Management

• Neelesh Garg (Chairman & Managing Director)
• Manik Garg (Managing Director)
• Manavika Garg (Non-Executive Director)
• Sarita Rajesh Zele (Independent Director)
• Sudhir Kumar Bassi (Independent Director)
• Narendra Mairpady (Independent Director)
• Abani Kant Jha (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 900 cr, which comprises a fresh issue of Rs 700 cr and offer for sale (OFS) of Rs 200 cr. The company intends to utilize a portion of the net proceeds towards Investment in the wholly owned Subsidiary, Saatvik Solar Industries Private Limited, for setting up of a 4 GW solar PV module manufacturing facility at National Highway – 16, Chamakhandi, Gopalpur Industrial Park, Gopalpur, Ganjam – 761 020, Odisha. (“Project Site”) (Rs 477.23 cr), Investment in the wholly owned Subsidiary, Saatvik Solar Industries Private Limited, in the form of debt or equity for repayment/prepayment of borrowings, in full or in part, of all or a portion of certain outstanding borrowings availed by such Subsidiary (Rs 166.44 cr), and Prepayment or scheduled re-payment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company (Rs 10.82 cr).

Competitive Strengths

Quality Customer Base and Large Order Book The company has a large and diversified customer base across utility, commercial, industrial open access, residential rooftop, and solar pump segments. Sales are spread across India, North America, Africa and South Asia. Clients include Solarcraft Power India 21, Enrich Energy, Shree Cement, Kiana Energy, SJVN Green Energy, Prozeal Green Energy, Amplus KN One Power, JSW Neo Energy, Stockwell Solar Services, and Megha Engineering. Long-term customer relationships have been built in industries such as manufacturing, cement, steel, real estate, energy and telecommunications. A CAGR of 42.76% was achieved in customer base growth from March 2023 to March 2025.

Among the Leading Module Manufacturing Companies in India Offering Integrated Solutions to Independent Power Producers The company is among the few players with module manufacturing, EPC and O&M capabilities, with an installed EPC base of 69.12 MW as of March 2025. Projects include a 12 MW rooftop solar project for Jindal Steel, a 16 MW ground-mounted project for Dalmia Bharat Green Vision in Tamil Nadu, and an 8.08 MW project for Dalmia Cement in Karnataka. Facilities in Ambala are ISO-certified, and modules hold international accreditations. Notable projects include the 61.42 MW Ramagundam floating solar project and 72.15 MW supplied to Raghanseda Solar Park in Gujarat during Fiscal 2023.

Innovative Technology Solutions for the Solar Industry The company adopts technologies such as half-cut, MBB and circular-ribbon modules within N-TopCon technology, offering dual glass modules with customizable thickness for durability and efficiency. Starting with M2 Mono PV modules in 2018, technology advanced to M10 Mono PERC modules in 2022 and N-TopCon modules in 2024. Advanced bifacial N-TopCon modules with circular-ribbon technology and G12R based TopCon modules were introduced in 2024, offering up to 625 Wp power. A 200 MW order for G12R modules was secured in May 2025. Continuous innovation, product customization, and early adoption strengthen the company’s technological edge and customer trust.

Multiple Sales and Revenue Channels The company uses multiple sales and revenue channels, focusing on direct sales to EPC contractors, commercial and industrial customers. As of June 2025, the sales network included 53 partners—23 resellers, 19 distributors and 11 channel partners. This widespread distribution enhances visibility, strengthens brand presence, and expands market access across India. The distribution network is integrated with marketing campaigns to increase brand recall and monitor customer preferences. Partnerships with resellers and distributors in the renewable sector have expanded significantly. This network supports both residential and commercial segments, enhancing reach and providing informed decision-making based on market intelligence.

Well-Positioned to Capture Favourable Industry Tailwinds & Experienced Promoters and Management Team with a Committed Employee Base India added about 84 GW of solar capacity from Fiscal 2018 to 2025, with huge untapped potential of 750 GW. Upcoming schemes like PM Surya Ghar Muft Bijli Yojana aim to add 10–12 GW rooftop solar by 2030. The company is positioned with 3.80 GW installed capacity, ALMM-approved modules up to 625 Wp, and in-house EPC and O&M teams. Promoters include Chairman Neelesh Garg and Managing Director Manik Garg, both with several years of renewable energy experience. As of June 2025, there were 618 employees, supported by an in-house R&D team of six, achieving cell efficiency of 25.20%.

