Indosolar Ltd Q2FY26 — From Insolvency to Insanity: ₹693 Cr Sales, ₹213 Cr Profit, ROE 420%, and Still “Restarting Operations”
1. At a Glance
If phoenixes were listed, they’d trade under the ticker WAAREEINDO.
Once a bankrupt solar-cell manufacturer shut since 2018, Indosolar Ltd has turned into the market’s newest resurrection miracle — posting ₹693 crore revenue, ₹213 crore profit, and an eye-melting 420% ROE in FY25, all while claiming to be “yet to commence operations.”
The stock, relisted on June 19, 2025, after Waaree Energies took over under an NCLT-approved resolution plan, has shot from ₹165 to ₹712, a 330% rally in months.
With ROCE at 77%, P/E at just 13.9x, and zero debt, Indosolar looks like the solar sector’s Tesla — if Tesla had once been a defunct PSU.
But wait, there’s more: the company’s factory was locked for 5 years, public shareholding was slashed to 3.85%, and now the parent, Waaree Energies, has begun selling stake via OFS at ₹500. That’s not solar energy; that’s financial thermonuclear fusion.
2. Introduction
Let’s rewind. Once upon a time, Indosolar was India’s largest solar cell producer. Then came cheap Chinese imports, delayed subsidies, and debts taller than their panel racks. In 2018, the plant shut. In 2022, NCLT admitted it under CIRP. Enter Waaree Energies Ltd, the white knight of photovoltaics.
Fast forward to FY25 — Indosolar re-emerged with record revenue, fat margins, and a trading frenzy that made every smallcap investor believe in reincarnation.
Now positioned as Waaree’s cell manufacturing arm, Indosolar will likely integrate vertically into the group’s 12+ GW solar module empire. The bigger story? India’s solar nationalism — PLI schemes, import duties, and domestic manufacturing push — turned this ghost factory into a green gold mine.
The question is — are these profits sustainable, or just a one-time “solar flare” from Waaree’s consolidation? Time for forensic sunlight.
3. Business Model – WTF Do They Even Do?
In theory: Indosolar manufactures solar photovoltaic cells and modules. In reality (for years): they manufactured balance sheets, not wafers.
The Greater Noida facility — once India’s largest — was mothballed since 2018. Under Waaree’s control, the plan is to restart with a 1.3 GW module manufacturing line, converting it into a key cell producer for Waaree’s massive downstream projects.
Revenue sources now include:
Modules & job-work sales to Waaree (₹750 Cr in FY25)
Capital goods sales and inter-company service fees
Some “other income” from scrap and FX gains (because solar profits are powered by every photon).
This is less a standalone company and more a “Waaree Energies JV with a BSE symbol.” The parent owns 96.15%, and nearly every transaction is with the group — sales, purchases, deposits, you name it.
Still, as a reverse-engineered turnaround play, it’s India’s most dramatic CIRP success story — from insolvency to ₹3,000 crore market cap in under three years.
💬 Commentary: Revenue has gone from zero to galactic in 12 months. EBITDA margins hover near 35%, rivaling software companies. PAT growth looks like a typo, and the only concern? Sustainability once intra-group accounting normalizes.
5. Valuation Discussion – Fair Value Range (Educational)
Method 1: P/E Valuation EPS ₹51.3, Industry P/E 52.8. → Range = ₹51.3 × (12–22) = ₹616 – ₹1,129.
