1. At a Glance
Insolation Energy is the North Indian solar kid who went from “garage startup” to₹4,700 Cr market capin less than a decade. They’ve scaled revenue 243% in two years, margins doubled, and they’re pumping out solar panels like Jaipur’s version of Tesla. Yet, the stock has tanked 33% in a year. Why? Because markets realized: growth is hot, but valuations at 37x earnings with zero dividend is like eating Rajasthani thali without lassi — it burns later.
2. Introduction
Founded in 2015, this Jaipur-based company thought, “Why should Adani Green have all the fun?” So they set up shiny 200 MW SPV module plants, slapped the brand “INA Solar” on their products, and became North India’s#2 solar manufacturer.
Clients? Over 10,000 across 100 districts. Distribution? 400 partners. Schemes? From PM Surya Ghar to BSNL, they’re everywhere. Growth? They’re basically riding every government acronym like SECI, JJM, and HAREDA.
But here’s the kicker: while sales growth is 80%+, the stock chart looks like a solar panel after hailstorm — down 33% in 12 months. Reason? Promoter stake slipped to 66%, dilution via QIP ₹400 Cr, and the market decided to give them the “wait till execution” discount.
3. Business Model (WTF Do They Even Do?)
- Solar Modules(40Wp to 590Wp): Poly, Mono PERC, Twin, Bifacial. Basically the iPhone lineup, but for panels.
- Solar PCUs (Inverters): 440VA – 10kVA. The UPS uncle’s cooler cousin.
- Solar Batteries: Tubular lead-acid types (40Ah–230Ah). Because lithium imports = headache.
- Solar EPC + O&M: End-to-end plant installation, plus maintenance.
Revenue Split FY24:
- Manufacturing – 87%(core solar panels)
- Trading – 13%(pass-through, margin lite)
Margins? Improved from 6% (FY22) to 12% (FY25). Thanks to scale, brand, and optimized costs.
4. Financials Overview
Q1 FY26 (Jun’25):
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹722 Cr | ₹459 Cr | ₹612 Cr | +57% | +18% |
| EBITDA | ₹81 Cr | ₹52 Cr | ₹80 Cr | +56% | +1% |
| PAT | ₹65 Cr | ₹40 Cr | ₹61 Cr | +61% | +6% |
| EPS (₹) | 2.95 | 1.94 | 2.94 | +52% | +0% |
Annualised EPS = ~₹12. At CMP ₹216 →P/E = 18x(actual Screener shows 37.7x because it averaged differently; reality is cheaper due to run-rate).
Verdict: Growth rocket intact, margins expanding, but market skeptical on “can Jaipur really pull 4GW expansion?”
5. Valuation (Fair Value RANGE only)
Method 1 – P/E:EPS ~₹12 × 15–20x → FV = ₹180–₹240.Method 2 – EV/EBITDA:FY25 EBITDA ~₹161 Cr; EV ~₹4,547 Cr → EV/EBITDA 28x. Reasonable range 18–24x → FV = ₹200–₹260.Method 3 – DCF:Assume FCF ~₹100 Cr growing 20% CAGR for 10 years, WACC 11%. PV ≈ ₹4,000–₹5,000 Cr → FV = ₹180–₹225.
Consolidated FV Range = ₹180–₹250.
This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Capacity Expansion:From 950 MW to3,950 MW panels + 1,400 MW solar cellsby FY26. If executed, they jump into the big boys’ league.
