Management

• Kartik Teltia (Managing Director)
• Rishabh Jain (Whole-Time Director)
• Sushil Kumar Jain (Non-Executive Director)
• Mangal Chand Teltia (Non-Executive Director)
• Ramakant Pattanaik (Independent Director)
• Rini Chordia (Chairperson & Independent Director)
• Neelam Jethani (Company Secretary and Compliance Officer)
• Mukut Goyal (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 490cr, which comprises of fresh issue of Rs. 440cr and offer for sale (OFS) component of Rs50cr. The company intends to utilize Net Proceeds towards Investment in the Subsidiary, KSPL for part financing the establishment of the Pandhurana Project (Rs.575cr) and general corporate purposes.

Competitive Strengths

Established Track Record and Strong In-House Execution Capabilities The Company has built a strong execution track record in solar EPC solutions since 2013, delivering 46 completed projects with 253.67 MW AC/336.17 MW DC capacity and managing ongoing EPC and BESS projects of over 1 GW capacity. Its in-house capabilities span site survey, design, procurement, installation, commissioning, and O&M, backed by a skilled team of 51 design and execution professionals and 61 O&M specialists. Leveraging advanced tools such as PVSYST, AutoCAD, drones, and ERP systems, the Company ensures precision, cost-efficiency, and timely delivery. Notable achievements include the SJVN-Gurhah project, recognized as the best large-scale solar project in Uttar Pradesh (2024), and pioneering open access projects like Haldiram-Hardoi. With disciplined project evaluation, innovative structures like 3P orientation, and upcoming R&D in AI and automation, the Company demonstrates reliability, innovation, and scalability in solar energy solutions.

Strong Customer Relationships Driven by Quality and Reliability The Company has established long-term customer relationships by consistently delivering high-quality, customized solar solutions to leading clients such as Haldiram Snacks, Ethnic Food Manufacturing, Moon Beverages, Harrshiv Healthy Foods, and SJVN Green Energy. Its consultative approach ensures systems are optimized for efficiency and cost-effectiveness, resulting in strong customer loyalty—repeat clients account for 793 MW DC of the 1,330 MW DC total solar capacity orders secured (excluding BESS) as of July 31, 2025. By managing the complete supply chain and engaging with reputed third-party consultants, contractors, and engineers, the Company offers cost-effective, reliable solutions while enhancing supply chain transparency. Continuous training and skill development programs for engineers and subcontractors keep the Company aligned with industry advancements, reinforcing its reputation as a trusted partner and driving repeat business across both PSU and corporate clients.

Robust Order Book with Strong Policy Tailwinds The Company enjoys strong revenue visibility backed by a robust order book of ₹25,278.14 million as of July 31, 2025, comprising ₹11,981.75 million in EPC projects and ₹579.39 million in O&M contracts, with cumulative solar capacity of 985 MW DC and 1,291 MW DC, respectively. Significant wins include a ₹4,653.00 million, 125 MW/250 MWh standalone BESS project from Rajasthan Rajya Vidyut Utpadan Nigam Limited and a ₹8,064.00 million, 200 MW/400 MWh BESS project from Gujarat Urja Vikas Nigam Limited. The order book has grown sharply from ₹5,350.06 million in FY23, supported by marquee projects for PSUs such as SJVN, NTPC, and GUVNL. Repeat orders contributed heavily across FY23–FY25, reflecting customer trust. With national policies promoting renewables and falling solar costs, the Company is well-positioned to capture upcoming capacity additions and sustain long-term growth.

Strong Financial Performance Driven by Asset-Light Model The Company operates on an asset-light business model, minimizing capital expenditure as customers manage land acquisition under the CAPEX model. This approach ensures low fixed costs, high scalability, and short EPC contract cycles (11–18 months), enabling efficient working capital management. As a result, the Company maintains a robust fixed asset turnover ratio, rising from 145 in FY23 to 233 in FY24 and 27 in FY25 despite asset growth. Financially, it has delivered strong performance, with total income growing at a 53.12% CAGR from ₹2,350.52 million in FY23 to ₹5,510.85 million in FY25. EBITDA rose from ₹228.76 million to ₹1,067.47 million, while PAT surged at a 127.89% CAGR to ₹770.48 million. Improved PBT margins, from 8.32% in FY23 to 19.57% in FY25, reflect disciplined execution, risk management, and operational efficiency supported by favorable payment cycles and stringent project selection.