Peer Comparison

Key Risks & Concerns

Risks Associated with Solar Module Manufacturing Solar module manufacturing carries multiple risks that could affect business, financial condition and results of operations. One of the key risks is regulatory changes since the solar industry in India is driven by government policies and frameworks. Any changes in subsidies, incentives, tariffs, import duties or tax benefits may impact demand. Further, delays in government approvals and permits could affect project timelines and costs. Another major risk is market competition as both domestic and international players compete aggressively, which can result in price reductions, lower margins and loss of market share, thereby affecting profitability.

Dependence on Key Customers Revenue generation is highly dependent on certain key customers, with the top 10 customers contributing 57.77%, 63.86% and 79.38% of revenue from operations in Fiscals 2025, 2024 and 2023. Loss of any such customer could materially impact financial performance and cash flows. Agreements with customers allow them to terminate contracts with or without cause at short notice. If contractual obligations are not met on time, customers may seek liquidated damages or end agreements without liability. Such risks highlight the vulnerability associated with customer concentration and the potential adverse effect on financial condition and results of operations.

Raw Material Price Volatility and Subsidy Dependence Manufacturing depends heavily on raw materials such as solar PV cells, backsheet, encapsulant and glass. Prices of Mono PERC and TopCon solar cells have been volatile, with Mono PERC cells averaging Rs 115.29 per unit in Fiscal 2023, Rs 55.04 in Fiscal 2024 and Rs 30.92 in Fiscal 2025, while TopCon cells averaged Rs 33.66 in Fiscal 2025. Prices depend on wafer costs and can fluctuate unpredictably. Without long-term supplier contracts, reliance on purchase orders exposes the business to cost increases. Additionally, the Odisha project’s viability depends on subsidies such as 30% capital investment support and power tariff reimbursement, which may be delayed or uncertain.

Outlook and Valuation

As a leading player in the solar PV module industry, the company is set to benefit from India’s expanding renewable energy sector and favorable government policies. It is significantly expanding its capacity to over 3.8 GW and integrating backward into solar cell production to improve efficiency and reduce costs. Financial performance has been strong, with revenue more than doubling and profit after tax rising sharply in FY25. A healthy order book of over Rs 4,650 crore provides long-term revenue visibility. With a diverse product portfolio that includes high-efficiency modules and EPC services, the company caters to multiple customer segments and strengthens its market position.

Since inception, the company has delivered over 2.5 GW of modules to both domestic and international customers. Its distribution network includes 53 selling partners across resellers, distributors, and channel partners. With a strong manufacturing base close to solar-focused states like Rajasthan and Madhya Pradesh, as well as exports, the company achieved revenue growth of 88.3% CAGR and EBITDA growth of 364.5% CAGR during FY23–25. The order book stands at 4.1 GW across India and international markets, ensuring stability. Advanced solar technologies, such as N-TopCon and G12R-based modules, position it strongly for industry growth. Upcoming 4.0 GW module and 4.8 GW cell capacity in Odisha and supportive policies like PM Surya Ghar and PM KUSUM create further opportunities for long-term expansion.

The company is positioned as one of the leading module manufacturing companies in India with a diversified solar product portfolio and a large order book. It has experienced promoters and a qualified management team that contribute to its strong foundation. The company is exploring strategic expansion opportunities, including acquisitions in related businesses, and plans to increase its presence both across India and in foreign markets. Strong policy support under India’s renewable energy mission further enhances growth prospects. Being among the largest manufacturers of solar photovoltaic modules in India, rising demand for solar cells and panels is expected to sustain revenue visibility. Over the past year, the solar module capacity in the sector has increased to approximately 100 GW, with additional supply anticipated in the next 12-18 months. In light of an annualized peak domestic solar module demand of merely 50-60 GW, this situation poses a significant risk of market oversupply and fierce price competition. This will presents a risk to Saatvik's margin. Investors should be vigilant regarding this in the upcoming quarters. Saatvik Green Energy Limited is valued at a P/E multiple of 28x FY25 earnings. We believe the issue is attractively priced. We recommend a SUBSCRIBE rating for the issue for aggressive investors.