₹14 Cr | -₹3 Cr | ₹18 Cr | ₹1 Cr |
This is the first year in a decade that free cash flow went positive. Almost all of it comes from sudden profit. Sustainability = unknown.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | FY24 | FY23 |
|---|---|---|---|
| ROCE | 78.3% | -11% | -44% |
| ROE | 421% | -3.7% | 259% (from other income) |
| OPM | 31% | – | NA |
| EPS | ₹13.17 | -₹3.71 | ₹259.87 (with massive one-time gain) |
Ratios are sexy. But only if you don’t ask why they’re sexy.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Net Profit | EPS | OPM |
|---|---|---|---|---|
| FY23 | ₹0 Cr | ₹1,081 Cr* | ₹259.87 | – |
| FY24 | ₹0 Cr | -₹15 Cr | -₹3.71 | NA |
| FY25 | ₹324 Cr | ₹55 Cr | ₹13.17 | 31% |
Q1 FY26: ₹195 Cr revenue, ₹117 Cr net profit. No disclosure on how this profit was earned (yet).
11. Peer Comparison
| Company | CMP | Sales | OPM | PAT | ROE | P/B |
|---|---|---|---|---|---|---|
| Indosolar | ₹256 | ₹518 Cr (TTM) | 31% | ₹177 Cr | 421% | 26.36x |
| BHEL | ₹250 | ₹28,339 Cr | 4.3% | ₹534 Cr | 2.17% | 3.53x |
| Suzlon | ₹65 | ₹10,889 Cr | 17% | ₹1,180 Cr | 41.3% | 14.4x |
Indosolar beats them all on ratios. But loses on reality checks.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 96.15%
- Public: 3.86%
- Retail Shareholders: 60,868 (unchanged for over a year!)
- No FII/DII Presence
- Corporate Governance: New board, fresh auditors
Translation: tightly held, illiquid, low scrutiny. High risk, high drama.
13. EduInvesting Verdict™
Indosolar is either:
- The comeback of the decade in solar manufacturing,
- Or a heavily restructured shell seeing one-time gains and hype-driven re-rating.
The Q1 FY26 profit is real. But its source is unclear. Plant remains shut. Book value is a joke. And yet, retail is dancing to the 5% circuit daily.
Investors must ask: Is this “solar hope”? Or “solar hallucination”?
Right now—it’s both.
Metadata
– Written by EduInvesting Team | July 20, 2025
– Tags: Indosolar, Solar Stocks, Shell Companies, Q1 FY26, Suspicious Profits, Smallcap Hype