Peer Comparison

Key Risks & Concerns

High Dependence on Key Customer The Company faces significant customer concentration risk, with SJVN Green Energy Limited contributing 79.19%, 91.16%, and 87.98% of revenues in FY25, FY24, and FY23, respectively. Its top five customers accounted for nearly 98–100% of revenues during this period. Any loss of contracts, delays, reduced demand, or unfavorable terms with these customers could materially impact revenue, profitability, and growth prospects unless offset by diversification of its client base.

EPC Project Execution and Cost Overrun Risks The Company’s solar EPC projects face risks of cost overruns, delays, and economic unviability due to miscalculation of construction, land, and component costs, supplier renegotiations, and raw material price volatility. External factors such as adverse weather, regulatory delays, land issues, and local protests further heighten execution risks. For instance, unprecedented rainfall in FY23 damaged 1,171 solar panels, causing losses. Such uncertainties in timelines and costs may adversely affect project profitability and overall financial performance.

Geographic Concentration Risk The Company’s operations are heavily concentrated in Uttar Pradesh, which contributed 99.41% and 99.35% of total income in FY24 and FY23, respectively, from EPC and O&M services. As of July 2025, 42 of 46 completed projects were located across Uttar Pradesh and a few other states. This geographic dependency exposes the Company to regional economic conditions, regulatory changes, and local market dynamics, which could materially impact business continuity, revenues, and financial performance.

Outlook and Valuation

Solarworld Energy Solutions is strategically positioned to capture India’s rapidly expanding solar energy market, underpinned by robust government support, competitive pricing, and a strong project pipeline. With EPC projects forming the core of operations, its heavy reliance on key customers like SJVN Green Energy Limited and geographic concentration in Uttar Pradesh present near-term risks. However, the company is actively diversifying through partnerships with public sector undertakings (PSUs), independent power producers (IPPs), and commercial & industrial clients, while also expanding into underserved segments such as rural electrification and rooftop solar solutions. This balanced approach ensures exposure to both large-scale utility projects and niche domestic opportunities.

A central pillar of the company’s growth strategy lies in backward integration and manufacturing expansion. The commissioning of a modern Haridwar-based facility for 1.2 GW TopCon solar modules in collaboration with ZNSHINE PV-Tech, coupled with the planned 2 GW battery energy storage systems (BESS) line and a proposed 1.2 GW TopCon solar PV cell plant in Madhya Pradesh, marks a significant step toward vertical integration. These investments, partly funded through internal accruals, debt, and IPO proceeds, are expected to reduce dependence on third-party suppliers, improve cost efficiencies, and enhance margins in EPC projects. The ability to manufacture critical components in-house strengthens project execution certainty and positions the company to capitalize on export opportunities and the emerging domestic energy storage market.

Looking forward, the company’s outlook is underpinned by innovation, R&D, and long-term sustainability. By establishing dedicated R&D facilities across its manufacturing units, the company is targeting next-generation technologies like TopCon and HJT solar cells to meet the market’s demand for high-efficiency, durable, and eco-friendly solutions. The sector’s projected capacity addition of 170–180 GW between FY26–FY30 highlights strong demand visibility, and the company’s pipeline of PSU-linked EPC projects across Gujarat, Assam, Rajasthan, and Uttar Pradesh provides execution momentum. While risks remain from customer concentration, EPC cost overruns, and regional dependency, the company’s proactive expansion, strategic collaborations, and focus on technological advancement provide a strong foundation for sustainable growth and margin improvement, aligning with India’s long-term clean energy goals. A strong order book provides the revenue visibility. We believe the company will take advantage of sectoral tailwinds. Solarworld Energy Solutions is currently valued at a P/E multiple of 39.5x, which we consider to be comparable with peer averages. We recommend a SUBSCRIBE rating for the issue. Investors are required to monitor the allocation of funds and ensure consistent execution across various verticals post listing.