1. At a Glance – Blink and You’ll Miss the Cash Flow
₹4,050 crore market cap. CMP at ₹125. Dividend yield flirting around 4.7%. Operating margins at a ridiculous 82–83% (yes, that’s not a typo). Sales for the last twelve months at ₹725 crore, PAT at ₹124 crore, and a quarterly distribution of ₹2.82 per unit in Q2 FY26, followed by another ₹2.39 per unit announced in Feb 2026. This is not a startup, not a promise, not a PPT fantasy — this is an InvIT that already owns 1.13 GW of operational solar assets and sends cash back like clockwork.
But don’t get too excited just yet. ROE sits at a humble 4.35%, ROCE at 5.91%, and interest coverage at 1.39x — the polite way of saying: this structure runs on leverage and discipline, not adrenaline. Q2 profit dipped 23.5% YoY, reminding everyone that power generation is boring, regulated, and allergic to drama.
So the big question: is this a boring cash cow or a leveraged solar bond dressed up as equity? Stick around.
2. Introduction – Welcome to the Boring Side of Renewable Energy (That Pays You)
Sustainable Energy Infra Trust (SEIT) was incorporated in 2023, which by Indian market standards makes it a toddler. But this toddler showed up with rich parents, fully built toys, and a monthly allowance.
Sponsored by Mahindra Susten and Ontario Teachers’ Pension Plan, SEIT is not here to experiment. It is here to own operational solar assets, sign long-term PPAs, refinance debt cheaply, and distribute surplus cash to unit holders. No greenfield dreams, no “commissioning next quarter” excuses — just panels, sunlight, PPAs, and bank transfers.
The InvIT model is simple:
- Buy operating assets
- Lock in long-term PPAs
- Optimize debt
- Distribute cash
- Repeat until retirement
SEIT already ticks most boxes. Its PPAs are long (20 years average), counterparties are largely central agencies, and 95% of capacity sits with Tier-1
off-takers. If renewable energy were a cricket team, SEIT would be the defensive opening batsman — no sixes, but rarely gets out.
But boring doesn’t mean risk-free. Let’s peel the layers.
3. Business Model – WTF Do They Even Do?
SEIT owns 8 solar projects across 5 states, totaling 1.13 GW (AC) of operational capacity. No EPC headaches. No land acquisition nightmares. No “grid connectivity pending” WhatsApp forwards.
Revenue comes from selling electricity under long-term PPAs at a weighted average tariff of ₹3.05/kWh. These PPAs have an average residual life of 20 years, which in power-land is basically forever.
Key structural features:
- 76% central PPAs, 24% state PPAs
- 95% capacity registered under GS/VCS, improving green credential monetization
- Assets located mostly in high irradiation states — Rajasthan alone accounts for 67%
SEIT is not trying to be clever. It is trying to be predictable. Think of it less as a growth stock and more as a regulated solar annuity with a stock ticker.
Question for you: do you prefer excitement, or quarterly bank credits?
4. Financials Overview – Numbers That Behave (Mostly)
Quarterly Performance (Q2 FY26 = Dec 2025)
(Figures in ₹ crore, consolidated)
| Metric | Latest Qtr (Dec 25) | YoY Qtr (Dec 24) | Prev Qtr (Sep 25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 172 | 165 | 162 | 4.2% | 6.2% |
| EBITDA | 139 | 136 | 129 | 2.2% | 7.8% |
| PAT | 22 | 29 | 9 | -23.5% | 144% |
| EPS (₹) | 0.69 | 0.90 | 0.27 | -23.3% | 155% |
Annualised EPS
