At a Glance
Australian Premium Solar (APS) just delivered a blazing Q1 FY26: Revenue ₹152 Cr (+86% YoY) and PAT ₹14.5 Cr (+120% YoY). The stock took a breather, dropping 5%, but don’t let that fool you—the fundamentals are sunnier than a Gujarat summer. With ROCE at 70% and a crazy ROE at 58%, APS is turning every installed panel into shareholder gold.
1. Introduction
APS started as a humble solar module maker in 2013 and is now surfing the renewable energy wave like a pro. From monocrystalline panels to EPC solutions, the company is catching every government scheme and rooftop it can. FY25 was explosive with 870% PAT growth, and Q1FY26 shows the momentum isn’t fading—unless crude oil starts offering free electricity.
2. Business Model (WTF Do They Even Do?)
- Solar Modules: Monocrystalline and Topcon modules—high efficiency, high margins.
- EPC Services: Residential, commercial, agricultural installations.
- Solar Water Pumps: Big play under PM-KUSUM.
- Future Plan: 1 GW solar cell plant by FY27.
APS thrives on government subsidies, rising solar adoption, and its own aggressive cost control.
3. Financials Overview
Q1 FY26 Highlights:
- Revenue: ₹152 Cr (+86% YoY)
- EBITDA: ₹21 Cr (margin 14%)
- PAT: ₹14.5 Cr (+120% YoY)
- EPS: ₹7.19
FY25:
- Revenue ₹433 Cr | PAT ₹39 Cr | EPS ₹19.8
Margins have expanded, riding on better product mix and scaling operations.
4. Valuation
Let’s break it down:
- P/E: EPS ₹24 × 25 = ₹600
- EV/EBITDA: EBITDA ₹66 Cr × 15 = ₹990 Cr (per share ~₹530)
- DCF: Projected growth supports ₹500 – ₹600
Fair Value Range: ₹500 – ₹600
CMP ₹554 is smack in the middle—priced fair, but upside exists if capacity expansion fires.
5. What’s Cooking – News, Triggers, Drama
- 1 GW Solar Cell Plant: Capex ₹1,000 Cr underway, FY27 launch expected.
- Order Wins: Multiple PM-KUSUM and rooftop solar tenders bagged.
- Preferential Issue: Raised capital at ₹433 for expansion.
- Promoter Holding Dip: Slight drop to 72.97%—watch this space.
6. Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 39 | 80 | 208 |
| Liabilities | 24 | 42 | 121 |
| Net Worth | 15 | 38 | 87 |
| Borrowings | 2 | 10 | 8 |
Remark: Leverage is low; equity is scaling up like a rooftop installation.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 3 | -5 | 24 |
| Investing | -3 | -13 | -14 |
| Financing | -1 | 35 | -2 |
Commentary: Operating cash finally turned positive; financing spikes show capital infusion.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 43% | 43% | 58% |
| ROCE | 33% | 23% | 70% |
| P/E | 23.7x | — | — |
| PAT Margin | 6% | 13% | 13% |
| D/E | 0.05 | 0.26 | 0.09 |
Verdict: Ratios scream “high growth beast”.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 95 | 150 | 433 |
| EBITDA | 6 | 9 | 56 |
| PAT | 3 | 6 | 39 |
Commentary: Explosive growth from FY24 to FY25; Q1FY26 continues the rally.
10. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| ABB | 12,267 | 1,889 | 62 |
| Siemens | 17,506 | 1,879 | 58 |
| Suzlon Energy | 10,890 | 2,072 | 41 |
| APS | 503 | 47 | 24 |
Commentary: APS has the growth but not yet the scale; valuation still reasonable.
11. Miscellaneous – Shareholding, Promoters
- Promoters: 72.97% (slightly lower)
- FIIs: 0.79% (small but rising)
- DIIs: 0.11% (negligible)
- Public: 26.1%
High promoter stake—confidence remains strong.
12. EduInvesting Verdict™
APS is growing like a weed in the solar field—explosive revenue, sky-high returns, and strategic capex in progress. Risks include execution delays in the 1 GW plant and promoter stake dilution. But with PM-KUSUM orders, rooftop solar adoption, and clean energy tailwinds, APS could continue shining.
SWOT Snapshot:
- Strengths: High ROE, strong order pipeline, low debt.
- Weaknesses: Small scale, low liquidity (SME listing).
- Opportunities: Solar cell backward integration, rooftop solar boom.
- Threats: Policy changes, competition from big players.
At ₹554, APS is in the sweet spot—growth priced in, but more to come if execution is flawless.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Australian Premium Solar, Q1 FY26 Results, Renewable Energy Stocks
