1. At a Glance – The “Sun is Bright but Bills Are Pending” Snapshot
Solarworld Energy Solutions Ltd is that ambitious solar EPC player which woke up one fine morning and decided:
“EPC margins are boring, let’s manufacture modules, cells, and batteries also.”
As of 28 January 2026, the stock trades at ₹234, down ~28% in the last 3 months, because IPO euphoria met reality, working capital, and arbitration notices.
- Market Cap: ₹2,032 Cr
- TTM Revenue: ₹961 Cr
- TTM PAT: ₹80.9 Cr
- ROCE: 40.4%
- ROE: 40.2%
- Debt: ₹204 Cr
- Order Book: ₹2,527 Cr
- Customer Concentration: One client = ~79% revenue
Latest Q3 FY26 numbers look explosive on revenue but modest on margin expansion. Solarworld is executing big-ticket PSU EPC orders, commissioning manufacturing capacity, and simultaneously fighting arbitration battles worth ~₹92 Cr.
So yes, numbers are growing.
But the balance sheet is sweating quietly in the corner.
Curious already? Good. Let’s peel layers.
2. Introduction – EPC Company with Manufacturing FOMO
Solarworld Energy Solutions Ltd was incorporated in 2013, back when solar EPC was basically “install panels and pray for DISCOM payments.”
Fast forward to FY26, Solarworld is no longer just installing panels. It is:
- Executing utility-scale solar EPC
- Building BESS projects
- Manufacturing TopCon solar modules
- Planning solar cell manufacturing
- And dreaming of vertical integration nirvana
Most of Solarworld’s business till now has been classic CAPEX EPC, largely for PSUs like NTPC, SJVN, GUVNL, RRVUNL — the clients who pay eventually, but test your patience, sanity, and bank guarantees.
The IPO in September 2025 gave the company capital, confidence, and a valuation that assumed flawless execution. Reality, as usual, showed up with working capital stress, rising debtor days, and legal notices.
So the question is simple:
Is Solarworld becoming a solar powerhouse — or just a very busy contractor with too many ambitions?
Let’s dig.
3. Business Model
– WTF Do They Even Do?
A. EPC – The Bread, Butter & Stress
EPC contributes 88% of FY25 revenue.
Solarworld executes end-to-end solar projects:
- Design
- Procurement
- Installation
- Grid connectivity
- O&M (barely 1% revenue, so chill)
Clients own the asset. Solarworld books revenue. Banks hold guarantees. Everyone waits for payments.
Margins? Decent but capped.
B. RESCO – Long-Term Patience Game
Under RESCO, Solarworld:
- Owns the solar plant
- Sells power under long-term PPAs
Sounds sexy.
Capital intensive.
Currently not a major revenue contributor.
C. Manufacturing – The “Let’s Be Integrated” Phase
This is where Solarworld got ambitious:
- 1.2 GW TopCon module plant commissioned at Haridwar (July 2025)
- Technical collaboration with ZNSHINE PV-Tech
- Plans for:
- 1.2 GW TopCon cell plant (Madhya Pradesh)
- 2 GW BESS manufacturing line
Manufacturing is still ramping up. Revenues from this are not yet meaningful, but capex and balance sheet impact already are.
Classic case of:
Revenue later, depreciation now.
4. Financials Overview – Q3 FY26 (Quarterly Results Locked)
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr (Dec FY25) | Prev Qtr (Sep FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 578 | 204 | 138 | 183.7% | 319% |
| EBITDA | 65 | 59 | 15 | 10.2% | 333% |
| PAT | 49 | 43 | 9 | 15.3% | 444% |
| EPS (₹) | 5.68 | 5.76 | 1.07 | -1.4% | 430% |
Annualised EPS (Q3 Rule):
Average of Q1, Q2, Q3 EPS × 4
= (1.74 + 1.07 + 5.68) / 3 × 4
